Federal Bureau of Investigation (FBI): Investigates financial crimes, including money laundering, and provides intelligence support.
IRS: Oversees AML and tax compliance, including reporting requirements for financial transactions.
United States Secret Service: Handles financial crimes, including money laundering and counterfeit currency investigations.
National Security Agency (NSA): Assists with intelligence and counter-terrorism efforts related to AML.
Customer Due Diligence
Conduct of a typical KYC identification process
In the U.S., there is no standardised “typical” KYC identification process due to the lack of unified KYC laws. Requirements differ widely among market participants and depend on the risk level of the individual. Generally, KYC involves:
Collecting Personal Information: Gathering details like name, address, and social security number.
Identity Verification: Checking government-issued IDs through digital or manual methods.
Risk Assessment: Performing background checks and reviewing financial history to assess risk.
Ongoing Monitoring: Regularly updating and reviewing customer information to detect suspicious activities.
Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations
Market participants can indeed rely on third parties to help meet customer due diligence requirements. While they maintain strict liability for illegal transactions—such as those involving individuals on sanctions lists—they often take comfort in the fact that third parties they work with are subject to their own AML obligations. For instance, while registered investment advisers and fund managers might not have explicit KYC obligations, the banks facilitating wire transfers to these advisers are required to conduct thorough KYC procedures. This reliance on third parties helps ensure compliance but does not absolve the market participants of their own regulatory responsibilities.
Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)
Where permitted by law, market participants often outsource KYC or AML compliance tasks to unregulated third parties. Although these third parties may not be legally required to meet AML standards, outsourcing can still help streamline processes and enhance efficiency. It is crucial, however, for market participants to ensure that these third parties are contractually obligated to adhere to rigorous compliance standards and that adequate due diligence is conducted to verify their effectiveness.
Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence
There is no universal federal licensing requirement for third parties performing customer due diligence (CDD