AML/CTF Compliance for Precious Metals and Stones Dealers: AUSTRAC 2026 Guide

If you buy or sell gold, silver, diamonds, gems or other precious items, you are now a reporting entity under AUSTRAC's Tranche 2 reforms. This guide covers what dealers in precious metals and stones need to do to comply.

When does the obligation apply?

The obligation applies to the purchase or sale of precious metals, precious stones or products made from them — but only when the transaction is $10,000 or more in physical currency. Below $10,000 in cash, you are not captured for that transaction.

However, if you have a business relationship with a customer involving multiple transactions, you must apply KYC regardless of the individual transaction size.

Threshold Transaction Reports (TTRs)

If you receive $10,000 or more in physical currency (cash) in a single transaction or series of related transactions, you must lodge a Threshold Transaction Report with AUSTRAC within 10 business days. This is non-negotiable and applies even if the transaction is completely legitimate.

Suspicious Matter Reports

Red flags in precious metals dealing include:

• Customers paying large amounts in cash
• Customers buying and selling quickly (round-tripping)
• Customers who cannot explain the origin of their funds
• Multiple purchases structured to stay below $10,000 (structuring)
• Customers who show unusual interest in privacy

KYC requirements for dealers

For cash transactions of $10,000+, you must verify the customer's identity before completing the sale. For ongoing business relationships, KYC must be completed before the relationship begins.

Building your AML/CTF program

Your program must be in writing, approved by senior management, and cover customer risk assessment, KYC procedures, TTR and SMR processes, ongoing monitoring, and staff training. Independent review is required at least every 3 years.

Related reading: AUSTRAC Tranche 2 complete guide · Customer due diligence explained · AML risk assessment guide · Frequently asked questions