Independent Review

A precious metals dealer is required by the USA Patriot Act to conduct an independent review of its compliance program. A senior level employee of Endeavor Metals Group may conduct the review. The designated Compliance Officer cannot conduct the review.

Whoever conducts the review must be familiar with the Compliance Program and the anti-money laundering requirements for a precious metals dealer. The USA Patriot Act does not specify the frequency of the reviews other than it must be done commensurate with the dealer’s assessment of the money laundering and terrorist financing risks associated with its line of business. When making this assessment, the dealer should take into account: (i) the type(s) of products the dealer buys and sells, as well as the nature of the dealer’s customers, suppliers, distribution channels, and geographic locations; (ii) the extent to which the dealer engages in transactions other than with established customers or sources of supply, or other dealers subject to this rule; and (iii) whether the dealer engages in transactions for which payment or account reconciliation is routed to or from accounts located in jurisdictions that have been identified by the Department of State as a sponsor of international terrorism under 22 U.S.C. 2371; designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization of which the United States is a member and with which designation the United States representative or organization concurs; or designated by the Secretary of the Treasury pursuant to 31 U.S.C. 5318A as warranting special measures due to money laundering concerns.

USA Patriot Act Anti-Money Laundering Compliance Program

The USA Patriot Act requires all precious metals dealers to adopt a written anti-money laundering compliance program that is reasonably designed to ensure proper recordkeeping and reporting of certain transactions, and to prevent your business from being used to launder money. Your anti-money laundering compliance plan must at a minimum include:

  1. Internal Policies, procedures, and controls based upon the dealer’s assessment of the money laundering and terrorist financing risks associated with its line of business, including policies and provisions for complying with the applicable requirements of the Bank Secrecy Act (31 U.S.C. 5311 et seq.). The dealer shall incorporate policies, procedures, and internal controls to assist the dealer in identifying transactions that may involve use of the dealer to facilitate money laundering or terrorist financing, including provisions for making reasonable inquiries to determine whether a transaction involves money laundering or terrorist financing, and for refusing to consummate, withdrawing from, or terminating such transactions.
  2. The designation of a Compliance Officer who is responsible for assuring that:
    • Policies and procedures are followed
    • Procedures are updated as follows
    • Training and education are provided
    • Reports are properly filed
  3. Ongoing employee training program that:
    • Explains policies and procedures
    • Teaches how to identify suspicious activity
  4. An independent review of the anti-money laundering program:
    • The review should take place as needed and be as thorough as needed based on the risks of your business.
    • The review can be performed by one of your employees, but not the Compliance Officer.

This plan will provide the necessary information to be in compliance with the USA Patriot Act.