For Release: July 17, 2002
CFTC Joins with Treasury Department on Proposed Patriot Act Rules
Washington, D.C. -- The Commodity Futures Trading Commission joined the
the Treasury and six other federal regulators in issuing today
proposed rules that would require certain financial institutions to
establish minimum procedures for identifying and verifying the identity
of customers seeking to open new financial accounts.
The proposed rules, which were developed jointly by the Treasury Department, Treasury’s Financial Crimes Enforcement Network, the CFTC, and six other financial regulators, would implement section 326 of the USA PATRIOT Act, which seeks to prevent money laundering or terrorist funding by requiring identity verification procedures for all new accounts opened after the effective date of the final rules. The rules, which are to be effective no later than October 25, 2002, are also expected to assist in protecting consumers against various forms of fraud, including identity theft.
Commenting on the CFTC’s participation in drafting these proposed regulations, Chairman James E. Newsome said, “I am extremely proud of the CFTC staff and the role they played in drafting proposed regulations that are responsive to the will of the Congress. I commend all of those individuals from the Department of the Treasury and the six other financial regulators who worked as a team to produce the proposed regulations. The CFTC looks forward to doing its part to fight the financial underpinnings of terrorism in the world.”