Money laundering is a serious societal problem, and it's
vital that jewelers and companies that work with precious metals take strong
action against it. To define the term, a business launders money whenever it accepts
and uses funds that were obtained illegally. Jewlers Refining Group, Inc., is
very concerned about these issues.
If criminals acquired money through, for instance, drug trafficking, they would have a difficult time using that cash as banks wouldn't accept it. However, if a company were to take that money and process it ― whether intentionally or not ― those funds would become "clean." Thus, that currency would reenter circulation.
Since 1970, federal U.S. law has categorized precious metals dealers as financial institutions. Furthermore, since 2006, the law has required that all such organizations operate anti-money laundering initiatives. For such a program to be effective, an institution must demand certain documents from its clients before completing any transactions with them. Those documents need to include the legal names of those businesses' owners. The financial institution can then look at government databases to verify that none of those people are known criminals, terrorists, or financial supporters of terrorism.
That documentation must also detail the client's business activities. Indeed, precious metals dealers must know why an applicant wants to purchase, for example, a significant quantity of gold. Likewise, it's important that dealers refrain from buying any precious metals if they don't know where those materials are coming from. Without such preventative measures, a dealer might end up assisting a criminal or terrorist enterprise. Lives are certainly on the line.
If criminals acquired money through, for instance, drug trafficking, they would have a difficult time using that cash as banks wouldn't accept it. However, if a company were to take that money and process it ― whether intentionally or not ― those funds would become "clean." Thus, that currency would reenter circulation.
Since 1970, federal U.S. law has categorized precious metals dealers as financial institutions. Furthermore, since 2006, the law has required that all such organizations operate anti-money laundering initiatives. For such a program to be effective, an institution must demand certain documents from its clients before completing any transactions with them. Those documents need to include the legal names of those businesses' owners. The financial institution can then look at government databases to verify that none of those people are known criminals, terrorists, or financial supporters of terrorism.
That documentation must also detail the client's business activities. Indeed, precious metals dealers must know why an applicant wants to purchase, for example, a significant quantity of gold. Likewise, it's important that dealers refrain from buying any precious metals if they don't know where those materials are coming from. Without such preventative measures, a dealer might end up assisting a criminal or terrorist enterprise. Lives are certainly on the line.
