Regulatory Alerts2002-07-23
Added
Customer Identification Programs for Mutual Funds
The Department of the Treasury and the Securities and Exchange Commission propose a joint regulation to implement Section 326 of the USA PATRIOT Act, requiring mutual funds to adopt and implement reasonable procedures to verify the identity of any person seeking to open an account. The proposed rule mandates that mutual funds maintain records of the information used to verify customer identity and determine whether customers appear on lists of known or suspected terrorists provided by government agencies. The proposal defines 'customer' as any shareholder of record opening a new account or any person granted authority to effect transactions after the regulation's effective date. Written comments on the proposed rule must be submitted to both agencies on or before September 6, 2002.