Money Laundering, Terrorism & Financial Institutions
Published by Civic Research Institute, civicresearchinstitute.com
 
USA PATRIOT ACT MONITOR NEWS RELEASES

Treasury and FinCEN have released proposed rules, 31 CFR 103.15 (RIN 1506-AA37)

Treasury and FinCEN have released proposed rules, 31 CFR 103.15 (RIN 1506-AA37), that would require mutual funds to report suspicious transactions.  This follows on an interim final rule issued in April 2002 requiring mutual funds to develop and implement anti-money laundering programs, and proposed rules issued in July that would require mutual funds to implement reasonable customer identification and verification procedures.  SARs would have to be filed on suspicious transactions conducted by, at, or through a mutual fund involving or aggregating at least $5,000 in funds or other assets.  A transaction below the $5,000 may also be suspicious and funds are encouraged to report such transactions.  Reporting responsibilities of a mutual fund may be contractually delegated to a service provider, such as a transfer agent, but the mutual fund remains liable for assuring compliance with the rule, "and must actively monitor the procedures for reporting suspicious transactions."  The release has not yet appeared in the Federal Register, but is available on FinCEN's website at www.fincen.gov/mutualfundsardraft_nprm.pdf. More on these proposed rules will be described in forthcoming issues of the USA PATRIOT Act Monitor.


 

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