Regulatory Alerts2024-05-21 | 2024-10738Added · Updated
Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers
The Department of the Treasury and the Securities and Exchange Commission jointly propose rules requiring registered and exempt reporting investment advisers to implement Customer Identification Programs. This action implements Section 326 of the USA PATRIOT Act, mandating that these advisers verify customer identities if they are designated as financial institutions under the Bank Secrecy Act. The proposed regulations establish minimum standards for verifying identity, maintaining records, and screening against terrorist lists to combat money laundering and terrorism financing.