Money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the proceeds appear to have derived from legitimate origins or constitute legitimate assets. Generally, money laundering occurs in three stages. Cash first enters the financial system at the “placement” stage, where the cash generated from criminal activities is converted into monetary instruments, such as money orders or traveler’s checks, or deposited into accounts at financial institutions. At the “layering” stage, the funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin. At the “integration” stage, the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses.
Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal either the origin of the funds or their intended use, which could be for criminal purposes. Legitimate sources of funds are a key difference between terrorist financiers and traditional criminal organizations. In addition to charitable donations, legitimate sources include foreign government sponsors, business ownership and personal employment. Although the motivation differs between traditional money launderers and terrorist financiers, the actual methods used to fund terrorist operations can be the same as or similar to methods used by other criminals to launder funds. Funding for terrorist attacks does not always require large sums of money and the associated transactions may not be complex.
To assist dealers in precious metals, precious stones, jewels, and finished goods (“Covered Goods”) in the fight against the financing of terrorism and money laundering, various resources have been made available. Among the resources used to prepare this AML program are the following:
31 C.F.R. § 1010 (http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=1d4b7666c253f04d69699bbde806efee&rgn=div5&view=text&node=31:220.127.116.11.2&idno=31)
31 C.F.R. § 1027 (http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=1d4b7666c253f04d69699bbde806efee&rgn=div5&view=text&node=31:18.104.22.168.11&idno=31)
FinCEN FAQs (https://www.fincen.gov/resources/statutes-regulations/guidance/frequently-asked-questions-0)
Notice of Proposed Rulemaking (68 FR 8480), February 21, 2003
Interim Final Rule, June 9, 2005
“For most dealers, the requirements are (1) to establish an anti-money laundering program, (2) to file IRS/FinCEN Form 8300, (3) to file FinCEN Form TD F 90–22.1 [Report of Foreign Bank and Financial Accounts], and (4) to file FinCEN Form 105 [Report of International Transportation of Currency or Monetary Instruments].”
Conducting business from its website, https://spotlockbullion.com, SpotLock Bullion Inc deals in deals in bullion coins and bars, and in numismatic collectible accessories.
In providing these services, SpotLock Bullion Inc intends to buy and sell more than $50,000 in covered goods (as that term is defined in 31 C.F.R. §1027.100) each year. As such, SpotLock Bullion Inc will qualify as a dealer and will be subject to Federal anti-money laundering (“AML”) regulations, commonly referred to as the Bank Secrecy Act, or “BSA”.
One of these regulations, 31 CFR §1027.210, requires each dealer to “develop and implement a written anti-money laundering program reasonably designed to prevent the dealer from being used to facilitate money laundering and the financing of terrorist activities through the purchase and sale of covered goods.” It also states that the written AML program shall include a provision for the independent testing of the program. To address this requirement, SpotLock Bullion Inc has engaged SIRS to conduct this test.
In her June 12, 2014, Remarks, FinCEN Director Jennifer Shasky Calvery gave this description of the BSA:
As you likely already know, the Bank Secrecy Act, or “BSA,” is the common name for a series of statutes and regulations that form this country’s anti-money laundering and countering the financing of terrorism laws. Nearly every country around the world has similar laws in place at this point. These laws are meant to protect the integrity of the financial system by leveraging the assistance of financial institutions to make it more transparent and resilient to crime and security threats, and by providing information useful to law enforcement and others to combat such threats.
The USA PATRIOT Act (2001) and 31 CFR Chapter X (2011) are among the BSA’s more recent and prominent statutes and regulations. The USA PATRIOT Act is one of several statutes referenced by the title Bank Secrecy Act. 31 CFR Chapter X contains the organized codification of BSA regulations. (The BSA’s implementing regulations organized by financial industry.)
AML regulations governing the activities of precious metals, stones, and jewelry dealers are found in 31 CFR Part 1027: Rules for Dealers in Precious Metals, Precious Stones, or Jewels. These rules are divided into four main sections:
1) AML Program;
2) Report Filing;
3) Creation and Maintenance of Records; and
4) Information Sharing.
It is the policy of SpotLock Bullion Inc (or “the Firm”) to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities by complying with all applicable requirements under the Bank Secrecy Act (“BSA”) and its implementing regulations.
1099B reporting to IRS
Persons or entities selling precious metals to the company should be aware of IRS reporting requirements.
REPORTABLE BULLION ITEM
when Selling to US-based bullion dealers:
32.15 troy oz or more
1,000 troy oz or more
Platinum bars / rounds
25 troy oz or more
Palladium bars / rounds
100 troy oz more
Gold Maple Leaf Coins 1 oz
25 troy oz or more
Gold Krugerrand Coins 1 oz
25 troy oz or more
Gold Mexican Onza Coins 1 oz
25 troy oz or more
US 90% Silver Coin Bags
$1,000 face value bag
Spotlock Bullion Inc client payment acceptance policies
Personal checks and “electronic bill pay” checks may be accepted, however the acceptance of checks is not guaranteed.
Bank wires are accepted for payment of all orders
We do accept cash for “in person” purchases pursuant to the following:
A)The order must be less than $10,000 and
B) Client Address / household is limited to $10000 cash payments per 12 month continuous period.