03/13/2003
When the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 was signed into law, new requirements were placed on financial institutions (as defined by the Bank Secrecy Act) to establish anti-money laundering ("AML") programs. Our Member Firms which are registered with the CFTC as Futures Commission Merchants ("FCM") are included within the definition of such financial institutions.
During 2002, the National Futures Association ("NFA") adopted an AML rule for all FCMs. Included with this new rule was an Interpretation regarding issues firms should consider in structuring their internal program. Since the adoption of the rule, the Joint Audit Committee has been auditing firms for compliance with the NFA's AML rule.
The CFTC has recently requested that the three exchanges which have DSRO audit responsibilities (NYMEX, CME, and CBT) adopt similar AML rules in order to clarify our enforcement abilities. As such, the Board of Directors has approved the attached Rule.
NYMEX Rule 2.15, Anti-Money Laundering Program
(D) Each Member Firm registered with the CFTC as a Futures Commission Merchant shall develop and implement a written anti-money laundering program approved in writing by senior management reasonably designed to achieve and monitor the Member's compliance with the applicable requirements of the Bank Secrecy Act (31 U.S.C. 5311, et. seq.), and the implementing regulations promulgated thereunder by the Department of the Treasury and, as applicable, the Commodity Futures Trading Commission. That anti-money laundering program shall, at a minimum,
(1) Establish and implement policies, procedures and internal controls reasonably designed to assure compliance with the applicable provisions of the Bank Secrecy Act and the implementing regulations thereunder;
(2) Provide for independent testing for compliance to be conducted by Member personnel or by a qualified outside party;
(3) Designate an individual or individuals responsible for implementing and monitoring the day-to-day operations and internal controls of the program; and
(4) Provide ongoing training for appropriate personnel. Member FCMs must also supervise and ensure that their guaranteed introducing brokers are in compliance with the anti-money laundering provisions contained in this Rule.