Regulatory Alerts2012-06-08
Definition of Precious Metals in the Interim Final Rule Requiring Anti-Money Laundering Programs for Dealers in Precious Metals, Stones, or Jewels
The Financial Crimes Enforcement Network issued an administrative ruling to clarify the definition of "precious metals" under the Bank Secrec Act implementing regulations. The ruling establishes that finished goods containing less than 500 parts per thousand purity of gold, silver, or platinum group metals are not considered "covered goods," regardless of whether the metals constitute 50 percent or more of the item's value. Consequently, dealers are not required to include such low-purity goods in their determination of dealer status or within the scope of their anti-money laundering programs.
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