Notice to Members 97-12

NASD Regulation Requests Comment on Proposed Rule Governing Use and Release of Customer Confidential Financial Information

Comment Period Expired April 30, 1997

The Department of the Treasury's (Treasury) amendments to the Bank Secrecy Act (BSA), which facilitate tracing funds through the funds-transmittal process, became effective May 28, 1996. For transmittals of funds of $3,000 or more, broker/dealers are required to obtain and keep certain specified information concerning the transmittor and the recipient of those funds. In addition, broker/dealers must include this information on the actual transmittal order.

Questions regarding this Notice may be directed to Samuel Luque, Jr., Associate Director, Compliance, NASD Regulation, Inc., at (202) 728-8472; or Susan DeMando, District Coordinator, Compliance, NASD Regulation, Inc., at (202) 728-8411.