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Monday 25 January, 2021

Indicators related to the Gold, Precious Metals and Gemstones Sector

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Client Related Indicators
  1. The client purchases goods randomly regardless of their value, size, or color.
  2. The purchase or sale operations are unusual for the client or the supplier (for example: the profession and age of the buyer does not match the value of the transaction or the type of precious stones or metals associated with the transaction).
  3. The client or supplier attempts to maintain a high degree of confidentiality regarding the transaction, such as asking not to keep normal commercial records.
  4. The client is reluctance to give accurate information about his identity when making a purchase, and then regains a large sum of money.
  5. The client requests an item and pays for it in cash, and then cancels the order and regains a large sum of money, or asks about the possibility of returning the goods and obtaining a check in return, especially if the client requests writing the check in the name of a third party.
  6. The client pays a high price in cash for a piece of jewelry or a precious metal without negotiating the price, or if the piece surpasses the client's ability compared to his profession or his declared or known income.
  7. The client or supplier does not occupy a position in the company he claims to represent, or has reservations about disclosing his job.
  8. The client changes his bank accounts frequently and illogically.
  9. The client is a politically exposed person.
  10. The client uses non-bank financial institutions without apparent reason or commercial interest.
  11. An unknown client requests to convert gold into bullion.
  12. The client owns several companies that trade gold and precious metals.
  13. The continuous changing of commercial names for entities registered to deal in gold and precious metals.
  14. The supplier suspiciously offers a low price or large discount to speed up transactions.
Transaction Related Indicators
  1. Using unusual amounts of cash to pay for the commodity.
  2. The transaction lacks commercial sense.
  3. Large and regular payments in a currency other than Bahraini Dinars.
  4. Requesting to increase or reduce the value of the invoice, or requesting organized, complex or multiple invoices.
  5. Very expensive shipments that are over-insured or undervalued.
  6. The buyers or sellers lack acceptable experience in the precious metals and gemstones sector.
  7. A large sum transaction from an unknown merchant.
  8. Selling gold bars, coins and diamonds from a retail jewelry store.
  9. Buying or selling operations that do not conform to standard business practices in the relevant sector.
  10. The company’s cargo transfer process is unclear.
Geographical Location Related Indicators
  1. The presence of a store, branch, or partner affiliated to him in non-cooperative countries or regions, according to the FATF lists.
  2. The client or supplier is associated with a high risk area.