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Institute Comments on NASD’s Proposed Anti-Money Laundering Program Standards
Washington, DC, March 18, 2002 - The Institute has filed a comment letter with the Securities and Exchange Commission on proposed NASD Rule 3011, which would prescribe minimum standards for anti-money laundering compliance programs established by NASD members under the USA PATRIOT Act.
The letter recommends that the rule provide an exemption for broker-dealers who underwrite securities issued by registered investment companies that have established an anti-money laundering program meeting the requirements of Section 352 of the Act. The proposed exemption would apply only to the broker-dealer’s fund underwriting activities.
The letter explains that the proposed exemption would avoid both unnecessary regulatory duplication and the creation of an illogical, bifurcated compliance examination regime—without creating any gaps in anti-money laundering compliance. It also points out that the proposal is consistent with congressional intent to allow appropriate tailoring of anti-money laundering compliance programs to fit different business models.