3.1.2 Key Considerations for DPMS
Effective from 16/6/2021Beyond the general considerations discussed above, in assessing the risk of a DPMS customer LFIs should consider:
| • | Geographic Risk: Whether the jurisdiction(s) in which the customer is based or operates are known centres for illegal or unregulated mining of precious metals and stones. | ||||
| • | Product, Service, and Delivery Channel Risk: The following products and services are particularly high risk: | ||||
| o | Trade in gold bullion and diamonds: The high inherent value of these substances, their ability to retain value for a long period of time, the size and stability of the market, relative ease of exchange, high value by weight, and the difficulty of tracing them makes gold and diamonds particularly attractive to criminals. | ||||
| o | Metal accounts: Metal accounts are accounts held by a custodian institution and denominated in precious metals (such as gold, silver, or platinum) rather than in fiat currencies. They allow the account holder to quickly buy and sell precious metals without needing to have a face-to-face interaction with a DPMS. | ||||