Anti-Money Laundering Kit to Aid in Complying with U.S. Rule

The U.S. Treasury Department issued the Interim Final Rule of the USA Patriot Act that becomes effective July 4, 2005. The Act directs jewelry businesses to set up anti-money laundering programs to detect and prevent exploitation by those with criminal intent.

According to the rule, dealers have until January 1, 2006 to comply with the final regulations. 

To help jewelry companies design and implement effective anti-money laundering programs, the Jewelers Vigilance Committee (JVC) is selling a USA PATRIOT Act Compliance Kit on its website (wwwjvclegal.org).

The Kit provides guidance on how to create a successful compliance program, including how to perform risk assessment, templates of written policy and programs, employee training modules, and all the information needed for a business to comply.

JVC is selling the kit to its members for $150 and to non-members for $300.

Cecilia Gardner, JVC’s executive director and general counsel, said about the rules that, “Our industry’s anti-money laundering programs will require five elements: Self-assessment of risk for money laundering; written policies and procedures; the designation of an employee as compliance officer, training for other employees, and periodic testing of the program to ensure that it is operating effectively.

“JVC is gratified that Treasury considered and adopted our position that trade-in transactions presented very low-risk for exploitation for money laundering. Their decision to exempt these transactions supports the retail segment of our industry. ”

Jewelers Vigilance Committee is a non-profit legal trade association. It serves as an industry representative to government agencies.