The Financial Industry Regulatory Authority filed another proposed rule change with the Securities and Exchange Commission to amend its Capital Acquisition Broker (CAB) rule, Rule 331, to reflect the Treasury Department’s Financial Crimes Enforcement Network’s (FinCEN) adoption of a final rule on customer due diligence requirements for financial institutions.
This is the second rule amendment FINRA has issued to conform with FinCEN’s rule, which became effective on May 14.
The broker-dealer self-regulator amended Rule 3310, its Anti-Money Laundering Compliance Program rule, in May to reflect FinCEN’s adoption of its final CDD rule.
Regulatory Notice 18-19 alerted broker-dealers to ensure that their AML programs are updated, and applied to FINRA members that have not elected CAB status.
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The new rule filing adds the CDD requirements to the CAB anti-money laundering rule.