August 2016

Please note: This guidance supplements the Frequently Asked Questions that were issued on October 31, 2005.

1. What does FinCEN mean by "any other insurance product with features of cash value or investment," under the definition of "covered products"?

The Financial Crimes Enforcement Network is issuing this guidance to clarify the obligations of futures commission merchants subject to the final due diligence rules implementing section 312 of the USA PATRIOT Act (the “section 312 rules”).¹ Specifically, this guidance addresses (1) how accounts introduced by introducing brokers in commodities to futures commission merchants should be treated for the purposes of complying with the due diligence rule for correspondent accounts for foreign financial institutions² (the “correspondent account rule”) and the due diligence r

We are issuing this guidance to assist money services businesses in understanding the regulatory requirements regarding conducting independent reviews of their anti-money laundering programs.

The Financial Crimes Enforcement Network is issuing these frequently asked questions to clarify the suspicious activity reporting obligations of investment companies pursuant to the applicable Bank Secrecy Act regulation located at 31 C.F.R.

This advisory is being issued to alert financial institutions to some of the potential money laundering risks associated with providing financial services to shell companies. Most shell companies are formed by individuals and businesses for legitimate reasons. However, these entities also have been used for illicit purposes.¹

The Financial Crimes Enforcement Network and the staff of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Office of Thrift Supervision are issuing this frequently asked question regarding the application of 31 C.F.R. § 103.121.

Q. It is an established practice in the futures industry that futures commission merchants engage in transactions through give-up arrangements, whereby a futures commission merchant, acting as an executing broker¹, executes an order on an exchange for a commodity customer,² or an option customer,³ which in accordance with applicable exchange rules is then given-up to a clearing broker.

The Financial Crimes Enforcement Network (FinCEN)¹ is issuing this guidance to clarify:

(1) The Bank Secrecy Act (BSA) requirement that financial institutions provide Suspicious Activity Report (SAR) supporting documentation in response to requests by FinCEN and appropriate law enforcement or supervisory agencies;²

(2) What constitutes “supporting documentation” under SAR regulations;³ and

(3) When legal process is required for disclosure of supporting documentation.

The Financial Crimes Enforcement Network (FinCEN) is issuing the following guidance for financial institutions with account relationships that law enforcement may have an interest in ensuring remain open notwithstanding suspicious or potential criminal activity in connection with the account.¹ Ultimately, the decision to maintain or close an account should be made by a financial institution in accordance with its own standards and guidelines.

The Financial Crimes Enforcement Network is issuing this interpretive guidance to clarify the due diligence obligations of executing dealers in over-the-counter foreign exchange and derivatives markets (“OTC derivatives markets”) pursuant to prime brokerage arrangements under our rules implementing the correspondent account provisions of section 312 of the USA PATRIOT Act (“correspondent account rule”).¹ Specifically, this guidance addresses whether executing dealers conducting transactions pursuant to prime brokerage arrangements in the OTC derivatives markets establish correspo