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May 22, 2018
FCMs and IBs that fail to comply with NFA's anti-money laundering program requirements may be subject to NFA disciplinary action
NFA Compliance Rule 2-9(c) and its related Interpretive Notice entitled FCM and IB Anti-Money Laundering Program require each futures commission merchant (FCM) and introducing broker (IB) to develop and implement a written anti-money laundering (AML) program designed to achieve and monitor compliance with the requirements of the Bank Secrecy Act. In order to comply with these regulatory requirements, each FCM and IB must, among other things:
- Provide training for all appropriate personnel at least every 12 months on the firm's AML policies and procedures, the relevant federal laws, and NFA guidance. Additionally, FCMs and IBs must maintain records to demonstrate that this training was provided.
- Conduct independent testing of the adequacy of the AML program by firm personnel or by a qualified outside party at least every 12 months. Additionally, FCMs and IBs must document these testing results, report results to the firm's senior management or internal audit committee or department, and ensure that any deficiencies noted are addressed and corrected.
FCM and IB Members that fail to adhere to NFA's AML requirements may be subject to NFA disciplinary action.
Recently, NFA noted that a number of firms failed to provide AML training and/or conduct an independent AML audit as required by NFA. In some instances, these AML-related deficiencies resulted in NFA's Business Conduct Committee issuing a Complaint and charging the firm with failure to fully implement an AML program.1
If you have questions concerning NFA's AML program requirements, please contact Kolade Agbaje-Williams, Manager, Compliance (firstname.lastname@example.org or 312-781-1484) or Valerie O'Malley, Director, Compliance (email@example.com or 312-781-1290).
1For specific examples of NFA disciplinary actions that resulted from AML-related deficiencies, visit the Enforcement and Registration Actions page on NFA's website and filter by Compliance Rule 2-9(c).