Mar 7, 2018
Dave founded The Consultants in 2012 after realizing there was a
market for the experience he developed within the last 32 years.
Dave educates the precious metal dealers who are unaware of the
federal guidelines associated with their business. He has over 100
clients that he helps navigate the local, state and federal
regulations that many find burdensome and confusing. He owns 2
pawnshops since June 1996 (one in California and one in Oregon).
Dave spent 15 years on the board of Oregon Pawnbroker’s Association
as a Secretary and Treasurer and is involved in passing legislation
at the state level. Dave and his wife Robin have 1 son and live in
Oregon.
Dave talks about Anti-Money Laundering.
Dave founded The Consultants in 2012 after realizing there was a market for the experience he developed within the last 32 years. Dave educates the precious metal dealers who are unaware of the federal guidelines associated with their business. He has over 100 clients that he helps navigate the local, state and federal regulations that many find burdensome and confusing. He owns 2 pawnshops since June 1996 (one in California and one in Oregon). Dave spent 15 years on the board of Oregon Pawnbroker’s Association as a Secretary and Treasurer and is involved in passing legislations at the state level. Dave and his wife Robin have 1 son and live in Oregon.
Dave talks about Anti-Money Laundering.
[01:50] Dave got tricked into being a pawnbroker by his friends, through starting a business
[02:34] After 3 years, Dave opened his own store, as he wanted to work for himself
[02:47] Working with the state legislation and being on the Oregon Pawnbroker’s Association board made it clear that there were many store owners who were unaware of the complete operations of the business. They had to depend on others to help them.
[03:06] He sold his pawnshop and decided to go back into the pawn business, regarding compliance
[05:47] If you have a certain level of business you must have an AML (anti money laundering) programme in place. The fine for not having a programme starts at $25,000.
[06:18] Have a programme in place and identify someone in charge of the programme
[06:30] You must train your staff within 30 days of hiring, have an annual refresher training and do an audit of the systems to ensure everything is being captured
[07:48] What are 3 mistakes pawnbrokers are making today that are against federal regulations?
- Pawnbrokers do not have to fill out a CTR, they only need to fill out a 8300.
- There should be a backup programme.
- Taking deposits to the bank in less than $10,000 increments creates a red-flag from the IRS. Many pawnbrokers do not understand related transactions and how the $10,000 relates to that transaction.
[10:38] “I can bring $10,000 today and you don’t have to fill out a form. It's $10,000.01. It’s the penny that will get you every time.”
[10:58] There’s a 24 hour period that makes transactions related. The same household or account would link the transaction.
[13:16] Many reports count the in and out of money. It should really only show the money that comes in.
[15:02] The Feds stated that Operation Choke Point was no longer enforced, when this was not the case. Banks would get audited and the pawnbrokers will be seen as high risk.
[15:31] The new, smaller banks will take pawnbrokers with an AML in place
[28:18] Do not be caught by the IRS without the AML programme
[33:21] Contact Dave by email at dave@theconsultants.us and via phone 503-970-7739.