News on Patriot Act?

Dear All,

Does anyone know the current status of the Patriot Act? I watched
several deadlines pass by, waiting for the final requirements on
anti-money laundering procedures. The last I read, there was still no
definitive regulations, and with parts of the Patriot Act expiring
soon, I’m wondering what is up. Is this requirement dead in the water
or still on hold? JVC’s web site still says “coming soon”, for
I’m wondering if the Patriot Act will expire and the
whole thing will just disappear?


david lee jeweler
Mason City, Iowa 50401

The Patriot Act expires December 31st 2005. It is unlikely the
entire act will go away. It has proven extremely beneficical in
investigations-it provided mechanism for agencies to cross-talk that
didn’t exist before. As far as I know, there has been one incident of
an investigative lead causing agents to examine an innocent.

It is highly unlikely that the entire act will go away. More than
likely the individual parts will be examined, and the parts that have
proven beneficial to terrorist investigations will be extended. The
more controversial parts will probably be beaten up in the media, and
hence left out of any legal extensions.



The broad power that the Patriot Act grants the government is an
extremely immense powers during this war on terrorism, and it will
be around for a while. Things may expire, but other laws will take
they’re place. The Treason and Sedition Act from WW II was never
repealed, it’s just forgot.

I carry gemstones when I cross international lines, harder for the
feds to trace and easy for me to make. Diamonds are great
international currency.


I’m bemused. What exactly does that have to do with jewellery?
Exploding bracelets imported from us dastardly ‘foreigners’, perhaps?


Hello Brenda:

   Does anyone know the current status of the Patriot Act? The
following is an article from JCK's site. 

The U.S. Treasury Department issued its Patriot Act anti-money
laundering rules for the jewelry industry, the Jewelers Vigilance
Committee announced Saturday. The rules require jewelry dealers to
set up compliance programs within six months. However, it appears to
let most jewelers off the hook. According to the rules, dealers in
covered goods (meaning jewels, precious metals, precious stones, and
finished goods) will have until January 1, 2006, to implement an
anti-money laundering program.

Those programs involve:

  * Performing a risk assessment in order to evaluate their
  particular risks of being exploited for money laundering

  * Appointing a compliance officer to implement the program; 

  * Designing and implementing an anti-money laundering program,
  based on prior developed risk assessment; 

  * Training employees; 

  * Testing the anti-money laundering program independently to
  ensure that the program functions as designed. 

Most retailers appear not to be required to implement the program -
with the exception of retailers who purchase more than $50,000 of
covered goods from non-U.S. dealers or members of the public, and
sell more than $50,000 of those goods.

Pawnbrokers are also exempted from the rule.

To help companies design anti-money laundering programs, the
Jewelers Vigilance Committee had developed the USA PATRIOT Act
Compliance Kit.

The Jewelers Vigilance Committee (which you should all belong to so
you get these updates yourself instead of having to wait until
someone like me posts it on Orchid–not to mention that it supports
the entire jewelry industry) has just posted the rules based on the
USA Patriot Act. Based on my reading of what they are saying it is
unlikely that most of you have to do anything. Retailers appear to
be exempt as long as they don’t make major purchases (over $50k per
year) from any foreign gem or jewelry dealers (US dealers have to
comply with the act) or any major purchases from your customers.
Gem dealers, on the other hand, might want to look into this a
little closer.

What follows is part of the transcript of the JVC email I just
received (hopefully I’m not violating any copyright here) and the
JVC does offer the opportunity to purchase a compliance kit. You
should contact the JVC directly if you want the kit.


  The US Treasury Department has issued the final rules
  requiring "dealers" in precious metals, jewels and stones to
  institute anti-money laundering (AML) programs.  YOU MUST

  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) 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 or 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, jewels
  and stones ONLY! 


  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 a 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.

  3.      If you are a licensed pawn broker (rules for pawn
  brokers will be published by Treasury at a later date).

  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. 

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140

Lapidary Journal had an article regarding the Patriot Act and
Jewelery makers, November 2004 issue. The article, in spite of it’s
obviously biased slant, has some good


This is a terrorist dream, spread the stones or the gold around to
all the pawn shops and small retailers, quick cash. Terrorist are
patient people and willing to take the time to plan something.

I have been questioned by the Swisse and the Brits while traveling
through their countries and I had gemstones on my person as wells as
all of my papers. Coming in to Cincinnati, going thru customs (which
is a joke there), I placed two small bags full of Tanzanite in the
tray and no body questioned them. They were more interested in my
Rolex, that I purchased in Hong Kong back in the early 70s while I
was in the Army.

The reason that I know so much about terrorist and how they work, I
spent 4 years dealing with hijacking methods and training the police
how to handle these situations. Either the hijackers wanted to go
Cuba or they wanted to blow up the plane. Life was much simpler


I'm bemused. What exactly does that have to do with jewellery?
Exploding bracelets imported from us dastardly 'foreigners', perhaps?

Hi Jon;

Although exploding jewelry is something that must be keeping
somebody, somewhere, awake nights, I think that the biggest concern
is diamond and gem sales funneling money to terrorist entities like

No Politics on Orchid Please .

David L. Huffman

There was a big article in a recent issue of Lapidary Journal
regarding the jewelry business and the Patriot Act and it’s effects
on what we do.


Jerry et al,

I’ve already sent an email to Elaine to apologise for not having
read her email properly. I’d had a bad message group day with way
too many off-topic posts, and partly as a consequence I didn’t spot
the vital words “money laundering” in Elaine’s email. If I had I
would have understood as I worked in the Internet gaming business for
a while myself, and so am very familiar with money laundering

My apologies for having wasted people’s time.