Metal and gem deals with cash of 100,000 yuan shall be reported: PBOC

China's central bank will request dealers of precious metals and gemstones to report transactions with cash of 100,000 yuan (HK$109,499) or more from August, citing money laundering risks.

The People's Bank of China issued a circular on June 30 to dealers engaging in spot trading of precious metals and gemstones within China about the measures for anti-money laundering and counter-terrorist financing.

The precious metals include gold, silver, platinum and their coins, standardized bars, products, intermediate products and refined raw materials. Gemstones refer to all kinds of raw materials, jewellery and products in the physical form of natural gemstones, such as diamonds and jade.

According to the circular, entities should follow the "know your customer" principle and carry out customer due diligence when the clients buy precious metals or gemstones with a single or daily cumulative amount of 100,000 yuan or above, or the equivalent value of foreign currency cash.

If the deals occur, the dealers shall submit a report to the Anti-Money Laundering Center within five working days from the date of the transaction.

Sales volume of gold in China is climbing, with that of gold bars and coins increasing by 29.8 percent year-on-year to 138 tons during the first quarter of the year, even surpassing gold jewellery, as the gold prices are hovering around all-time highs amid the uncertainties about global trade and Middle East tensions.

The measures come into effect on August 1.

Source: https://www.thestandard.com.hk/