NASD Announces New Anti-Money Laundering Rules

by Philip Morton, Investors Offshore.com

01 February 2002

The National Association of Securities Dealers (NASD) announced on Wednesday that, following revelations in the Senate earlier this week that the sector is especially vulnerable to money laundering activities, it would be implementing new rules and guidelines over the groups which it regulates.

A recently passed law allows regulators and financial institutions until April 24 to put their anti-money laundering compliance systems in place. The NASD, however, seems to have its act together somewhat sooner than the rest, and in a more coherent fashion.

The group issued a statement earlier this week detailing the requirements of the new rule. According to the NASD, member organisations will be required to:

- Implement policies and procedures designed to detect and report suspicious transactions

- Comply with the US Bank Secrecy Act

- Provide for independent compliance testing to be undertaken by a qualified member of personnel or outside party

- Designate an individual or individuals to monitor the day to day workings of the anti-money laundering initiative, and;

- Provide continuing support to appropriate personnel members.

The securities industry regulator revealed that the proposals will be submitted to the Securities and Exchange Commission for approval in the very near future.

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