Dealers in Precious Metals and Stones Report (DPMSR)
What is Dealers in Precious Metals and Stones Report (DPMSR)?
Ministry of Economy issued a Circular (No. 08/AML/2021 dated 02 June 2021), instructing the dealers in precious metals and stones to register the specified transactions – cash transactions or transactions through wire transfers (in case of legal person) exceeding a certain amount in the report named as Dealers in Precious Metals and Stones Report (‘DPMSR).
The said reporting requirement was made effective from 12th June 2021.
Who is required to file DPMSR?
All the dealers in the precious metals and stones (‘DPMS’) licensed in the UAE are obligated to report transactions equal to or exceeding AED 55,000 in cash or wire transfers (in specified cases). Irrespective of the registration as a mainland company or with a freezone, all the DPMS are required to file DPMSR for specified transactions.
What are the transactions to be reported in a DPMSR on the goAML portal?
- Cash transactions with resident individuals equal to or exceeding AED 55,000
- Cash transactions with non-resident individuals equal to or exceeding AED 55,000
- Cash transactions with corporate entities (legal persons) equal to or exceeding AED 55,000
- Transactions with corporate entities (legal persons) involving international wire transfers equal to or exceeding AED 55,000
- Local wire transfers made through an exchange house
- Instalment transactions in cash equal to or exceeding AED 55,000, to be reported at the time of receiving funds
- Unfixed gold transaction involving cash equal to or exceeding AED 55,000
- Advance payment in cash equal to or exceeding AED 55,000, to be reported at the time of receiving funds
- Wire transfers from a mainland/onshore company to a Free zone company (not part of the same company)
- Transaction between two Free Zone companies, settling the payment in USD through the international wire transfer
What transactions are exempt from being reported into a DPMSR?
- Credit card, cheque, or bank transaction with an individual, irrespective of the amount
- Exchange of old gold or gold-to-gold transaction, not involving cash equal to or exceeding AED 55,000
- Local wire transfers and cheque transactions from a local bank in the UAE
- Payment towards Margin calls, Loans with banks
- Intra-company transfers or purchase/sell transactions in cash, irrespective of the amount
- Transactions through the Letter of Credit issued by banks
- Transaction between two Free Zone companies, settling the payment through the bank accounts in the same bank in UAE
- Physical trade of precious metals or stones with commercial banks operating & regulated outside the UAE
What are DNFBP’s obligations?
DPMS must obtain and record the following:
- Identification documents of individuals with whom the transaction is executed
- Trade License of the entity and the identification documents of the local representative of the entity with whom the transaction is executed
Along with obtaining relevant documents pertaining to parties involved in the transaction, DPMS shall submit DPMSR on the goAML platform, capturing details of the parties and transaction.
Documentation requirement
As part of obtaining identification documents, the following documents shall be collected:
Resident individual
- Valid Emirates ID; or
- Passport copy
Non-resident individual
- Valid Government-issued ID; or
- Passport copy
Entity/Company
- Trade License
- Emirates ID or passport copy of representative
Please note that all the relevant documents pertaining to such transactions are to be maintained by the DPMS for a minimum period of five (5) years.
What is the timeline for filing DPMSR on goAML Portal?
DPMSR is to be filed within 2 weeks of the occurrence of receipt or payment of funds equal to or exceeding AED 55,000 through cash or wire transfer.
What is the timeline for filing DPMSR on goAML Portal?
It is important to note that filing of DPMSR to report the transaction pertaining to the transaction exceeding the specified threshold is an additional requirement.
DPMS is not absolved from the filing of Suspicious Transaction Report/Suspicious Activity Report/Fund Freeze Report/Partial Name Match Report, as and when the same are applicable. Accordingly, along with the filing of reports as prescribed earlier for reporting sanctions or suspicion, additional DPMSR is to be filed to report designated transactions.
DPMSR Summary
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Transaction Value
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Transaction with
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Mode of payment
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Documents obtained & reporting requirement
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Equal to or exceeds AED 55,000
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Resident Individual
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Cash
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Submit DPMSR on goAML platform
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Non-resident Individual
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Submit DPMSR on goAML platform
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Entities/Companies
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Cash; or
Wire transfer
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Submit DPMSR on goAML platform
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About the Author
Pathik Shah
FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a Chartered Accountant with more than 26 years of experience in governance, risk, and compliance. He helps companies with end-to-end AML compliance services, from conducting Enterprise- Wide Risk Assessments to implementing the robust AML Compliance framework. He has played a pivotal role as a functional expert in developing and implementing RegTech solutions for streamlined compliance.
