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October 28, 2002
On Friday, October 25, 2002, Treasury extended, pending issuance of final rules, the deferral of the requirement to establish anti-money laundering programs, under section 352 of the USA PATRIOT Act (“Act”), for the following financial institutions: unregistered investment companies, commodity trading advisors (“CTAs”), commodity pool operators, insurance companies, dealers in precious metals, stones, or jewels, pawnbrokers, loan or finance companies, travel agencies, telegraph companies, sellers of vehicles, including automobiles, airplanes and boats, persons involced in real estate closings and settlements, private bankers and banks that are not subject to regulations by a federal functional regulator.
These financial institutions had originally been granted a deferral until October 24, 2002, while FinCEN and
Treasury studied the money laundering risks posed by these financial institutions. In the October 25 release,
FinCEN and Treasury indicated they are continuing their study and expect to issue proposed rules covering each of these financial institutions within the next six months.
Proposed rules covering unregistered investment companies and life insurance companies were published on
September 26, 2002, with comment periods ending November 25, 2002. As proposed, the rules would require an unregistered investment company to have an anti-money laundering program in place within 90 days of the publication of the final rule; no specific deadline was proposed in the life insurance company rules.
Treasury has also indicated that it expects to publish a rule proposal covering CTAs within the next few weeks. A final rule would not be anticipated before early next year.
DIANE E. AMBLER
202.778.9886
dambler@kl.com
ANDRAS P. TELEKI
202.778.9477
ateleki@kl.com
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Kirkpatrick & Lockhart LLP offers diverse experience in issues relating to money laundering. We can help banking and diversified financial services clients assess their risk, establish and review compliance practices, investigate potential weaknesses, perform internal investigations, and respond to regulatory inquiries and enforcement actions while being sensitive to the privacy of each client and their customers through an effective attorney-client privilege relationship.
In addition, we have established a website dedicated to issues relating to anti-money laundering regulatory and legislative developments. The website is located at www.kl.com/aml. In addition to outlining K&L’s enterprise-wide approach to assisting clients with money laundering compliance issues, the website contains a resource center with over 100 carefully selected links to various informational resources on money laundering. The resource center also includes a library of prior K&L publications on money laundering.
We invite you to contact one of the members of our cross-disciplinary anti-money laundering practice team for additional assistance. You may also send general inquiries to antimoney@kl.com.
BOSTON SAN FRANCISCO
Michael S. Caccese
D. Lloyd Macdonald
617.261.3133
617.261.3117
mcaccese@kl.com
lmacdonald@kl.com
Stanley V. Ragalevsky 617.261.9203
sragalevsky@kl.com
Eilleen M. Clavere
Jonathan D. Jaffe
David Mishel
HARRISBURG WASHINGTON, DC
Raymond P. Pepe
LOS ANGELES
William J. Bernfeld
David P. Schack
William P. Wade
NEWARK
Marc W. Farley
Anthony P. La Rocco
NEW YORK
717.231.5988
rpepe@kl.com
310.552.5014
wbernfeld@kl.com
310.552.5061
dschack@kl.com
310.552.5071
wwade@kl.com
973.848.4031
mfarley@kl.com
973.848.4014
alarocco@kl.com
Diane E. Ambler
Benjamin J. Haskin
Ronald A. Holinsky
Kathy Kresch Ingber
Henry L. Judy
Ivan B. Knauer
Rebecca H. Laird
Charles R. Mills
202.778.9886
dambler@kl.com
202.778.9369
bhaskin@kl.com
202.778.9425
rholinsky@kl.com
202.778.9015
kingber@kl.com
202.778.9032
hjudy@kl.com
202.778.9468
iknauer@kl.com
202.778.9038
rlaird@kl.com
202.778.9096
cmills@kl.com
Michael J. Missal
Jeffrey B. Ritter
202.778.9302
mmissal@kl.com
202.778.9396
jritter@kl.com
Francine J. Rosenberger 202.778.9187
francine.rosenberger@kl.com
Robert H. Rosenblum 202.778.9464
rrosenblum@kl.com
Ira L. Tannenbaum
Andras P. Teleki
202.778.9350
202.778.9477
itannenbaum@kl.com
ateleki@kl.com
Richard L. Thornburgh 202.778.9080
rthornburgh@kl.com
Robert A. Wittie 202.778.9066
rwittie@kl.com
Beth R. Kramer
Richard D. Marshall
Loren Schechter
212.536.4024
bkramer@kl.com
212.536.3941
rmarshall@kl.com
212.536.4008
lschechter@kl.com
415.249.1047
eclavere@kl.com
415.249.1023
jjaffe@kl.com
415.249.1015
dmishel@kl.com
PITTSBURGH
Heather Hackett
Mark A. Rush
412.355.6419
hhackett@kl.com
412.355.8333
mrush@kl.com
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This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.
© 2002 KIRKPATRICK & LOCKHART
LLP
. ALL RIGHTS RESERVED.