FinCEN recently issued a final rule defining mutual funds as “financial institutions” and thereby clarifying their obligations to certain requirements of the Bank Secrecy Act (BSA). While AML requirements for mutual funds have been in place for some time, the rule provides that certain BSA regulatory provisions are now fully in effect and will be enforced upon the rule’s effective date of May 14, 2010 (except certain recordkeeping requirements, effective January 10, 2011). The rule further states that the SEC has been delegated the authority to examine mutual funds for BSA compliance. Funds should now expect an increase in the number of SEC examinations covering AML requirements.

Learn about FrontLine's AML Compliance and Independent Testing Services

View FinCEN Final Rule, Amendment to the Bank Secrecy Act

FrontLine Compliance, LLC is a regulatory compliance consulting firm of former high-level regulatory insiders offering customized services to broker-dealers, investment advisers, investment companies, hedge funds, and insurance company affiliates. Staffed by former SEC and FINRA regulators, and chief compliance officers, FrontLine Compliance provides the kind of industry knowledge, experience and expertise on regulatory issues only available from well-seasoned insiders. For more information about the firm, please visit www.frontlinecompliance.com.

FrontLine Compliance, LLC
phone: 888-518-8070
email: info@frontlinecompliance.com
www.frontlinecompliance.com
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