Pawn shops and other secondhand dealers have new responsibilities in the fight to keep crooks from cashing in on stolen goods.
The new law took effect in June, and the Department of Commerce and Investment’s trade officers are bestowed with enhanced powers.
“The main reason for the law is really to prevent illegal activity from happening within a licensed business, so clearly that calls for collaboration between the DCI and the RCIPS.
DCI head of compliance and enforcement Claudia Brady told Cayman 27 her background in police has been an asset during the implementation of the new law.
“From history with the police, I can say that the secondhand dealers worked fairly well with the police, I’m not sure if that is the continued practice now, but from the DCI perspective, we are still trying to work through the law and have that sort of working relationship with the secondhand dealers,” she said.
She told Cayman 27 DCI trade officers have expanded powers at their disposal to enforce the law.
“For one, it’s the powers that he trade officers now have under the secondhand dealers law, and those powers give trade officers the right to go and inspect the premises and request certain documentation to be presented. That inspection can happen without a warrant,” said Ms. Brady.
She said secondhand dealers have increased obligations, which pawn shops like CashWiz have said they had implemented independently well in advance of the law.
“Keep photographs of items that you’re taking into your possession, proof of ownership of the person that’s selling you this item or trading you this item. Those are some of the things a secondhand dealer must do to make sure they are compliant with this law,” she said.
Ms. Brady told Cayman 27 the law only applies to businesses categorized as pawn or trading, and doesn’t apply to private party-to-party car sales, garage sales, as well as church and school sales.
Ms. Brady said it’s still early days for the secondhand dealers law, but she told Cayman 27 it’s doubtful there will be any pushback from businesses over the enhanced inspection powers.