ANTI MONEY LAUNDERING PROGRAM AND POLICY
DEALER
GENERAL STATEMENT OF PURPOSE
It is the policy of Buy Gold and Silver Safely to prohibit the use of our
business or services for money laundering or terrorist financing.
This AML Program and Policy has been developed in conformance with the
Requirements of rules promulgated by the U.S. Department of Treasury,
Financial Crimes Enforcement Network, 31 CFR Part 1Q3, Section 130.140
c, under the Bank Secrecy Act as amended by the USA PATRIOT Act of 2001
(Pub.L.107-56) and is based on Buy Gold and Silver Safely assessment of the
money laundering and terrorist financing risks associated with Buy Gold and
Silver Safely transactions pertaining to covered goods.
Purchased in excess of $50,000 and sold in excess of $50,000 in any tax or
calendar year.
This Program and Policy will be made available to the U.S. Department of
Treasury or any other duly authorized government agency upon request.
Both this AML Program and Policy and Buy Gold and Silver Safely Risk
Assessment have been reviewed by Senior Management of (Buy Gold and Silver
Safely). Both this Program and the Risk Assessment may be updated from time
to time This Program and Policy applies only to the purchase and sale of
covered goods defined as precious metals (of an assay ¡in excess of 500 parts
per thousand), precious stones and jewels, and finished goods of which 5C%
of the value is derived from the precious metal, precious stones or jewels
contained in or attached to such goods.
GENERAL POLICIES
I. It is the policy of Buy Gold and Silver Safely to comply with all cash
reporting requirements for receipt of cash in a single transaction or in a
series of related transactions in an amount of $10,000 or higher. In all
such cases, an IRS Form 8300 will be completed in full and submitted to the
appropriate government agency.
2. It is the policy of Buy Gold and Silver Safely periodically to check all
known government agency or agency sponsored lists of counties that have been
found to be non-cooperative in anti-money laundering efforts and lists f
countries suspected of supporting terrorism and list of individuals suspected
of supporting terrorism or engaging in terrorist activity. The purpose of
this activity is to determine whether any source of supply, distribution
channel or individual associated with the business of Buy Gold and Silver
Safely has been included on such lists.
3. Any request from a business partner of Buy Gold and Silver Safely to alter
its course of dealing with Buy Gold and Silver Safely will be the subject
of reasonable inquiries designed to determine the reasons for the change im
course of dealings. Changes in course of dealing includes, but is not limited
to: change in payment (receivable or payee) methods or locations, change
in delivery methods or locations, introduction of heretofore unknown third
parties into the course of dealing, change in the chain of distribution.
4. Any request from a business partner of Buy Gold and Silver Safely for an
unusual degree of secrecy related to the transaction will be the subject of
reasonable inquiries designed to determine the reasons for the high degree of
secrecy.
5. It is the policy of Buy Gold and Silver Safely that, when the person or
company supplying or purchasing covered goods, evades or refuses to respond
to reasonable inquiries to acquire information or explanations required for
compliance with the Buy Gold and Silver Safely program, it is the policy of
Buy Gold and Silver Safely to:
a) Refer the transaction to the Compliance Officer for assessment
b) Decide whether or not to engage in the transaction
6. It is the policy of Buy Gold and Silver Safely to train all relevant
employees regarding the laws and regulations pertaining to anti-money
laundering requirements and the program and policy of Buy Gold and Silver
Safely.
PART 1 — Identification of Customers and business Partners.
1. It is the policy of Buy Gold and Silver Safely to acquire from a business
partners engaged in selling to or purchasing covered goods from Buy Gold
and Silver Safely, and from customers engaged in transactions using credit
instruments (checks, wire transfers, etc.) standard identifying information.
This information is to be maintained in written form.
2. Government issued identification documents.
3. Identification information has already been recorded for established
business partners and customers and will be acquired in advance of opening
new accounts.
4. It is the policy of Buy Gold and Silver Safely to review all
identification information for internal consistency — all identification
information must be consistent for each supplier or business partner on all
identification documents, or a reasonable explanation for the inconsistency
has been provided.
The standard information to be acquired is:
1. Name
2. Address
3. Telephone number
4 Fax number
5. Government issued identification number (Social Security, Tax
identification, passport, license, etc.)
5. It is the policy of Buy Gold and Silver Safely to acquire the above
mentioned identification information for any third party associated in any
manner with any transaction for covered goods in which Buy Gold and Silver
Safely engaged, including third party payers or payees, recipients, suppliers
or senders of goods.
6. It is the policy of Buy Gold and Silver Safely to acquire all required
identification information from members of the public, foreign sources of
supply or other non-dealers from whom we purchase or acquire precious metal,
precious stones, jewels or finished goods, 50% of the value of which is
comprised of the precious metal, precious stones or jewels contained in or
attached to such goods
7. it is the policy of Buy Gold and Silver Safely to periodically check
all government agency or agency sponsored lists of persons suspected of
engaging in criminal activity or countries that support terrorism or have
been identified as non-cooperative in efforts to combat money laundering. It
is the responsibility of the Compliance Officer to check these lists on a
periodic basis and to review the transactions and business partners of Buy
Gold and Silver Safely to determine if any of the countries, individuals or
entities engaged in business or any transactions with Buy Gold and Silver
Safely.
8. In cases where any party to a transaction evades or refuses to respond to
reasonable inquiries designed to identify the person or otherwise comply with
the AML Program of Buy Gold and Silver Safely, it is the policy of Buy Gold
and Silver Safely to:
a. Refer the transaction to the Compliance Officer for assessment
b. Decide whether or not to engage in the transaction
PART 2 – Monitoring Business Transactions
A. Purchases of covered goods from members of the public
1. In cases where any party to a transaction evades or refuses to respond to
reasonable inquiries designed to identify the person, it is the policy of Buy
Gold and Silver Safely to:
a) Refer the transaction to the Compliance Officer for assessment
b) Decide whether or not to engage in the transaction
B. Purchases or sales of covered goods to or from foreign sources of supply
or other non-dealers (estate sales, US government-sponsored sales, bankruptcy
trustees, auction houses, etc.)
I. All transactions involving purchases or sales to or from foreign sources
of supply or other non-dealers require identification procedures as described
above.
2. Payment for all such purchases of covered goods are in the form of check,
or wire transfer ONLY.
3. No third party should be engaged in payment or supply or distribution
channel for the item purchased or sold without an explanation from the
foreign source of supply or other non-dealer of the identity and reason for
involvement of the third party.
4. It is the policy of Buy Gold and Silver Safely to inquire of all foreign-
based sources of supply about the implementation of an AML program consistent
with their local laws.
5. In cases where any party to a transection evades or refuses to respond to
reasonable inquiries designed to monitor the transaction or otherwise comply
with Buy Gold and Silver Safely’s AML program, it is the policy of Buy Gold
and Silver Safely to:
a) Refer the transaction to the Compliance Officer for assessment
b) Decide whether or not to n4age in the transaction
6. Any request from business partner 1:0 3lter its course of dealing
regarding transactions with Buy Gold and Silver Safely will be the subject
of reasonable inquiries designed to determine the reasons for the change in
course of dealings.
Changes in course of dealing includes, but is not limited to: change in
payment (receivable or payable) methods or locations, change ¡n delivery
methods or locations, introduction of heretofore unknown third parties into
the course of dealing, change ¡n the chain of distribution.
7. In cases where any party to a transaction evades or refuses to respond to
reasonable inquiries regarding changes in course of dealing with Buy Gold and
Silver Safely it is the policy of Buy Gold and Silver Safely to:
a) Refer the transaction to the Compliance Officer for assessment
b) Decide whether or not to engage in the transaction
PART 3 – Detecting and Responding To Red Flags”
I. It is the policy of Buy Gold and Silver Safely to detect and respond
to red flags that might raise suspicion that a particular transaction or
business partner or customer is engaging in activity designed to facilitate
money Laundering or terrorist financing.
2. When ‘red flags” are detected, it is the policy of Buy Gold and Silver
Safely to:
a) Refer the transaction to the Compliance Officer for assessment
b) Decide whether or not to engage in the transaction
The following general categories describe “red flags” which trigger the above
referenced process re:
Unusual Payment Methods
Unusual payment methods include but are not limited to:
. use of large quantities of cash
. sequentially numbered money orders
. travelers checks in large quantities
. repeated use of cashiers checks
. payments from third parties
. any combination of the above
Unwillingness By a Customer, Business Partner Or Supplier To Provide
Complete Or Accurate Contact Information, Financial References Or Business
Affiliations;
Activities under this category include but are not limited to:
. A business partner or customer evades or refuses to provide identification
information
. A business partner or customer evades or refuses to answer reasonable
inquiries about a transaction
. A business partner or customer requests an unusual degree of secrecy
related to a transaction
. A business partner or customer uses a fake identification document
Purchases Or Sales That Are Unusual For The Particular Customer, supplier or
Type Of Customer Or Supplier
Activities under this category include but are not limited to:
. Change of payment methods
. Requests for payment or delivery to a third party
Purchases or Sales That Are Not In Conformity With Standard Industry
Practices
Activities under this category include but are not limited to:
. Requests for payments not to be recorded on the books and records of the
company
. Requests that goods not be entered into inventory records
. Unusual quantities of goods ordered
. Requests for an unusual degree of secrecy
PART 4 – Procedures For Responding To Treasury And Requests For AML
Information
Requests For Information From Duly Authorized Government Agencies
It is the policy of Buy Gold and Silver Safely to refer all requests from the
U.S. Dept. of Treasury or any other duly authorized government agency to Buy
Gold and Silver Safely legal counsel for response.
All requests for information from U.S. Dept. o’ Treasury or other duly
authorized government agencies will be reviewed by the responsible employee
within 28 working days of the original request from the government agency, or
in conformance with the timetable provided by the government agency.
All responses to government agencies will be prepared in written form by the
Compliance Officer/Legal Counsel and reviewed prior to submission by the
Compliance Officer/Legal Counsel Voluntary Reporting of Suspicious Activity
It is the policy of Buy Gold and Silver Safely to file Suspicious Activity
Reports (SAR), when appropriate. Any employee may suggest to the Compliance
Officer the filing of a SAR.
It is the determination of the CO whether or not to file a SAR.
Suspicious activity is defined as any activity conducted or an attempt to
conduct any activity that an employee of Buy Gold and Silver Safely suspects
or has reason to believe involves money from criminal activity, is designed
to evade this AML Program and Policy or any provision of th3 AML regulations
pursuant to the USA PATRIOT Act, appears to serve no legitimate business
purpose and for which no available facts provide reasonable explanation.
When such activity is detected, the CO will review the activity and determine
whether or not to recommend the filing of a SAR. Legal Counsel! President/
CEO/another employee of Buy Gold and Silver Safely will review such
determination.
A copy of SAR’s filed according to the provisions of Buy Gold and Silver
Safely’s AML Policy and Program will be maintained with all other documents
and records for AML compliance.
Part 5 — Documentation and Records of AVAL Compliance
It is the policy of Buy Gold and Silver Safely to document all compliance
actions in connection with this program and policy.
It is the policy of Buy Gold and Silver Safely to maintain the records and
documents associated with compliance with this AML Program and Policy. These
records are to be maintained separately from the books and records of Buy
Gold and Silver Safely.
It is the policy of Buy Gold and Silver Safely to ensure the security of the
records of AML Compliance.
This document is the AML Compliance Program and Policy of Buy Gold and Silver
Safely. It has been endorsed and supported by the senior management of Buy
Gold and Silver Safely. It will be updated and amended as needed.