Introduction: AML and Gold

[GoldShield]

Hi Members,

My name is Cameron and I'm an AML compliance guy trying to learn how to best serve the precious metals community to solve any pain-points related to AML compliance and banking obligations.

 

[Alan]

Welcome, Cameron! We're glad you joined us. I'm sure your experience will be quite valuable!

 

[Alan Elzer]

New here too so what is AML compliance?

 

[GoldShield]

Hi Alan

I'll be happy to explain AML here without brain-dumping since it has been my career for 11+ years I can get a little wordy.

US gold and precious metals dealers are subject to Anti-Money Laundering (AML) regulations under the Bank Secrecy Act (BSA). Enforcement is carried out by the Financial Crimes Enforcement Network (FinCEN). These requirements are designed to prevent money laundering, terrorist financing, and other financial crimes. As a result, banks require gold dealers who are commercial account holders to demonstrate compliance by showing they have specific money-laundering prevention measures in place which include a written AML program tailored to the business’s size, complexity, and risks.

Cheers!

Cameron

 

[Alan Elzer]

Hi Alan

I'll be happy to explain AML here without brain-dumping since it has been my career for 11+ years I can get a little wordy.

US gold and precious metals dealers are subject to Anti-Money Laundering (AML) regulations under the Bank Secrecy Act (BSA). Enforcement is carried out by the Financial Crimes Enforcement Network (FinCEN). These requirements are designed to prevent money laundering, terrorist financing, and other financial crimes. As a result, banks require gold dealers who are commercial account holders to demonstrate compliance by showing they have specific money-laundering prevention measures in place which include a written AML program tailored to the business’s size, complexity, and risks.

Cheers!

Cameron

Thank you Sir

 

[Costa BLACK]

Hi Alan

I'll be happy to explain AML here without brain-dumping since it has been my career for 11+ years I can get a little wordy.

US gold and precious metals dealers are subject to Anti-Money Laundering (AML) regulations under the Bank Secrecy Act (BSA). Enforcement is carried out by the Financial Crimes Enforcement Network (FinCEN). These requirements are designed to prevent money laundering, terrorist financing, and other financial crimes. As a result, banks require gold dealers who are commercial account holders to demonstrate compliance by showing they have specific money-laundering prevention measures in place which include a written AML program tailored to the business’s size, complexity, and risks.

Cheers!

Cameron

Hi Cameron, thanks for this. Is there is an online resource or Template that can assist PM dealers to be able to create their internal AML framework Especially for smaller Dealers who are more mom and pop?

 

[MH36]

Hi Alan

I'll be happy to explain AML here without brain-dumping since it has been my career for 11+ years I can get a little wordy.

US gold and precious metals dealers are subject to Anti-Money Laundering (AML) regulations under the Bank Secrecy Act (BSA). Enforcement is carried out by the Financial Crimes Enforcement Network (FinCEN). These requirements are designed to prevent money laundering, terrorist financing, and other financial crimes. As a result, banks require gold dealers who are commercial account holders to demonstrate compliance by showing they have specific money-laundering prevention measures in place which include a written AML program tailored to the business’s size, complexity, and risks.

Cheers!

Cameron

I do want to ask a question...if a person just has a panning hobby /refines gold or any PGM metals and sells to a larger business refinery, do those people have to be concerned over possibly triggering an AML flag if they don't sell on a regular basis? I'm confused as to what irregular patterns in customers means...?

 

[GoldShield]

Hi Cameron, thanks for this. Is there is an online resource or Template that can assist PM dealers to be able to create their internal AML framework Especially for smaller Dealers who are more mom and pop?

Yes, there are resources and guidance available that a low-volume dealer might use to better understand their obligations at the regulator's website below.

https://www.fincen.gov/sites/default/files/guidance/faq060305.pdf

However, when it comes to "mom and pop" ops, banks and regulators don't distinguish and have the same expectations for everyone. So I would steer clear of any boiler-plate policies or tools you find floating around the web. Those are only good for examples. All AML programs are required to be reviewed by a third-party on a yearly basis. When your bank account comes up for periodic review by the bank (and it will since PM is always considered HR) it won't matter what your volume is if the program has gaps, appears borrowed or was reviewed by a "friend" or someone who isn't qualified to perform the review. You'll either be de-banked without explanation or if you are lucky they tell you to go get a real AML program and find a reviewer who is qualified. That does not mean your CPA if they are performing the accounting function.

The days of DIY compliance are pretty much over and anyone who isn't having this done by a pro is on borrowed time.

 

[GoldShield]

Regarding hobby folks out panning for gold they should have no worries at all. If by some great luck they are selling an amount at the 10K Cash Transaction Report (CTR) threshold this only means the buyer must report the sale to FinCEN which is very normal and won't call negative attention to anyone.

An SAR (Suspicious Activity Report) won't be triggered unless you have a pattern of selling at just under the 10K mark or structure the transactions to avoid the threshold, OR there is some reason to believe the gold is from an illegal source.

Legit gold hunters who aren't commercial operators have no worries at all here. I'm an AML Specialist and if I've got a special creek bed where I'm always getting lucky, I wouldn't have the slightest care in the world about selling my gold. They might ask you additional questions and take a second form of ID and screen your name against the OFAC list or another criminal watch list but who cares? You will NEVER be charged with ML unless there is a predicate offense it can be tied with like theft etc... I'm a big believer in privacy so I wan't everyone to know their rights and not stress.