Under the Money Laundering and Terrorism (Prevention) Act (MLTPA), a person who intends to or is carrying on business of dealing in precious metals and precious stones (DPMS) shall apply for registration with the FIU. DPMS means an individual or an entity that buys or sells precious metals, precious stones or jewelry, in the course of its business activities. Precious metals include gold, silver, palladium or platinum whether in coins, bars, ingots, granules or in any other similar form. Precious stones include diamonds, sapphires, emeralds, tanzanite, rubies or alexandrite. Jewelry means objects made of precious metals, precious stones or pearls intended for personal adornment.
Application to register as a DPMS
All DPMS must apply for registration with the FIU and pay the applicable registration and a non refundable application fee. Section 85A (3) of the MLTPA states A person who contravenes this section commits an offence and is liable on summary conviction to a fine of not less than ten thousand dollars or to imprisonment for twelve months or to both.
To download a copy of the registration form and guide for registration click here.
If you are a DPMS, you have to implement a compliance regime if you engage in the purchase or sale of precious metals, precious stones or jewelry in an amount of $15,000 or more in a single transaction. However, you are not subject to this when you engage in a purchase or sale carried out for, in connection with, or for the purpose of manufacturing jewelry, extracting precious metals or precious stones from a mine or cutting or polishing precious stones.
You must report where there are reasonable grounds to suspect that a transaction or an attempted transaction is related to the commission or attempted commission of a money laundering offence or a terrorist activity financing offence. You may report an STR using the FIU’s online STR reporting portal by clicking here.
All DPMS must file a quarterly transaction report of $15,000.00 or more with the FIU no later than 15 days after the quarter ends. To download a copy of the quarterly report click here.
You must report where you know that there is property in your possession or control that is owned or controlled by or on behalf of a terrorist or a terrorist group.
You must keep the following:
- Large cash transaction records if the transaction involves $15,000 or more in cash:
- Copies of suspicious transaction reports
You must take specific measures to identify the following individuals or entities:
- Any individual who conducts a large cash transaction
- Any individual for whom you have to send a suspicious transaction report (reasonable measures and exceptions apply)
Third Party Determination
Where a large cash transaction record is required, you must take reasonable measures to determine whether the individual is acting on behalf of a third party.
In cases where a third party is involved, you must obtain specific information about the third party and their relationship with the individual providing the cash.
The following five elements must be included in a compliance regime:
- The appointment of a compliance officer
- The development and application of written compliance policies and procedures
- The assessment and documentation of risks of money laundering and terrorist financing, and measures to mitigate high risks
- Implementation and documentation of an ongoing compliance training program
- A documented review of the effectiveness of policies and procedures, training program and risk assessment
See: Implementation of a Compliance Regime
Penalties for Non-compliance
Non-compliance with the Money Laundering & Terrorism (Prevention) Act, 2008 may result in criminal or administrative penalties.