NEWS FEATURE: Precious metals and stones: Assay Office steps up fight against financial crime

Behind every gold ring, diamond necklace or precious stone purchased in Mauritius there is an elaborate regulatory system designed to protect consumers and uphold confidence in the jewellery trade. The Assay Office is taking on an expanded role in the fight against money laundering and the financing of terrorism, while at the same time modernising its services and strengthening oversight of the jewellery sector.

On that score, the Assay Office has taken a notable step forward by setting up on 24 April 2026 a dedicated Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Unit. The move is in line with a decision of the Inter-Ministerial Committee on AML/CFT at its meeting of 26 February 2026 on the implementation of such a measure in Mauritius.

The new Unit comprises one Scientific Officer (Assay) and two Technical Officers/Senior Technical Officers who have been trained in AML/CFT and are well versed in the subject. Once the relevant section of the Financial Crime Commission Act 2023 is proclaimed, the Assay Office will assume responsibility for supervising the implementation of the Financial Intelligence and Anti-Money Laundering Act 2002 in relation to Dealers in Precious Metals and Stones (DPMS).

For Director of the Assay Office, Mr Yugal Lucknauth, the establishment of the dedicated Unit marks an important development in strengthening the regulatory framework governing the precious metals and stones sector. He explains that the Assay Office is preparing to take on this additional responsibility with trained personnel and with the support of the Financial Intelligence Unit (FIU).

To assist the Assay Office during the transition, the FIU has posted two of its officers at the institution for six months.

Why does this matter to the public?

For ordinary consumers, the Assay Office may be best known as the place where jewellery and precious stones can be tested. But its role goes much further.

The Office is responsible for ensuring compliance with the Jewellery Act 2007, which regulates dealings in gold, silver, palladium and platinum, as well as jewellery and precious and semi-precious stones. Its broader mission is to protect consumers, support the jewellery sector and build confidence in the buying and selling of jewellery and gemstones.

According to Mr Lucknauth, consumer protection remains at the heart of the Office's work. He stresses that the Assay Office's role is not simply to regulate businesses, but also to give members of the public greater confidence when purchasing, selling or dealing with precious metals and gemstones.

The institution operates an Assay Laboratory, which tests gold, silver and platinum jewellery and their alloys, and a Gemmology Laboratory, where precious and semi-precious stones and grades diamonds are verified. Its services are available to members of the public, jewellers and Government institutions.

Thousands of transactions pass through the regulatory system

The scale of the jewellery sector and the Assay Office's regulatory responsibilities is reflected in its figures.

At the end of December 2025, there were 602 registered dealers operating 716 jewellery shops, employing a total of 2,233 persons. During the year, 29 new dealers registered with the Assay Office, while nine dealers ceased business.

The Office also carried out 532 unannounced inspection visits to jewellery businesses in 2025, covering 74.3 percent of the 716 registered jewellery shops. Two offences involving two dealers were recorded for failure to keep full and true written records, with both case files submitted to the Director of Public Prosecutions for advice.

Mr Lucknauth points out that inspections form an essential part of ensuring that the industry operates within the legal framework and that consumers are adequately protected. The monitoring function, he notes, also helps promote compliance among dealers rather than focusing solely on enforcement after an offence has occurred.

One of the less familiar but important services provided by the Office relates to second-hand jewellery. In 2025, 6,683 Ownership Declaration Forms were endorsed. The identity and address of customers involved in the sale of second-hand jewellery must be mentioned on the forms duly certified either by the Police or the Assay Office. It is important for the customers to ascertain whether the jewellery meant for sale are their property.

Regulations 23 of the Jewellery (Dealer’s Registration and Transactions) Regulations 2012 stipulates that it shall be an offence for any person to advertise, or cause to advertise, in relation to second-hand jewellery or the purchase of precious metals in any form and coins.

Before buying that diamond, know what you are getting

The Assay Office's laboratories provide another important layer of consumer protection.

During 2025, around 500 samples were tested by the Assay Laboratory using recognised methods including cupellation, touchstone testing and X-Ray spectrometry. The laboratory is accredited to ISO/IEC 17025:2017 by MAURITAS for specified testing of gold and silver jewellery and their alloys.

The Gemmology Laboratory, meanwhile, verified around 500 gemstones for authenticity and graded approximately 500 diamonds. Diamond grading assesses the four well-known characteristics – Cut, Clarity, Colour and Carat Weight, commonly known as the 4Cs.

For Mr Lucknauth, independent testing is particularly important in a sector where the value of an item can depend heavily on its purity, composition, authenticity and quality. He underlines that the laboratory services enable consumers and jewellers to obtain an objective assessment rather than relying solely on visual examination or information provided at the point of sale.

The Assay Office also offers a valuation service to determine the value of the gold content in jewellery. A total of 148 pieces of gold jewellery were evaluated in 2025.

A mark that tells a story

Another element consumers may notice on jewellery is a distinctive mark.

Locally manufactured gold jewellery carries a Sponsor's Mark, which can be traced to the dealer who manufactured the item. Seven new Sponsor's Marks were registered in 2025, bringing the total number in use by jewellers to 422.

Imported gold jewellery may carry an Identification Mark or Importer's Mark. At the end of 2025, there were 277 registered Identification Marks and 56 Importer's Marks.

Mr Lucknauth explains that these marks form part of the traceability mechanism within the jewellery industry, helping link jewellery to manufacturers or importers and strengthening accountability across the sector.

From the laboratory to your smartphone

The Assay Office is also looking at ways to make its services more convenient.

Among the planned projects is an e-service for applications for Importer's Marks and Sponsor's Marks, to be implemented through the Government Online Centre. The Office is also exploring the possibility of accepting payments through smartphone applications, subject to the necessary policy decision by the Ministry of Finance/Accountant General.

For Mr Lucknauth, the move towards digital services forms part of a wider effort to make interactions with the Assay Office more accessible and efficient while maintaining the necessary controls and standards.

The institution already provides several digital and information services, including online verification of Gemmology Test Reports, SMS and WhatsApp notifications through the number 55099575, and QR-code verification for Registration Certificates and Assay Laboratory Test Reports. Furthermore, a dedicated 8966 hotline provides the daily price of gold.

Investing in better technology

The transformation is also taking place inside the laboratories.

An allocation of Rs 3.2 million was made under the 2025/26 Capital Project for the procurement of a Gem iD100 and a DiamondView Zoom for the Gemmology Laboratory. These pieces of equipment are already in use in the laboratory.

Mr Lucknauth points out that investment in equipment is part of the Office's efforts to keep pace with developments in gemmology to enhance its capacity to provide reliable and independent testing services.

Quality is a key feature of the Office's operations. The Assay Office has been accredited to MS ISO 9001:2015 with the Mauritius Standards Bureau since February 2018, with annual audits conducted to assess continued compliance. In addition, the Assay Office was the first public laboratory to be ISO/IEC 17025 certified with MAURITAS.

Protecting the buyer, strengthening the industry

With 21 officers working across its Administration, Assay Laboratory, Gemmology Laboratory, Counter Service and Monitoring units, the Assay Office combines laboratory expertise with regulatory oversight.

Its mission is therefore not limited to determining whether a piece of jewellery contains the precious metal or gemstone claimed by a seller. It encompasses several layers ranging from registration, inspections, testing, certification, valuation to consumer awareness and, increasingly, financial crime supervision.

For Mr Lucknauth, the evolution of the Assay Office reflects the changing patterns of the jewellery sector. “Maintaining public confidence requires a combination of strong regulation, technical expertise, modern equipment and awareness among consumers and industry operators,” he said.

The creation of the AML/CFT Unit adds a new dimension to this role. As the Assay Office prepares to take over supervision of dealers in precious metals and stones under the relevant legal framework, its mandate is evolving alongside the risks facing the sector.

“Ultimately, the Office's work is about much more than testing gold or grading diamonds. It is about trust – trust that a precious metal is what it claims to be, that a gemstone is authentic, that a dealer is operating within the law and that the jewellery market is subject to effective oversight,” says Mr Lucknauth.

For consumers, the message is straightforward: when buying precious jewellery or gemstones, verification matters. And behind that verification is an institution working not only to safeguard the value of what consumers buy, but more importantly to uphold integrity, transparency and confidence in Mauritius' jewellery industry.

14 September 2026

Email: gis@govmu.org

Website: https://gis.govmu.org

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