The NFA will amend NFA Compliance Rule 2-9 (Supervision) and a related Interpretive Notice ( FCM and IB Anti-Money Laundering Program) to reflect changes in FinCEN's final rules on customer due diligence requirements for certain financial institutions. These changes affect futures commission merchants ("FCMs") and introducing brokers ("IBs").
The amended FinCEN regulations require firms to perform AML-related diligence on (i) individuals who directly or indirectly own 25% of a customer's equity and (ii) individuals with significant control authority over the customer.
The NFA noted that while FinCEN's final rules became effective on July 11, 2016, firms are not required to comply with the final rules until May 11, 2018. The NFA urged firms to begin considering modifications to their AML programs, as implementation of the new requirements may require changes to systems and processes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
