Kim Heng Jewellers & Goldsmiths, located at People’s Park Complex in Chinatown, has been formally charged with three counts of failing to conduct mandatory customer due-diligence measures.
This legal action comes after investigations linked over $313,000 from their sales proceeds to potential money laundering activities. The transactions in question involved high-value gold items and took place between September and October 2023.
Details of the Charges
The police and the Ministry of Law (MinLaw) highlighted that the charges were precipitated by reports of phishing scams that targeted Android users, leading to unauthorised bank transactions. Subsequently, the illicit funds were traced to three specific transactions at Kim Heng Jewellers & Goldsmiths. The items sold included gold jewellery and a gold bar, with individual sales reaching as high as $173,295.
The police and MinLaw stated, “The precious stones and precious metals regulated dealer allegedly failed to perform prescribed customer due-diligence measures when there was reason to suspect money laundering.” This lack of scrutiny has resulted in legal and regulatory challenges for the jeweller.
Financial Details of the Transactions
The breakdown of the transactions is as follows:
- On or around September 15, 2023, a gold rope chain was sold for $28,000.
- A subsequent sale on or around September 16, 2023, included a gold 24-karat rope chain and a gold abacus pendant, fetching $173,295.
- The last recorded transaction, around October 2, 2023, involved a gold bar and another 24-karat gold rope chain, together valued at $112,332.
Regulatory Actions and Industry Implications
In response to these events, MinLaw reiterated its commitment to stringent regulatory oversight. It performs regular supervisory inspections of dealers in precious stones and metals to ensure compliance with legal standards, especially concerning anti-money laundering protocols.
Furthermore, in August 2023, MinLaw issued a notice to dealers regarding 34 individuals potentially linked to suspicious activities. This list included ten foreigners implicated in Singapore’s largest money laundering case to date, five of whom have been convicted, with the rest still under trial.
Dealers were advised to “review transactions and business relations to assess if there are any reasonable grounds to suspect criminal conduct, including money laundering in connection with the police investigation.”
Heightened Scrutiny for Jewellers
This case serves as a stark reminder to all jewellers and dealers in precious commodities about the critical importance of due diligence. Compliance with legal standards is not merely a formality but a necessary safeguard against inadvertently facilitating financial crimes. The industry must remain vigilant, ensuring all transactions are thoroughly vetted to maintain integrity and trust in the market.
