Why Dealers in Precious Metals need AML/CTF?
Dealers in Precious Metals, Jewels and Stones engage in the business of production, mining or trading of precious metals or jewellery. This is a high-risk sector as it offers a lucrative market for criminals who want to hide, transfer or invest their illicit proceeds. As a registered dealer, manufacturer, trader or a miner in precious metals, jewels or stones, you are a “regulated entity”, if you:
- do import, deal or trade in coin or bullion; or
- deal in precious metals (like gold, silver, and platinum), jewels (like a pearl, amber, and coral) and stones (like diamond, rubies and sapphires); or
- produce precious metals or precious stones at mining operations; or
- are a buyer or seller in the secondary and scrap markets; or
- are a jewellery manufacturer who uses precious metals and precious stones for retail sellers.
This sector is an attractive channel for money laundering because cash is an acceptable method of exchange, and the goods can be transported easily. Trade-based money laundering: false reporting, commodity misclassification, carousel transactions, or round-tripping through other countries; make it difficult to identify the source of funds or the purpose of transactions. This allows the proceeds of crime and illicit activities to be laundered through these goods, exposing dealers to fraud, bribes or terrorism financing (TF).
Compliance begins at the onboarding stage with KYC, determining third-party involvement, ultimate beneficial owners, conducting sanctions and PEP checks, as well as checking SDN lists, if applicable. The ongoing risk-based approach includes scrutiny of cash transactions above the designated threshold, high-value transactions, high-risk clients, or high-risk countries; declaration of the sources of funds and legitimacy of the transaction; monitoring for unusual behaviour; and reporting of suspicious transactions and invoicing.
The ability to trade anonymously in these high-value goods using cash or cryptocurrencies makes it difficult to trace ownership. Other factors like ease of illegal smuggling or mining, transporting these goods across borders for criminal transactions, trade-based money laundering, lack of transparency in transactions and ownership structures, allows illicit funds to be incorporated into the legitimate economy. Other bad practices like inadequate documentation or using these precious goods for bribing, make dealers in precious metals vulnerable to AML/CTF compliance.
Businesses dealing with precious metals, jewels and stones are expected to establish the framework for a risk-based compliance program:
- Conduct a risk-based assessment for exposure by its products, services, and delivery channels; types of clients and third-parties involved; the country in which it operates or transacts with; size or pattern of transactions; nature of trade; and business relationships.
- Create risk reduction measures and controls to lessen risk.
- Develop an AML/CTF program: client identification, beneficial ownership or third-party business relationship, Sanctions/SDN/PEP screening.
- Have policies and procedures in place for Suspicious Transaction Reporting (STR).
- Implement a risk-based approach to ongoing monitoring of transactions, cross-border trades, patterns and business relationships.
Set up and maintain your compliance program, as per the laws of your regulatory body. Non-compliance may result in criminal or administrative monetary penalties.
Ongoing compliance involves:
- Training staff, and designating an AML Compliance or Digital Ethics Officer.
- Conducting customer due diligence (CDD) when establishing a new business relationship or enhanced due diligence (EDD) for cash transactions above a designated threshold, or when a criminal is found to be the beneficial owner or holding a management function in the precious metals business.
- Keeping records as required by your regime.
- Ongoing CDD and transaction monitoring to identify and report suspicious activity.
- Complying by the laws set out by your country’s regulator, and industry bodies.
- Reviewing your compliance program at regular intervals.
Our PEP and sanction screening service will help you reach your compliance requirements.
Our details scan reports provide you with an overview of in-depth information on potential risks to your organisation.
We provide access to multiple data sources to meet the varying requirements of users.
We update the information for all of our data sources daily to provide you with up-to-date relevant data.
Save the time manually checking names by using our batch scanning feature to scan bulk files of names simultaneously
Our service is straight-forward and easy use, making compliance easy by simplifying processes.
Perform due diligence by assigning risk, determining true matches and recording decisions in the NameScan dashboard.
Conduct further research into potential matches and risks to your organisation through various sources.
Use our API to integrate with your existing systems to automate the screening process.
Good, easy to use, gets it done
There are pros and cons to automated, comprehensive, fully-integrated systems. But for our workflow, we like that no integrations are required and we can use it as a standalone platform for running AML/PEP checks.
Top Level AML Solutions tailored to specific needs
Provides excellent value for money, is easy to use, accessible, and can be tailored for specific needs.
Detailed PEP/SIP Scanning with easy integration
Integration was easy with well-documented API. Both 'in house' and 'commercial' databases were detailed and provided valuable insights. The team are always accessible to provide support.
Making Life Much Easier
Been using this system for while now and really love the way that we get detailed response on every search that we conduct in matter of few seconds.
User-friendly and detailed report. Seems to be the best product on the market Industry.
Using the API for a year without any major issues
Namescan API is well documented and easy to implement. We have been making calls to the API for almost a year now and there was only one instance when the call failed.
Corporate clients due-diligence
I highly recommend NameScan as it gives a detailed check on the required individuals and entities.
NameScan helps us understand our risk
NameScan is preventing us from writing a risk for an individual or entity that my have serious liability issues. I have no issues with the software itself.
Company Secretarial Services
Perfect for our needs
Quick and easy to run checks against a wide range of sanctions and PEP lists.
Best option out there for what we need
The simplicity and quality of the reports! Our clients have commented on how good it is to have all the scanned lists in one place.
Value for money
Very positive experience particularly in obtaining valuable and timely information on subject individuals.
Pretty good platform
Easy to use and get up and running on quickly.
Chief Compliance Officer
Pleasantly Surprised with the service
I was pleasantly surprised with the service, the results received on my test scan were very insightful and I can see where this can be a very useful part of any firm's AML program.
Happy about our experience
NameScan is extremely easy to use and highly intuitive.
Makes our life easier to check clients and suppliers
As an international Trading and distribution company we rely on good data about our potential clients and suppliers. When looking for an AML/CTF vendor we found NameScan, I personally like it because it makes our life easier to check clients or suppliers in our industry which is full of fraudsters. NameScan gives me the security I need when transacting. Great idea, well done, best web development for a long time.
Simple and easy to use interface
Simple and easy to use interface. What more can you ask for to help satisfy Client Due Diligence requirements.
Your services exceeded my expectations
My first impression of your services exceeded my expectations because it provides clear and exact information which nowadays is difficult to find namely in considered credible sources. As part of constant improvement in achieving the credibility of the global financial system in general, your company is already one step ahead in providing the high valuable credible information and gaining trust from serious free from global elite influence person like me. It´s a perfect example of how independent non-governamental companies can do excellent work and achieve excellence based on high standards of integrity and bold core values, wisdom and vision for a brighter future.
Easy to use service
Easy to use and to sign up, contains user friendly outputs.
I like how the search is narrowed. It is sensitive to include full names and also first and last name (unlike other providers I tested too). Well done.
Great user experience
Great experience! It is a user-friendly interface. The dedicated team responds quickly and efficiently to any question we may have.
Excellent Service body
Excellent service who considers startups low scan volume needs. User friendly dashboard.
Quality and Comprehensive service
NameScan provides our business with a quality and comprehensive service.
Intuitive AML screening software
Great easy to navigate and AML screening software. No fluff, no frills, straight to the point.
Excellent choice for small fintech start-ups
Namescan is an excellent choice for small fintech start-ups, where paying the large up-front signup fee of other AML solution providers can be less interesting.
Chief Compliance Officer
Easy to use and comprehensive
Easy to use and comprehensive. I recommend.
User Friendly Interface
NameScan has a very user friendly interface.
Highly recommend it
Its an effective tool, user-friendly and provides a comprehensive reports. Highly recommend it.
Easy to use and convenient
NameScan's service is easy to use and convenient.
Simple and Intuitive
Simple and intuitive to use with actionable insights and reassuring.
Simple and convenient
This one is very convenient for us.
Easy and quick
It’s easy to use and quick with results.