Money Laundering


  The Financial Crimes Enforcement Network (FinCEN) issued guidance designed to assist mutual funds in complying with the suspicious transaction reporting requirement adopted in May. Under that rule mutual funds must file reports with FinCEN that identify and describe any transactions that might raise suspicions of illegal activity.

“The suspicious activity reporting rules are not intended to operate in a mechanical fashion,” FinCEN said in a release announcing the new guidance, which is a series of frequently asked questions. The various issues addressed in the FAQs help explain the principles underlying the reporting requirement, allowing mutual funds to apply the law to the “multitude of transaction scenarios that mutual funds encounter in the daily course of business,” FinCEN said.

The FAQs are available at www.fincen.gov/guidance_faqs_sar_10042006.pdf . Institutions also may call the FinCEN regulatory helpline at 800-949-2732 for additional advice.

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