Regulatory Alerts2003-05-09
Added
Customer Identification Programs for Mutual Funds
The Securities and Exchange Commission and the Financial Crimes Enforcement Network adopt a final rule requiring mutual funds to implement Customer Identification Programs (CIP) that verify customer identity, maintain records of verification information, and check customers against government terrorist lists. The rule mandates specific recordkeeping procedures, including retaining identifying information for five years after account closure and other verification records for five years after creation. Mutual funds must provide adequate notice to customers regarding identity verification requirements and may rely on other regulated financial institutions under specified contractual conditions. Each mutual fund must comply with these requirements by October 1, 2003.