Source: http://docplayer.net/1389520-Financial-crimes-enforcement-network-anti-money-laundering-program-and.html
Timestamp: 2017-02-27 07:09:43
Document Index: 407404290

Matched Legal Cases: ['art 1', 'art 1', 'art 1', 'art 1', 'art 103', 'art 103', 'art 1010', 'art 1010', 'art 103', 'art 103', 'arts 1010', 'ART 1021', 'art 270', 'art 103', 'art 21', 'art 103', 'art 103', 'art 2']

Financial Crimes Enforcement Network: Anti-Money Laundering Program and - PDF
Download "Financial Crimes Enforcement Network: Anti-Money Laundering Program and"
1 (BILLING CODE: P) DEPARTMENT OF THE TREASURY 31 CFR Chapter X RIN: 1506-AB10 Financial Crimes Enforcement Network: Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers AGENCY: Financial Crimes Enforcement Network ( FinCEN ), Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: FinCEN, a bureau of the Department of the Treasury ( Treasury ), is issuing this notice of proposed rulemaking to prescribe minimum standards for antimoney laundering programs ( AML ) to be established by certain investment advisers and to require such investment advisers to report suspicious activity to FinCEN pursuant to the Bank Secrecy Act ( BSA ). FinCEN is taking this action to regulate investment advisers that may be at risk for attempts by money launderers or terrorist financers seeking access to the U.S. financial system through a financial institution type not required to maintain AML programs or file suspicious activity reports ( SARs ). The investment advisers FinCEN proposes to cover by these rules are those registered or required to be registered with the U.S. Securities and Exchange Commission ( SEC ). FinCEN is also proposing to include investment advisers in the general definition of financial institution in rules implementing the BSA. Doing so would subject investment advisers to the BSA requirements generally applicable to financial institutions, including, for example, the requirements to file Currency Transaction Reports ( CTRs ) and to keep records relating to the transmittal of funds. Finally,2 FinCEN is proposing to delegate its authority to examine investment advisers for compliance with these requirements to the SEC. In this rulemaking, FinCEN is not proposing a customer identification program requirement or including within the AML program requirements provisions recently proposed with respect to AML program requirements for other financial institutions. 1 FinCEN anticipates addressing both of these issues with respect to investment advisers, as well as other issues, such as the potential application of regulatory requirements consistent with Sections 311, 312, 313 and 319(b) of the USA PATRIOT Act, 2 in subsequent rulemakings, with the issue of customer identification program requirements anticipated to be addressed via a joint rulemaking effort with the SEC. DATES: Written comments on this notice of proposed rulemaking ( NPRM ) must be submitted on or before [INSERT DATE 60 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER]. ADDRESSES: You may submit comments, identified by Regulatory Identification Number (RIN) 1506-AB10, by any of the following methods: Federal E-rulemaking Portal: Follow the instructions for submitting comments. Include 1506-AB10 in the submission. Refer to Docket Number FINCEN Mail: FinCEN, P.O. Box 39, Vienna, VA Include 1506-AB10 in the body of the text. Please submit comments by one method only. All comments 1 Customer Due Diligence Requirements for Financial Institutions, 79 FR (Aug. 4, 2014). 2 Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 ( USA PATRIOT Act ) (Pub. L. No ). 23 submitted in response to this NPRM will become a matter of public record. Therefore, you should submit only information that you wish to make publicly available. Inspection of comments: The public dockets for FinCEN can be found at Regulations.gov. Federal Register notices published by FinCEN are searchable by docket number, RIN, or document title, among other things, and the docket number, RIN, and title may be found at the beginning of the notice. FinCEN uses the electronic, Internet-accessible dockets at Regulations.gov as their complete, official-record docket; all hard copies of materials that should be in the docket, including public comments, are electronically scanned and placed in the docket. In general, FinCEN will make all comments publicly available by posting them on FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at (800) or SUPPLEMENTARY INFORMATION: I. Background A. General Statutory Provisions FinCEN exercises regulatory functions primarily under the Currency and Financial Transactions Reporting Act of 1970, as amended by the USA PATRIOT Act and other legislation. This legislative framework is commonly referred to as the Bank Secrecy Act ( BSA ). 3 The Secretary of the Treasury ( Secretary ) has delegated to the Director of FinCEN the authority to implement, administer, and enforce compliance with 3 The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C , 31 U.S.C and and notes thereto, with implementing regulations at 31 CFR Chapter X. See 31 CFR (e). 34 the BSA and associated regulations. 4 Pursuant to this authority, FinCEN may issue regulations requiring financial institutions to keep records and file reports that have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism. 5 Additionally, FinCEN is authorized to impose AML program and suspicious activity reporting requirements for financial institutions. 6 B. Previous Rulemaking Efforts On May 5, 2003, FinCEN published a notice of proposed rulemaking in the Federal Register proposing to require certain investment advisers to establish AML programs ( First Proposed Investment Adviser Rule ). 7 This followed FinCEN s published notice of proposed rulemaking issued on September 26, 2002, proposing that unregistered investment companies establish AML programs ( Proposed Unregistered Investment Companies Rule ). 8 In June 2007, FinCEN announced that it would be taking a fresh look at how its regulatory framework was being implemented to ensure that it was being applied effectively and efficiently across the industries that the statute covers. In conjunction with this initiative, and given the amount of time that had elapsed since initial publication of the proposals, FinCEN determined that it would not proceed with BSA requirements for these entities without undertaking further public notice and 4 Treasury Order (Sept. 26, 2002) U.S.C U.S.C. 5318(g) and (h). 7 See Anti-Money Laundering Programs for Investment Advisers, 68 FR (May 5, 2003). The SEC regulates investment advisers under the Investment Advisers Act of 1940 ( Advisers Act ) and the rules adopted under that Act. See 15 U.S.C. 80b et seq. and 17 CFR Part See Anti-Money Laundering Programs for Unregistered Investment Companies, 67 FR (Sept. 26, 2002). 45 comment process, and therefore withdrew the First Proposed Investment Adviser Rule and the Proposed Unregistered Investment Companies Rule (collectively, the Notices or proposed but now-withdrawn rules ) on November 4, Since the Notices have been withdrawn, there have been significant changes in the regulatory framework for investment advisers with the passage of the Wall Street Reform and Consumer Protection Act ( Dodd-Frank Act ). 10 II. Money Laundering Risks and Investment Advisers As of June 2, 2014, there were 11,235 investment advisers registered with the SEC, reporting approximately $61.9 trillion in assets for their clients. 11 Investment advisers provide advisory services to many different types of clients, including individuals, institutions, pension plans, corporations, trusts, foundations, mutual funds, private funds, and other pooled investment vehicles. 12 Some of the advisory services that investment advisers provide include portfolio management, financial planning, and pension consulting. Advisory services can be provided on a discretionary or nondiscretionary basis. 13 Investment advisers often work closely with their clients to 9 See Withdrawal of the Notice of Proposed Rulemaking; Anti-Money Laundering Programs for Unregistered Investment Companies, 73 FR (Nov. 4, 2008); and Withdrawal of the Notice of Proposed Rulemaking; Anti-Money Laundering Programs for Investment Advisers, 73 FR (Nov. 4, 2008). 10 See Dodd Frank Wall Street Reform and Consumer Protection Act, Pub. L. No , 124 Stat (2010). 11 See Frequently Requested FOIA Document: Information About Registered Investment Advisers and Exempt Reporting Advisers, available at 12 See Part 1A, Item 5 of Form ADV for a list of examples of different types of advisory clients. Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities; it is available at 13 An adviser has discretionary authority or manages assets on a discretionary basis if it has the authority to decide which securities to purchase and sell for the client. An adviser also has discretionary authority if it 56 formulate and implement their clients investment decisions and strategies. Investment advisers may be organized in a variety of legal forms, including corporations, sole proprietorships, partnerships, or limited liability companies. 14 As long as investment advisers are not subject to AML program and suspicious activity reporting requirements, money launderers may see them as a low-risk way to enter the U.S. financial system. It is true that advisers work with financial institutions that are already subject to BSA requirements, such as when executing trades through broker-dealers to purchase or sell client securities, or when directing custodial banks to transfer assets. But such broker-dealers and banks may not have sufficient information to assess suspicious activity or money laundering risk. When an adviser orders a brokerdealer to execute a trade on behalf of an adviser s client, the broker-dealer may not know the identity of the client. When a custodial bank holds assets for a private fund managed by an adviser, the custodial bank may not know the identities of the investors in the fund. Such gaps in knowledge make it possible for money launderers to evade scrutiny more effectively by operating through investment advisers rather than through broker-dealers or banks directly. Money laundering is the processing of criminal proceeds through the financial system to disguise their illegal origin or the ownership or control of the assets, or promoting an illegal activity with illicit or legal source funds. Generally, money has the authority to decide which investment advisers to retain on behalf of the client. See Glossary to Form ADV. 14 See Part 1A, Item 3.A of Form ADV. 67 laundering involves three stages, known as placement, 15 layering, 16 and integration, 17 and an investment adviser s operations are vulnerable at each stage. Money laundering is defined in part with respect to the proceeds of certain predicate crimes referred to as specified unlawful activities. 18 Securities fraud is a specified unlawful activity. Both securities fraud and the act of laundering the proceeds of securities fraud are destructive to investors, individual businesses, and the financial system as a whole. The crime of money laundering also encompasses the movement of funds to finance terrorism, individual terrorists, or terrorist organizations. These funds may be from illegitimate or legitimate sources. 19 In addition to offering services that could provide money launderers, terrorist financers, and other illicit actors the opportunity to access the financial system, investment advisers may be uniquely situated to appreciate a broader understanding of their clients movement of funds through the financial system because of the types of advisory activities in which they engage. If a client s advisory funds include the 15 At the placement stage, proceeds from illegal activity or funds intended to promote illegal activity are first introduced into the financial system. For example, this could occur in the investment advisory business when a money launderer tries to fund an investment advisory account with cash or cash equivalents derived from illegal activity. Money launderers also may approach investment advisers seeking to obtain the adviser s assistance as an intermediary in placing funds into custodial accounts. 16 The layering stage involves the distancing of illegal proceeds from their criminal source through a series of financial transactions to obfuscate and complicate their traceability. A money launderer could place assets under management with an investment adviser as one of many transactions in an ongoing layering scheme. Layering may involve establishing an advisory account in the name of a fictitious corporation or an entity designed to break the link between the assets and the true owner. A money launderer also may place assets under management with an adviser and then shortly thereafter arrange for their removal. 17 Integration occurs when illegal proceeds previously placed into the financial system are made to appear to have been derived from a legitimate source. For example, once illicit funds have been invested with an investment advisor, the proceeds from those investments may appear legitimate to any financial institution thereafter receiving such proceeds. 18 See 18 U.S.C. 1956(c)(7). 19 See 18 U.S.C. 1956, 2339A, and 2339B. 78 proceeds of money laundering, terrorist financing, and other illicit activities, or are intended to further such activities, an investment adviser s AML program and suspicious activity reporting may assist in detecting such activities. Accordingly, investment advisers have an important role to play in safeguarding the financial system against fraud, money laundering, terrorist financing, and other financial crime. III. The Proposed and Withdrawn Rules for Investment Advisers and Unregistered Investment Companies In 2003, FinCEN published the First Proposed Investment Adviser Rule, which would have imposed on certain investment advisers a requirement to establish and implement AML programs. Prior to that, in 2002, FinCEN issued the Proposed Unregistered Investment Companies Rule. We mention the Proposed Unregistered Investment Companies Rule in the context of this rulemaking because it is FinCEN s belief that most of the issuers captured in that proposed-but-now-withdrawn rule would be included in the AML programs of investment advisers covered by this proposed rule. The Notices were limited to proposing AML program requirements only; they did not include additional proposed requirements to report suspicious activities to FinCEN. FinCEN received 26 comment letters in response to the First Proposed Investment Adviser Rule. Comments were received on all aspects of the proposed rulemaking, with a particular focus on the proposed definition of investment adviser, the scope of an adviser s AML program, and the ability of an adviser to outsource compliance to a third party. FinCEN received 34 comment letters in response to the Proposed Unregistered Investment Companies Rule, and, again, there was a particular focus on the proposed definition of unregistered investment company, the scope of an issuer s AML program, and the ability of an issuer to outsource compliance obligations to third parties. In 89 developing this current proposal, FinCEN re-reviewed all previously submitted comments to the Notices and has taken them into consideration. IV. Section-by-Section Analysis As discussed above, FinCEN previously proposed two complementary rules to address money laundering risks in the asset management industry. At the time the First Proposed Investment Adviser Rule and the Proposed Unregistered Investment Companies Rule were published by FinCEN, the regulatory landscape for investment advisers was significantly different than it is today. At the time of those proposals, asset management services provided by investment advisers were generally divided into two categories for regulatory purposes: (i) registered advisers that managed assets for a variety of clients including mutual funds, individuals, pension plans, etc.; and (ii) unregistered private fund advisers that managed private funds and other pooled investment vehicles, like hedge and private equity funds. As a result of the Dodd-Frank Act amendments to the Investment Advisers Act of 1940 ( Advisers Act ), formerly unregistered advisers to hedge, private equity, and other private funds are now required to register with the SEC. Accordingly, FinCEN believes the two-pronged approach of the prior proposals is no longer necessary to address the money laundering and terrorist financing risks presented by SEC-registered investment adviser clients and the unregistered investment companies that are managed by such advisers. 20 FinCEN, therefore, is proposing a single rule for SEC-registered investment advisers that will result in coverage substantially similar to what would have existed if the two previously proposed but now-withdrawn rules for investment advisers 20 The Proposed Unregistered Investment Companies Rule included in the proposed definition of unregistered investment company certain commodity pools. See Anti-Money Laundering Programs for Unregistered Investment Companies at For the purposes of the rules being proposed today, FinCEN is deferring on a discussion of such commodity pools. 910 and unregistered investment companies had been adopted under the Investment Act before Dodd-Frank. A. Definitions The BSA does not expressly enumerate investment adviser among the entities defined as a financial institution under sections 5312(a)(2) and (c)(1) of Title 31 of the United States Code. In addition to those institutions listed, however, section 5312(a)(2)(Y) authorizes the Secretary to include additional types of businesses within the BSA definition of financial institution if the Secretary determines that they engage in any activity similar to, related to, or a substitute for, any of the listed businesses. Investment advisers work closely with, and provide services that are similar or related to services provided by, other businesses defined as financial institutions under the BSA ( BSA-defined financial institutions ). Investment services offered by advisers may be similar or related to those offered by broker-dealers in securities, banks, or insurance companies, each of which are BSAdefined financial institutions, and similar or related securities or other financial products are used to implement those services. For instance, many investment advisers sponsor and provide advisory services to mutual funds and advise clients on the purchase or sale of mutual fund shares. Banks and broker-dealers also may provide recommendations on mutual fund shares and may sell them to their own clients or clients of investment advisers. Investment advisers may provide advice with respect to products such as 1011 annuities that are offered by insurance companies and broker-dealers in securities. 21 Some investment advisers may offer asset management services that are similar to, and that may even compete directly with, the asset management services offered by certain banks through their trust departments. Advisers often have relationships with brokerdealers to direct the purchase or sale of client securities that are held at bank or brokerdealer custodians for their clients. The close interrelationship between investment advisers and other BSA-defined financial institutions is further demonstrated by the fact that they are often dually registered as a broker-dealer in securities or affiliated with each other. 22 Accordingly, FinCEN considers investment advisers to engage in activities that are similar to, related to, or a substitute for financial services that are provided by other BSA-defined financial institutions and, therefore, should be subject to the requirements of the BSA. Based on this consideration and the money laundering risks described above, FinCEN is proposing three regulatory changes: (1) including investment advisers within the general definition of financial institution in the regulations implementing the BSA and adding a definition of investment adviser; (2) requiring investment advisers to establish AML programs; and (3) requiring investment advisers to report suspicious activity. These proposals are discussed in greater detail below. 21 See Securities and Exchange Commission, Annuities (Apr. 6, 2011) available at Insurance companies that issue securities are regulated by the SEC, State securities commissioners, and State insurance commissioners. 22 See Securities and Exchange Commission, Study on Investment Advisers and Broker Dealers as Required by Section 913 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Jan. 2011) at page 8 available at 1112 1. Adding the Term Investment Adviser to General Definitions FinCEN is proposing to add a definition of investment adviser to section (nnn). The proposed definition is [a]ny person who is registered or required to register with the SEC under section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(a). The proposed definition relies on terms and definitions used in the Advisers Act and in the SEC s regulations implementing the Advisers Act to define investment advisers that would be subject to the proposed AML program, SAR, and general recordkeeping requirements of the BSA. The proposed definition would permit investment advisers to determine easily whether they are subject to the proposed rules. The proposed definition would include both primary advisers and subadvisers. 23 While FinCEN is limiting today s proposed definition to investment advisers registered or required to be registered with the SEC, future rulemakings may include other types of investment advisers, such as state-regulated investment advisers or investment advisers that are exempt from SEC registration, that are found to present risks to the U.S. financial system of money laundering, terrorist financing, and other types of financial crimes. 2. Scope of an Investment Adviser Definition Generally, an investment adviser s assets under management determine whether an investment adviser is required to register or is prohibited from registering with the 23 In the investment advisory industry, an adviser may act as the primary adviser or a subadviser. The Advisers Act does not distinguish between advisers and subadvisers; all are investment advisers. See Exemptions for Advisers to Venture Capital Funds, Private Fund Advisers With Less Than $150 Million in Assets Under Management, and Foreign Private Advisers at note 504 and accompanying text. Generally, the primary adviser contracts directly with the client and a subadviser has contractual privity with the primary adviser. With respect to such a shared client, an advisory contract may grant the primary adviser the discretionary authority to retain and dismiss a subadviser. Other advisory contracts may only permit the primary adviser to recommend a subadviser to such a client the client retains the authority to hire or dismiss a subadviser. 1213 SEC. 24 In implementing the Dodd-Frank Act amendments to the Advisers Act, the SEC amended the instructions to Part 1A of Form ADV to further implement a uniform method for an investment adviser to calculate its assets under management in order to determine whether it is required to register or is prohibited from registering with the SEC. 25 Generally, an investment adviser falls into one of three categories based on its regulatory assets under management, i.e., a large, mid-sized, or small adviser. The application of the proposed definition under 31 CFR (nnn) to these three categories of adviser is discussed in the following section. In view of the comment letters submitted in response to the First Proposed Investment Adviser Rule, this section also discusses the application of the proposed investment adviser definition to certain specific types of advisers and other related entities. 26 (a) Application of the Definition to Large, Mid-Sized, and Small Investment Advisers Generally, a large adviser has $100 million or more in regulatory assets under management, and is required to register with the SEC (and therefore included in the proposed definition) unless an exemption from SEC registration is available. 27 FinCEN notes that large advisers would comprise the bulk of investment advisers that are included in the definition of investment adviser for purposes of the rules being proposed today. Generally, a mid-sized adviser has $25 million or more but less than $100 million, and a small adviser has less than $25 million in regulatory assets under management and 24 See Rules Implementing Amendments to the Investment Advisers Act of 1940 at See Instructions for Part 1A, Item 5.F of Form ADV. See also id. 26 FinCEN notes that this discussion is not exhaustive and that there may be other types of investment advisers or entities that meet the definition being proposed today and, therefore, would be subject to today s proposed rule CFR A-1(a)(1). 1314 is regulated or required to be regulated as an investment adviser in the State where it maintains its principal office and place of business. 28 Mid-sized and small advisers are generally prohibited from registering with the SEC and therefore are excluded from the proposed definition, unless an exemption from the prohibition on SEC registration is available. 29 Mid-sized and small advisers prohibited from registering with the SEC are generally subject to regulation by the States. In the rules being proposed today, FinCEN is limiting the scope of the investment adviser definition to those advisers that are registered or required to be registered with the SEC. Limiting the definition of investment adviser to SEC-registered advisers will align FinCEN s regulatory framework with Federal functional regulation and allow FinCEN to work with the SEC to develop consistent application and examination of the BSA to such advisers. FinCEN notes that Congress has decided that, as a threshold matter, the type of investment adviser that should be subject to Federal regulation is, generally, an adviser that has $100 million or more in assets under management. 30 FinCEN recognizes that investment advisers that are at risk for abuse by money launderers, terrorist financers, and other illicit actors may not be limited to advisers that 28 See 15 U.S.C. 80b-3A(a)(1). Currently, only the State of Wyoming does not regulate investment advisers. A small adviser located in the State of Wyoming, therefore, is required to register with the SEC. 29 See 15 U.S.C. 80b-3A(a)(2). A mid-sized adviser with its principal office and place of business in Wyoming is neither required to register with the State, nor subject to examination by the State securities authority and is, therefore, required to register with the SEC. Also, mid-sized advisers with their principal offices and places of business in New York would be required to register with the SEC because the State securities authority has not represented to the SEC that registered advisers are subject to examination in the State; therefore, such advisers must register with the SEC. A mid-sized adviser that is required to register in any other State is subject to examination by the State and thus would be prohibited from registering with the SEC. See 15 U.S.C. 80b-3A(a)(2). See also Securities and Exchange Commission - Division of Investment Management, Frequently Asked Questions Regarding Mid-Sized Advisers (Jun. 28, 2011) available at CFR A-1(a)(1). 1415 are registered, or required to be registered, with the SEC. FinCEN, therefore, may consider future rulemakings to expand the application of the BSA to include investment advisers that are not registered or required to be registered with the SEC. (b) Application of the Investment Adviser Definition to Certain Specific Types of Advisers and other Related Entities Investment advisers provide many types of advisory services and may be organized in a wide variety of legal forms. The proposed definition applies to persons registered or required to register with the SEC and therefore may include, among others, the following types of advisers: dually-registered investment advisers, and advisers that are affiliated with or subsidiaries of entities required to establish AML programs; certain foreign investment advisers; investment advisers to registered investment companies; financial planners; pension consultants; and entities that provide only securities newsletters and/or research reports. FinCEN recognizes that the different types of investment advisers included within today s proposed definition may present varying degrees of money laundering and terrorist financing risks. FinCEN, therefore, anticipates that the burden of establishing an AML program would also correspondingly be reduced due to the risk-based nature of the program and the types of advisory services these entities provide. 1516 B. Delegation of Examination Authority to the Securities and Exchange Commission FinCEN has overall authority for enforcement of compliance with its regulations, including coordination and direction of procedures and activities of all other agencies exercising delegated authority. FinCEN is proposing to amend section to include investment advisers within the list of financial institutions the SEC has the authority to examine for compliance with FinCEN s rules. Persons and entities meeting the definition of investment adviser being proposed today under 31 CFR (nnn) would fall under this provision. The SEC has expertise in the regulation of investment advisers. The SEC is the Federal functional regulator for certain investment advisers and, therefore, is responsible for examining investment advisers for compliance with the Advisers Act and the SEC rules promulgated under that Act. Moreover, FinCEN has delegated to the SEC examination authority for broker-dealers in securities and certain investment companies, which are BSA-defined financial institutions subject to FinCEN s regulations and for which the SEC is the Federal functional regulator. 31 Accordingly, the SEC is in the best position to act as the designated examiner of investment advisers for compliance with the rules FinCEN is proposing today. C. Investment Advisers Defined as Financial Institutions FinCEN is proposing to include investment advisers registered or required to be registered with the SEC within the general definition of financial institution in the regulations implementing the BSA. 32 The application of general BSA reporting and recordkeeping requirements to an entity depends upon whether the entity is included in 31 See 31 CFR (b)(6). 32 See 31 CFR (t). 1617 the general definition of financial institution. 33 To date, investment advisers have not been required to comply with Currency Transaction Report (CTR) filing requirements, 34 and the recordkeeping, transmittal of records, and retention requirements for the transmittal of funds under the Recordkeeping and Travel Rules and other related recordkeeping requirements. 35 Defining investment advisers as a financial institution under 31 CFR (t) would require investment advisers to comply with all BSA regulatory requirements generally applicable to financial institutions, including these requirements and to comply with information sharing requests pursuant to section 314(a) of the USA PATRIOT Act Investment Advisers Obligation to File CTRs Replaces Obligation to File Form 8300 Under FinCEN s regulations that apply to a broad range of commercial activity, investment advisers are currently required to file reports on Form 8300 for the receipt of more than $10,000 in cash and negotiable instruments. 37 The rules being proposed today 33 The general definition of financial institution at 31 CFR (t) is less inclusive than the definition in the BSA itself. See 31 U.S.C. 5312(a)(2). The general definition determines the scope of rules that require the filing of CTRs and the creation, retention, and transmittal of records or information on transmittals of funds and other specified transactions. See 31 CFR ; 31 CFR ; 31 CFR ; 31 CFR ; 31 CFR ; 31 CFR ; 31 CFR ; 31 CFR ; and 31 CFR Defining a business as a financial institution also could make the business ineligible for exemption from the requirement to file CTRs. See, e.g., 31 CFR (e)(8). 34 See infra Section IV.C See 31 CFR and The recordkeeping, transmittal of records, and retention requirements for the transmittal of funds for non-bank financial institutions under 31 CFR are often referred to as the Recordkeeping and Travel Rules. See infra Section IV.C See CFR (a)(1)(i). Cash and negotiable instruments include cashier s checks, bank drafts, traveler s checks, and money orders in face amounts of $10,000 or less, if the instrument is received in a designated reporting transaction. 31 CFR (c)(1)(ii)(A). A designated reporting transaction is defined as the retail sale of a consumer durable, collectible, or travel or entertainment activity. 31 CFR (c)(2). In addition, an investment adviser would need to treat the instruments as currency if the 1718 would replace this requirement with a requirement that investment advisers file CTRs pursuant to 31 CFR An investment adviser would file a CTR for a transaction involving a transfer of more than $10,000 in currency by, through or to the investment adviser. 39 The threshold in 31 CFR applies to transactions conducted during a single business day. 40 A financial institution must treat multiple transactions as a single transaction if the financial institution has knowledge that the transactions are conducted by or on behalf of the same person. 41 Because investment advisers would no longer be required to file Form 8300s, investment advisers would be freed from having to report applicable transactions involving certain negotiable instruments reportable on Form 8300 but not the CTR when the investment adviser suspects that the monetary instruments are being used to avoid the Form 8300 being filed. 42 Although FinCEN recognizes that there may be some potential adviser knows that a customer is using the instruments to avoid the reporting of a transaction on Form CFR (c)(1)(ii)(B). 38 See 31 CFR (a) (stating that section [the BSA provision requiring the filing of the Form 8300] does not apply to amounts received in a transaction reported under 31 U.S.C and 31 CFR ) To the extent an investment adviser conducts transactions other than in currency (as defined in section (m) for purposes of the CTR requirement), it would be exempt from reporting such transactions because the Form 8300 requirement does not apply. 39 See 31 CFR and 31 CFR (m) (currency is defined as the coin and paper of the United States or of any other country that is designated as legal tender and that circulates and is customarily used as a medium of exchange in a foreign country). 40 See 31 CFR (b). Financial institutions must file a CTR for a transaction or related transactions for each deposit, withdrawal, exchange of currency or other payment or transfer, by, through or to such financial institution which involves a transaction in currency of more than $10,000 during any one business day. Compare to the threshold requirement for the Form 8300 defining any transactions conducted between a payer (or its agent) and the recipient in a 24-hour period as related transactions. Transactions are considered related even if they occur over a period of more than 24 hours if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. See 31 CFR (b)(3) CFR (b). 42 In determining whether to file a Form 8300, an investment adviser currently may need to treat instruments as currency if the adviser knows that a customer is using the instruments to avoid the reporting of a transaction on Form See (c)(1)(ii)(B). 1819 for criminals to use negotiable instruments such as money orders to move illicit cash through the investment adviser, the volume of Form 8300s currently filed by investment advisers is relatively low when compared to the overall volume of transactions involving investment advisers. 43 Because investment advisers rarely receive from or disburse to clients significant amounts of currency, FinCEN believes they are less likely to be used during the initial placement stage of the money laundering process than other financial institutions. Moreover, since an investment adviser would be required to report suspicious transactions under the SAR rule being proposed today, the ability to report suspicious transactions on Form 8300 would be redundant The Recordkeeping and Travel Rules and Other Related Recordkeeping Requirements Including investment advisers in the general definition of financial institution would subject an investment adviser to the requirements of the Recordkeeping and Travel Rules and other related recordkeeping requirements. Under the Recordkeeping and Travel Rules, financial institutions must create and retain records for transmittals of funds, and ensure that certain information pertaining to the transmittal of funds travel with the transmittal to the next financial institution in the payment chain. 45 Accordingly, the rules being proposed today would require compliance with 31 CFR (cross 43 A review of BSA data revealed that approximately 3,047 Form 8300s were filed by all investment advisers, whether registered or unregistered, over the seven years beginning in 2008, which is a fraction of the millions of transactions investment advisers conduct yearly on behalf of their clients. 44 Currently an investment adviser can report a suspicious transaction voluntarily by checking box 1(b) in the Form In addition to the requirement that an investment adviser report on a CTR, under the proposed rule, an investment adviser would also be required to file a SAR if a transaction exceeds the threshold amount. 45 See 31 CFR (a) and (f). Financial institutions are also required to retain records for five years. See 31 CFR (d). 1920 referencing 31 CFR ) and 31 CFR (cross referencing 31 CFR ). The Recordkeeping and Travel Rules apply to transmittals of funds that equal or exceed $3,000. A transmittal of funds includes funds transfers processed by banks, as well as similar payments where one or more of the financial institutions processing the payment (e.g., the transmittor s financial institution, an intermediary financial institution, or the recipient s financial institution) is not a bank. 46 When a financial institution accepts and processes a payment sent by or to its customer, then the financial institution would be the transmittor s financial institution or the recipient s financial institution, respectively. The Recordkeeping and Travel Rules require the transmittor s financial institution to obtain and retain the name, address, and other information about the transmittor and the transaction. 47 The Recordkeeping and Travel Rules also require the recipient s financial institution (and in certain instances, the transmittor s financial institution) to obtain or retain identifying information on the recipient. 48 The Recordkeeping and Travel Rules require that certain information obtained or retained travel with the transmittal order through the payment chain. 49 Under the proposed rule, investment advisers would fall within an existing exception that is designed to exclude from these requirements coverage funds transfers or transmittals of funds in which certain categories of financial institutions are the 46 See 31 CFR (f), (g), (w), (z), (aa), (ii), (jj), (pp), (qq), (ddd), (eee), (fff), and (ggg) for various definitions pertaining to a transmittal of funds and persons and institutions involved in the payment chain of a transmittal of funds. 47 See 31 CFR (e)(1)(i) and (e)(2). 48 See 31 CFR (e)(3) (information that the recipient s financial institution must obtain or retain). 49 See 31 CFR (f) (information that must travel with the transmittal order); 31 CFR (eee) (defining transmittal order ). 20 View more
52680 Federal Register / Vol. 80, No. 169 / Tuesday, September 1, 2015 / Proposed Rules 2014. Also for this purpose, a binding written commitment exists when an employer is contractually required to pay More information CLIENT PUBLICATION INVESTMENT FUNDS. September 8, 2015
INVESTMENT FUNDS CLIENT PUBLICATION September 8, 2015 Financial Crimes Enforcement Network: Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers More information Financial Crimes Enforcement Network; Anti-Money Laundering Programs for Investment Advisers
(BILLING CODE: 4810-02-P) DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506-AA28 Financial Crimes Enforcement Network; Anti-Money Laundering Programs for Investment Advisers AGENCY: Financial Crimes More information Financial Crimes Enforcement Network; Anti-Money Laundering Programs for Commodity Trading Advisors
(BILLING CODE: 4810-02-P) DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506-AA28 Financial Crimes Enforcement Network; Anti-Money Laundering Programs for Commodity Trading Advisors AGENCY: Financial More information FinCEN s Proposed Anti-Money Laundering Compliance Requirements for Investment Advisers: How to Prepare Now
FinCEN s Proposed Anti-Money Laundering Compliance Requirements for Investment Advisers: How to Prepare Now I. INTRODUCTION On August 25, 2015, the Financial Crimes Enforcement Network ( FinCEN ) proposed More information November 2, 2015. By Electronic Transmission
By Electronic Transmission Jennifer Shasky Calvery Director, Financial Crimes Enforcement Network U.S. Department of the Treasury P.O. Box 39 Vienna, VA 22183 Re: Docket Number FinCEN 2014-0003; RIN 1506-AB10 More information FinCEN Issues Notice of Proposed Rulemaking that Would Extend AML Requirements to Registered Investment Advisers
FinCEN Issues Notice of Proposed Rulemaking that Would Extend AML Requirements to Registered Investment Advisers On August 25, 2015, the Financial Crimes Enforcement Network (FinCEN), a bureau of the US More information ONPOINT / A legal update from Dechert s Financial Services Group. FinCEN Proposes Anti- Money Laundering Regulation for Investment Advisers
ONPOINT / A legal update from Dechert s Financial Services Group FinCEN Proposes Anti- Money Laundering Regulation for Investment Advisers September 2015 FinCEN Proposes Anti-Money Laundering Regulation More information Final Rule: Definitions of Transmittal of Funds and Funds Transfer
FEDERAL RESERVE SYSTEM Docket No. OP- 1445 DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 RIN 1506-AB20 Final Rule: Definitions of Transmittal of Funds and Funds Transfer More information The New AML Rules: Implications for Private Fund Managers
Alert The New AML Rules: Implications for Private Fund Managers September 8, 2015 On Aug. 25, 2015, the Financial Crimes Enforcement Network ( FinCEN ) issued for public comment a proposed rule (the Proposed More information Imposition of Special Measure against Banca Privada d Andorra as a Financial Institution of Primary Money Laundering Concern
(BILLINGCODE: 4810-02) DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 RIN 1506-AB30 Imposition of Special Measure against Banca Privada d Andorra as a Financial Institution More information SUMMARY: This Interpretive Release sets forth an interpretation of the regulation
[Billing Code 4810-02-P] United States Department of Treasury Financial Crimes Enforcement Network 31 CFR Part 103 Interpretive Release 2004-1 Anti-Money Laundering Program Requirements For Money Services More information Financial Crimes Enforcement Network: Anti-Money Laundering Program and
DEPARTMENT OF THE TREASURY (BILLING CODE 4802-10) 31 CFR Part 103 RIN: 1506-AB02 Financial Crimes Enforcement Network: Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for More information Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies. Frequently Asked Questions
Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies Frequently Asked Questions We are providing the following Frequently Asked Questions to assist insurance More information Bank Secrecy Act Anti-Money Laundering Examination Manual
Bank Secrecy Act Anti-Money Laundering Examination Manual Core Overview - Customer Identification Program Assess the bank's compliance with the statutory and regulatory requirements for the Customer Identification More information Treasury Department Proposes Anti-Money Laundering Regulations for Investment Advisers
CLIENT MEMORANDUM Treasury Department Proposes Anti-Money Laundering Regulations for Investment Advisers August 28, 2015 AUTHORS Benjamin J. Haskin Russell L. Smith Barbara Block On August 25, 2015, the More information JENNIFER SHASKY CALVERY DIRECTOR FINANCIAL CRIMES ENFORCEMENT NETWORK ABA/ABA MONEY LAUNDERING ENFORCEMENT CONFERENCE NOVEMBER 16, 2015 WASHINGTON, DC
JENNIFER SHASKY CALVERY DIRECTOR FINANCIAL CRIMES ENFORCEMENT NETWORK ABA/ABA MONEY LAUNDERING ENFORCEMENT CONFERENCE NOVEMBER 16, 2015 WASHINGTON, DC Good afternoon. Thank you to the American Bankers More information FAQs: Final CIP Rule
Financial Crimes Enforcement Network Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency More information AML & Mortgage Fraud Compliance Program v. 08.2013 ANTI-MONEY LAUNDERING & MORTGAGE FRAUD COMPLIANCE PROGRAM
ANTI-MONEY LAUNDERING & MORTGAGE FRAUD COMPLIANCE PROGRAM Version: 2.0 dated 08.2013 TABLE OF CONTENTS AML & Mortgage Fraud Compliance Program 1.0 PURPOSE AND SCOPE... 3 2.0 APPLICABLE REGULATIONS AND More information FinCEN Proposes AML Regulations for Investment Advisers
September 4, 2015 clearygottlieb.com FinCEN Proposes AML Regulations for Investment Advisers On August 25, 2015, the U.S. Treasury Department s Financial Crimes Enforcement Network ( FinCEN ) released More information STEPTOE & JOHNSON LLP
STEPTOE & JOHNSON LLP The USA PATRIOT Act and Financial Institutions Who does it cover? What does it require? And what does it mean for your Company? On October 26, 2001, in the wake of the September 11 More information Request for No-Action Relief Under Broker-Dealer Customer Identification Program Rule (31 C.F.R. 1023.220)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 D I VIS I ON OF TRAD I NG AND MARKETS January 9, 2015 Mr. Ira D. Hammerman Executive Vice President and General Counsel Securities More information Financial Crimes Enforcement Network
Financial Crimes Enforcement Network 1 Special Due Diligence Programs for Certain Foreign Accounts Special Due Diligence Programs for Certain Foreign Accounts An Assessment of the Final Rule Implementing More information Client Update FinCEN Proposes Anti-Money Laundering Rules for Investment Advisers
1 Client Update FinCEN Proposes Anti-Money Laundering Rules for Investment Advisers WASHINGTON, D.C. Kenneth J. Berman kjberman@debevoise.com Satish M. Kini smkini@debevoise.com Robert T. Dura rdura@debevoise.com More information DEVELOPING AN AML (ANTI-MONEY LAUNDERING) PROGRAM:
DEVELOPING AN AML (ANTI-MONEY LAUNDERING) PROGRAM: Although the Department of the Treasury has not issued specific rules for hedge funds and hedge fund managers, hedge fund managers should adopt and implement More information Financial Crimes Enforcement Network: Anti-Money Laundering Program and
DEPARTMENT OF THE TREASURY (BILLING CODE 4802-10) 31 CFR Parts 1010 and 1029 RIN: 1506-AB02 Financial Crimes Enforcement Network: Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements More information What Insurance Agents and Brokers Should Expect under the New Anti-Money Laundering Regulations for Life Insurance Companies
What Insurance Agents and Brokers Should Expect under the New Anti-Money Laundering Regulations for Life Insurance Companies The USA PATRIOT Act includes provisions intended to prevent the financial services More information Bank Secrecy Act, Anti-Money Laundering, and Office of Foreign Assets Control
Bank Secrecy Act, Anti-Money Laundering, and Office of Foreign Assets Control Overview The Bank Secrecy Act (BSA) was created in 1970 to assist in criminal, tax, and regulatory investigations. The Financial More information INVESTMENT ADVISERS. Requirements and Costs Associated with the Custody Rule. Report to Congressional Committees
United States Government Accountability Office Report to Congressional Committees July 2013 INVESTMENT ADVISERS Requirements and Costs Associated with the Custody Rule GAO-13-569 July 2013 INVESTMENT ADVISERS More information FS Regulatory Brief. How the SEC s Custody Rule Impacts Private Fund Advisers. Introduction. The Custody Rule: An overview
How the SEC s Custody Rule Impacts Private Fund Advisers Introduction Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank, or the Act ) and rules recently adopted by the Securities More information Background. FIN-2010-G001 Issued: March 5, 2010 Subject: Guidance on Obtaining and Retaining Beneficial Ownership Information
Joint Release Financial Crimes Enforcement Network Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller More information UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION II.
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 77056 / February 4, 2016 ADMINISTRATIVE PROCEEDING File No. 3-17099 In the Matter of Respondent. More information Study on Investment Advisers and Broker-Dealers
Study on Investment Advisers and Broker-Dealers As Required by Section 913 of the Dodd-Frank Wall Street Reform and Consumer Protection Act This is a Study of the Staff of the U.S. Securities and Exchange More information Best Practices: Anti-Money Laundering and Customer Information Selected Requirements
Best Practices: Anti-Money Laundering and Customer Information Selected Requirements INTRODUCTION This document is intended to provide IIUSA members with guidance regarding anti-money laundering (AML), More information Dodd-Frank Act Changes Affecting Private Fund Managers and Other Investment Advisers By Adam Gale and Garrett Lynam
Dodd-Frank Act Changes Affecting Private Fund Managers and Other Investment Advisers By Adam Gale and Garrett Lynam I. Introduction The Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank More information Final Foreign Private Adviser and Private Fund Adviser Rules Issued by the U.S. Securities and Exchange Commission.
July 2011 Final Foreign Private Adviser and Private Fund Adviser Rules Issued by the U.S. Securities and Exchange Commission. Contents Implications for Non-U.S. Investment Advisers On June 22, 2011, the More information Anti-Money Laundering Issues for Securities Transfer Agents
Anti-Money Laundering Issues for Securities Transfer Agents Stanley V. Ragalevsky, Esq. Kirkpatrick & Lockhart LLP 75 State Street Boston, MA 02110 (617) 261-3100 Caveat This outline and the oral presentation More information TITLE 31- - Money and Finance: Treasury
TITLE 31- - Money and Finance: Treasury Subtitle B- - Regulations Relating to Money and Finance Chapter X- - Financial Crimes Enforcement Network, Department of the Treasury PART 1021- - RULES FOR CASINOS More information Private Fund Investment Advisers
Financial Institutions 1 Private Fund Investment Advisers Title IV of the Dodd-Frank Act provides for a number of changes to the regulatory regime governing investment advisers and private funds. Among More information Clearing Up the Confusion Over a Retirement Plan Advisor s Fiduciary Status
Clearing Up the Confusion Over a Retirement Plan Advisor s Fiduciary Status Chuck Rolph, J.D. Director, Advanced Consulting Group Nationwide Financial Introduction This paper is directed to financial advisors More information Bank Secrecy Act for Directors. Barb Boyd Content Manager CU Solutions Group
Bank Secrecy Act for Directors Barb Boyd Content Manager CU Solutions Group Agenda What is the Bank Secrecy Act? How to have a successful BSA Compliance Program OFAC responsibilities. Penalties for non-compliance. More information Notice of Finding That Banca Privada d Andorra Is a Financial Institution of Primary Money Laundering Concern
(BILLINGCODE: 4810-02) DEPARTMENT OF THE TREASURY Notice of Finding That Banca Privada d Andorra Is a Financial Institution of Primary Money Laundering Concern AGENCY: Financial Crimes Enforcement Network More information ALSTON&BIRD LLP 601 Pennsylvania Avenue, N.W. North Building, 10 th Floor Washington, DC 20004-2601
ALSTON&BIRD LLP 601 Pennsylvania Avenue, N.W. North Building, 10 th Floor Washington, DC 20004-2601 202-756-3300 Fax: 202-756-3333 www.alston.com Jonathan M. Winer #22 Direct Dial: 202-756-3342 E-mail: More information PURCHASE OF CERTAIN DEBT SECURITIES BY BUSINESS AND INDUSTRIAL DEVELOPMENT COMPANIES RELYING ON AN INVESTMENT COMPANY ACT EXEMPTION
SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 270 Release No. IC-30268; File No. S7-07-11 RIN 3235-AL02 PURCHASE OF CERTAIN DEBT SECURITIES BY BUSINESS AND INDUSTRIAL DEVELOPMENT COMPANIES RELYING ON More information The Department of the Treasury established the Financial Crimes
Appendix A Financial Crimes Enforcement Network Programs The Department of the Treasury established the Financial Crimes Enforcement Network in April 1990. 33 FinCEN s original mission was to establish More information Anti-Money Laundering Facts
Anti-Money Laundering Facts Security Benefit Life Insurance Company (SBL) has implemented a formal anti-money laundering (AML) program in response to the Financial Crimes Enforcement Network s (FinCEN) More information CONSUMER COMPLIANCE SELF ASSESSMENT GUIDE. Excerpt: Bank Secrecy Act
CONSUMER COMPLIANCE SELF ASSESSMENT GUIDE Excerpt: Bank Secrecy Act A complete copy of the Consumer Compliance Self Assessment Guide is available on the NCUA web site, http://www.ncua.gov/. From the home More information 48348 Federal Register / Vol. 67, No. 141 / Tuesday, July 23, 2002 / Rules and Regulations
48348 Federal Register / Vol. 67, No. 141 / Tuesday, July 23, 2002 / Rules and Regulations DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506 AA29 Financial Crimes Enforcement Network; Anti-Money Laundering More information EXAMINATION PRIORITIES FOR 2015
EXAMINATION PRIORITIES FOR 2015 I. Introduction This document identifies selected 2015 examination priorities of the Office of Compliance Inspections and Examinations ( OCIE, we or our ) of the Securities More information [Billing Code: 4810-02P; 6720-01P; 6210-01; 7537-01-U; 4810-33-P; 6714-01-P] DEPARTMENT OF THE TREASURY. Office of the Comptroller of the Currency
[Billing Code: 4810-02P; 6720-01P; 6210-01; 7537-01-U; 4810-33-P; 6714-01-P] DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 21 [Docket No. 03-08] RIN 1557-AC06 FEDERAL More information Alert. Client PROSKAUER ROSE LLP. Regulation of Non-U.S. Investment Advisors and Portfolio Managers Doing Business in the United States
PROSKAUER ROSE LLP Client Alert Regulation of Non-U.S. Investment Advisors and Portfolio Managers Doing Business in the United States A number of non-u.s. investment counseling firms and investment dealer More information 1. Rule 3a4-1 Safe Harbor Exemption from Broker Registration
Chapter 10 Avoiding Broker Registration 10.1 Securities Exchange Act of 1934 The Exchange Act generally defines a broker as a person engaged in the business of effecting transactions in securities for More information Anti-Money Laundering Policy Manual Table of Contents [Sample Client] Table of Contents
Table of Contents [ Client] Table of Contents TABLE OF CONTENTS... 1 CHAPTER 1 INTRODUCTION... 3 1.1 GOALS AND OBJECTIVES... 3 1.2 REQUIRED REVIEW... 3 1.3 APPLICABILITY... 3 1.4 MONEY LAUNDERING DEFINED... More information FORM ADV (Paper Version) UNIFORM APPLICATION FOR INVESTMENT ADVISER REGISTRATION AND REPORT FORM BY EXEMPT REPORTING ADVISERS
OMB APPROVAL OMB Number: 3235-0049 Expires:, 201 Estimated average burden hours per response 10.50 FORM ADV (Paper Version) UNIFORM APPLICATION FOR INVESTMENT ADVISER REGISTRATION AND REPORT FORM BY EXEMPT More information DEALERSHIP S COMPLIANCE WITH THE USA PATRIOT ACT, ITS IMPLEMENTING REGULATIONS AND OTHER ANTI-TERRORISM MEASURES
DEALERSHIP S COMPLIANCE WITH THE USA PATRIOT ACT, ITS IMPLEMENTING REGULATIONS AND OTHER ANTI-TERRORISM MEASURES By: Keith E. Whann Deanna L. Stockamp Whann & Associates On September 11, 2001, terrorists More information a GAO-02-670 GAO MONEY LAUNDERING Extent of Money Laundering through Credit Cards Is Unknown
GAO United States General Accounting Office Report to the Chairman, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate July 2002 MONEY LAUNDERING Extent of Money Laundering More information Bank Secrecy Act Regulations Definitions and Other Regulations Relating to Money Services Businesses, 76 FR 43585 (July 21, 2011).
RULING FIN-2015-R001 Issued: August 14, 2015 Subject: Application of FinCEN s Regulations to Persons Issuing Physical or Digital Negotiable Certificates of Ownership of Precious Metals Dear [ ]: This responds More information Substantive Requirements for a Registered Investment Adviser under the U.S. Investment Advisers Act of 1940
Substantive Requirements for a Registered Investment Adviser under the U.S. Investment Advisers Act of 1940 Alternative investment fund managers and other investment advisory firms that are registered More information UNITED STATES OF AMERICA DEPARTMENT OF THE TREASURY FINANCIAL CRIMES ENFORCEMENT NETWORK ASSESSMENT OF CIVIL MONEY PENALTY
UNITED STATES OF AMERICA DEPARTMENT OF THE TREASURY FINANCIAL CRIMES ENFORCEMENT NETWORK IN THE MATTER OF: ) ) Number 2015-01 Oppenheimer & Co., Inc. ) New York, NY ) ASSESSMENT OF CIVIL MONEY PENALTY More information 10234 Federal Register / Vol. 76, No. 37 / Thursday, February 24, 2011 / Rules and Regulations
10234 Federal Register / Vol. 76, No. 37 / Thursday, February 24, 2011 / Rules and Regulations 1201). The February-March 2010 proposal called for a two-stage increase. The consumptive use rate was proposed More information Customer Identification Program - Overview
. ~ancial/~. "8 ~~. ~~~~~ ~~ ~ ~ ~ ~v ~. ~ : ~~t. Q ion CO Customer Identification Program - Overview Bank Secrecy Act / Anti-Money Laundering Examination Manual Customer Identification Program - Overview More information Unlawful Internet Gambling Enforcement Act of 2006 Overview
Attachment A Unlawful Internet Gambling Enforcement Act of 2006 Overview This document provides an overview of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA or Act), 31 USC 5361-5366, and More information The US Private Equity Fund Compliance Guide
The US Private Equity Fund Compliance Guide How to register and maintain an active and effective compliance program under the Investment Advisers Act of 1940 Executive Summary Edited by Charles Lerner, More information THE SEC S NEW DODD-FRANK ADVISERS ACT RULEMAKING: AN ANALYSIS OF THE SEC S IMPLEMENTATION OF TITLE IV OF THE DODD-FRANK ACT
THE SEC S NEW DODD-FRANK ADVISERS ACT RULEMAKING: AN ANALYSIS OF THE SEC S IMPLEMENTATION OF TITLE IV OF THE DODD-FRANK ACT Kenneth W. Muller, Jay G. Baris and Seth Chertok* The Investment Advisers Act More information Practitioner s Guide for Broker-Dealers
Practitioner s Guide for Broker-Dealers Chapter 9: Anti-Money Laundering Authored by Betty Santangelo and Sung-Hee Suh, Schulte Roth & Zabel LLP Money laundering has generally been defined as engaging More information New Customer Identification Procedure Rules for Brokers and Dealers Take Effect
Client Publication October 2003 New Customer Identification Procedure Rules for Brokers and Dealers Take Effect I. INTRODUCTION Origins of the CIP Rule On April 30, 2003, the U.S. Department of the Treasury More information Nevada Registered Agents Association
Nevada Registered Agents Association Best Practices Recommendations to Prevent the Exploitation of Nevada Business Entities for Criminal Activities, and for the Protection of the Nevada Registered Agent More information TANNENBAUM HELPERN SYRACUSE & HIRSCHTRITT LLP MEMORANDUM
TANNENBAUM HELPERN SYRACUSE & HIRSCHTRITT LLP MEMORANDUM USA PATRIOT Act Update Memorandum: U.S. Treasury Releases Interim Final Rule to Provide Guidance and Clarification on Compliance with Section 312 More information Broker-Dealer Concepts
Broker-Dealer Concepts Broker-Dealer AML Program Checklist/Gap Analysis Published by the Broker-Dealer & Investment Management Regulation Group September 2011 I. GENERAL REQUIREMENTS AML AML Program Components More information Registration of Municipal Advisors [Release No. 34-63576; File No. S7-45-10]
1001 PENNSYLVANIA AVE., NW SUITE 500 SOUTH WASHINGTON, DC 20004 TEL 202-289-4322 FAX 202-628-2507 E-Mail rich@fsround.org www.fsround.org February 22, 2011 RICHARD M. WHITING EXECUTIVE DIRECTOR AND GENERAL More information SEC Adopts Rules to Implement the Private Fund Investment Advisers Registration Act
SEC Adopts Rules to Implement the Private Fund Investment Advisers Registration Act Jason E. Brown and Joel A. Wattenbarger of Ropes & Gray LLP On June 22, 2011, the Securities and Exchange Commission More information Broker-Dealer Concepts
Broker-Dealer Concepts Outline of Anti-Money Laundering Obligations of Broker-Dealers Published by the Broker-Dealer & Investment Management Regulation Group September 2011 The following is a compendium More information GLOSSARY OF TERMS Advisory Affiliate: person persons controlling controlled employees employees advisory affiliates employees employees persons
GLOSSARY OF TERMS 1. Advisory Affiliate: Your advisory affiliates are (1) all of your officers, partners, or directors (or any person performing similar functions); (2) all persons directly or indirectly More information FinCEN Advisory. This Advisory provides answers to some of the most frequently asked questions concerning the transmittal of funds Travel regulation.
United States Department of the Treasury Financial Crimes Enforcement Network FinCEN Advisory Subject: Funds Travel Regulations: Questions & Answers Date: January 1997 This Advisory provides answers to More information [Billing Code: 4810-02] DEPARTMENT OF THE TREASURY. 31 CFR Part 103 RIN 1506-AA31
[Billing Code: 4810-02] DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506-AA31 Financial Crimes Enforcement Network; Customer Identification Programs for Certain Banks (Credit Unions, Private Banks and More information 7.0 Information Security Protections The aggregation and analysis of large collections of data and the development
7.0 Information Security Protections The aggregation and analysis of large collections of data and the development of interconnected information systems designed to facilitate information sharing is revolutionizing More information FAQs: Final CIP Rule
FAQs: Final CIP Rule The staff of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, National Credit Union Administration, More information COMPLIANCE BULLETIN 01-15 NEW PICTURE EFFECTS
COMPLIANCE BULLETIN 01-15 NEW PICTURE EFFECTS A TALE OF TWO VERTICALS: The Differences Between Broker-Dealers and Investment Advisers I t was the best of times, it was the worst of times Well, that might More information REGULATORY ALERT NATIONAL CREDIT UNION ADMINISTRATION 1775 DUKE STREET, ALEXANDRIA, VA 22314. DATE: May 2003 NO: 03-RA-07
REGULATORY ALERT NATIONAL CREDIT UNION ADMINISTRATION 1775 DUKE STREET, ALEXANDRIA, VA 22314 DATE: May 2003 NO: 03-RA-07 TO: All Federally-Insured Credit Unions SUBJECT: Final Patriot Act Regulations on More information Building an investment advisory business and onboarding new clients comes
Vol. 20, No. 5 May 2013 Compliance Issues for Establishing New Client Relationships: Part 2 of 2 By Heather Traeger, Kris Easter, and Matthew Cohen Building an investment advisory business and onboarding More information BSA/AML & OFAC. Volunteer Compliance Training. Agenda
Ideas + Solutions = Success BSA/AML & OFAC Ideas + Solutions = Success Volunteer Compliance Training Presented by Dorie Fitchett HCUL Regulatory Officer April 25, 2013 Agenda 1. Bank Secrecy Act (BSA) More information Guidance. Currency vs. Virtual Currency
Guidance FIN-2013-G001 Issued: March 18, 2013 Subject: Application of FinCEN s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies The Financial Crimes Enforcement Network ( FinCEN More information TITLE III CROWDFUNDING
H. R. 3606 10 have any person associated with that person subject to such a statutory disqualification. (3) For the purposes of this subsection, the term ancillary services means (A) the provision of due More information INSURANCE AGENT AND BROKER COMPLIANCE WITH THE PATRIOT ACT ANTI-MONEY LAUNDERING REQUIREMENTS AND OFFICE OF FOREIGN ASSETS CONTROL REGULATIONS
INSURANCE AGENT AND BROKER COMPLIANCE WITH THE PATRIOT ACT ANTI-MONEY LAUNDERING REQUIREMENTS AND OFFICE OF FOREIGN ASSETS CONTROL REGULATIONS This FAQ is not intended to provide specific advice about More information Privacy of Consumer Financial Information
Background and Overview Introduction Title V, Subtitle A of the Gramm-Leach-Bliley Act ( GLBA ) 1 governs the treatment of nonpublic personal information about consumers by financial institutions. Section More information April 8, 2013. I. Background.
April 8, 2013 The Extra-territorial Reach of the Broker-Dealer Registration Requirements Under the U.S. Securities Exchange Act of 1934; the Staff of the Securities and Exchange Commission Addresses Frequently More information Risk Factors for OFAC Compliance in the Securities Industry
Risk Factors for OFAC Compliance in the Securities Industry Updated November 5, 2008 Introduction The U.S. Department of the Treasury s Office of Foreign Assets Control ( OFAC ) is charged with administering More information Fact Sheet for Financial Crimes Enforcement Network Geographic Targeting Orders for Manhattan, N.Y., and Miami-Dade County, Fla.
Fact Sheet for Financial Crimes Enforcement Network Geographic Targeting Orders for Manhattan, N.Y., and Miami-Dade County, Fla. On January 13, 2016, the Financial Crimes Enforcement Network (FinCEN), More information Guidance. FIN-2014-G001 Issued: February 14, 2014 Subject: BSA Expectations Regarding Marijuana-Related Businesses
Guidance FIN-2014-G001 Issued: February 14, 2014 Subject: BSA Expectations Regarding Marijuana-Related Businesses The Financial Crimes Enforcement Network ( FinCEN ) is issuing guidance to clarify Bank More information FORM ADV UNIFORM APPLICATION FOR INVESTMENT ADVISER REGISTRATION AND REPORT BY EXEMPT REPORTING ADVISERS
Page 1 of 63 FORM ADV UNIFORM APPLICATION FOR INVESTMENT ADVISER REGISTRATION AND REPORT BY EXEMPT REPORTING ADVISERS Primary Business Name: SANDS CAPITAL MANAGEMENT, LLC CRD Number: 137610 Other-Than-Annual More information United States Department of the Treasury Financial Crimes Enforcement Network. Subject: Questions & Date: June 1996. Advisory: Vol.
United States Department of the Treasury Financial Crimes Enforcement Network FinCEN Advisory Subject: Funds Transf ansfers: Questions & Answers Date: June 1996 Advisory: Vol. 1, Issue 3 This Advisory More information U.S. COMMODITY FUTURES TRADING COMMISSION
U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5977 Facsimile: (202) 418-5407 www.cftc.gov Division of Swap Dealer and More information MERCHANTS EXPRESS MONEY ORDER COMPANY, INC. (MEMO) AGENT ANTI-MONEY LAUNDERING COMPLIANCE GUIDE
MERCHANTS EXPRESS MONEY ORDER COMPANY, INC. (MEMO) AGENT ANTI-MONEY LAUNDERING COMPLIANCE GUIDE Table of Contents WHY YOU AND YOUR EMPLOYEES SHOULD READ AND UNDERSTAND THIS GUIDE...1 WHY THIS GUIDE IS More information "INFORMATION SHARING" UNDER SECTIONS 314(a) AND (b) OF THE USA PATRIOT ACT
"INFORMATION SHARING" UNDER SECTIONS 314(a) AND (b) OF THE USA PATRIOT ACT Greg Baldwin Holland & Knight LLP 701 Brickell Ave., Suite 3000 Miami, FL 33131 Tel: 305 789 7745 Fax: 305 789 7799 e mail: gbaldwin@hklaw.com More information January 5, 2010. To Our Clients and Friends:
HOW THE SEC S NEW CUSTODY REQUIREMENTS CHANGE THE GROUND RULES FOR REGISTERED INVESTMENT ADVISERS January 5, 2010 To Our Clients and Friends: As 2009 closed, the Securities and Exchange Commission (the More information Hedge Fund. Anti-Money Laundering. The LAW REPORT. The Patriot Act Changes the Anti-Money Laundering Landscape
hedge LAW REPORT fund law and regulation Anti-Money Laundering Do s Really Pose a Money Laundering Threat? A Decade of Regulatory False Starts Raises Questions By Michael B. Himmel and Matthew M. Oliver, More information S T R O O C K SPECIAL BULLETIN
S T R O O C K SPECIAL BULLETIN May 8, 2013 EXECUTIVE SUMMARY The CFTC and SEC have issued jointly a release setting forth final rules and guidelines requiring certain business entities subject to their More information FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C. ) ) ) ) ) ) ) )
FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C. In the Matter of BURKE & HERBERT BANK & TRUST COMPANY ALEXANDRIA, VIRGINIA (Insured State Nonmember Bank CONSENT ORDER FDIC-14-0103b The Federal Deposit More information REGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM
REGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM (unofficial English translation) REGULATION FOR LIFE INSURANCE AND FAMILY More information 2017 © DocPlayer.net Privacy Policy | Terms of Service | Feedback