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Government finalizes anti-money laundering requirements

Regulations meant to combat the funding of organized crime and terrorism with jewellery are now finalized, says the Canadian Jewellers Association (CJA).

The announcement comes nearly two years after discussions began on amending the Proceeds of Crime Money Laundering and Terrorist Financing Act. The Department of Finance (DOF) posted the final regulations on Dec. 26, 2007 with an enforcement date of Dec. 30 of this year.

One of the latest amendments was the removal of a proposed requirement to record non-cash items of $10,000 or more.

The next move is to develop a compliance kit to assist the industry, which will include the legislation, regulations, guidance documents, penalties/fines, and suggested procedures for compliance. CJA, DOF, Jewellers Vigilance Canada (JVC), and Financial Transactions Reports Analysis Centre of Canada (FINTRAC) are working together to create the kit.

The final regulations can be viewed at .

In other news, CJA is asking the federal government to ensure taxes are being collected at U. S. border crossings on jewellery being brought into Canada by cross-border shoppers.

In a letter sent to Public Safety Minister Stockwell Day, the association says members are “frustrated and very unhappy with stories they are hearing directly and in the media” about how easy it is easy for consumers to not pay duties or taxes on jewellery they import or bring back from the United States.

“It would appear collection is foregone on parcels that enter by post or courier, and it seems border agents are not levying taxes and duties on merchandise in excess of personal limits,” the letter charges.

CJA says the recent strength of the Canadian dollar against the U.S. greenback appears to be worsening the situation. A response from Day had not been issued at print time.

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