DIREITO GV published an orientation booklet for jewelers

18 June 2013

The small jewelry and gemstones trader may not know, but he/she runs the risk of becoming a money laundering agent. And with the new Money Laundering Act, this risk is higher.

To prevent this crime, the Criminal Law Clinic at FGV's Law School in São Paulo (DIREITO GV), with the support of Coaf (Financial Activities Control Council) and IBGM (Brazilian Institute of Gems and Precious Metals) created a booklet to guide business people who operate in the gems and jewelry industry. In the guide, the jeweler will learn basic information on how to proceed and what consists COAF's step-by-step regularization.

According to Heloísa Estellita, Professor of the Criminal Law Clinic, the gems and jewelry sector was identified as a potential source of money laundering and legalization of illicit funds. The transportability, the small volume and the value make jewelry one of the favorite means to launder funds. And the recent changes in the Money Laundering Act (Law 9.613/98), in addition to broaden its application scope, also created a series of obligations for these entrepreneurs. The purpose of the Guide is to provide instructive and easy information on how to proceed, she explained.

The booklet advises that traders in the jewelry, precious stones and metals industry must observe Coaf's resolution 23 (in force since June 1 this year) in all operations and transactions carried out - including when marketing other products other than jewelry, precious stones and metals, and when negotiating purchase and sale of real or personal property that integrate their asset. The failure to follow the rules can result in fines of up to USD 20 million, sanctions such as the prohibition of making business with financial institutions, and even jail.

The launch of the booklet is today, from 12:30 to 3 p.m., in DIREITO GV's auditorium. Coaf's President, Antonio Gustavo Rodrigues, and IBGM's president, Hécliton Santini Henriques, will attend the event to comment on the new regulation.

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