As I write this, we are one month from April 24, 2002, the date on which financial institutions are required to establish anti-money laundering programs, including, at a minimum–
(A) the development of internal policies, procedures, and controls;
(B) the designation of a compliance officer;
(C) an ongoing employee training program; and
(D) an independent audit function to test programs.
The requirement is contained in section 352 of the inelegantly-named Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, Public Law 107-56 (adding 31 U.S.C. § 5318(h)), and takes effect by operation of law, although the Secretary of the Treasury is supposed to prescribe interpretive regulations.
“Financial institution” is defined in 31 U.S.C. § 5312 and includes, among others, banks, broker-dealers, investment companies, and, apparently, real estate lawyers. The Securities and Exchange Commission reportedly will allow management to adopt the program, without the necessity of a formal board vote before April 24.
NASD Regulation has a page of links to resources at http://www.nasdr.com/money.asp The statute itself, and other current public laws, is available in text and PDF format at http://www.access.gpo.gov/nara/publaw/107publ.html
For an article on the possible application to lawyers, see http://www.abanet.org/journal/redesign/m15real.html
Copyright 2000, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, http://www.egroups.com/group/fundlaw. To subscribe to FundLaw, send a blank e-mail to email@example.com