Regulatory Alerts2020-07-23 | Circular No.5Jewelers and Precious Metals / Stones Dealers Red Flags
Reporting entities, including jewelers and precious metal dealers, must promptly file Suspicious Transaction Reports (STRs) with the Financial Monitoring Unit in accordance with the Anti-Money Laundering Act, 2010. The FMU has provided specific red flag indicators designed to assist these entities in identifying potential money laundering or terrorism financing activities. While individual red flags are not conclusive, they must be evaluated in combination with a client's overall financial activity and profile to determine if a reportable suspicion exists.
FINANCIAL MONITORING UNIT (FMU) GOVERNMENT OF PAKISTAN 2ND FLOOR, SBP MAIN BUILDING, I.I. CHUNDRIGAR ROAD, KARACHI 4400
FMU-Circular No. 05 of 2020 July 23, 2020
DNFBPs (Jewelers and Precious Metals / Stones Dealers)
Dear Sirs/Madams,
Red Flags Indicators for Jewelers and Precious Metals / Stones Dealers
In terms of Section 7 (1) of Anti-Money Laundering Act, 2010, the reporting entities are required to promptly report Suspicious Transactions Reports (STRs) to Financial Monitoring Unit for potential Money Laundering (ML) / Terrorism Financing (TF) related activities. The reporting entities also includes Designated non-Financial Business Professions (Jewelers and Precious Metals / Stones Dealers) as per Section 2 (u) read with Section 2 (m) of AML Act 2010.
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In order to identify a suspicion that could be indicative of Money Laundering (ML) or Terrorism Financing (TF), FMU has prepared the red flags indicators that are specially intended as an aid for Jewelers and Precious Metals / Stones Dealers, which are attached as “Red Flags Indicators for Jewelers and Precious Metals / Stones Dealers”.
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These red flags may appear suspicious on their own; however, it may be considered that a single red flag would not be a clear indicator of potential ML / TF activity. However, a combination of these red flags, in addition to analysis of overall financial activity and client profile may indicate a potential ML / TF activity.
Encl: Red Flags Indicators for Jewelers and Precious Metals / Stones Dealers
Yours truly,
Sd/- (Sumera Baloch) Additional Director
Distributed to:
The Chairman, Federal Board of Revenue (FBR)