Dealers in Precious Metals & Stones
On the 1st December 2008 the Criminal Justice (Proceeds of Crime) (Restriction on Cash Transactions) (Bailiwick of Guernsey) Regulations, 2008 ("the Regulations") came into force. The Regulations restrict the sale or purchase of precious metals, precious stones or jewellery where the payment is made in cash and exceeds £10,000. A person who contravenes the restriction commits an offence and is liable, for a first offence, to a fine not exceeding £1,000 and, for a second or subsequent offence, to a fine not exceeding twice the value of the cash involved.
The Regulations do not detract from the requirements of the Disclosure (Bailiwick of Guernsey) Law, 2007 and the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002 to report suspicion of money laundering and the financing of terrorism to the Financial Intelligence Service ("FIS"). These requirements to report suspicion of money laundering and the financing of terrorism extend to transactions and attempted transactions of any value.
This legislation contains offences if dealers and individuals employed by dealers do not make a disclosure to the FIS where they have knowledge or suspicion of money laundering or terrorist financing, or if they have reasonable grounds for knowing or suspecting money laundering or terrorist financing. Further details on the making of a disclosure of suspicion to the FIS can be found on the FIS' website at www.guernseyfiu.gov.gg.
Dealers and their staff are legally protected from breaking any obligation of confidentiality when making disclosures to the FIS. The legislation also includes tipping off offences whereby it is an offence to disclose information or any other matter which is likely to prejudice an investigation by law enforcement.
Case studies involving dealers in high value goods can be found here.