Red Flag Indicators

Any person, who in the course of business, employment, trade or profession, knows or has reasonable grounds to suspect that any property is linked or intended to be used in connection with a criminal activity, shall disclose the knowledge or suspicion or the information to the Suspicious Transaction Reporting Office (“STRO”) by filing a Suspicious Transaction Report. This must be done as soon as is reasonably practicable after it comes to his attention.

The list of red flag indicators are meant to help Precious Stones and Precious Metals Dealers to identify some of the circumstances that could be suspicious in nature. They could indicate that property may represent proceeds of money laundering (“ML”) or terrorism financing (“TF”) or used/intended to be used in connection with ML or TF. While each individual indicator may not be sufficient by itself to suggest ML or TF, a combination of the indicators may indicate a suspicious transaction.

The list of red flag indicators contains suspicious transaction patterns and behaviours that could be displayed by both customers and suppliers. This list is not exhaustive and may be updated due to changing circumstances and new methods of ML or TF.