NFA: FCM and IB Anti-Money Laundering Program - Proposed Amendments to the Interpretive Notice to NFA Compliance Rule 2-9

NFA submitted a proposed rule change to the CFTC regarding the proposed amendments to the Interpretive Notice to NFA Compliance Rule 2-9: FCM and IB anti-money laundering program. The compliance rule applies to notice-registered broker-dealer and IB transactions in securities futures products.

The NFA made the following rule clarifications: (i) for omnibus accounts opened by an intermediary, AML is of the intermediary but not of the underlying holders; (ii) for the account of a pool, AML is of the pool but not of investors in the pool; and (iii) in a give-up arrangement, it's the clearing broker (not the executing broker) that has the AML obligations.

NFA is invoking the "ten-day" provision of Section 17(j) of the CEA and will make these proposals effective ten days after receipt of this submission by the Commission unless the Commission notifies NFA that the Commission has determined to review the proposals for approval.

Cross-Reference(s): CEA Sec. 17(j); AML Guide for Financial Institutions.

View letter in full here (links externally to NFA website).