AML-CFT Training for Dealers in Precious Metals Stones (DPMS) With the Help of Risk Insight Experts
Precious metals consist of gold, silver, and the so-called platinoid metals, mainly platinum, palladium and rhodium. Precious stones consist of diamonds, emeralds, rubies, and sapphire. While not technically gemstones, pearls are often also included in the category of precious stones in some jurisdictions.
Money laundering, through precious metals and stones transactions, is a crime of growing concern for law enforcement agencies and the financial sector of many countries. There are a lot of strategic issues at stake. Precious metals and stones have been used to finance the various civil wars in West and Central Africa and to bypass OFAC embargos on regimes like Venezuela.
Dealers in precious metals and stones are therefore vulnerable to potential money laundering and financing of terrorism schemes. For these reasons, at Risk Insight, we have developed an AML-CFT training for dealers in precious metals stones (DPMS) which can really help them avoid legal implications of not operating properly.
The nature of precious metals and stones (PMS) and the characteristics of the markets in their trade make them highly vulnerable to misuse for the purpose of money laundering and the financing of terrorism.
Among the vulnerabilities identified, there are the following:
- PMS represent high intrinsic value in a relatively compact form, tend to maintain value over time, and can be easily transported physically in many forms
- PMS can be used as vehicles to launder money
- There are large, well-established, decentralized, and often cash-based markets for certain types of precious metals and stones such as gold, diamonds and emeralds
- Difficulty in tracing specific items and the global nature of the markets for PMS make it easier to exploit cross-border illicit trade to bypass embargos
- Many small and mid-sized participants in the markets with generally a low level of awareness and education
The AML-CFT training for dealers in precious metals and stones (DPMS) look at several indicators of possible money laundering and financing of terrorism. Among them we have:
- Diamonds originate from a country where there is limited production or no diamond mines at all
- Gold mines are selling more than the maximum quantity of production volume allowed
- Volume of purchases and/or imports that grossly exceed the expected sales amount
- An increase of the volume of the activity in a diamond dealer’s account despite a significant decrease in the industry-wide volume
- Selling and buying diamonds between two local companies through an intermediary located abroad
- A single bank account is used by multiple businesses and/or has multiple deposit handlers
- Use of third parties to deposit funds into a single or multiple gold dealers’ accounts
- Financial activity is inconsistent with practices in the emeralds trade.
- Deposits or transfers to a diamond dealer’s account from foreign companies followed by immediate transfer of similar amounts to another jurisdiction.
The AML-CFT training for dealers in precious metals stones (DPMS) also look at different typologies of money laundering which are very well explained and presented through real cases.
Any dealer in precious metals and stones needing to develop his/her knowledge of how to prevent money laundering and financing of terrorism through real estate investments, should take a specialized training course developed by Risk Insight experts.
Risk Insight experts deliver the best AML-CFT training for dealers in precious metals stones (DPMS) aimed at preventing an involuntary involvement in money laundering and terrorism financing schemes.