MSRB NOTICE 2005-24 (APRIL 26, 2005)

AMENDMENT TO FILE NO. SR-MSRB-2005-03 REGARDING AMENDMENTS TO RULE G-41, ON ANTI-MONEY LAUNDERING COMPLIANCE

On April 25, 2005, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission (“SEC”), for immediate effectiveness, an amendment to File No. SR-MSRB-2005-03, regarding previously filed amendments to Rule G-41, on anti-money laundering compliance. [1]

The amendment is intended to comply with requests by representatives of the SEC and NASD to revise certain language to more fully assist in enforcement of the rule.  The basic requirements of the rule remain unchanged.  The new language, which amends that submitted in File No. SR-MSRB-2005-03, is set forth below, with underlining indicating new language and brackets indicating deletions.

Questions concerning the amendment should be directed to Carolyn Walsh, Senior Associate General Counsel.

April 26, 2005

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TEXT OF AMENDMENT[2]

Rule G-41 –Anti-Money Laundering Compliance Program

Every broker, dealer or municipal securities dealer shall establish and implement an anti-money laundering compliance program reasonably designed to achieve and monitor ongoing compliance with the requirements of the Bank Secrecy Act, 31 U.S.C. 5311, et seq. (“BSA”), and the regulations thereunder.  A broker, dealer or municipal securities dealer that establishes and implements an anti-money laundering compliance program that is in compliance with the rules, regulations or requirements governing the establishment and maintenance of anti-money laundering programs of the registered securities association of which the broker, dealer or municipal securities dealer is a member (e.g., NASD Rule 3011) or the appropriate regulatory agency as defined in Section 3(a)(34) of the Act (e.g., 12 C.F.R. 21.21 (OCC); 12 C.F.R. 208.63 (FRB); 12 C.F.R. 326.8 (FDIC)) or, if applicable, the Office of Thrift Supervision (12 C.F.R. 563.177) [of either its registered securities association (i.e., the NASD) or its appropriate banking regulator governing the establishment and maintenance of anti-money laundering programs] will be deemed to be in compliance with Section 5318(h)(1) of the BSA and the regulations promulgated thereunder for purposes of this Rule. 


[1] File No. SR-MSRB-2005-03 was filed with the SEC on March 4, 2005.  See MSRB Notice 2005-14 (March 4, 2005).

[2] Underlining indicates new language; brackets indicate deletions.