AML Compliance Gold Dealer Singapore

AML compliance for a gold dealer in Singapore means running customer due diligence, monitoring transactions and reporting suspicious activity under the rules that apply to precious metals dealers. Gold is a high-value, portable asset, so regulators and banks look closely at how dealers manage their money laundering risk.

The legal framework

Singapore regulates dealers in precious metals and precious stones under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019, alongside the wider anti-money laundering framework. Obligations depend on the type and size of your business, so confirm the current requirements with qualified compliance counsel rather than relying on summaries.

Customer due diligence

Verify who your customer is before accepting a significant transaction. For individuals, that usually means identity documents and proof of address. For companies, it means corporate documents, beneficial ownership and the identity of the people who control the business. Apply enhanced checks where the customer, the source of funds or the transaction presents higher risk.

Source of funds and wealth

Ask where the money for a purchase comes from, and keep evidence that supports the answer. Large cash payments, third-party payments and transactions that do not match a customer’s known profile deserve closer review.

Monitoring and records

• Record each transaction with the date, value, metal, form and customer details.
• Set internal thresholds that trigger review.
• Keep records for the period the rules require.
• Review the risk assessment as the business changes.

Suspicious transactions

Staff should be trained to recognise suspicious activity and to escalate it internally. Where the rules require a report to the authorities, it must be made in the required form and time. Tipping off a customer about a report is generally an offence under the AML rules.

Next steps