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Chinatown Jeweller Charged for Failed CDD in Gold Transactions

A Report by CYS Global Remit Legal & Compliance Office 

In a notable case that caught CYS Global Remit attention was Kim Heng Jewellers and Goldsmiths, a well-known establishment at People's Park Complex in Singapore Chinatown, faced charges in court on Tuesday, 7th May.  The charges stem from alleged failures to perform necessary customer due diligence during three significant gold transactions between September and October of the previous year, totalling more than S$313,000 (US$231,000). 

Under Singaporean law, dealers in precious stones and metals must conduct thorough customer due diligence, especially when transactions exceed S$20,000. This process includes verifying customers' information through independent and credible sources to prevent illicit activities. 

The alleged lapses occurred during a period marked by a surge in phishing scams involving Android malware, according to a joint media release by the Ministry of Law and the Singapore Police Force (SPF). These scams resulted in unauthorized transactions from victims' bank accounts. Investigations revealed that proceeds from these scams were funnelled into three transactions involving Kim Heng Jewellers and an unidentified individual. 

This case underscores the critical need for robust due diligence in the precious metals and stones industry to thwart money laundering and related criminal activities. Dealers are reminded of their legal obligations and the severe consequences of non-compliance. 



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