We have a customer that buys and sells antique coins. While I don't think they are an MSB, it does seem like maybe they fall under the precious metals category under FinCEN's regulations.

Does anyone have experience banking this type of business? Did you treat them similar to an MSB and require their AML program to be provided?

Depends on their volumes: https://www.fincen.gov/sites/default/files/news_release/20050603.pdf

Generally, most retailers in this industry are not required to establish anti-money laundering programs. The interim final rule applies to “dealers” that have purchased and sold at least $50,000 worth of “covered goods” during the preceding year. The dollar threshold is intended to ensure that the rule only applies to persons engaged in the business of buying and selling a significant amount of these items, rather than small businesses, occasional dealers and persons dealing in such items for hobby purposes.

“Covered goods” include jewels, precious metals, and precious stones, and finished goods (including but not limited to, jewelry, numismatic items, and antiques) that derive 50 percent or more of their value from jewels, precious metals or precious stones contained in or attached to such finished goods. Dealers that determine, based on their activities during calendar year 2005 that they are required to establish an anti-money laundering program, will have until January 1, 2006 to do so.

I need some clarification on this as well.....

We have a customer in EDD right now, not currently classified as an NBFI-PMD but we do collect their AML Program, a Compliance Officer certification, training info, but we have never obtained an audit from them, I might be getting hung up on retailer vs dealer.

It appears our customer, in the last year, purchased about $215k in scrap from Public, sold all of it in its entirety to a refinery for about $250k. It looks as though, the owner operates a jewelry store in the same building but keeps the scrap part of the business separate.

Does that make the scrapping business an NBFI simply because they buyer the metals? Every day scrappers of junk metals don't have these requirements. The only reason I am asking is because they have a program, risk assessment, and compliance officer, but no audit to provide us. I feel like they don't even meet the definition, but I am struggling big time here.