Risk Radar: Spotting ML/TF Red Flags in Precious Metals and Stones Business

Precious metals (like gold, platinum, silver) and precious stones (such as diamonds, ruby, pearls, etc.) have been associated with money laundering, being exploited by financial criminals owing to their inherent characteristics like small in size, easy portability, global acceptance as a medium of exchange, etc.

Understanding the red flags connected with these precious metals and stones to spot the potential risks and prevent the same promptly. The Dealers in Precious Metals and Stones must watch out for the risk indicators while onboarding a customer or in the course of the ongoing business relationship and identify unusual trends or inconsistent customer behaviour suggesting suspicion.

Here is an infographic capturing some key ML/FT red flags that a Dealer in Precious Metals and Stones must be aware of and cautious about.

AML UAE is an AML consultancy service provider, offering end-to-end AML support to regulated entities, including Dealers in Precious Metals and Stones, in assessing the overall business risk, customizing the AML/CFT Program to identify and mitigate the risk and stay AML compliant.