Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

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What is the transactional threshold for Dealers in Precious Metals and/or Precious Stones according to FATF?

USD/EUR 10,000
USD/EUR 15,000
USD/EUR 20,000
USD/EUR 25,000

The correct answer is: USD/EUR 15,000

The correct answer is the threshold of USD/EUR 15,000 for Dealers in Precious Metals and/or Precious Stones as outlined by the Financial Action Task Force (FATF) recommendations. This amount signifies the minimum threshold at which dealers are required to conduct customer due diligence measures. The rationale behind establishing such a threshold is to mitigate the risks associated with money laundering and terrorist financing in high-value transactions involving precious metals and stones. Implementing a threshold like this is crucial because transactions below this amount do not require the same level of scrutiny, allowing resources to be focused more effectively on higher-risk activities. Dealers engaging in transactions above this threshold are mandated to verify the identity of their customers and maintain records, enabling better tracking and oversight of potentially illicit financial activities. This regulatory measure aims to enhance the transparency and integrity of the trade in precious commodities, making it more difficult for criminal elements to exploit the system for money laundering purposes.