Workshop for Dealers of Precious Metal and Stones.

ILSTA and the Ministry of Industry and Commerce jointly organised a workshop for Dealers of Precious Metal and Stones.
Reporting Entities, such as financial institutions, designated non-financial businesses and professions (DNFBPs), casinos and gambling establishments, and virtual asset service providers (VASPs), are required to report suspicious activities or transactions that could potentially involve money laundering or terrorist financing. Dealers of Precious Metal and Stones, who are part of DNFBPs, play a significant role in helping authorities detect and prevent financial crimes as reporting entities.
Diamonds, jewels and precious metals have unique physical and commercial properties that can be easily transported in small quantities. The global trade of these materials varies from modern international transactions conducted through the financial system to localized informal markets. Dealers can range from impoverished individuals in remote areas to wealthy individuals and multinational companies in major financial centres. Transaction methods can vary from anonymous exchanges for cash to government-regulated deals on exchanges. These factors make dealers in precious metals and stones vulnerable to money laundering and terrorist financing, which justifies the need to introduce regulatory measures.
Certain DNFBPs are subject to regulatory or professional requirements that complement anti-money laundering and combating the financing of terrorism (AML/CFT) measures. In some countries, dealers may need to obtain licenses and have their activities overseen by government agencies. In this respect, harmonizing AML/CFT policies and procedures with other regulatory or professional requirements can be beneficial. Implementing a risk-based AML/CFT regime can also ensure that honest customers and counterparties can access the services provided by dealers in precious metals and stones.
During this workshop, ILSTA provided an overview of the FATF standards that relate to reporting entities and the findings of the 2023 Asia Pacific Group Mutual Evaluation Report. ILSTA looks forward to continuing to support similar training initiatives in the future.
This event was made possible with support of the Luxembourg Aid & Development and the Ministry of Finance from Luxembourg.