PATRIOT Act AML rules must still be followed

The Senate’s refusal to extend parts of the USA PATRIOT Act that were due to expire on Dec. 31 does not pertain to anti-money laundering regulations for the jewelry industry, the Jewelers Vigilance Committee said.

The AML rules require, “dealers in precious metals, precious stones, jewels and covered goods” to implement an AML program. Jewelry dealers who buy these products in an amount in excess of $50,000 in one year and receive more than $50,000 in gross proceeds from the sale of precious metals, stones, and jewels during the same period, must comply by Jan. 1, 2006. Jewelry dealers affected by the USA PATRIOT Act have until the New Year to develop their AML programs.

“The section of the USA PATRIOT Act pertaining to anti-money laundering in the jewelry industry is a law that was not subject to renewal by Congressional action and must be followed,” said Cecilia L. Gardner, JVC’s president, CEO and general counsel.

Gardner requests that people visit JVC’s Web site: www.jvclegal.org, PATRIOT Act section, to determine if whether they have to develop an AML program. “If you do, now is a good time to decide who your compliance officer will be, and how you can identify your business partners, suppliers and customers.”

JVC has developed the USA PATRIOT Act Compliance Kit (PACK) to help jewelry dealers—retailers, manufacturers, distributors and wholesalers—develop their AML programs. PACK includes templates and forms that dealers can customize for their businesses. All the materials are included in the PACK binder and on a CD that comes with the kit.

In addition to the compliance kit, JVC will host a seminar explaining what the Internal Revenue Service will be looking for in AML programs during the at the JA/NY Show, Jacob Javits Convention Center, Meeting Room 1E03/04, Jan. 23, 2006, at 9 a.m. Registration is not required.

JVC also offers PACK owners contract services that include: AML program and policy development, employee-training program pertaining to AML, and AML program testing.

For more information, visit JVC’s Web site: www.jvclegal.org.