Disclaimer: We are reader supported. We may be compensated from the links in this post, if you use products or services based on our expert recommendations. Please read our Advertising Disclosure.
Bullion dealers are often classified as higher-risk customers by banks and regulators, though not universally "high risk" in every case.
Several factors contribute to this classification: large cash transactions, the portability and anonymity of precious metals, potential for money laundering or tax evasion, cross-border trade, and difficulty verifying the true value or origin of goods.
Financial institutions frequently apply enhanced due diligence, closely monitoring source of funds, customer identity, and transaction patterns.
That said, risk varies by dealer size, regulatory compliance history, jurisdiction, and whether robust AML controls are in place. A small, well-established, licensed dealer with transparent sourcing may pose far less risk than an unregulated cash-heavy operation.
Ultimately, classification depends on each institution's specific risk assessment criteria.