NFA recommended that its member futures commission merchants and introducing brokers ("FCMs and IBs") review FinCEN's recently issued FAQ concerning customer due diligence ("CDD") in order to ensure that their AML programs meet CDD-related regulatory obligations. As previously covered, FinCEN's recent guidance addressed the (i) collection of customer information, (ii) creation of customer risk profiles, and (iii) requirements to perform ongoing monitoring of customer relationships.
Commentary
Notwithstanding this article's fun string of acronyms, FCMs and IBs would do well to note that this NFA guidance comes on the heels of the CFTC's first-ever enforcement action under its AML rules. More enforcement actions may well be on the way for firms that have not effectively implemented an adequate AML program.
Primary Sources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
