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SEC Extends Grace Period for Enforcement of Broker-Dealer AML Rule
printThe U.S. Securities and Exchange Commission extended a grace period allowing broker-dealers to meet a customer identification due diligence rule by obtaining guarantees from the investment advisers they work with, the agency said Thursday. The USA Patriot Act requires people and companies who buy and sell securities to verify and keep records of customer identities. But broker-dealers were granted a temporary exception in February 2004 allowing them to satisfy the requirements by obtaining compliance guarantees from the advisers, who work directly with end customers. The investment advisers aren't required to maintain anti-money laundering controls. In a January 10 letter to...
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