Pursuant to Part I of the First Schedule of the Financial Intelligence and Anti-Money Laundering Act 2002, the FIU has been designated as the AML/CFT Regulator for Dealers in Precious Metals and Stones (DPMS). Under FIAMLA, dealers are persons who engage in any transaction of at least 500,000 rupees in total, whether the transaction is executed in a single transaction or in multiple linked transactions. Dealers play a key role in detecting money laundering and financing of terrorism and proliferation schemes. Under FIAMLA, the following terms are defined: ‘Dealers in jewellery, precious stones or precious metals’ means:

1. a person who deals in jewellery, precious stones or precious metals; and
2. includes a person who –
   • Manufactures, processes, buys, sells, imports or export jewellery or supplies jewellery for sale;
   • Processes, buys, sells or imports precious metals or exports melted precious;
   • Or, processes, buys, sells or imports precious stones

‘Jewellery’ means any article made of precious metal or its allow, and which exceeds one gramme. ‘Precious metal’ means gold, silver, platinum or palladium; and includes any object which is composed of gold, silver, platinum or palladium ‘Precious stone’ means diamond, sapphire, ruby, emerald, alexandrite or tanzanite. As the AML/CFT regulator for the DPMS sector, the FIU is mandated to ensure compliance by dealers with the FIAMLA, the UN Sanctions Act, and any regulations and guidelines issued under these Acts. The FIU is empowered to:

• request information or records from its members in the discharge of its functions.
• conduct inspections (offsite and onsite);
• require members to submit a report on corrective measures it is taking to ensure compliance with the relevant legislation;
• give directions to members falling under its purview; and
• impose administrative sanctions under section 19N of the FIAMLA.