The Department of the Treasury issued on April 23 interim final anti-money laundering guidelines under the 2001 Patriot anti-terrorism act, granting some financial institutions more time in developing plans than others.
Although the rules are final, the Treasury Department welcomes comments on the rules, and the rules may be subject to further changes.
Mutual funds, or open-end management investment companies, for instance, are required to develop plans and implement them by July 24. The mutual fund programs will be subject to new Treasury guideline 31 C.F.R. section 103.130 and must be approved in writing by each fund’s board of directors and trustees, says John Baker, a securities lawyer with Stradley, Ronon, Stevens & Young in Washington.
Broker/dealers will be governed by a new NASD Rule 3011 or New York Stock Exchange Rule 445; both were effective April 24. The Securities and Exchange Commission approved both of these rules on April 22.
Six-month exemptions were granted to the following investment companies and financial institutions: hedge funds, private equity funds, venture capital funds, private bankers, insurance companies, persons engaged in real estate closings and settlements, investment companies (other than mutual funds), commodity pool operators, and commodity trading advisors.
Banks, savings associations, credit unions, and casinos are subject to existing money laundering requirements.