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JVC COMPLIANCE

ANTI-MONEY LAUNDERING LAW (AML)
INFORMATION AND RESOURCES

DEALERS IN PRECIOUS METALS, STONE AND JEWELS ARE REQUIRED UNDER FEDERAL LAW TO IMPLEMENT A FULLY COMPLIANT ANTI-MONEY LAUNDERING PROGRAM FOR THEIR BUSINESSES.  IF YOU QUALIFY AS A DEALER (YOU BUY AND SELL $50,000 OR MORE IN PRECIOUS METALS, STONE OR JEWELS AND ARE A NON-EXEMPT RETAILER – SEE BELOW) YOU MUST:  APPOINT A COMPLIANCE OFFICER, ASSESS THE RISKS FOR MONEY LAUNDERING IN YOUR BUSINESS, CREATE A WRITTEN AML PROGRAM AND POLICY TO ADDRESS THOSE RISKS BY FULLY IDENTIFYING YOUR BUSINESS PARTNERS AND MONITORING YOUR TRANSACTIONS, EDUCATE YOUR STAFF ABOUT THE REQUIREMENTS OF YOUR PROGRAM AND POLICY AND PERIODICALLY TEST YOUR AML PROGRAM TO ENSURE IT IS WORKING AS DESIGNED. 

 

JVC OFFERS TOOLS AND SERVICES SO YOU CAN UNDERSTAND WHETHER YOU NEED TO COMPLY, WHAT YOUR COMPLIANCE OBLIGATIONS ARE, HOW TO CREATE A FULLY COMPLIANT AML PROGRAM AND POLICY AND EDUCATE YOUR STAFF.  JVC CAN EVEN TEST YOUR PROGRAM TO ENSURE IT IS MEETING ALL THE APPROPRIATE OBLIGATIONS UNDER THE LAW.     

 

PLEASE BROWSE THROUGH THIS SECTION FOR IMPORTANT AML COMPLIANCE INFORMATION, AND CONTACT JVC WITH ANY QUESTIONS.

FAQ

Questions? Want answers?

USA PATRIOT ACT COMPLIANCE GUIDELINES DO YOU NEED TO COMPLY?

Click each question to see the answer

DO I HAVE TO COMPLY WITH THE USA PATRIOT ACT?

Fincen (financial crimes enforcement network), a U.S. government agency has issued the final rules requiring "dealers" in precious metals, precious jewels and stones to institute anti-money laundering (AML) programs. You must comply as of January 1, 2006.

 

According to the final rules, you must institute an AML program if:

 

1.    You are a dealer, meaning, you purchased "covered goods" (precious metal, jewels and stones and finished goods) in an amount in excess of $50,000 during the prior calendar or tax year and received more than $50,000 in gross proceeds from the sale of precious metal, jewels and stones during the same period.

2.    The calculation of the value threshold for purchase and sale is limited to the value of the precious metal, precious jewels and stones only!

 

Note: all transactions (sale or purchase) involving $10,000 or more in cash or cash equivalents still require all industry members to file an IRS 8300 form.

 

Important exceptions for retailers

 

According to the final rules, retailers (those selling primarily to the public) may not need to implement an AML program if you qualify for one of the following exceptions:

 

1.    If you are a retailer, and purchase only from other dealers (as defined above) who implement an U.S. AML program, you do not need to comply.

2.    If you do purchase from non-dealers, such as members of the public and foreign sources of supply (to whom the US rules do not apply), and the value of the covered goods is less than $50,000, you do not need to comply. If the value of the covered goods is more than $50,000 in any one calendar or tax year, you must comply.

3.    If you are a licensed pawn broker (rules for pawn brokers will be published by treasury at a later date). Retailers: for the purpose of determining your exception status you need not include in your calculation purchases in the form of trade ins, as long as they did not include providing funds of any kind to the customer in exchange for trade ins of such covered goods.

 

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Q. Who has to comply?

 

A. Refiners, wholesalers, traders, importers, manufacturers, retailers, suppliers, and pawnbrokers and those who buy from the public.

 

Key:

“Stones” = recognizable list of precious gemstones;

“Jewel” = gem quality organic material (pearl, amber, jade, coral);

“Precious metal” = gold, platinum - greater than 500 parts per thousand.

 

HOW DO I COMPLY; WHAT DOES MY AML PROGRAM HAVE TO INCLUDE?

Your AML program has to include five points:

 

1.    Appoint a compliance officer

2.    Perform risk assessment

3.    Write your AML policy and program

4.    Perform employee training

5.    Perform periodic testing of programs

 

CAN JVC HELP ME DEVELOP MY COMPANY’S AML PROGRAM?

Yes, JVC can help! We developed the USA Patriot Act Compliance Kit (pack), an easy to use and understand system that guides you through the steps necessary to develop your company’s AML program. Pack was developed by Cecilia Gardner, JVC’s president, CEO and general counsel and former United States AML prosecutor.

WHAT CAN JVC’S PACK OFFER ME?

1.    JVC’s pack includes forms and templates on a cd that you can customize for your business;

2.    “quick start guide” to help you start – and finish – your AML program in less time than you think;

3.    Askamlexpert@aol.com, a secure, web-based option to ask Cecilia Gardner specific questions about your program;

4.    A training DVD

5.    And more.

 

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JVC's USA Patriot Act

FAQ

FOR ANTI-MONEY LAUNDERING COMPLIANCE DEALERS IN PRECIOUS METALS, STONES OR JEWELS

 

FOLLOWING ARE FAQS TO CLARIFY STEPS JEWELRY MANUFACTURERS AND RETAILERS NEED TO FOLLOW TO DEVELOP THEIR ANTI-MONEY LAUNDERING (AML) PROGRAMS. 

JVC'S USA PATRIOT ACT FREQUENTLY ASKED QUESTIONS

Click each question to see the answer

I HAVE RECEIVED MANY LETTERS FROM MY VENDORS ASKING ABOUT WHETHER I COMPLY WITH THE USA PATRIOT ACT. UNDER THE RULES, I AM AN EXEMPT RETAILER AND HAVE NO COMPLIANCE OBLIGATIONS. WHAT SHOULD I TELL THE SENDERS OF THE LETTER?

If you are a retailer who does not have to comply because you qualify for the retailer exemption (you only buy from dealers who themselves comply), then you should inform your vendors of that fact. You will still have to provide identification information, if asked, in order for your vendors to complete their program. 

I AM AN INTERNATIONAL COMPANY WITH NO PRESENCE OF ANY KIND IN THE U.S. I HAVE MANY RETAIL CUSTOMERS IN THE U.S. WHO BUY GOODS FROM ME, EITHER VIA THE INTERNET, OR BECAUSE THEY VISIT ME AT THE HONG KONG AND BANGKOK TRADE SHOWS. DO I NEED TO COMPLY?

If you have no physical presence in the U.S., you have no need to comply with U.S. law. However, if you choose to comply with the USA Patriot Act, you may reassure your retail customers that you are implementing an anti-money laundering program, even if your local jurisdiction does not require it. If your local jurisdiction does require an anti-money laundering program, you would be advised to inform your U.S. retail customers that you are fully compliant with your own legal obligations in this area. 

I AM A FOREIGN COMPANY. I EXHIBIT ANNUALLY AT A FEW TRADE SHOWS IN THE U.S. DO I NEED TO COMPLY WITH THE USA PATRIOT ACT?

Yes. If a foreign entity has a physical presence in the U.S., including exhibiting even at only one trade show, and you otherwise fit the definition of a "dealer" (you purchase and sell $50,000 or more of precious stones jewels or precious metal) in any one calendar year then the company must comply with the USA patriot act requirements. The JVC pack can help you to understand the rules, and how to best comply. 

WHEN WILL THE IRS BEGIN TO EXAMINE DEALERS FOR COMPLIANCE?

The IRS, which is the agency assigned the responsibility to enforce the USA patriot act rules, began to perform examinations for dealers as of June 2006.

IF THE IRS IS GOING TO EXAMINE MY AML COMPLIANCE PROGRAM, WHAT SHOULD I HAVE READY?

You should have all of the documentation you created appointing your compliance officer, performing your risk assessment, creating your written AML program and records of your employee training. If you have tested your program, you should have that documentation as well. If you have had incidents where you have made inquiries pursuant to your program, or filed any documents with the government, or responded to inquiries, etc. You should have documentation on this as well. 

IF THE IRS IS EXAMINING MY COMPANY FOR AML COMPLIANCE AND I HAVE NOT YET PERFORMED THE TESTING BECAUSE I HAVE NOT HAD MY PROGRAM IN PLACE FOR ONE YEAR, AM I OUT OF COMPLIANCE?

No. Your AML policy should state when the program would be tested, usually within one year from inception. Therefore, if you are examined in advance of that one-year, you do not need to perform the testing in advance of the period set out in your program. 

I RECEIVED A CHECK FROM THE BROTHER IN LAW OF MY CUSTOMER IN PAYMENT FOR SOME PRODUCT THAT I SOLD. WHAT SHOULD I DO?

You should make an inquiry of your customer. Find out why you have received this third party check. If you are satisfied with the answer, you may proceed. However, your customer identification policy would require you to fully identify this third party who is now involved in the transaction. 

I AM A MANUFACTURER, BUT DID NOT DO BUSINESS (BUYING AND SELLING PRECIOUS METALS, STONES OR JEWELS) IN THE AMOUNT OF $50,000 THIS YEAR. NEXT YEAR, HOWEVER, I GOT A NEW CONTRACT WORTH $200,000. WHEN DO I NEED TO COMPLY?

Technically, when you reach $50,000 in gross proceeds from the purchase and sale of precious metal, jewels and stones, your compliance obligation starts. But why wait? You know you will reach the threshold next year - so get going!

 

AM I REQUIRED TO COMPLY WITH THE AML REGULATIONS FOR DEALERS IN PRECIOUS METAL, STONES OR JEWELS?

If you buy "covered goods" in an amount in excess of $50,000 during 2007 and receive more than $50,000 in gross proceeds from the sale of "covered goods" during the same period, you must comply as of January 1, 2006. There are important exceptions for retailers. 

WHAT ARE "COVERED GOODS"?

Covered goods are precious metals, stones, jewels (as defined in the rules) and finished goods which derive 50% or more of their value from jewels, precious metals or stones contained or attached to such finished goods. 

HOW DO I CALCULATE THE VALUE TO DETERMINE IF MY BUSINESS ACTIVITIES MEET THE $50,000 THRESHOLD?

The value you use to calculate the $50,000 threshold includes only the value of the precious metal, stones or jewels or which is contained or attached to a finished product, without including labor charges, overhead or profit margin. 

ARE THERE ANY EXCEPTIONS TO COMPLYING WITH THE AML REGULATIONS FOR DEALERS IN PRECIOUS METAL, STONES OR JEWELS?

If you are a retailer, and buy only from suppliers who are covered by the rules in the U.S. who are implementing an AML program, you do not need to implement your own program. 

 

IF I AM A RETAILER AND BUY FROM MEMBERS OF THE PUBLIC WHO ARE NOT "DEALERS" (AS DEFINED IN THE PATRIOT ACT RULES) MUST I COMPLY WITH AML REGULATIONS?

If you buy precious metal, precious stones, jewels or finished goods from members of the public or anyone not otherwise covered by these rules (such as foreign sources of supply) in an amount in excess of $50,000 you must implement an AML program and policy. As a retailer, your AML program would address those purchases. 

 

IF I AM A RETAILER AND TAKE TRADE-INS FROM MEMBERS OF THE PUBLIC OF ITEMS PREVIOUSLY PURCHASED FROM MY STORE, MUST I COMPLY?

If you accept trade-ins from your customers of covered goods (precious stones, jewels, precious metal or finished goods which derive 50% or more of their value from jewels, precious stones or precious metals contained or attached to such finished goods) and the transaction does not include providing funds of any kind to the customer offering the trade in, these transactions are not included in your calculation of the $50,000 threshold. 

 

IF I AM A RETAILER AND TAKE IN TRADE-INS OF ITEMS PURCHASED FROM MY STORE OR FROM OTHER STORES, MUST I COMPLY?

Again, as long as the trade in does not include providing funds of any kind to the customer, you need not include these transactions in determining if you must comply. 

OK, AS A RETAILER, I DO BUY MORE THAN $50,000 OF PRECIOUS METAL, PRECIOUS STONES, JEWELS AND FINISHED GOODS FROM THE PUBLIC, AND RESELL THEM IN MY STORE. DO I NEED TO COMPLY?

If you sell jewelry containing more than $50,000 in jewels, precious metals and precious stones and the value of the jewels, precious metals and precious stones comprised more than 50% of the selling price of the jewelry and you purchased more than $50,000 in covered goods from the public in a form other than as a trade-in, you would have to comply. Your AML program would only have to address the risks associated with those purchases from non-dealers. 

 

IF I AM A RETAILER AND BUY IN EXCESS OF $50,000 OF PRECIOUS METAL, STONES OR JEWELS FROM COMPANIES NOT OTHERWISE COVERED BY THE RULES (SUCH AS FOREIGN-BASED SUPPLIERS), MUST I COMPLY?

If you purchase in an amount in excess of $50,000 of covered goods from companies who are not covered by the laws of the United States and therefore not implementing an AML program and policy under the laws of the United States, you must comply. Remember, for the purpose of determining your exception status as a retailer, calculate only the value of the precious metal, stones or jewels in the products you buy. Further, as a retailer, your AML program would only have to address risks associated with those purchases from foreign sources of supply. 

OK, AS A RETAILER WHO BUYS MORE THAN $50,000 IN COVERED GOODS FROM A FOREIGN SOURCE OF SUPPLY, MUST ALL MY RETAIL ACTIVITIES BE ADDRESSED IN MY AML PROGRAM?

No. If you are a retailer and buy more than $50,000 from foreign sources of supply, your AML program need only address the money laundering risks associated with the purchases from your foreign supplier. 

 

I AM A RETAILER, AND I BUY FROM ESTATE SALES AND U.S. GOVERNMENT SPONSORED SALES. NEED I COMPLY?

If you are a retailer, and buy more than $50,000 in covered goods from non-dealers such as estate sales, auctions, U.S. government sales, bankruptcy sales, etc., you must comply. Your program would address only those purchases. 

 

IF I AM A PERSON WHO IS A HOBBYIST - JUST COLLECTING AND SOMETIMES TRADING OR SELLING ITEMS WHICH INCLUDE PRECIOUS METAL, PRECIOUS STONES OR JEWELS, DO I NEED TO COMPLY?

As long as this activity does not amount to $50,000 purchases or gross proceeds from the sale of covered goods in 2006, you do not need to comply in 2007. 

I AM A RETAILER AND SELL ONLY ANTIQUE JEWELRY; NEED I INSTITUTE AN AML PROGRAM?

If in 2007, the value of the precious metal, jewels or precious stones contained in the antiques you sold was more than $50,000 and the value of the jewels, precious stones and precious metal comprised 50% or more of the selling price of those antiques and you purchased antiques from foreign sources, the general public, or other non-dealers you will need to institute an AML program addressing your sources of supply. 

 

I AM A DEALER IN ANTIQUES, SELLING PRIMARILY TO OTHER DEALERS AND TO RETAIL STORES. WHAT ARE MY COMPLIANCE OBLIGATIONS?

You must establish an AML program if during the year, the value of precious metal, jewels or precious stones contained in the antiques you purchased was more than $50,000 and the value of the jewels, precious metal and precious stones accounted for 50% or more of the purchase price and you sold antiques that contained more than 50% in jewels, precious metals or precious stones, and the value of the jewels, precious metal or precious stones comprised more than 50% of the selling price of those antiques. 

OK, IT LOOKS LIKE, BASED ON MY CALCULATION FOR THIS YEAR, I NEED TO HAVE AN AML PROGRAM. HOW LONG MUST IT CONTINUE?

If, based on your activities during this year, you need to implement an AML program, you must maintain it as long as you continue to fit under the definition of "dealer" set out in the rules. If your business activity changes in the future, and you no longer satisfy the criteria for being a dealer, you do not need to continue your AML program in the following year. But you need to continue to reassess to see if you once again fit the definition of a dealer. 

 

IF I VERBALLY INSTRUCT MY EMPLOYEES TO BE AWARE OF ATTEMPTS TO USE OUR BUSINESS TO LAUNDER FUNDS, IS THIS SUFFICIENT COMPLIANCE?

No, the rules require 5 different elements, including a written AML program and policy in order to comply with the law. 

AM I REQUIRED TO REPORT ANY SUSPICIOUS ACTIVITY IN ORDER TO COMPLY WITH THE RULES?

There is no requirement in the rules for you to report anything to anyone. However it is probably a good idea to determine whether a particular activity rises to the level of suspicious activity which appears to have an illegal source or purpose or when the transaction has no apparent business or lawful purpose. If so, it would be a good idea to report it to the appropriate law enforcement agency. 

I AM A MANUFACTURER OF COMPUTER CIRCUITS AND PURCHASE SMALL QUANTITIES OF PRECIOUS METALS TO MAKE THE CIRCUITS. DO I NEED TO COMPLY?

If the product you manufacture (equipment or machinery) uses precious metal, precious stones or jewels that represent an insignificant component of the value of the industrial product you manufacture, you do not need to comply. 

I JUST SOLD A GEMSTONE FOR $15,000 IN CASH. ANY PROBLEMS?

No problem, but you must file an 8300 form with the IRS which identifies you, and the entity or person who provided the cash and requires further information. This sale alone will not require you to comply with the AML regulations for the jewelry industry. A sample of the 8300 form is included in the form section of your compliance kit and is available for downloading on the cd included with the kit. 

SINCE I ALREADY COMPLY WITH STATE LAWS REQUIRING ME TO RECORD PURCHASES OF JEWELRY FROM MEMBERS OF THE PUBLIC, DO I NEED TO ALSO HAVE AN ANTI-MONEY LAUNDERING PROGRAM?

If your purchases from members of the public amount to more than $50,000 this year (excluding trade-ins which do not result in any payment to the customer), you must also comply with the anti-money laundering rules for dealers in precious metals, stones and jewels for the following year, even if you report these purchases as required by state law. For retailers, your AML program would only address those purchases from members of the public.

AS A RETAILER, I VISIT THE HONG KONG SHOW ONCE A YEAR TO PURCHASE INVENTORY FOR MY STORE. OTHER THAN THAT, I BUY FROM U.S. MANUFACTURERS, ALL OF WHOM COMPLY WITH THE US REGULATIONS REQUIRING ANTI-MONEY LAUNDERING PROGRAMS. DO I NEED TO HAVE A PROGRAM OF MY OWN?

If your purchases from suppliers abroad amounted to more than $50,000 this year, and your gross proceeds from sales exceed $50,000, you must institute an anti-money laundering program for the following year addressing those purchases.

MY BUSINESS IS A LARGE CORPORATION WITH A BOARD OF DIRECTORS. ARE MY COMPLIANCE OBLIGATIONS DIFFERENT?

No, but the board of directors should pass a resolution supporting and endorsing the AML program. Further, if there are multiple outlets of the company, you should be sure that all relevant employees in each outlet or store location are trained. You might want to consider appointing a compliance committee, along with your compliance officer. 

 

I HAVE WRITTEN MY RISK ASSESSMENT, BUT I HAVE ADDED A NEW ACTIVITY TO MY BUSINESS. DO I NEED TO AMEND MY RISK ASSESSMENT?

When your business model changes, you should evaluate whether your new business model presents any additional risks for attempts to use your business to launder illegal funds or finance terrorism. The update to your risk assessment and any changes to your AML program and policy should be documented, and your relevant employees trained in the changes. 

 

I RUN AN INTERNET AUCTION SITE FOR JEWELRY BUT DO NOT BUY OR SELL DIAMONDS OR JEWELRY MYSELF. DO I NEED TO HAVE AN ANTI-MONEY LAUNDERING PROGRAM?

If you do not purchase or sell precious metal, stones or jewels you do not need to comply with the anti-money laundering rules. If you take no ownership interest in the products sold at auction, the rules do not apply to you. 

I AM A DIAMOND BROKER, FINDING BUYERS FOR MY CLIENTS. I DO NOT OWN THE DIAMONDS THAT ARE SOLD USING MY SERVICES. DO I NEED TO HAVE A WRITTEN ANTI-MONEY LAUNDERING PROGRAM?

No, if you do not take any ownership interest in the diamonds you find for sale, you do not have to comply with the anti-money laundering rules. 

MY RETAIL BUSINESS BUYS AND SELLS GEMSTONES, BUT BESIDE MYSELF, THERE IS ONLY ONE OTHER EMPLOYEE. WE EXCEED THE $50,000 THRESHOLD. HOW CAN I COMPLY?

Once you meet the $50,000 threshold for 2007, you must comply with these rules by January 1, 2006. The number of employees is not relevant in determining whether you need to comply. The compliance officer must be an employee, and your other employee can be the tester of your program. You can engage the services of an outside party to assist in your independent testing of the program. You must have a written AML program and policy. Make sure you both understand the risks associated with your business and the written program you developed. 

CAN MY AUDITOR WHO DOES MY BUSINESS TAX RETURN EVERY YEAR BE APPOINTED THE INDEPENDENT TESTER OF OUR AML PROGRAM?

Yes, this task can be added to the review by your auditor of your books and records. 

CAN MY AUDITOR BE APPOINTED MY COMPLIANCE OFFICER?

No, your compliance officer must be an employee of your company. 

DO THE PATRIOT ACT AML REGULATIONS FOR THE JEWELRY INDUSTRY REQUIRE ME TO TRACK EACH TRANSACTION IN WHICH MY BUSINESS ENGAGES?

No, the rules require that you be in a position to monitor any red flags or suspicious changes in the course of dealing (including payment and delivery methods, chain of distribution, etc.) But there is no obligation to track every individual transaction. 

IF I DO NOT GET ANSWERS TO ALL THE QUESTIONS I ASK OF MY CUSTOMERS AND SUPPLIERS, BUT STILL BELIEVE THAT THERE IS NO RISK FOR MONEY LAUNDERING OR TERRORIST FINANCING CONNECTED TO THE RELATIONSHIP OR THE TRANSACTIONS, CAN I PROCEED?

Nothing in the rules requires you to suspend a relationship or refuse to deal with a company or person unless you suspect that they are using your business to launder illegal funds, or are in the process of financing terrorism. However, if you do have real suspicions, and you choose to ignore those suspicions, you risk being found to be part of the criminal conduct. So, be careful! 

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Sanctioned, Designated or Targeted Countries and Entities

US AND INTERNATIONAL LISTS

US AND INTERNATIONAL LISTS OF SANCTIONED, DESIGNATED OR TARGETED COUNTRIES AND ENTITIES

Click each question to see the answer

US AND INTERNATIONAL LISTS OF SANCTIONED, DESIGNATED OR TARGETED COUNTRIES AND ENTITIES

The U.S. office of financial assets control - sanctions lists

The United States government restricts involvement with certain foreign countries, persons and entities pursuant to several sanction programs.  The office of financial assets control (OFAC), part of the U.S. treasury department, maintains lists of countries and entities that are subject to these sanctions. 

 

It is very important that you check these lists and that you do not enter into prohibited business transactions with the countries, individuals or entities cited:

 

The specially designated nationals list – a list of individuals and entities controlled by targeted countries, or designated under programs that are not country-specific.  In general, no U.S. person may engage in any activity with anyone on the list.  To access this list, go to:


http://www.treas.gov/offices/enforcement/ofac/sdn/index.html and click on “complete specially designated nationals list.”  The alphabetical list is available in pdf format and is word searchable from the toolbar.

 

List of sanctions programs – OFAC administers several embargoes maintained by the U.S. against other countries.  Exports to these countries or other business dealings may be prohibited.  To access a list of these sanction programs, go to:


http://www.treasury.gov/resource-center/sanctions/programs/pages/programs.aspx

 

It is important that businesses become familiar with these lists, and with the sanctions programs administered by OFAC.  While jewelry companies are not required by the U.S. patriot act to review the OFAC lists, a company will be subject to penalty if it engages in a prohibited transaction with a listed country, person or entity.  Many businesses check the lists on a periodic basis as part of their anti-money laundering program.  For more information about sanctions programs generally, visit the U.S. treasury resource center webpage at:

 

Http://www.treasury.gov/resource-center/sanctions/pages/default.aspx

 

Other U.S. and international lists

 

Non-cooperative countries and territories (financial action task force)

Fatf monitors countries for cooperation with AML efforts and lists those countries that are non-cooperative.  Check this site for updates: http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/

 

Denied persons list, bureau of industry and security, U.S. department of commerce

 

Check the parties to your international transaction against this and other lists to identify persons that are restricted or prohibited from engaging in U.S. export transactions.  Find the denied persons list at: http://www.bis.doc.gov/dpl/thedeniallist.asp

 

Unverified list, bureau of industry and security (BIS), U.S. department of commerce

 

This is a list of foreign persons who could not be verified pursuant to BIS protocols.  Any transaction with a listed person raises a red flag that you may be in violation of an export regulation.  Check the list at: http://www.bis.doc.gov/enforcement/unverifiedlist/unverified_parties.html 

 

The entity list, bureau of industry and security (BIS), U.S. department of commerce

 

This is a list of foreign persons and entities that are subject to specific license requirements for the export, re-export and transfer (in-country) of specified items.  Check this list at: http://www.bis.doc.gov/entities/default.htm

 

Consolidated list of individuals and entities belonging to or associated with the Taliban and al-Qaida, United Nations

 

Http://www.un.org/docs/sc/committees/1267/1267listeng.htm

Information on the agencies and organizations responsible for the lists

 

U.S. department of the treasury, office of foreign assets control (OFAC):

Homepage: http://www.treas.gov/offices/enforcement/ofac/

 

U.S. treasury department, financial crimes enforcement network (fincen):

Homepage: http://www.fincen.gov/

 

Us department of state:
homepage: http://www.state.gov/

 

Us department of commerce, bureau of industry and security:
http://www.bis.doc.gov/about/index.htm

Government forms: fincen's suspicious activity report and irs form 8300

 

 

Suspicious activity report - download fincen form 109 at:
http://www.fincen.gov/forms/bsa_forms/#sar

 

 

DEVELOPMENT OF AN ANTI-MONEY LAUNDERING PROGRAM AND POLICY

JVC’s Patriot Act Compliance Kit (“PACK”) is designed to help individual businesses develop an anti-money laundering program and policy that will ensure their compliance with the Patriot Act requirements.  However, many businesses prefer to have more hands-on help as they walk through the steps necessary to achieve compliance.  For those who are interested in one-on-one assistance, JVC is available to work with you to design and develop your anti-money laundering program.

 

JVC will meet you at your place of business, conduct a risk assessment for your business, provide you with a detailed description of the regulations, and modify the templates that come with your PACK so that they suit the individual nature of your business.  After about three to five hours of your time, you will have the information and documentation that you need to meet and continue your compliance requirements.

EMPLOYEE-TRAINING PROGRAM PERTAINING TO ANTI-MONEY LAUNDERING PROGRAM AND POLICY

As part of the anti-money laundering requirements under the Patriot Act, each company that is subject to the rules is required to develop and implement a training program for employees.  Training is required for all employees who may be involved in the purchase and sales of covered goods that might expose your business to the risks of money laundering or terrorist financing attempts.  If you prefer to make use of JVC’s expertise on this issue, JVC is available to conduct training for your employees.  JVC will provide your company with a written employee-training program and will train your employees to recognize and deal with money-laundering attempts within the scope of their employment.  At the completion of the training program, JVC will provide a record of the successful implementation of the employee-training program.

FULL TESTING OF ANTI-MONEY LAUNDERING PROGRAMS

Government regulations specify that each company’s anti-money laundering program and policy be tested periodically to ensure that an adequate program is monitored and maintained.  This testing needs to be done approximately once a year by an independent entity; specifically, it may not be conducted by your company’s compliance officer.  A company employee or an outside party, such as the company’s accountant or attorney, who is familiar with the AML rules and your company’s business, may conduct the testing. 

 

However, JVC is also available to test your company’s anti-money laundering program and policy.  As part of its services, JVC will review and test every element of your AML program – your risk assessment, the functioning of your Compliance Officer, your AML Program, and the training you provide to relevant employees.  JVC will pay special attention to any high risk functions and/or transactions in which your company engages.  Our expert attorneys are available to test your AML program. JVC's independent testing services are far less costly than outside counsel or an accounting firm. JVC will issue a results letter on your AML program implementation which can be used to demonstrate your compliance to your bank or to the IRS.

QUICK REVIEW OF ANTI-MONEY LAUNDERING PROGRAMS

JVC will review your AML program to make sure you complied with all the required steps.  This service will check to see if you have complied with all the required elements of compliance.  

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