Australia’s expanded anti-money laundering and counter-terrorism financing (AML/CTF) framework brings new obligations for auction houses and dealers handling jewellery, watches, precious metals, gemstones and related products.

The rules apply where a business buys or sells precious metals, precious stones or precious products valued at $10,000 or more and the transaction involves physical currency, virtual assets, or a combination of the two. The threshold also applies where several transactions are linked or appear to be linked.

An important consideration is how customers pay.  The regulators is Austrac, an Australian Government agency, which advises that purchases made entirely using debit or credit card or bank transfer do not constitute this particular designated service. Businesses can therefore consider whether limiting the amount of physical currency or virtual assets they accept is appropriate for their operations.

Auction houses should also have processes for identifying linked transactions. Several payments associated with the same purchase may collectively reach the $10,000 threshold even where each individual payment is below it.

Austrac has prepared extensive guidance to help auctioneers and dealers in precious metals, stones and products understand the extent to which the AML/CTF regime applies to them.

For auction houses and dealers, the definition of regulated products is particularly important. It includes precious metals such as gold, silver, platinum and palladium; precious stones including diamonds, opals, pearls, topaz and jadeite jade; and precious products such as jewellery, watches, personal adornments and goldsmiths’ or silversmiths’ wares containing precious metals or stones.

Businesses providing these designated services should be progressing the practical elements of compliance. This includes having an AML/CTF program, appropriate customer identification and due diligence procedures, systems for identifying relevant transactions, and processes for meeting applicable AUSTRAC reporting requirements. Relevant staff should also understand their responsibilities and receive appropriate training.

AUSTRAC’s approach provides businesses with useful options. Each auction house or dealer can consider its transaction profile, payment methods and exposure to regulated products, then establish proportionate systems that work within its existing business processes.

The Auctioneers and Valuers Association of Australia (AAVAA) continues to engage directly with Austrac to ensure the practical circumstances of auction houses, auctioneers and valuers are understood as the expanded AML/CTF framework is implemented. This engagement has focused on obtaining clear, practical guidance for the sector, including how the requirements apply to auction transactions, client funds, payment arrangements and linked transactions. AVAA will continue working constructively with Austrac and sharing relevant guidance with members to support a smooth transition and help businesses confidently integrate the new requirements into their existing operations.

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Interested In Finding Out More?

If you’d like more information on this issue, send an email to standards@avaa.com.au or telephone 1300 928 165.  You can also stay up to date by following AVAA on LinkedIn, X/Twitter and Facebook.
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