Monday, 6th June 2005 (4046 views)

The US government is reportedly drawing up new legislation that will require major dealers in gold, diamonds and other precious metals and gems to establish comprehensive anti-money-laundering programs.

The Treasury Department's Financial Crimes Enforcement Network will require dealers to establish policies and procedures to identify risks of money-laundering and minimise opportunities for abuse.

"The characteristics of jewels, precious metals and stones that make them valuable also make them potentially vulnerable to those seeking to launder money," agency director William Fox explained. Under the proposals, dealers will also train employees and designate a point person to assess compliance, the Associated Press reports.

The proposals will apply to dealers who have bought and sold at least $50,000 worth of precious metals and gems over the course of 2005. Those affected by the legislation will be required to set up anti-money-laundering programs by January 1st 2006.

A statement issued by agency said: "The dollar threshold is intended to ensure that the rule only applies to persons engaged in the business of buying and selling a significant amount of these items, rather than small businesses, occasional dealers and persons dealing in such items for hobby purposes."

The Bush administration is keen to crack down on financial abuses by drug lords and financiers of terrorism and the Treasury Department has required a range of companies to adopt anti-money-laundering programs since the September 11th terror attacks.

 

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