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Patriot Act, How you do business?


#1

If you wouldn’t mind…

How does the Patriot Act affect how you do business?

How much time does it take to do the associated paperwork, etc?

And is it for sales $50K and over or does it apply to both
purchasing and selling… as in if I purchase $15K and sell $40K for a
total of $55K, this next year.

I have to get my act (pun intended) together as I am going to go past
the $50K via the second example. I have been to the JVC website and
before I shell out $300 for their kit, I would like to know your
collective thoughts.

Thank you,
Michelle


#2

I may be wrong on this, but it is my understanding that most small
retailers are not going to need to do anything on the Patriot Act
issue, other than make sure that their major suppliers are in
conformance (which you’ll know because they all make you sign a bunch
of paperwork relating to it now). When this first came up as an
issue, I read the law fairly closely and it seems that most retailers
don’t need to do much. This is from the JVC web site:

" Retailers who purchase their covered goods from US based dealers
already covered by the rule and from other retailers will not be
required to establish anti-money laundering programs."

So as long as you are purchasing from US based gem and metals
dealers (assuming they are in compliance) you don’t have to do a
thing. If in fact you are purchasing $50,000 or more directly from
foreign dealers (or the public) then you have to have a plan in
house. Also from the JVC:

Definition of the term “dealer:” A person who both purchases at
least $50,000 worth of covered goods and sells at least $50,000 worth
of covered goods during the preceding year.

So it is not the fact that you have purchased $15k and sold $45k
that puts you over the threshold, but only if you both purchase $50k
in covered goods (which again means goods from foreign uncovered
dealers) and have sold $50k of the same goods in the previous year. I
would say if the numbers you are giving us are real then you have
absolutely no obligation to do anything about the act. But…I’m
not a lawyer, so don’t do anything based on what I’m telling you. JVC
does have a fair amount of on their website about it and
you can always call them and check with them if you are in doubt.

On a personal note, it is my belief that this act has absolutely
nothing to do with terrorism but is merely an attempt by the
government, under the guise of terrorism, to completely quash the
cash marketplace out there. I find this quite amusing now given that
no one’s credit cards/personal data seem to be safe from theft
anymore. So basically the government is forcing people to be the
subject of credit card/identity fraud by eliminating any other means
to conduct business. But then that’s just my opinion. I’m sure there
are others.

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


#3

Tucked away in the JVC website:

"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 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, precious jewels and
    stones ONLY!"

Hope this helps clarify matters…

Elna, in Berkeley where the blossoms are bustin’ out all over the
place!


#4

Thank you Daniel and Elna for your responses.

I have mulling over what you both have said, what I have found on
the JVC site and what has been said to me when I called my lawyer.
And trying to map out where I am headed in the next year.

All of the precious metals I buy are from US sources. I have a
couple of favorite gem dealers who are over-sees, one of whom is
Patriot Act compliant, two who are not, but I won’t be going over the
$50K mark with my stone purchases from them unless I get really busy
and I don’t foresee that kind of volume.

And on that personal note: I felt that way about the requirement
(and associated paperwork) of payment in cash of over $10K has to be
reported to the IRS. To stem the money laundering of the drug trade
and mafia? Where I grew up it was just more paperwork the farmers had
to fill out since they didn’t trust the banks and occasionally the
lawyers and doctors who like to flaunt what they had by paying for a
Cadillac in cash. That’s rural life I suppose.

Have a great day every one!
Michelle