ACAMS Today: All that Glitters is Not Gold
Article originally published on ACAMS Today on June 22, 2020.
Historically, precious metals and stones, such as gold, have often attracted illicit proceeds due to its cash-based nature and anonymity of exchange. Amidst an environment where preparators of financial crime have capitalized on COVID-19 fears and market conditions have amplified the appeal of precious metals and stones, the financial crime risks for dealers in precious metals and stones (DPMS) have increased.
In order to strengthen its AML/CTF framework, Hong Kong has plans to incorporate DPMS into its AML/CTF regime. This article details what regulations DPMS should expect and explain why not all technological solutions are equal. Instead, technological tools considered effective, such as artificial intelligence and natural language processing, are dynamic and automatic in nature which not only assists in achieving operational efficiencies but also drive proactive risk management.