FIC issues draft PCC 126 on precious metals and stones dealers

Posted 02 October 2026 Written by Acts Online
Category Anti-Money Laundering

Brought to you by SA Accounting Academy: The Financial Intelligence Centre (FIC) has issued draft Public Compliance Communication 126 (PCC 126) to provide regulatory guidance on the scope and statutory duties applicable to dealers in precious metals (DPM) and dealers in precious stones (DPS) under the Financial Intelligence Centre Act, No. 38 of 2001 (FICA).

Under Item 20 of Schedule 1 to FICA, high-value goods dealers (HVGDs) are designated as accountable institutions if they trade in goods where single or aggregated transactions equal or exceed R100,000. Draft PCC 126 interprets how entities operating in the precious metals and precious stones industries fall within this accountable institution category and outlines the supervisory controls expected by the FIC.

Draft PCC 126 addresses the heightened risk exposure of DPMs and DPSs to money laundering, terrorist financing, and proliferation financing (ML/TF/PF) typologies, setting out sector-specific compliance obligations:

  • Licence identification: Clarifies how industry licences issued under sectoral mining and mineral regulation (including the Precious Metals Act and Diamonds Act) correlate with accountable institution status under Item 20.
  • FICA registration: Obliges qualifying DPMs and DPSs that receive payments of R100,000 or more in any form to register on the FIC’s goAML portal under Item 20.
  • Risk management controls: Requires the implementation of an institution-specific Risk Management and Compliance Programme (RMCP) tailored to transaction structuring, cash usage, and cross-border mineral flows.
  • Interaction with PCC 58: Complements general HVGD guidelines issued under Public Compliance Communication 58 (PCC 58) with tailored sector rules.

Click here to download the FIC Website Notice for Draft PCC 126 and the complete Draft PCC 126 Document.

What this means for you, your business, or your clients

  • For yourself: When conducting audit, review, or compliance engagements on precious metals or jewellery traders, you must assess whether the entity meets the Item 20 threshold criteria and confirm formal registration with the FIC.
  • For your business: Accounting, legal, and audit practices servicing mining, refining, jewellery, or commodity retail sectors must integrate draft PCC 126’s guidance into their client intake, independent reviews, and statutory reporting checklists.
  • For your clients: Clients trading in precious stones, bullion, scrap jewellery, or semi-manufactured metals receiving R100,000 or more per transaction must formalise their RMCP, screen counterparties against targeted financial sanctions lists, and file cash threshold reports (CTR) under section 28 of FICA.

Originally published at https://accountingacademy.co.za/news/read/fic-draft-pcc-126-on-dealers-in-precious-metals-and-dealers-in-precious-stones

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.