Regulated dealers are required to conduct Customer Due Diligence ("CDD") under the following circumstances under section 16 of the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act ("PSPM Act"):
i. Where there are designated transactions,
ii. Where there is suspicion of Money laundering/Terrorism financing/Proliferation Financing ("ML/TF/PF"),
iii. Where there are doubts about the veracity, or adequacy of previously obtained customer identification data, or
iv. Under the following prescribed circumstances :
• before entering into a transaction involving payment in gold (except in the form of jewellery) exceeding S$20,000;
• before entering into a transaction involving payment digital payment tokens exceeding S$20,000;
When conducting CDD under the above circumstances, Enhanced Customer Due Diligence ("ECDD") should be conducted as set out in regulation 7(2) of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations ("PMLTF Reg"), where the customer, or a person on whose behalf the customer is acting is:
i. a politically exposed person (“PEP”), a family member or a close associate of a PEP,
ii. from or in any country or jurisdiction in relation to which, the Financial Action Task Force ("FATF") has called for countermeasures or ECDD measures, or is a country or jurisdiction found to have inadequate measures, as notified by the Registrar, or
iii. assessed by the regulated dealer to present a higher risk of ML/TF/PF.
The countries under FATF’s listing of ‘Jurisdictions under Increased Monitoring’ are considered higher risk countries. When conducting CDD in scenarios under section 16 of PSPM Act on customers from these countries, regulated dealers are expected to perform ECDD on these customers.