Treasury Department Provides Guidance on Compliance with Section of the USA PATRIOT ACT by SECDocs

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                              Guidance Compliance
                       Provides
              Department
       Treasury
PO-3530;




                                    FROM               AFFAIRS
                                        THEOFFICE PUBLIC
                                                OF

                       1
                 October 1. 2002
                 PO-3530

                                  TreasuryDepartment ProvldesGuldance
                                         with Section326of USA PATRIOTAGT
                             on Compliance

                 The TreasuryDepadment                 all       institutions theywill not
                                        todayis advising financial          that
                 be required comply
                           to                   326
                                    withsection of the USAPATRIOT      ACTor the proposed
                 rulesissued Trea$ury thefederal
                            by        and                              on
                                                             regulators July23 untilfinal
                                                     functional
                 implementing          are
                             regulations issued  andbecome  effective.

                                                                        of
                 Section of the USAPATRIOT directs Department the Treasury
                         326                     Act       the                        and
                 the federal         regulators jointly
                            functional        to       issueregulations       financial
                                                                      requiring
                            to
                 institutions establishminimum procedures the identification verification
                                                          for              and          of
                 customers opennewaccounts.
                           who

                 The proposed rulesissued Julyapplied thefollowing
                                         in           to             financialinstitutions:
                 banks,savings             and
                               associations, credit unions;                  and
                                                                     brokers dealers;
                                                            securities
                 mutualfunds;futures commission          and
                                               merchants introducing             and
                                                                         brokers; credit
                 unions,privatebanksandtrustcompanies do nothavea federal
                                                       that                     regulator.
                 Comment$  received the propo$ed
                                    on            rulesrevealedsubstantial issues that
                 Treasury thefederal
                         and                    regulators analyzing a finalruleis
                                       functional         are           as
                 prepared.

                 Thefinalruleswillprovide financialinstitutions a reasonable
                                                              with                   of
                                                                                amount timein
                 whichto comeintocompliance.     However, financial           are
                                                                   institutions reminded that
                                   to
                 theymustcontinue comply      withanyexisting obligation guardagainst
                                                                         to           money
                 laundering thefinancing terrorism
                           and               of         through adequate          identification
                                                                           customer
                 procedures. Financial institutions
                                                  should already takingbasicstepsto ensure
                                                                be
                 appropriatecustomer  identification.

                        will               guidance otherprovisions the Actwith
                                     further
                 Treasury issueshortly            on              of
                       implementation
                 October           deadlines.




httn ://www.treasury.gov/press/releases/po3 0.htm
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