This operational brief provides information and guidance about the factors that expose individuals and entities (both retailers and wholesalers/suppliers) that are dealers in precious metals and stones to money laundering and terrorist financing risks. The brief also includes indicators to help such dealers determine when they should report a suspicious transaction to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Dealers in precious metals and stones (DPMS) have a unique risk profile with regard to money laundering and terrorist financing because they trade in transferable items of value. This risk is heightened because these items could be one or more of the following:
- the proceeds of crime
- purchased with the proceeds of crime
- used to launder the proceeds of crime.