“They will follow you for weeks at a time,” Thomas says. “They have three or four cars to follow a jeweller at any given time and they are sophisticated.
“Complacency is the kiss of death in the jewellery industry. When you think you know it all and have been doing it for so long, that’s when you get hit. You have to constantly change the method in which you operate. People forget that what they’re carrying is a high-value commodity and thieves will do desperate things to get their hands on it. You can’t just assume you have a flat tire. You have to think the worst-case scenario and protect yourself, and that goes for retailers, travelling salesmen, and really anyone in the jewellery business.”
The criminal element is active at varying levels within the jewellery industry, which is why Canada implemented anti-money laundering legislation in 2009. However, transitioning Canada’s dealers of precious metals and stones (DPMSs) into compliance has been challenging, says J. David Ritter, president and chief executive officer (CEO) of the Canadian Jewellers Association (CJA).
Creating a compliance regime as set out by Financial Transactions Reports Analysis Centre of Canada (FINTRAC) is the main stumbling block for Canadian jewellers.
“Some jewellers are even getting their accountants to do it for them because they don’t understand the process,” says Ritter, adding the association has met several times with government representatives to vet its anti-money laundering kit to simplify the process.
Although the regulations have been in place for four years, confusion lingers, whether it be due to a language barrier or not fully understanding the sometimes complex regulations. Ritter says 90 per cent of DPMSs who submit compliance regimes are failing to meet requirements for one reason or another.
In addition to being time-consuming, collecting identification from longtime clients is a significant hurdle for retailers, Ritter notes.
“When a retailer has a relationship with a client and then all of a sudden asks for a driver’s licence, additional ID, and other background information, jewellers see it as a little intrusive in terms of overstepping that personal relationship they’ve developed over the years.”
Ritter says he recently met with FINTRAC to discuss creating templates for small and medium-size retailers.
“Developing a compliance regime will be an ongoing process, and FINTRAC has mentioned it will be fining people who are not in compliance,” he adds. “That’s putting a little bit of fear into the marketplace”¦ The CJA is continuing to have conversations with FINTRAC to work for our members and the Canadian industry overall to make the process less burdensome.”
Phyllis Richard, executive director of Jewellers Vigilance Canada (JVC), admits the regulations are difficult to understand.
![CJ Expos announced the Giovanni Vaccaro Family Scholarship, a new national design competition for students created in conjunction with Beverly Hills Jewellers and named after its founder. [Left to right] Georgian College graduates Bobby Gunn and Emily Wojna; Greg Merrall, Georgian College's co-ordinator for the jewellery and metals programs; Giovanni Vaccaro, owner of Beverly Hills Jewellers; CJ Expos owner Phil Payne; and CJ Expos operations director, Garnet Irving.](http://www.jewellerybusiness.com/wp-content/uploads/2013/10/IMG_1543.jpg)
“However, things are moving in the right direction in terms of industry fulfilling its obligations,” she says. “If it were simplified, however, it would be so much easier for industry to comply and FINTRAC would be getting the intelligence it needs. We’re the only reporting entity that isn’t regulated, which makes us very different from others. I don’t think FINTRAC recognized how different we could be, but it is working with us.”
Keeping up with industry developments spurred Jewellers Vigilance Canada to review the Canadian Guidelines with Respect to the Sale and Marketing of Diamonds, Gemstones and Pearls, Edition 2009. After putting out a call in August to Canadian jewellers for their input on revisions pertaining to the use of gemstone nomenclature, JVC’s Gemstone Guidelines Revision Committee reviewed the suggestions, while also considering other industry documents, such as CIBJO’s Blue Book as a basis for the updates.
Richard says that while the Blue Book is an industry-wide reference point, having Canadian-specific guidelines help ensure retailers are in compliance with Canadian laws and regulations regarding deceptive marketing practices and related issues.
“The world changes constantly regarding enhancements and new technologies, and the guidelines have to keep up with those changes so that Canadian jewellers present products in an ethical way,” Richard said. “We also want to make sure we’re in sync with the rest of the world.”
With the busiest time of the year fast approaching, Canadian jewellers are hoping shoppers are in sync with the holiday spirit. Here’s to them getting that in their stockings.
