Regulatory Alerts2004-06-14
Added
Questions And Answers Regarding The Customer Identification Program Rule For Futures Commission Merchants And Introducing Brokers (31 CFR 103.123)
The staff of the U.S. Commodity Futures Trading Commission, Financial Crimes Enforcement Network, and the Department of the Treasury issue interpretive guidance regarding the application of 31 C.F.R. § 103.123 to futures commission merchants and introducing brokers. The document clarifies that co-owners of existing accounts are customers, while former employees receiving transferred funds are not customers until they assert an ownership interest. It specifies that dually registered firms treat existing securities account holders as existing customers for futures accounts, but customers of affiliated institutions are not considered existing customers of the affiliated futures commission merchant. The guidance further details requirements for verifying identities using electronic credentials or non-documentary methods, mandates retention of identifying information for five years after account closure, and confirms that notice must be provided to all owners of joint accounts.