February 14, 2003
On February 6, 2003, the Department of Treasury and its bureau, the Financial Crimes Enforcement Network (FinCEN), lifted the moratorium on information requests issued under Section 314(a) of the PATRIOT Act of 2001 which was announced on November 26, 2002. (See NASD Notice to Members 02-80 for more information.) Because firms will soon be receiving information requests, NASD is informing members of this development and of certain relevant information.
As noted in NASD Notice to Members 02-80, Section 314 authorizes law enforcement agencies to establish a mechanism to communicate with financial institutions to request information about suspected money laundering and terrorist financing. The final rule, effective on September 26, 2002, established a process through which law enforcement agencies can communicate with financial institutions, including broker/dealers, in order to request information regarding those suspected of engaging in money laundering or terrorist activities so that any accounts and transactions involving these individuals or entities can be promptly located.
Firms should be aware of the following:
Information concerning how to respond to a request will be disseminated directly by FinCEN to participating financial institutions prior to that date.
For further information about this, firms should access: www.fincen.gov or call FinCEN (Regulatory Help Line 800-949-2732). In addition, if you have questions about this NASD Member Alert, please contact Kyra Armstrong, NASD Member Regulation, at 202-728-6962.