Comment deadline on FinCEN 'broker-dealer' definition proposal

FinCEN has published [81 FR 19086] a proposed rule that would amend the definitions of “broker or dealer in securities” and “broker-dealer” under the regulations implementing the Bank Secrecy Act. The proposal would amend those definitions explicitly to include funding portals that are involved in the offering or selling of crowdfunding securities pursuant to section 4(a)(6) of the Securities Act of 1933. The funding portals would then be required to implement policies and procedures reasonably designed to achieve compliance with the Bank Secrecy Act requirements currently applicable to brokers or dealers in securities. The proposal is intended to help prevent money laundering, terrorist financing, and other financial crimes. Comments on the proposal are due by June 3, 2016.