Precious Metals and Precious Stones Dealers
Stay audit-ready and risk-resilient while meeting your mandatory FINTRAC obligations. Compliance under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) is not optional—it is a legal requirement for all precious metals and stones dealers operating in Canada.
Avoid heavy fines, reputational risk, and operational disruption with an AML compliance platform built specifically for high-value physical assets and luxury trades.
Who Is It For?
including gold, silver, palladium, and platinum
including diamonds, sapphires, emeralds, tanzanites, rubies, and alexandrites
Industry Overview
The precious metals and stones trade is a high-value, high-risk sector for money laundering, due to the mobility and anonymity of physical assets. Under Canadian regulations, all Dealers in Precious Metals and Stones (DPMS) must comply with FINTRAC rules—implementing identity checks, maintaining detailed transaction records, and reporting certain financial activities.
These rules apply to both retail and wholesale transactions, and cover both buyers and sellers. Compliance failures can result in serious penalties, business disruption, and potential criminal liability.
New Compliance Landscape: Bill C-2
Canada’s Bill C-2, currently in Parliament, introduces sweeping changes to anti-money laundering laws. It proposes:
Stricter penalties:
Individuals could face fines of up to $4 million per violation, while DPMS entities may face up to $20 million.
Cumulative penalties:
For multiple infractions, fines may rise to the greater of $4M or 3% of global income (individuals), and $20M or 3% of global annual revenue (entities).
Mandatory FINTRAC enrolment:
All regulated DPMS businesses must enrol with FINTRAC unless specifically exempted. This includes submitting detailed applications, renewing periodically, and updating business information as needed.
These changes make proactive compliance critical. Our platform equips DPMS businesses to handle both today’s requirements and tomorrow’s legislation—efficiently and reliably.
Common Challenges
Our Solutions
High-Value Transaction Monitoring
Stay ahead of FINTRAC’s threshold triggers with real-time monitoring.
Easily generate Large Cash Transaction Reports (LCTRs) or Suspicious Transaction Reports (STRs).
Collect and validate identity documents securely.
Classify clients for ongoing due diligence based on transaction history.
Identify if the transaction is on behalf of someone else.
Capture beneficial ownership information when dealing with corporate buyers or sellers.
Store invoices, ID copies, declarations, and transaction logs for at least five years.
Prepare for FINTRAC reviews without manual collection.
Services Relevant to This Industry
Large Cash Transaction Reporting (LCTR)
Automate detection and generation of LCTR submissions when cash sales exceed $10,000.
Customer Due Diligence (CDD)
Quickly verify customers and maintain consistent onboarding records.
Ongoing Monitoring & Suspicious Activity Detection
Monitor for red flags such as structuring, third-party purchases, or irregular behavior.
Third-Party Determination and Declarations
Capture and document involvement of third parties to meet regulatory requirements.
Compliance Recordkeeping and Audit Tools
Retain detailed records of each transaction with time-stamped logs and access controls.
Real-World Use Cases
Use Case 1: Walk-in gold buyer paying $12,000 in cash
The system auto-flags the amount, initiates ID verification, and generates an LCTR for review and submission.
Use Case 2: Jewelry business making multiple smaller purchases in a day
The platform detects potential structuring, prompts for a deeper investigation, and logs the risk rating.
Use Case 3: Dealer accepting payment from an overseas third party
A third-party declaration form is triggered, capturing relevant details and storing it with the invoice.
Frequently Asked Questions
Do precious metals dealers need to report large cash transactions?
Yes. Dealers must report any cash transaction over $10,000, either in a single transaction or series of related transactions.
What documents do I need to verify for clients?
Typically, a government-issued photo ID. For businesses, articles of incorporation and beneficial ownership documentation may be required.
How do I detect if someone is structuring transactions?
Our system flags multiple transactions within a short window that may be designed to avoid the $10,000 threshold.
What if I sell through a third party?
You must determine and document the third party involved. Our platform automates this collection process.
How long do I need to retain records?
At least five years from the date of the transaction or business relationship termination.
Getting Started
Achieve seamless compliance in the precious metals industry—without slowing down operations. Automate key FINTRAC requirements and protect your business from regulatory risk.
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Our team is here to listen, answer your questions, and help you get compliant — fast.
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