The Financial Industry Regulatory Authority (FINRA) filed amendments to Rule 3310 to conform to the Financial Crimes Enforcement Network’s (FinCEN’s) customer due diligence requirements. Specifically, the amendments to Rule 3310 require each member to include in its anti-money laundering program appropriate procedures for conducting ongoing customer due diligence, including but not limited to, “[u]nderstanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile” and “[c]onducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information.” For these purposes, “customer information” includes information regarding the beneficial owners of legal entity customers.
FinCEN’s customer due diligence requirements were adopted on May 11, 2016, and went into effect on May 11, 2018. Likewise, FINRA’s amendments to Rule 3310 went into effect on May 11, 2018.
More information is available here.