NU Online News Service, June 7, 3:06 p.m. – The National Association of Securities Dealers, New York, has created a Web-based tool that member companies can use to check whether customers or prospects are on the U.S. Treasury’s list of “Specially Designated Nationals and Blocked Persons.”
The list contains the names of people that the government believes to be spies, terrorists or drug traffickers.
The USA PATRIOT anti-money laundering act, enacted in the wake of the Sept. 11, 2001, terrorist attacks, prohibits brokerage firms, insurance companies and other financial services companies from doing business with individuals on the government list.
The government has postponed the full compliance data for insurance companies, but brokerage firms affiliated with insurance companies had to start complying with the law April 24. Many insurance companies are also doing their best to comply, even though they do not yet have to do so.
More information about the NASD system is available at http://www.nasdr.com/money.asp
The MIB Group Inc., Westwood, Mass., a life insurance trade group, has developed a similar system specifically for the life insurance industry.