Dealers in Precious Metals and Stones

If you are a Canadian jeweller, you are likely classified as a Dealer in Precious Metals and Stones (DPMS). You are then subject to Canada’s Proceeds of Crime (Terrorist Financing) and Money Laundering Act and Regulations. As a DPMS, you must have an anti-money laundering (AML) program in place.

Call Clarium Fraud & Compliance Solutions at 780-719-0016 or use the contact form on this page if you need help understanding and fulfilling your DPMS compliance and reporting requirements..

How do I know if I qualify as a DPMS?

If you have ever engaged in the sale or purchase of precious metals, stones, or jewels valued at $10,000 or more in a single transaction, including the purchase of your inventory regardless of how you paid, then you are deemed to be a Dealer in Precious Metals and Stones (DPMS).

As a DPMS, what do I have to do?

You must have an anti-money laundering (AML) program in place. At a minimum, your compliance requirements will involve the following:

• A Compliance Regime,
• Reporting Requirements,
• Ascertaining Identity, and
• Record Keeping.

You must meet all of the described requirements to be deemed compliant.

Who decides if I am compliant?

Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) is the federal regulator mandated to ensure that a DPMS is compliant with the Act and Regulations. FINTRAC is required to conduct inspections and audits and to assess administrative monetary penalties (AMP) for compliance program failures and deficiencies.

What could happen to me if I am not in compliance?

If FINTRAC concludes that you have deficiencies, you could be fined and have your name and your AMP published on FINTRAC’S website. And don’t forget, once you have paid the fine, you will still need to bring your AML regime up to FINTRAC’S standard of compliance. A single AMP can average $3,000. One entity was recently given an AMP that exceeded $300,000.

In serious cases, violators can be subject to criminal sanctions and could face fines of $2 million and up to five years in prison for a single offence.

How can Clarium Fraud and Compliance Solutions help me?

Most of Canada’s jewellery stores are small businesses, often family-owned and operated - and not particularly well positioned to build a robust AML regime. As a DPMS, your legal obligations are many. Finding direction and assistance is difficult, and you may face severe monetary and reputation consequences - and even criminal charges - if your AML program fails.

Clarium can help you. We offer a unique blend of experience and skills to help the Canadian DPMS construct and maintain an effective AML compliance regime. We offer:

• A close, successful working relationship with FINTRAC established over many years,
• Experience investigating money laundering and terrorist financing, both in Canada and internationally,
• Experience building the AML capacities of police and anti-corruption investigators in Canada and abroad,
• Experience identifying, assessing, and mitigating risk,
• Experience designing and providing training, and
• Experience writing reports.

Your passion is jewellery. Clarium's passion is helping DPMS businesses build effective AML programs and thereby disrupt transnational organized crime, money laundering, and terrorist financing.

Contact Clarium Fraud & Compliance Solutions today for expert, reliable assistance building your AML program, training your staff, and earning FINTRAC compliance.