What is the Patriot Act and how do I comply?

The Patriot Act affects every transcation performed by pawnbrokers and money service providers.  Every customer that you engage in a transaction with, must be checked against the Specially Designated Nationals (SDN) list prior to completion of that transaction, regardless of the dollar amount.  Completion of the transaction on a loan is considered when the item is redeemed or expires. Failure to comply can result in criminal charges and fines up to $250,000 per offense.  The Office of Foreign Assets Control publishes both a Regulation by Industy brochure and the SDN list.  Links to both are listed below.

Regulations By Industry Banks, Pawnbrokers, Money Services - OFAC has designed this brochure to provide convenient, concise, up to date, helpful information about this program.

Specially Designated Nationals (SDN) List - Alphabetical master list of Specially Designated Nationals and Blocked Persons

Reporting Cash Transactions in Excess of $10,000

Related transactions that exceed $10,000 must be reported using IRS form 8300.  The specific reporting requirements for such transactions vary between pawnbrokers, check cashers and payday lenders.  Please take a moment to review the following links to research exactly how this requirement affects your particular business.

Form 8300 (Rev. December 2004)

Form 8300(Rev. December 2001) -- Fill-in Form

What are the filing requirements for Form 8300?

What is a related transaction?

Does the buyer have to be notified that a Form 8300 was filed?

Arizona Revised Statutes, Laws: Relating to Pawnbrokers

The following are links to the Statutes under which pawn stores in Arizona operate, please be mindful that some municipalities have enacted additional requirements.  Pawn stores work very closely with law enforcement and report every transaction within 24 hours.