May 12, 2004

Regulatory Reminder for FCMs and IBs on Suspicious Activity Reporting and Other BSA Requirements

On November 22, 2003, the Department of Treasury through the Financial Crimes Enforcement Network (FinCEN) issued a final rule requiring FCMs and IBs to report suspicious financial transactions to FinCEN by filing the Securities and Futures Industries Suspicious Activity Report ("SAR-SF"). As a reminder, FCM and IB Members must begin filing form SAR-SF for transactions occurring after May 18, 2004. A brief overview of the requirements can be found at http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=1221. In addition, the full text of the rule can be found at http://www.fincen.gov/fedregister_fcmfinalrule.pdf. Also, a copy of form SAR-SF can be found at http://www.fincen.gov/reg_bsaforms.html.

NFA also reminds Members that the final rule brings FCMs and IBs into the regulatory definition of "financial institution" for purposes of the BSA. As a result, FCM and IB Members are required to comply with the currency transaction reporting and funds transfer recordkeeping requirements set forth in the BSA for transactions occurring after May 18, 2004. Information on CTRs and other BSA forms is available at 1-800-800-2877.

If you have any questions on these requirements, please contact Carol Wooding, Assistant General Counsel, at (312) 781-1409 or cwooding@nfa.futures.org, Sharon Pendleton, Associate Director, Compliance, at (312) 658-6540 or spendleton@nfa.futures.org, or Darlene Chappell, Team Manager, Compliance at (312) 658-6553 or dchappell@nfa.futures.org.