What is required of HVDs to comply with money laundering regulations?

The compliance of High-Value Dealers (HVDs) with money laundering regulations primarily revolves around implementing adequate controls to prevent, detect, and report suspicious activities. A crucial aspect of this is the requirement to appoint a nominated officer who is responsible for ensuring compliance with the relevant anti-money laundering laws. This nominated officer plays a central role in overseeing the organization’s compliance strategy and reporting obligations to the appropriate authorities.

Maintaining Customer Due Diligence (CDD) is another important component for HVDs to effectively understand and mitigate the risks associated with their transactions. CDD involves verifying the identity of clients, understanding the nature of their business, and continuously monitoring their interactions. Together, appointing a nominated officer and maintaining CDD helps establish a robust framework for preventing money laundering within the business operations of HVDs.

The other choices do not fully encompass the regulatory requirements for HVDs. Reporting only large transactions would not suffice, as money laundering concerns can occur with smaller, more frequent transactions as well. Accepting payments only in bank transfers may enhance security but does not address the need for comprehensive regulatory compliance. Similarly, regularly changing business locations does not contribute to the framework needed for combating money laundering, as it may create more obstacles in adhering to reporting and