A plain-language map of the federal BSA/AML and OFAC rules for dealers in precious metals, precious stones, or jewels: who is covered, what applies, what does not, and what is changing.
You are a dealer if you are in the business of buying and selling covered goods in the United States and, during the prior calendar or tax year, you crossed both of these thresholds:
A retailer, meaning a business that sells covered goods primarily to the public, is a dealer only if it bought more than $50,000 in covered goods from persons other than dealers and retailers (for example, members of the public or foreign sellers). Its program then only needs to cover those purchases.
Accepting covered goods from a customer and crediting their value to the customer's account, without paying out funds, does not count as a purchase or sale for the threshold.
Businesses licensed or authorized as pawnbrokers under state or local law are excluded, but only to the extent they are engaged in pawn transactions, including sales of pawn collateral. Outright purchases of covered goods are not pawn transactions.
A business that meets the definition must have its program in place within six months of becoming a dealer.
Bullion coins, bars, and rounds are covered goods. A numismatic coin is covered only if 50 percent or more of its value comes from its metal, so a rare coin carrying a large collector premium may fall outside the definition. Items that need classification judgment, such as high-premium numismatics, industrial-use metal, or mixed inventory, should be analyzed product by product.
This is where most dealer programs go wrong. Several well-known BSA rules apply only to banks, broker-dealers, and other "covered financial institutions." Copying them into a dealer program creates obligations the law does not impose.
| Requirement | Dealers | Basis |
|---|---|---|
| Written, risk-based AML program | Required | 1027.210 |
| Form 8300 for cash over $10,000 | Required | 1010.330 |
| OFAC sanctions compliance | Required, any size | 31 CFR ch. V |
| 314(b) information sharing | Optional | 1010.540 |
| Suspicious Activity Reports | Voluntary | No SAR rule in Part 1027; safe harbor still applies |
| Customer Identification Program (CIP) | Not required | CIP rules apply to banks, broker-dealers, and others |
| CDD rule, beneficial ownership | Not required | Applies to covered financial institutions |
| Currency Transaction Reports | Not required | Form 8300 covers dealers instead |
| Private banking and PEP due diligence | Not required | Section 312 applies to covered financial institutions |
Not required does not mean ignore. A risk-based program should still know who its customers and suppliers are, and should look harder at higher-risk relationships, including the owners of entity customers. The difference is that you design those steps to your risk, instead of inheriting a bank's checklist.
Based on a risk assessment that considers your products; your customers, suppliers, and distribution channels; and the geographic locations involved. Controls should address when to ask questions, when to refuse a transaction, and when to file a voluntary SAR.
Responsible for making sure the program is implemented, kept current, and that staff are trained.
For appropriate personnel, on their responsibilities under the program. In practice, that means everyone whose role touches customers, transactions, or metal.
Testing to monitor and maintain the program, by people other than those who run it. The rule does not set a frequency; annual testing is common practice and what we recommend.
The program must be in writing, approved by senior management, and made available to FinCEN on request.
The purchase side is the one most programs underweight. Some of the largest dealer prosecutions involved companies buying billions of dollars of gold smuggled from South America and paying for it with drug proceeds.
In April 2026, FinCEN proposed what it called a fundamental reform of AML/CFT program requirements. The proposal expressly covers dealers in precious metals, stones, or jewels. Comments closed June 9, 2026. As of October 2026, it has not been finalized, and FinCEN proposed a 12-month implementation period after any final rule.
Dealers with a documented risk assessment and a program that matches practice are in the best position for the final rule, whatever its details.
Yes, if you meet the dealer thresholds. The program requirement turns on your purchase and sale volume, not on how you are paid. Form 8300 may rarely apply to you, but the AML program and OFAC obligations still do.
(31 CFR 1027.100(b), 1027.210(a))
Learn more: Are You a Dealer Under the BSA?, Your AML Program Is Not a Bank's
It depends on whether you buy and sell covered goods. A pure storage business may fall outside the dealer definition, but OFAC obligations apply to it fully, and blocking duties attach to whoever holds property in which a blocked person has an interest.
(31 CFR 1027.100(b); 31 CFR 501.603)
Learn more: Clearing an OFAC Alert You Can Defend, Who We Serve
The CDD rule's beneficial ownership certification does not apply to dealers. A risk-based program should still identify who stands behind higher-risk entity customers, and sanctions screening requires an ownership check under OFAC's 50 Percent Rule.
(31 CFR 1010.230; OFAC FAQ 398)
Learn more: Your AML Program Is Not a Bank's, Clearing an OFAC Alert You Can Defend
Dealers are not subject to a mandatory SAR rule. You may file voluntarily, and the statutory safe harbor protects good-faith voluntary filings. Your program should say how you decide whether to file.
(31 CFR 1027.310-.320 (reserved); 31 U.S.C. 5318(g)(3))
Learn more: Your AML Program Is Not a Bank's
BSA records, including Form 8300 copies, are kept for five years. OFAC records must now be kept for ten years. Most dealers find it simpler to set one ten-year schedule for anything that touches screening or blocking.
(31 CFR 1010.430, 1010.330; 31 CFR 501.601)
Learn more: Clearing an OFAC Alert You Can Defend
No. You can close the account and return the funds on business grounds. A refusal alone is not evidence of a sanctions match, and your records should describe it as a business decision.
Learn more: Clearing an OFAC Alert You Can Defend
An applicability review turns this guide into a scoping memo for your company.