AML GUIDANCE ON DEALERS IN PRECIOUS METALS AND STONES - Hallmark Auditors

 Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations identifies sellers in treasured metals and treasured stones (DPMS) as Designated Non-Financial Business and Professions (DNFBPs) and topics them to precise AML/CFT responsibilities below the AML/CFT legislative and regulatory framework of the United Arab Emirates.

AML/CFT OBLIGATIONS FOR DPMS

• Identifying and assessing ML/FT dangers
• Establishing, documenting, and updating rules and approaches to mitigate the diagnosed ML/FT dangers
• Maintaining ok risk-primarily based totally patron due-diligence (CDD) and ongoing tracking approaches
• Identifying and reporting suspicious transactions
• Putting in vicinity an ok governance framework for AML/CFT, inclusive of appointing an AML/CFT Compliance Officer, and making sure ok team of workers screening and training.
• Maintaining ok statistics associated with all the above
• Complying with the directives of the Competent Authorities of the State.The last motive of those measures is to set up a dependable paper path of commercial enterprise relationships and transactions, and to hint the proper useful possession and motion of assets, to be able to save you DPMS from being exploited for the functions of cash laundering and/or the financing of terrorism, and to resource the Competent Authorities of the State through reporting suspicious transactions.

TRANSACTIONS TO BE REPORTED IN DPMSR

Transactions with Individuals

• All coins transactions with people (residents/visitors) same or exceeding AED 55,000/- want to be suggested in DPMSR.

Obtain and confirm identity files (Emirates ID or Passport) which wishes to be suggested in DPMSR.

Transactions with businesses/entities

• All coins transactions same or exceeding AED 55,000/-
• All worldwide twine transfers exceeding AED 55,000/-
• All transfers performed thru change homes exceeding AED 55,000/-
• Both entities having money owed with exceptional banks running in UAE in which agreement is in USD.
• Settlement among FZ (registered in UAE) agencies in USD wherein their respective money owed are with exceptional banks running in UAE as USD agreement could be thru worldwide (move border) twine transfer.
• Settlement among FZ & onshore agencies (registered in UAE) below identical eventualities as above.

Obtain a replica of the alternate license and identity files (Emirates ID or passport) of the character representing the organisation which wishes to be suggested in DPMSR.

REGISTER DPMS REPORT ON GOAML PORTAL:

DPMS need to check in the records withinside the Financial Intelligence Unit`s (FIU`s) goAML platform.

RECORD KEEPING:

Keep statistics of all files and records for a minimal length of five years.

TRANSACTIONS NOT TO BE REPORTED IN DPMSR:

Individuals

• Credit card, cheque or neighborhood financial institution transfers with people same or exceeding

AED 55,000/- want now no longer be suggested. However, if there's any suspicion arises, it needs to be suggested below STR (Suspicious Transaction Reporting below GoAML).

• Old gold/ jewelry exchanged for brand new jewelry if there's no coins transaction same or exceeding AED 55,000/- such transactions want now no longer be suggested.

Businesses / Entities

• All transactions/Settlements thru cheque or neighborhood financial institution (twine) transfers.
• Both entities having money owed with the identical financial institution running in UAE or with exceptional banks running in UAE in which agreement is in
• Where agreement is in USD :

1. Both entities having bills with the identical financial institution running in UAE.
2. Settlement among 2 Free Zone Co. (registered in UAE) agencies in both AED or USD wherein each having bills with identical financial institution running in UAE.
3. Settlement among 2 onshore agencies (registered in UAE) in USD having bills with identical financial institution running in UAE.
4. Trade among associated events while one is registered on mainland and different in Free Zone however having bills with identical financial institution running in UAE in AED & USD.
5. Barter transactions – Gold to Gold trading :

Wholesalers settling with gold bullion towards jewellery (“Making charges” isn't always taken into consideration a reportable transaction if there's no shopping for or promoting of treasured metals and stones involved).

1. Margin calls, Loans with banks
2. Intra-agency transfers
3. Intra-agency sale/ buy
4. If transactions are performed thru LC (Letter or Credit via way of means of banks)
5. Transactions with global business banks
6. Wire switch from a mainland agency to a agency in Free zone (a part of the institution agency, consequently intra agency) for the supplies – No reporting is needed if it`s in the identical institution.
7. If the price is crafted from an account out of doors the UAE jurisdiction to an account out of doors the UAE jurisdiction (with out being routed thru the UAE).

Note:

1. All reporting to be completed on the time of receiving or paying the funds.
2. Reporting to be completed inside 2 weeks of happening the qualifying transactions.

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