Thukten Zangpo

The Gelephu Mindfulness City (GMC) has adopted 18 Singaporean laws and 10 Abu Dhabi Global Market (ADGM) financial regulations to guide its governance in areas such as company incorporation, employment, taxation, and financial services, among others.

The Gelephu Mindfulness City Authority (GMCA) recently enacted the landmark GMC Law No. 1 of 2024, also known as the Application of Laws Act 2024, under Article 4(2) of the GMC Royal Charter of 2024. The law received Royal assent from His Majesty the King and became effective on December 26, 2024.

Singapore’s common law includes the common law of England, and the principles and rules of equity, established in Singapore prior to November 12, 1993.

The Singaporean laws incorporated into GMC include Companies Act 1967, Contracts (Rights of Third Parties) Act 2007, Customs Act 1960, Electronic Transactions Act 2010, Employment Act 1968, Employment of Foreign Manpower Act 1990, Goods and Services Tax Act 1993, and Immigration Act 1959.

Other key legislation includes Income Tax Act 1947, Insolvency, Restructuring and Dissolution Act 2018, Interpretation Act 1965, Official Secrets Act 1935, Personal Data Protection Act 2012, Property Tax Act 1960, Sale of Goods Act 1979, Spam Control Act 2007, Stamp Duties Act 1929, and Unfair Contract Terms Act 1977.

The 10 ADGM regulations adopted by GMC include the Financial Services and Markets Regulations 2015, and related rules, such as the Anti-Money Laundering and Sanctions Rules and Guidance, Captive Insurance Business Rules, Conduct of Business Rulebook, among others.

The ADGM regulations are a comprehensive set of rules and guidelines governing financial services and business operations within the ADGM financial free zone in Abu Dhabi, United Arab Emirates.

Based on English common law, the ADGM’s legal framework  provides a familiar and internationally recognised legal system for businesses and investors. It is supported by independent regulatory bodies, including a registration authority for overseas company registration and licensing, a financial services regulatory authority overseeing financial institutions and markets, and ADGM courts renowned for providing a world-class judicial system to resolve disputes.

Aligned with international standards and best practices, the ADGM framework ensures financial stability, protects the interests of investors and consumers, and promotes transparent and orderly markets.

The regulations cover the licensing and supervision of banks, investment firms, insurance companies, and other financial institutions. They also encompass the regulation of securities trading, investment funds, and other capital market activities, alongside robust measures to combat financial crimes, including anti-money laundering and counter-terrorism financing protocols.

According to the GMC Law No. 1, in case of a conflict, Singaporean laws will take precedence over ADGM regulations unless the GMCA determines otherwise. The GMCA also retains the authority to amend, modify, or disapply these laws to address local circumstances or conflicts.

The GMCA also has the full authority, as outlined in the Royal Charter, to enact laws for the GMC, including those pertaining to land, taxation, crime, and any other relevant areas.

According to the Act, the GMCA is empowered to issue guidance on the application of laws within GMC. This includes establishing general principles of interpretation for any provisions of the Act or GMC laws, resolving conflicts between applicable laws, clarifying the specific effects of any provisions, and addressing any other matters deemed necessary for effective guidance.

Until the GMCA establishes separate executive and judicial bodies, all related functions will be carried out by the Authority or its authorised representatives. This legal framework is designed to ensure streamlined and efficient processes for businesses and individuals operating within GMC.