Tightened Control over Transactions Involving Precious Metals and Diamonds
Starting August 20, amendments to Russia’s anti–money laundering and counter-terrorism financing legislation will take effect.
Transactions exceeding RUB 1 million involving precious metals, gemstones, and related products will now be subject to mandatory monitoring. Banks will be required to report such transactions to Rosfinmonitoring.
The new rules cover:
- transactions of legal entities and individual entrepreneurs involving the purchase and sale of precious metals, gemstones, jewelry, and scrap thereof;
- transactions between banks and individuals involving investment-grade precious metals, precious metal coins, and processed natural diamonds;
- transactions between banks and legal entities or entrepreneurs involving bullion, precious metal coins, and processed natural diamonds.
This measure is linked to the elevated risks of using the precious metals and stones market for money laundering and terrorism financing. At the same time, certain operations — such as cash contributions to a company’s charter capital or payments under checks issued by non-residents — are excluded from mandatory control to ease the administrative burden on banks.
