More states issue stay-at-home orders to mitigate spread of COVID-19
The Industry Council for Tangible Assets has been contacted by many members who are requesting information on whether dealers may be exempt from “stay at home” orders, based upon the dealer inclusion in Section 352 of the Patriot Act.
ICTA’s executive director, Jimmy Hayes, was an author of the Louisiana Bank Code and a former commissioner of financial institutions. Under Jimmy’s guidance we are advising dealers that “stay at home” executive orders from governors and mayors are currently being issued under their state-authorized powers. It is essential for each dealer to determine what their own state or city has issued and carefully read the exemption language.
Several of those who contacted ICTA had been told that their compliance with the money-laundering requirements of the Patriot Act somehow gave them the status of a “financial institution” or similar banking or lending institution.
This is not correct. Section 352 defines a financial institution under the Bank Secrecy Act SOLELY TO DETERMINE WHAT BUSINESSES ARE REQUIRED TO FOLLOW THE MONEY-LAUNDERING PROVISIONS. This definition is limited to money-laundering purposes and does not make, say, a bullion dealer a financial institution for any other purpose.
Any state order that refers only to “banks, financial institutions, etc.” would require that those seeking an exemption are defined as such institutions under state law.
The bottom line is that the definition is up to the state issuing the executive order, and that no provision of federal law dealing with money laundering or other activities applies.
Very Important Note: Any information in this news release is provided to assist coin dealers and is not intended to be used as a substitute for actual advice from a professional tax or legal adviser.
ICTA is a 501(c)(6) tax-exempt trade association and is supported solely by dues and contributions. For more information, visit ictaonline.org/membership or email email@example.com.
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The Industry Council for Tangible Assets (ICTA) is a 501(c)(6) tax-exempt trade association dedicated to the coins, currency, and precious-metals bullion communities for over 35 years. ICTA exists to promote and safeguard the interests of its members, serving as the industry watchdog to maintain a favorable legislative and regulatory climate in the United States federal government and individual state governments. The association provides a medium through which its members may confer, consult, and cooperate with and educate governmental and other agencies to achieve solutions to problems affecting their businesses. ICTA also offers its members assistance and information on new and existing laws and regulations, and promotes harmony and cooperation among its members to advance the welfare of the communities.related news