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NFA amends Anti-Money Laundering rule to incorporate new Customer Identification Program requirements

At its meeting in August, NFA's Board of Directors approved amendments to NFA Compliance Rule 2-9(c) and the Interpretive Notice entitled "FCM and IB Anti-Money Laundering Compliance Program" to incorporate new requirements based on final rules jointly issued by the Treasury Department and the Commodity Futures Trading Commission (CFTC). The final rules require FCMs and IBs to adopt a Customer Identification Program (CIP) as part of their Anti-Money Laundering Compliance Program.

A firm's CIP must include procedures relating to: obtaining required identifying information and verifying identity to the extent reasonable and practicable; recordkeeping; comparison with Government lists; customer notice and, if applicable, reliance on other financial institutions. Firms were required to be in full compliance with this rule by October 1, 2003.

NFA has submitted its updated rule and interpretive notice to both the CFTC and Treasury for comment and will formally submit them to the CFTC for approval in the near future.

NFA recognizes, however, that its FCM and IB Members may face a significant challenge in implementing a CIP. NFA encourages Members with questions regarding their CIP program to contact Assistant General Counsel Carol Wooding at 312-781-1409 or Compliance Associate Director Sharon Pendleton at 312-658-6540.

NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.
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