ICTA 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.

If you are not an ICTA member, please consider joining.

Your ICTA membership helps as we:

• FIGHT to keep sales-tax exemptions in 38 states (with more in the works)
• ELIMINATE onerous and burdensome regulations, like the Minnesota law that threatened to put dealers out of business
• PROTECT you from counterfeits through the Hobby Protection Act and educational programs
• MONITOR every proposed law or regulation related to coins, currency, or precious metals in all 50 states and the federal government
• MOBILIZE the dealer and collector communities when state and federal laws threaten your hobby like the SCOTUS South Dakota v. Wayfair decision

CLICK HERE for more information on joining ICTA.