By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE Government was yesterday urged to scrutinise more carefully Business Licence applications for ‘cash for gold enterprises’, a leading trader telling Tribune Business the sector is increasingly being exploited by some simply seeking a “quick flip” for a “quick buck”.
Cheldin Brown, operator of Bahamas Gold Trading, told Tribune Business that some operators were simply not exercising due diligence when receiving items.
“Everything comes down to due diligence,” he said. “ If you bring in an item to one of our stores you will have to bring a photo ID and sign a waiver form.
“Basically, the form would state that if the jewellery is stolen you would be prosecuted to the fullest extent of the law and we would turn over all of the information to the police. If you see someone come in with a popped chain, for example, you would have to do your due diligence and find out from the police if any chain was stolen.
“If the operator doesn’t do that then what the law does with them is only fair,” said Mr Brown, who has been in the gold trading business for the past six years.
Last December, the Ingraham administration passed the Pawnbrokers and Secondhand Dealers 2011 Act to monitor and regulate the activities of the cash for gold and scrap metal operators.
The Act imposes upon a business owner or dealer the duty and responsibility to verify the identity of customers, maintain records and keep certain items in an unaltered state for specified periods.
The Bill also empowers a police officer, acting on reasonable suspicion, to enter a dealer’s premises and request the production of all articles in possession of that dealer for inspection, and request the production of copies of records required to be kept by the dealer.
“You need a piece of paper for every piece of jewellery. By law every piece of jewellery must have a supporting document with signature and ID on file. We also have to hold it for 14 days,” Mr Brown said.
“We have helped the police on numerous occasions to recover stolen jewellery. It’s just about due diligence. When you have an industry that some seem to think is booming, you have a lot of persons going around trying to set up shop. What the Government needs to do is scrutinise the holders of the licenses and make sure that they are financially capable of operating the business and are not of an unscrupulous nature.”
Mr Brown said the cash for gold business has become increasingly popular over the last several years, attracting some individuals only looking to make a quick buck.
“I remember when I first started out; it was probably myself and another individual,”he recalled.
“Now there’s an outlet on every corner. You have people that just come into the business looking for a quick flip for some quick cash, get some gold and hurry and try to sell it. Some people open up for two to three months, get as much as they could get and close down because the pressure is on them.
“For me, it’s more about my reputation, and so the Government needs to analyse who these people are they are giving these licenses to.”
Mr Brown said that while operators such as himself have had to bear the brunt of the negativity that has hung over the industry, the sector has been of great benefit to many.
“A lot of Bahamians have been able to pay light bills, mortgages and send kids off to school. It does a lot of good, but along with it comes the negativity such as chain snatching,” said Mr Brown.
Comments
Use the comment form below to begin a discussion about this content.
Sign in to comment
Or login with:
OpenID