USA PATRIOT Act Compliance Guidelines
Do YOU Need to Comply?
Q. Do I have to Comply with the USA PATRIOT Act?
A. FinCen (Financial Crimes Enforcement Network), a U.S. government agency has issued the final rules requiring "dealers" in precious metals, precious jewels and stones to institute anti-money laundering (AML) programs. YOU MUST COMPLY BY JANUARY 1, 2006.
According to the final rules, you must institute an AML program if:
1. You are a dealer, meaning, you purchased "covered goods" (precious metal, jewels and stones and finished goods) in an amount in excess of $50,000 during the prior calendar or tax year AND received more than $50,000 in gross proceeds from the sale of precious metal, jewels and stones during the same period.
2. The calculation of the value threshold for purchase and sale is limited to the value of the precious metal, precious jewels and stones ONLY!
NOTE: All transactions (sale or purchase) involving $10,000 or more in cash or cash equivalents still require all industry members to file an IRS 8300 form.
| Q. Who has to comply? A. Refiners, wholesalers, traders, importers, manufacturers, retailers, suppliers, and pawnbrokers and those who buy from the public. Key: “Stones” = recognizable list of precious gemstones; “Jewel” = gem quality organic material (pearl, amber, jade, coral); “Precious metal” = gold, platinum - greater than 500 parts per thousand. | |
IMPORTANT EXCEPTIONS FOR RETAILERS
According to the final rules, retailers (those selling primarily to the public) may not need to implement an AML program if you qualify for one of the following exceptions: 1. If you are a retailer, and purchase only from other dealers (as defined above) who implement an U.S. AML program, you do not need to comply. 2. If you do purchase from non-dealers, such as members of the public and foreign sources of supply (to whom the US rules do not apply), and the value of the covered goods is less than $50,000, you do not need to comply. If the value of the covered goods is more than $50,000 in any one calendar or tax year, you must comply. Retailers: For the purpose of determining your exception status you need not include in your calculation purchases in the form of trade ins, as long as they did not include providing funds of any kind to the customer in exchange for trade ins of such covered goods.
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Q. How do I comply; what does my AML program have to include?
A. Your AML program has to include five points:
1. Appoint a compliance officer
2. Perform risk assessment
3. Write your AML policy and program
4. Perform employee training
5. Perform periodic testing of programs
Q. Can JVC help me develop my company’s AML program?
A. YES, JVC can help! We developed the USA PATRIOT Act Compliance Kit (PACK), an easy to use and understand system that guides you through the steps necessary to develop your company’s AML program. PACK was developed by Cecilia Gardner, JVC’s president, CEO and general counsel and former United States AML prosecutor.
Q. What can JVC’s PACK offer me?
A. 1) JVC’s PACK includes forms and templates on a CD that you can customize for your business;
2) “Quick Start Guide” to help you start – and finish – your AML program in less time than you think;
3) AskAMLExpert@aol.com, a secure, Web-based option to ask Cecilia Gardner specific questions about your program;
4) And more.
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