High-value, portable and easily convertible, precious metals and stones can store and move value outside the banking system — a classic money-laundering vector for cash-based purchases.
The rating above is indicative — it reflects inherent risk as assessed in the published frameworks, not a verdict on any business. Entire industries serve these sectors as business as usual; the rating your firm actually applies comes from its own business-wide risk assessment, where the sector factor combines with your customer base, controls and risk appetite.
FATF and the EU assessment flag dealers in precious metals and stones as exposed to money laundering, particularly through high-value cash transactions and the portability of the goods, which lets value cross borders undetected.
Dealers must apply CDD on high-value (especially cash) transactions above the regulatory threshold and report suspicious activity. Sector risk combines with geography, the customer’s profile and the product to set the overall rating — and every client still needs sanctions, PEP and adverse-media screening on the parties themselves.
