Coin Dealers and “Stay at Home” Orders by Industry Council for Tangible Assets ……
The Industry Council for Tangible Assets (ICTA) has been contacted by many members who are requesting information on whether coin 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 coin 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 coin dealers 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 or coin dealers 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.
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About ICTA and Coin Dealers
Industry Council for Tangible Assets (ICTA) is a 501(c)(6) non-profit association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. The Diane Piret Memorial Outstanding Service Award commemorates the 25-year ICTA career of the organization’s industry affairs director, who died in 2015. To join and/or learn more about ICTA, visit ictaonline.org.
