Written by:
Mark E. Ruddy, Esq.
Maria Fielding
National Futures Association (“NFA”) Stays Virtual Currency Reporting Requirements
NFA announced on December 14, 2017 that it would require additional reporting requirements from commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) who are involved in virtual currency transactions and introducing brokers (“IBs”) who accept orders in virtual currency derivatives. On March 27, 2018, NFA released Notice to Members I-18-07 to inform CPOs, CTAs, and IBs that they are currently not required to file the additional reporting requirements previously announced in December 2017. NFA cautioned, however, that it may contact individual firms for additional information.
The NFA announced the additional reporting requirements for CPOs and CTAs in Notice to Members I-17-28 and the additional reporting requirements for IBs in Notice to Members I-17-29.
Financial Crimes Enforcement Network (“FinCEN”) Updates Jurisdictions with Deficiencies
On April 27, 2018, FinCEN released an advisory updating their list of strategic anti-money laundering (“AML”) and combatting the financing of terrorism (“CFT”) deficiencies. Notably, Sri Lanka, Trinidad and Tobago, and Tunisia were added to the “Improving Global AML/CFT Compliance: On-Going Process” list while Uganda was removed. Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Vanuatu, and Yemen are all currently remaining on the list. No changes occurred regarding Democratic People’s Republic of Korea and Iran, which are currently recommended that jurisdictions impose countermeasures and enhance due diligence, respectively.
The Advisory is available in its entirety through the FinCen website.
The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) Published Virtual Currency Guide
OFAC released a guide addressing frequently asked questions (“FAQs”) regarding virtual currency transactions along with compliance obligations for such transactions. OFAC compliance obligations remain when dealing with digital currency, including the responsibility to confirm that all transactions are not prohibited by OFAC sanctions. AML programs must also address OFAC regulatory obligations. It is recommended that all FCMs and IBs consult the FAQs in order to ensure their AML programs are compliant regarding virtual currency transactions.
The FAQs can be found on the U.S. Treasury Department’s website; Topics 559-563.
Commodity Futures Trading Commission (“CFTC”) Permit Australian Market Trading
On May 22, 2018, the CFTC released an advisory regarding the approval of Australian Securities Exchange Limited’s application to allow U.S. customers to directly trade on its platform.
More details on the advisory can be found within the CFTC Press Release pr7732-18.
CFTC Open Commission Meeting
On Monday, June 4, 2018, the CFTC will hold an open commission meeting at 9:30 am EDT at the CFTC headquarters in Washington, DC. The meeting is open to the public and seating will be on a first-come, first-serve basis. The meeting is also viewable by live webcast, and audio will be available live via telephone.
For more information about the meeting location, how to view via webcast, and audio call-in information, please refer to CFTC Press Release pr7734-18.
For further information about any of the topics covered, please feel free to contact Ruddy Gregory, PLLC (www.ruddylaw.com) or 202-797-0762.
