The Financial Crimes Enforcement Network (“FinCEN”) extended the deadline for mutual funds to comply with the so-called “Recordkeeping and Travel Rule” for funds transfers until April 10, 2011. Under amendments from earlier this year to FinCEN’s regulations for mutual funds which were covered in the April 20, 2010 edition of the Alert, mutual funds originally would have been required to comply with the Recordkeeping and Travel Rule by January 10, 2011. When the amendments are effective, the Recordkeeping and Travel Rule will require mutual funds to create and retain records and include certain information (such as the name and address of the transmitter, date and amount of the transmittal order, and identity of the recipient’s financial institution) in the transmittal order for wire transfers and other transmittals of funds in amounts of $3,000 or more, subject to certain exceptions. FinCEN granted the compliance deadline extension in response to comments that mutual funds would need additional time to implement changes to their transaction reporting and recordkeeping systems to ensure compliance with these new requirements.
Alert October 19, 2010