The Industry Council for Tangible Assets has made available to its members information regarding the Minnesota law requiring bullion dealers to register.
Every precious metals dealer who does business in Minnesota must register with the Minnesota Commissioner of Commerce.
The new law requires registration by, not only Minnesota-based dealers, but out-of-state dealers who do more than $5,000 in business annually with consumers in Minnesota.
In addition, ICTA is making available to members two different notices that will help them inform customers of their decision not to buy and sell items that contain gold, silver, platinum, or palladium from or to Minnesota nondealer residents.
The law was approved by the Minnesota Legislature and signed into law by the governor on Aug. 1, 2013. It took effect July 1, 2014.
The registration process includes criminal background checks. Any dealer employing someone convicted during the past 10 years of a financial- or fraud-based crime will be denied registration.
Also required is a surety bond, ranging from $25,000 to $200,000 depending on the dealer’s annual sales, put up to protect Minnesota customers who buy from them.
Violators of the law can be charged with a misdemeanor and be required to pay a fine of $10,000 per incident.
Dealers say the law will limit business for dealers in the state and anyone who sells to collectors in Minnesota. Some dealers have said the law will have “unintended consequences” on bullion dealer businesses.
Information about how dealers must register under the new law is available at the Minnesota Commerce Department website.
For more information about ICTA, visit its website.