The Financial Crimes Enforcement Network, the anti-money laundering arm of the U.S. Treasury Department, issued a proposal on July 30 that would require financial institutions to look through the companies for which they provide services and identify their owners. One of the provisions would require futures commission merchants and introducing brokers to identify and verify any individual who owns 25% or more of a legal entity that is a customer.
On Oct. 2, FIA filed a comment letter responding to the proposed rule. The comment letter questions the need to make customer due diligence a “fifth pillar” of anti-money laundering program requirements; requests additional exemptions to the customer definition; suggests additions to the text of the rule; proposes enhancements to customer due diligence procedures; asks for clarification on the treatment of intermediated accounts; and recommends expanding the implementation time frame to 24 months.
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