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Can you summarize 31 CFR Part 1023?
FINANCIAL CRIMES ENFORCEMENT NETWORK, DEPARTMENT OF THE TREASURY > RULES FOR BROKERS OR DEALERS IN SECURITIES
Short Summary
The provided legal document content pertains to the Rules for Brokers or Dealers in Securities. It defines key terms such as ‘account’, ‘broker-dealer’, ‘customer’, ‘Commission’, and ‘financial institution’. The document outlines the requirements for brokers or dealers in securities to establish and maintain an anti-money laundering program, including policies, procedures, and internal controls to achieve compliance with the Bank Secrecy Act. It also focuses on customer identification programs (CIP) for broker-dealers, specifying risk-based procedures for verifying customer identity and recordkeeping requirements. The document governs the reporting of suspicious transactions by brokers or dealers in securities, requiring the filing of a report with the Financial Crimes Enforcement Network (FinCEN) for any suspicious transaction involving funds or assets of at least $5,000. It outlines the filing procedures and emphasizes the confidentiality of Suspicious Activity Reports (SARs). The document also mandates additional record-keeping requirements for brokers or dealers in securities, including the retention of customer identification information and various transaction records. Lastly, the document mentions special information sharing procedures and special standards of diligence, prohibitions, and special measures for brokers or dealers in securities, providing cross-references to relevant sections for further information. No specific exemptions or penalties are mentioned in the provided document.
Whom does it apply to?
Brokers or dealers in securities
What does it govern?
Rules for Brokers or Dealers in Securities
What are exemptions?
No specific exemptions are mentioned
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
U.S. Federal Government