| NFA Adopts Amendment to NFA Compliance Rule 2-9 and a Related Interpretive Notice Requiring FCMs And IBs to Implement an Anti-Money Laundering Compliance Program |
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| NFA has recently adopted an amendment to its 2-9 Compliance Rule. Along with this amendment, NFA as prepared an interpretative notice for its Members that discusses the requirement for each FCM and IB to implement an Anti-Money Laundering Compliance Program. |
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| On October 26, 2001, the President signed into law, the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 ("Title III"). Section 352 of Title III requires financial institutions, as defined under the Bank Secrecy Act ("BSA"), to implement an anti-money laundering program by April 24, 2002. At a minimum, this program must include internal policies, procedures and controls to deter, detect and report suspicious activity; a designated compliance officer to oversee anti-money laundering surveillance; an ongoing training program for employees; and an independent audit function to test the compliance of the program. The Commodity Futures Trading Commission, at the direction of the Department of the Treasury, asked NFA to adopt minimum standards for anti-money laundering programs applicable to the futures industry. As a result, NFA adopted NFA Compliance Rule 2-9(c) and the related Interpretive Notice to make an anti-money laundering program an NFA Requirement and to provide Members with guidance on the components of these programs. Both the amendment to Compliance Rule 2-9(c) and the Interpretive Notice were approved by the CFTC on April 23, 2002. Please note that the U.S Treasury has not instituted these requirements for CPOs and CTAs. Once it does, it is expected that NFA will issue anti-money laundering program guidance for CPOs and CTAs. |
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| At a minimum, each FCM and IB Member is required to develop and implement a written anti-money laundering program approved in writing by senior management reasonably designed to achieve and monitor the Member's compliance with the applicable requirements of the Bank Secrecy Act, as well as the implementing regulations issued by the Department of the Treasury and, as applicable, the Commodity Futures Trading Commission. |
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| If your company is currently registered as an FCM or IB and has not yet developed and implement an Anti-Money Laundering Compliance Program, please call Compliance Supervisors Inc. at (732) 335-5740 to discuss how we can assist you in complying with this requirement. lease note that this requirement is taken very seriously by all people involved in the futures industry. Therefore, it is important that your company adopts a well defined and thought out program. Simply taking an existing Anti-Money Laundering Compliance Program from another company and changing the names in the program is not advisable and is frowned upon by the regulatory agencies. | |
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