Supervision of dealers in high value goods transferred from the Financial Intelligence Agency to the Registrar of Companies under the Registrar of Companies (Supervision and Regulation) Act 2020.
Who must register
A dealer in high value goods must apply to us and be included in our register before carrying on business. Dealers in high value goods include:
- jewelry dealers
- dealers in cars, boats and motorcycles
- dealers in precious metals and precious stones
- antique dealers
- auctioneers
| Registration application fee | |
| Sole Trader | $100 |
| Business with 2 to3 employees | $200 |
| Business with 4 to 5 employees | $200 |
| Business with 6 to 15 employees | $300 |
| Business with 16 or more employees | $400 |
| Annual registration fee | |
| Sole Trader | $150 |
| Business with 2 to 3 employees | $350 |
| Business with 4 to 5 employees | $350 |
| Business with 6 to 15 employees | $750 |
| Business with 16 or more employees | $1000 |
Fees are scaled by the size of the business and are prescribed by the Government Fees Regulations 1976.
AML and ATF obligations
Dealers in high value goods are relevant persons under the anti-money laundering regime and must verify the identity of the customer, understand its ownership and control structure and identify its beneficial owners, understand the purpose and intended nature of the business relationship, conduct ongoing monitoring, apply enhanced due diligence to politically exposed persons and high-risk jurisdictions, and retain records for at least five years.
That also makes them obliged entities for the purposes of access to beneficial ownership information.
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AML/ATF Supervisory and Enforcement Powers of the Registrar
Supervisory Powers
The Registrar of Companies is the Supervisory Authority for Dealers in High Value Goods (DiHVGs) for anti-money laundering and anti-terrorist financing (AML/ATF) purposes. The Registrar adopts a risk-based approach to supervision and may:
- assess compliance with AML/ATF legislation and regulatory requirements;
- require the production of information, records and documents;
- require explanations relating to a business's AML/ATF controls and activities;
- conduct inspections and site visits;
- assess whether persons performing key functions meet the fit and proper criteria; and
- issue guidance, directions and other supervisory measures to support compliance.
These powers enable the Registrar to monitor compliance and identify weaknesses in a business's AML/ATF framework before they develop into more serious regulatory concerns.
Relevant provisions: Sections 5, 9, 11, 11A, 16 and 17 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008.
Enforcement Powers
Where a DiHVGs fails to comply with AML/ATF requirements, the Registrar may take enforcement action. Depending on the nature and seriousness of the breach, the Registrar may:
- issue directives requiring corrective action;
- impose civil penalties;
- apply to the Court for compliance or enforcement orders;
- enter premises and obtain evidence under warrant where authorised by the Court;
- publish details of enforcement action where appropriate; and
- pursue offences created under the legislation.
The Registrar applies enforcement measures in a manner that is proportionate, effective and dissuasive, taking account of the circumstances of each case.
Relevant provisions: Sections 18, 19, 20, 20A, 20B, 20C, 20E and 21 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008.
Civil Penalties and Appeals
Civil Penalty
Up to $250,000 for each contravention.
Warning Notice
Before imposing a civil penalty, the Registrar shall issue a warning notice and provide the entity with an opportunity to make representations.
Appeal
Certain decisions of the Registrar may be appealed to the Appeal Tribunal, with further rights of appeal to