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Sec. 1010.205 Exempted anti-money laundering programs for certain financial institutions.


This page includes amendments effective November 16, 2020, and compliance date of March 15, 2021. The amendments are included below in red text.


(a) Exempt financial institutions. Subject to the provisions of paragraphs (c) and (d) of this section, the following financial institutions (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) are exempt from the requirement in 31 U.S.C. 5318(h)(1) concerning the establishment of anti-money laundering programs:

(1) An agency of the United States Government, or of a State or local government, carrying out a duty or power of a business described in 31 U.S.C. 5312(a)(2); and

(2) [Reserved]

(b) Temporary exemption for certain financial institutions. (1) Subject to the provisions of paragraphs (c) and (d) of this section, the following financial institutions (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) are exempt from the requirement in 31 U.S.C. 5318(h)(1) concerning the establishment of anti-money laundering programs:

(i) Pawnbroker;

(ii) Travel agency;

(iii) Telegraph company;

(iv) Seller of vehicles, including automobiles, airplanes, and boats;

(v) Person involved in real estate closings and settlements;

(vi) Private banker;

Editor's Note: Effective November 16, 2020, with compliance required March 15, 2021, paragraph (b)(1)(vi) is removed.

(vii) Commodity pool operator;

(viii) Commodity trading advisor; or

(ix) Investment company.

Editor's Note: Effective November 16, 2020, with compliance required March 15, 2021, paragraphs (b)(1)(vii) through (ix) are redesignated as paragraphs (b)(1)((vi) through (viii), to read:

(vi) Commodity pool operator;

(vii) Commodity trading advisor; or

(viii) Investment company.

(2) Subject to the provisions of paragraphs (c) and (d) of this section, a bank (as defined in §1010.100(d)) that is not subject to regulation by a Federal functional regulator (as defined in §1010.100(r)) is exempt from the requirement in 31 U.S.C. 5318(h)(1) concerning the establishment of anti-money laundering programs.

(3) Subject to the provisions of paragraphs (c) and (d) of this section, a person described in §1010.100(t)(7) is exempt from the requirement in 31 U.S.C. 5318(h)(1) concerning the establishment of anti-money laundering programs.

Editor's Note: Effective November 16, 2020, with compliance required March 15, 2021, paragraphs (b)(2) and (b)(3) are removed and reserved.

(2) [Reserved.]

(3) [Reserved.]

(c) Limitation on exemption. The exemptions described in paragraph (b) of this section shall not apply to any financial institution that is otherwise required to establish an anti-money laundering program by this chapter.

(d) Compliance obligations of deferred financial institutions. Nothing in this section shall be deemed to relieve an exempt financial institution from its responsibility to comply with any other applicable requirement of law or regulation, including title 31 of the U.S.C. and this chapter.

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