Regulatory Alerts2002-07-23
Added
Customer Identification Programs for Futures Commission Merchants and Introducing Brokers
This proposed rule requires futures commission merchants and introducing brokers to implement reasonable procedures to verify the identity of any person seeking to open an account or granted authority to effect transactions. The Customer Identification Program must collect specific information, including name, date of birth, address, and identification numbers such as taxpayer identification numbers or passport details. Verification procedures must utilize documentary or non-documentary methods to confirm identity before or after account opening, check names against government terrorist lists, provide notice to customers, and maintain records for five years after account closure.