The Foreign Account Tax Compliance Act (FATCA) is a US federal law put in place in 2010 to deal with US nationals hiding profits from business or investments made overseas.
Vaultoro is regulated under British law. Under British Law the Data Protection Act does not allow UK businesses to pass the information requested by FATCA to the US. However in mid 2014 an agreement was reached between the United States and the UK with regard to FATCA. With this agreement it was ruled that UK financial institutions provide Her Majesty’s Revenue and customs (HMRC) with the information that is required by FATCA and the HMRC would then forward that information on to the IRS in the states.
Vaultoro is not a financial institution. We are a market place where people buy gold and sell gold with bitcoin and not with pounds euros or dollars.
The advice received by Vaultoro in regards to our obligations under the agreement that was legislated between the UK and the US is that Vaultoro has no reporting obligation. In the case that the law or our business model changes, forcing us start reporting, then we would have no option but to do so. Our customers affected would be informed of this change as far in advanced as possible.
So is there any case when Vaultoro discloses a member’s identity?
Rest assured that in day-to-day business, Vaultoro does not report any customer information or activity to any government or organisation anywhere around the world.
There is only two circumstances that obligate us to do so: A British or international enforcable court order requesting disclosure of a single members details in course of a criminal investigation, or if we suspect our service is being used to launder money by a criminal entity.
Vaultoro cannot be used to launder money when simply trading.
Money laundering is a circle where black money comes in, gets transformed into something else and paid out in white fiat money, thus closing the circle.
The main service that Vaultoro offers (trading) cannot be used for laundering money. Our service does not allow to exchange goods in a circle but its rather a dead end: A member buys gold with bitcoin, and then would have to sell the gold back for his/her bitcoin to get his value out again. If we were to offer a Euro deposit or withdrawal then that would create a laundering circle that could be taken advantage off. We however do not offer such a service as of now.
The only way we see a possibility of laundering is if a member chooses to get physical delivery of their gold. And to do this we require our members to become verified with appropriate KYC/AML compliment documents.