Commerce ministry to gold traders: Verify buyer identity for transactions exceeding SR50,000

The Ministry of Commerce in Riyadh has issued a directive to businesses involved in the trade of precious metals and gemstones, requiring them to verify customer identities and conduct due diligence on transactions exceeding SR50,000. This requirement applies to both single transactions and a series of related transactions, as stipulated in a memo circulated by the ministry to the Federation of Saudi Chambers.

The memo, as reviewed by Okaz newspaper, mandates that traders identify and verify customers, retaining pertinent information and records in line with Anti-Money Laundering Law provisions. Additionally, establishments must display awareness notices for customers at all their branches, detailing the identity verification requirements for precious metals and gemstones transactions.

These requirements encompass presenting valid national IDs for citizens, residency permits for residents, and passports for non-residents, while also acknowledging other legally approved identification methods. Despite the SR50,000 transaction threshold, businesses remain accountable for other invoicing and buyer-seller information obligations, as per the Precious Metals and Gemstones Law and its executive regulations.

Moreover, merely presenting an identification document is not sufficient; its authenticity must be verified, and all due diligence measures must be executed. The Commerce ministry emphasized that due diligence is obligatory, irrespective of transaction value, when money laundering or terrorist financing suspicions arise or when there are concerns about customer information accuracy or sufficiency. Also, suspicious transaction reporting is mandatory, following established procedures.