Precious Metals ($10k+)
Gold, silver, platinum, iridium, osmium, palladium, rhodium, ruthenium—alloys containing 2% or more of these metals.
Precious Metals & Stones | Tranche 2
Tranche 2 AML Reforms for Precious Metals, Stones & Products
Complete guide to Tranche 2 AML/CTF reforms for dealers in precious metals, precious stones, and precious products. Learn about the $10,000 threshold, item definitions, and AUSTRAC obligations.
Key Information
Dealers in Precious Items: Understanding the $10,000 Threshold
From 1 July 2026, dealers in precious metals, precious stones, and precious products will have AML/CTF obligations when transactions reach $10,000 or more in physical currency or virtual assets (cryptocurrency). Unlike other Tranche 2 sectors, your obligations are transaction-based rather than service-based.
The $10,000 Threshold Explained
Your AML/CTF obligations are triggered when you buy or sell precious metals, precious stones, or precious products for:
- $10,000 or more in physical currency (cash, banknotes, coins)
- $10,000 or more in virtual assets (cryptocurrency, digital currency)
Important: Standard card payments, bank transfers, EFT, BPAY, and other electronic payment methods do NOT trigger the threshold—only cash or virtual assets.
What Are Precious Metals?
The Act defines precious metals as these 8 metals AND alloys containing 2% or more by weight:
- Gold - bullion, coins, bars, jewellery, scrap
- Silver - bullion, coins, bars, jewellery, scrap
- Platinum - jewellery, industrial forms, bullion
- Iridium - rare, corrosion-resistant metal
- Osmium - densest naturally occurring element
- Palladium - used in jewellery and industry
- Rhodium - used in jewellery plating
- Ruthenium - rare platinum group metal
What Are Precious Stones?
Precious stones means pearls and gem quality substances primarily used in jewellery manufacture:
- Diamonds, rubies, sapphires, emeralds
- Opals, pearls, jade, topaz
- Any gem quality mineral used in jewellery
Excluded: Industrial-grade stones used for manufacturing, cutting, or grinding purposes.
What Are Precious Products?
Precious products means articles made from or containing precious metals or stones:
- Jewellery - rings, necklaces, bracelets, earrings, brooches
- Watches - containing precious metals or stones
- Personal adornments - cufflinks, tie pins, dress ornaments
- Goldsmith wares - plates, cutlery, vessels, decorative items
- Other articles - pens, cigarette cases, compacts containing precious materials
Linked Transactions Rule
If a customer makes multiple purchases that appear linked, the combined value counts toward the threshold:
- Same customer, close timing
- Apparent structuring to avoid threshold
- Related purchases across different stores in same business
Mixed Sales Rule
When selling precious items together with non-precious items:
- The total transaction value determines threshold
- Not just the precious portion
- Example: $9,000 watch + $1,500 leather accessory = $10,500 total triggers obligations
Why Precious Items Are High-Risk
According to AUSTRAC, precious metals and stones pose ML/TF risks because they:
- Are easily transportable and concealable
- Have high value-to-weight ratio
- Can be converted to cash globally
- May not trigger border declaration requirements
- Are attractive for storing criminal proceeds
Key Dates
- 31 March 2026: AUSTRAC enrolment opens
- 1 July 2026: AML/CTF obligations commence
- 29 July 2026: Enrolment deadline (within 28 days of first designated service)
What's Covered Under the Reforms
Precious Stones ($10k+)
Pearls, rubies, sapphires, emeralds, opals, and gem quality substances used in jewellery manufacture.
Precious Products ($10k+)
Jewellery, watches, goldsmith wares, personal adornments, and other articles made from precious metals or stones.
$10,000 Threshold
Obligations apply when transaction reaches $10,000+ in cash OR virtual assets—not other payment methods.
Linked Transactions
Multiple transactions that are linked together count toward the $10,000 threshold—prevents structuring.
Mixed Sales
If transaction includes precious items AND non-precious items, the total value is used for threshold calculation.
ML/TF Risk Indicators for Precious Items
Customer Red Flags
- • Large cash purchases, especially without haggling
- • Customer appears nervous or rushed
- • Multiple transactions just under threshold
- • Reluctant to provide identification
- • No interest in quality or authenticity certificates
Transaction Red Flags
- • Requests to structure into smaller amounts
- • Buying and selling same items rapidly
- • Paying significantly over market value
- • Third party pays or collects goods
- • Unusual delivery or shipping requests
Source of Funds Red Flags
- • Cash source doesn't match customer profile
- • Evasive about where cash came from
- • Cryptocurrency from unknown wallets
- • Mixed payment methods to avoid threshold
- • Claims to be buying for unnamed third party
Key Compliance Obligations
AML/CTF Program
Written policies and procedures tailored to your business type—bullion dealer, jeweller, pawnbroker, etc.
- • ML/TF risk assessment for your business
- • CDD procedures for threshold transactions
- • Source of funds verification process
- • Staff training on cash handling and red flags
Customer Due Diligence
Verify identity of customers for transactions at or above $10,000 in cash or virtual assets.
- • Verify customer identity (ID documents)
- • Understand source of cash/crypto
- • Screen for PEPs and sanctions
- • Enhanced due diligence for high-risk customers
Reporting Obligations
Report suspicious matters and large cash transactions to AUSTRAC.
- • SMRs within 24 hours (terrorism) or 3 days
- • Threshold transaction reports for $10k+ cash
- • International transfer reports if applicable
- • Tipping off prohibition applies
Record Keeping
Maintain records of threshold transactions and compliance activities.
- • Transaction records with customer details
- • CDD documentation and verification
- • Suspicious matter reports filed
- • 7 year retention requirement
Frequently asked questions
What is the $10,000 threshold?
You have AML/CTF obligations when you buy or sell precious metals, precious stones, or precious products for $10,000 or more in physical currency or virtual assets (cryptocurrency). Standard card payments, bank transfers, and EFT do NOT trigger the threshold—only cash or crypto.
What are 'precious metals' under the Act?
Gold, silver, platinum, iridium, osmium, palladium, rhodium, and ruthenium. This includes alloys containing 2% or more by weight of these metals. Bullion, coins, bars, and scrap all qualify if they meet the alloy threshold.
What are 'precious stones' under the Act?
Pearls and gem quality substances primarily used in jewellery manufacture—including rubies, sapphires, emeralds, diamonds, and opals. Industrial-grade stones used for manufacturing purposes are generally excluded.
What are 'precious products'?
Jewellery, watches, personal adornments (rings, necklaces, bracelets), goldsmith wares, and other articles made from precious metals or containing precious stones. Includes both new and second-hand items.
How do linked transactions work?
If a customer makes multiple purchases that appear to be linked (same customer, close timing, apparent structuring), the combined value counts toward the $10,000 threshold. This prevents customers from splitting transactions to avoid obligations.
What about mixed sales?
If you sell precious items together with non-precious items (e.g., a precious watch with a leather strap accessory), the total transaction value determines whether the threshold is met—not just the precious items portion.
Do I need to verify every customer?
You must conduct customer due diligence for transactions meeting the $10,000 threshold in cash or virtual assets. This includes verifying customer identity, understanding the source of funds, and screening against PEP and sanctions lists.
What records must I keep?
Records of all transactions meeting the threshold, CDD documentation, source of funds verification, and suspicious matter reports. Records must be retained for 7 years after the transaction or end of business relationship.
CDD Solutions for Precious Items Dealers
ARCaml helps bullion dealers, jewellers, and precious goods merchants meet AUSTRAC threshold requirements efficiently.