Patriot Act for Jewelers

Jewelry Discussion
1

I have written several stories about the Patriot Act as it applies
to the jewelry industry and am working on another one at this
moment.

Here’s the gist:

Title II, section 352 applies specifically to those who deal in
diamonds, precious gemstones and precious metals.

If you buy, or sell, more than $50,000 worth of those goods in any
given year, you are subject to the conditions of the act. You are
then considered to be a financial institution by the government and
must comply with the rules which are still in the process of being
finalized. If enough people on the Orchid list meet that
requirement, I would be happy to point them in the right direction
in regard to complying with the act.

Ettagale Blauer

2

We are directly affected by Title II, section 352, and will really
appreciate your input and right direction on the subject.

Thank you for such a yoeman service to our jewelry community

Anil

3

Well,well, whaddaya know…you go to sleep a jeweler and wake up
…a financial institution. Now you’ll have to watch who’s watching
your transactions at Tucson: Is it someone out to rob you? Someone
out to launder money? Or is it one of Ashcroft’s agents waiting to
disappear you under the Patriot Act? If this keeps up, don’t be
surprised if they use the Orchid list the same way the infamous
Senator McCarthy used his blacklists in the 1950’s to ruin people’s
lives.
Dee

4

Ettagale, I am having a hard time believing what your points.A quick
search of the act and relevant US Code reveals my naivet?

    Title II, section 352 applies specifically to those who deal
in diamonds, precious gemstones and precious metals.

Section 352 is found under Title III, Subtitle B, as I read it.
http://news.findlaw.com/cnn/docs/terrorism/hr3162.pdf

    If you buy, or sell, more than $50,000 worth of those goods in
any given year, you are subject to the conditions of the act.  You
are then considered to be a financial institution by the government
and must comply with the rules which are still in the process of
being finalized.

Note how the US Code defines a “financial institution” under the
relevant section. No requirement of a dollar amount is mentioned.

Sec. 5312. - Definitions and application

(a) In this subchapter -

(1) ‘‘financial agency’’ means a person acting for a person (except
for a country, a monetary or financial authority acting as a
monetary or financial authority, or an international financial
institution of which the United States Government is a member) as a
financial institution, bailee, depository trustee, or agent, or
acting in a similar way related to money, credit, securities, gold,
or a transaction in money, credit, securities, or gold.

(2) ‘‘financial institution’’ means -

(A) an insured bank (as defined in section 3(h) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(h))); …

(M) an insurance company;

(N) a dealer in precious metals, stones, or jewels;

(O) a pawnbroker;

The act appears to me to have a number of unconstitutional areas and
as such will crumble in time, in my SQHO. However, there will be a
lot of trouble before it does. Tell us more, Ettagale.

Bruce D. Holmgrain
JA Certified Master Bench Jeweler
http://www.goldwerx.com

5

This is what happens when we have a president appointed rather than
elected and an Attorney General appointed to the office after he
lost an election in a race with a dead man. Sorry folks, as I said in
an earlier post this rant of mine is why we should stick to the
topic: metal, stones, etc. But I do feel better. K Kelly