Dealers in Precious Metals and Stones

​As of 1st January 2021, a licence is required to carry out the business of a dealer in precious metals and stones. This in line with the provisions of SUBSIDIARY LEGISLATION 441.07 - TRADING LICENCES REGULATIONS

The operations of dealers in precious metals and stones are considered to include the:

    • manufacture of jewellery and related articles where related articles covers:

     i. production of worked pearls;

     ii. production of precious and semi-precious stones in the worked state, including the working of industrial                 quality stones and synthetic or reconstructed precious or semiprecious stones;

     iii. working of diamonds;

     iv. manufacture of jewellery of precious metal or of base metals clad with precious metals, or precious or                    semi-  precious stones, or of combinations of precious metal and precious or semi-precious stones or of                other materials;

      v. manufacture of goldsmiths’ articles of precious metals or of base metals clad with precious metals                          including articles for religious use;

     vi. manufacture of technical or laboratory articles of precious metal (except instruments and parts thereof) :                crucibles, spatulas, electroplating anodes etc.

     vii. manufacture of precious metal watch bands, wristbands, watch straps and cigarette cases;

     • production of precious metals;

    • retail sale of watches and jewellery, precious stones and precious metals in specialised stores where the                 main line of activity is the selling of watches, jewellery, precious stones and/or precious metals or where the           main line of activity is not the selling of watches and jewellery;

     • wholesale of: 

                             i. watches and jewellery;

                             ii. gold and other preciou​s metals; and 

                             iii. precious stones. 

Any person/entity who as of the 1st January 2021 was registered with the VAT department as performing any of the operations listed above shall be deemed to have been issued a licence, unless the Trade Licensing Unit has been informed that this is not the case. Specifically, operators which were registered with the VAT Department under the following type codes fall under this category:

24.41 Precious metals production

32.12 Manufacture of jewellery and related articles

46.48 Wholesale of watches and jewellery

46.72 Wholesale of gold and other precious metals

46.76 Wholesale of precious stones

47.19A Retail sale of watches, jewellery, precious stones and metals in non-specialised stores where the main line of activity is not the selling of watches and jewellery example departmental stores

47.77 Retail sale of watches, jewellery, precious stones and/or precious metals in specialised stores where the main line of activity is the selling of watches, jewellery, precious stones and/or precious metals

Operators thus classified, may continue to operate without the need to re-apply for a trading licence. They will be deemed to have given consent to be attributed a licence number with the name of the licence holder and the nature of the commercial activity published as per regulation 12. Moreover, such operations shall be bound by the conditions of the SUBSIDIARY LEGISLATION 441.07 - TRADING LICENCES REGULATIONS​​ 

New operators 

Operators who did not fall in the categories listed above on 1st January 2021, or who would like to operate as dealers of precious metals and stones, need to obtain a licence, through an application made with the Trade Licensing Unit, within the Commerce Department. To be eligible for a licence, the applicant must be over 18 years of age and not have been convicted of any offence, as provided in the regulation. 

The applicable e-form​ has to be compiled and submitted online, and must be accompanied with the following documents:

a. a police conduct certificate for the applicant in case of sole trader. In the case of companies, for the person/s who effectively direct the business, the owner/s, partner/s, directors, company secretary and beneficial owners. 

b. a statement drawn by the auditors appointed to audit the operations of an entity, indicating that they have the responsibility to conduct such audits. For sole traders, this requirement is not obligatory.

c. a clean compliance certificate issued by the Office of the Commissioner for Revenue for the entity under application. 

d. an employment history issued from Jobsplus or an equivalent entity for the applicant in case of sole trader. In the case of companies, for the person/s who effectively direct the business, the owner/s, partner/s, directors, company secretary and beneficial owners. 

 

Assessment of applications will evaluate the applicants’ repute, conduct and interest to the public. If considered to be fit and proper to carry on the business of a dealer in precious metals and stone, a licence will be granted. A licence will be valid for 3 years. A request for renewal will have to be submitted at least three months before the date before expiration. 

Applications and licences are free of charge.

Cessation of activity

Where a dealer in precious metals and stones decides to cease the commercial activity, he should immediately notify the Trade Licensing Unit on the appropriate form.

Enquiries can be directed to tradelicenceapplications@gov.mt or by telephone on 25690100 / 21226688.

Notice concerning Russia sanctions – sale of luxury items

The following provisions concerning luxury goods, emanating from Council Regulation (EU) No 833/2014, are being brought to the attention of dealers in precious metals and stone:

Article 3h

2. The prohibition referred to in paragraph 1 shall apply to luxury goods listed in Annex XVIII insofar as their                   value exceeds EUR 300 per item unless otherwise specified in the Annex.

Luxury goods, which include watches, pearls, precious and semi-precious stones, articles of pearls, jewellery, gold- or silversmith articles, that are sold in Malta and bought by Russians who are not resident in Malta and which are being taken for use in Russia, will be in breach of the prohibition found under article 3h cited above. The prohibition will not apply if the Russian national in question can prove that he is resident in another country and the luxury good will not be used in Russia.

Further clarifications:

• Does the ban apply to goods that originate from non-EU countries and transit via the EU towards Russia, including when the originating countries have not decided similar sanctions themselves? 

Yes, the prohibition on the transfer of luxury goods to any natural or legal person, entity or body in Russia or for use in Russia applies to the transit via the EU territory of those luxury goods. Often, the transfer would involve the transportation of the goods, which is itself prohibited by the transfer prohibition.

• Does the ban apply to goods originating in the EU transiting through Russia towards further destinations such as Central Asia? 

In principle, the ban would not apply here. However, the goods must be genuinely destined to a third country and for use outside Russia. Therefore, EU operators should have in place adequate due diligence procedures to ensure that their exports are not diverted to Russia – especially in case of transhipments via Russia. This could include, for instance, contractual clauses with their third-country business partners giving rise to liability in case the latter re-export the items to Russia, as well as ex post verifications. Please also note that under Article 12, EU operators cannot willingly or intentionally circumvent the prohibitions in place.

Moreover, new prohibitions concerning Gold have been issued by the Council Regulation (EU) No 833/2014​  :

Article 3o

1. It shall be prohibited to purchase, import, or transfer, directly or indirectly, gold, as listed in Annex XXVI if it originates in Russia and it has been exported from Russia into the Union or to any third country after 22 July 2022. 

2. It shall be prohibited to purchase, import, or transfer, directly or indirectly the products listed in Annex XXVI when processed in a third country incorporating the products prohibited in paragraph 1.

3. It shall be prohibited to purchase, import, or transfer, directly or indirectly, gold, as listed in Annex XXVII if it originates in Russia and it has been exported from Russia into the Union after 22 July 2022. 

4. It shall be prohibited to: (a) provide technical assistance, brokering services or other services related to the goods referred to in paragraphs 1, 2 and 3 and to the provision, manufacture, maintenance and use of those goods, directly or indirectly in relation to the prohibition in paragraphs 1, 2 and 3.

For further clarifications on the Sanctions regime please visit the Sanctions Monitoring Board website on https://foreign.gov.mt/mt/Government/SMB/Pages/Sanctions-Monitoring-Board.aspx​

Information related to Money Laundering, Terrorist Financing and EU and UN Sanctions

FIAU Implementing Procedures Part 1​

MFSA and FIAU Guidance ML and TF Business Risk Assessment​

FIAU Guidance Document The Funding on Terrorism​

FATF Guidance for Dealers in Precious Metal and Stones​

FATF TF through Trade in Diamonds

FATF Trade Based Money Laudering Trends and Developments​

FIAU Trade Based Money Laundering

FIAU Event FT webinar

FIAU FIAUS Supervisory Examiniations and Best Practices for DNFBPS​

SMB - Latest Updates in EU and UN Sanctions​

​Application to operate as a dealer in precious metals and stones 

Frequently Asked Questions​​