Anti-Money Laundering Rules Affecting Futures Commission Merchants
| Anti-Money Laundering: FIA Receives Guidance on Application of Customer Identification Rules to Give-Up ArrangementsIn response to a request from the FIA, the Commodity Futures Trading Commission and the Financial Crimes Enforcement Network, the anti-money laundering arm of the U.S. Treasury Department, on April 19 issued guidance clarifying the application of customer identification requirements to give-up arrangements. The guidance confirmed that CIP requirements apply only to the clearing broker in a give-up transaction, not to the executing broker. The guidance was developed through extensive consultation with representatives of the futures industry. The FIA thanks the members of the FIA Law & Compliance division for their years of work on this initiative. View the CFTC press release View the FIA letter to the CFTC |
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| Anti-Money Laundering: FIA Seeks Clarification on SAR RulesThe FIA has asked the Treasury Department to clarify a proposed rule that will require futures commission merchants and introducing brokers to alert the government whenever they detect suspicious activity by their customers. In a comment letter filed on July 7, the FIA expressed support for the rule and asked Treasury to clarify it will apply in certain situations, such as with FCMs that are also registered as broker-dealers with securities regulators. The letter also suggested that executing and clearing brokers with the same customer should be required to file only one suspicious activity report, and urged Treasury to allow the sharing of information about suspicious activity between U.S. FCMs and foreign brokers and between U.S. FCMs and commodity trading advisors, where both sides share the same customers. |
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