auditing and accounting

1. Risk of Money Laundering to Which Precious Metals Dealers Are Exposed According to Cabinet Decision No. (10) of 2019, dealers of precious metals and gemstones are regarded as DNFBPs under the UAE AML-CFT law. When DPMS conducts any financial transaction with a value of AED 55,000 or more, they are qualified to be a DNFBP in the UAE.auditing consultancy dubai It may also consist of numerous connected transactions whose combined value may exceed the threshold required to qualify as a DNFBP. Numerous studies and research have shown that due to the special properties of precious metals and stones like gold and metal, DPMS is exposed to significant risks and is especially prone to money-laundering and terrorism funding concerns.best auditing consultancy dubai As a result of the widespread illicit use of DPMS as a cover for money laundering, the AML When precious metals are utilized in place of currency, The special qualities of valuable stones and metals to store value give criminals a chance to unfairly benefit from these qualities by using such metals or stones as an alternative to paying for terrorist acts. Recent investigations into terrorism and the group have revealed that the common means of financing terrorism is the smuggling of easy-to-conceal commodities like gold, silver, or diamonds. Due to their special qualities of holding value as indicated above and having international acceptance, together with the fact that they are very simple to transport across borders, precious metals can be used as proceeds of crime. They are a perfectly valuable means of exchange for terrorist activities since they can be kept and maintained until their worth increases over time, at which point they can be sold for profits. They can also be transformed into new forms. Dealers must therefore be on the lookout for actions that could be used to finance terrorism and money laundering. Thieves' use of stolen precious metals as currency: Due to the high degree of complexity and the involvement of various intermediates at various levels in the PMS supply chain, there are numerous gaps that the Using trade to smuggle precious metals: Due to the high value-to-weight ratio and specific characteristics of trade, many criminals use it to smuggle gold and other precious metals. They might even try to fool the appropriate authorities by passing off unlawful smuggling as a trade-in of legitimate goods.

2. The DPMS must make sure that they are not exposed to any money laundering dangers. To do this, they must abide by a few guidelines that will help them stay out of major messes.