Compliance

Compliance at DTCC

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Code of Conduct
 

For DTCC's Code of Conduct please refer here

Anti-Money Laundering

DTCC is firmly committed to preserving the safety and soundness of its operations and protecting its reputation in the global financial community.  DTCC also acknowledges its important role in furthering efforts to combat money laundering and terrorist financing.   In compliance with applicable provisions of the Bank Secrecy Act (BSA) and global requirements, DTCC has established standards that include:

  • Written Anti-Money Laundering (AML) policies and procedures;
  • Observance of a Know Your Customer Program;
  • Operating procedures reasonably designed to meet AML and Global Sanctions screening responsibilities;
  • Investigating and appropriate reporting of suspicious activity;
  • Training; and 
  • Independent testing

Further details about DTCC’s compliance with these requirements are provided via the Wolfsberg Anti-Money Laundering Questionnaire:

DTC Wolfsberg AML Questionnaire 2016

COMPLIANCE REQUIREMENTS FOR DTCC CLIENTS

OFAC Certifications

Certain clients that are subject to the jurisdiction of the United States under Office of Foreign Assets Control (“OFAC”) regulations are required to provide DTCC with a “Confirmation of an OFAC Program” (“OFAC Confirmation”) every two years. These would include U.S. Participants and Pledgees of the Depository Trust Company (“DTC”), U.S. Members and Limited Members of the National Securities Clearing Corporation (“NSCC”), U.S. Members of Government Securities Division, and U.S. Participants of Mortgage-Backed Securities Division of the Fixed Income Clearing Corporation (“FICC”).

The OFAC Confirmation is intended to provide evidence that the U.S. client (i) has the primary relationship with the clients for whom it is conducting activity through DTC, NSCC, or FICC; and (ii) has implemented a risk-based program reasonably designed to comply with applicable OFAC sanctions and regulations.

The OFAC Compliance Officer, Chief Compliance Officer or other individual with responsibility for managing the OFAC compliance program for U.S. clients must renew their OFAC Confirmation on or prior to the expiration date.

Clients that fail to provide the electronic confirmation of an OFAC Program on or before the expiration date will be subject to a $5,000 fine.

The OFAC Confirmation web application (accessible via the DTCC Portal provided by Relationship Management) allows U.S. clients to renew their confirmations electronically rather than by submitting a hard copy confirmation. The OFAC Confirmation application also allows U.S. clients to provide their confirmation for one or more legal entities in one submission, view the history of submissions, and read and print a copy of the executed confirmation.  Only the designated OFAC Compliance Officer or designee for the U.S. client may renew the confirmation in the OFAC Confirmation web application.  The Access Coordinator for the U.S. client may register the OFAC Compliance Officer for the application.

Clients that do not have access to the DTCC Portal must first apply to do so and assign an Access Coordinator. To set up an Access Coordinator if one does not exist, contact the Relationship Services Group via e-mail at webrsg@dtcc.com.

General questions regarding this notice may be directed to your Relationship Manager. For questions or issues with Access Coordinators, user IDs and passwords, call (888) 382-2721 (then press option 5 and sub-option 2). For questions on the Rule requiring confirmation of an OFAC Program, contact the Compliance Hotline: +1-212-855-8030 or DTCCComplianceHotline@dtcc.com

For more information please refer to the following:

Rule Filing SR-DTC-2009-14 
Rule Filing SR-NSCC-2009-07 
Rule Filing SR-FICC-2009-09 
DTC Important Notice B5707-09 (October 01, 2009)
DTC Important Notice B0998-11 (June 29,2011)
NSCC Important Notice A6883 (October 1, 2009)
NSCC Important Notice A7236 (June 29,2011)
GSD Important Notice GOV130.09 (October 1, 2009)
GSD Important Notice GOV095.11 (June 29, 2011)
MBSD Important Notice MBS180.09 (October 1, 2009)
MBSD Important Notice MBS109.11 (June 29, 2011)

KYC Requirements 

DTCC is firmly committed to preserving the safety and soundness of its operations and protecting its reputation in the global financial community.  DTCC also acknowledges its important role in furthering efforts to combat money laundering and terrorist financing.  In support of these efforts, and in compliance with legal and regulatory obligations, DTCC has established a KYC Program.

The primary objective of DTCC’s KYC Program is to provide a risk-based approach for the collection of sufficient information and documentation to know its clients and the clients of its subsidiaries, as required by U.S. and international AML regulations. The DTCC KYC Program includes the implementation of a Customer Identification Program (“CIP”), conducting Customer Due Diligence (“CDD”), and Enhanced Due Diligence (“EDD”), when necessary (collectively referred to as Know Your Customer or (“KYC”)).  The collection of KYC information and documentation is intended to identify and mitigate Anti-Money Laundering (“AML”) risk posed by entities applying to be clients and existing clients of DTCC to help facilitate the detection and identification of unusual or potentially suspicious activity.  In order to accurately assess the AML risks posed by existing clients of DTCC, DTCC also conducts ongoing KYC reviews.  

Applicants to DTCC’s subsidiaries are requested to provide the necessary KYC information during the onboarding process.  This information is periodically refreshed using a process that may involve reaching out to existing clients, via email, to confirm existing data or provide necessary updates.  Existing clients are required to inform DTCC, in a timely manner, of business changes, which include changes to a client's organization’s structure, ownership, or control persons. 

Fines & Waivers 

Rules for Participants and Members at the various DTCC clearing agencies are set forth in the following documents:

Rules, By-Laws and Operational Certificate of The Depository Trust Company (“DTC”)

Rules and Procedures of the National Securities Clearing Corporation (“NSCC”)

Fixed Income Clearing Corporation’s (“FICC”) Mortgage-Backed Securities Division (“MBSD”) Rules

Fixed Income Clearing Corporation’s (“FICC”) Government Securities Division (“GSD”) Rulebook

In compliance with the disciplinary requirements of Section 17A (b) (3) (G) of the Securities Exchange Act of 1934, as amended; the notice requirements of 12 C.F.R. § 208.32; as well as the Clearing Agency Rules and Trade Repository Rulebooks/Procedures defined in the listed documents above, violations of these rules may result in a Warning Notice or a fine.  Notification in the form of a Warning Notice or Fine Letter will be sent to the Participant or Member, via email, within 10 business days of confirmation of the violation.  Rule violations that may result in a fine include the following:

  • Failure to settle on time
  • Late acknowledgement of transactions and changes in positions 
  • Failure to provide required clearing funds in a time manner 
  • Failure of DTC Participants to complete monthly confirmation of positions on time 
  • Failure to provide financial reports in a timely manner
  • Failure to provide timely notice regarding business and/or financial changes (including Statutory Disqualification)
  • Failure to renew the Confirmation of an OFAC Program in a timely manner

As indicated in the Fine Notice, Participants and Members may contest a fine by requesting that it be waived or that a hearing be held.  A request for a waiver must be made, in writing, within 5 business days of the date the Fine Letter was received.  In the event that a Warning Notification or Fine Letter has been received, please refer to the contact information in the specific notification for questions or further details.

COMPLIANCE INFORMATION FOR DTCC SERVICE PROVIDERS, PARTNERS, AND THIRD PARTIES

Company Profile 

 Name Depository Trust and Clearing Corporation
 Registered Address 55 Water Street, New York, NY, United States 10041
 Web address http://www.dtcc.com/ 
 Board of Directors http://www.dtcc.com/about/leadership/board
 DTCC Senior Management http://www.dtcc.com/about/leadership/management-committee
 Annual Report http://www.dtcc.com/about/annual-report
 Our Businesses and Subsidiaries     http://www.dtcc.com/about/businesses-and-subsidiaries

Our Regulators 

DTCC’s subsidiaries are subject to supervision and oversight by a number of regulatory bodies. DTC, NSCC, and FICC were also designated by the Financial Stability Oversight Council (FSOC) as “systemically important financial market utilities” under Title VIII of Dodd-Frank in July 2012.


ENTITY      REGULATORS 
National Securities Clearing Corporation (NSCC)
  • U.S. Securities and Exchange Commission
Fixed Income Clearing Corporation (FICC)
  • U.S. Securities and Exchange Commission
The Depository Trust Company (DTC)
  • New York State Department of Financial Services
  • Federal Reserve Bank of New York
  • U.S. Securities and Exchange Commission
DTCC Data Repository (U.S.) LLC
  • U.S. Commodity Futures Trading Commission
  • Ontario Securities Commission
  • Autorité des marches financiers (Quebec)
  • Manitoba Securities Commission
  • Alberta Securities Commission
  • British Columbia Securities Commission
  • Financial and Consumer Services Commission, New Brunswick
  • Office of the Superintendent of Securities, Northwest Territories
  • Nova Scotia Securities Commission
  • Nunavut Securities Office
  • Office of the Superintendent Securities Consumer,
    Corporate and Insurance Services Division, Prince Edward Island
  • Financial and Consumer Affairs Authority of Saskatchewan
  • Office of the Yukon Superintendent of Securities
  • Office of the Superintendent of Securities, Newfoundland & Labrador
DTCC Derivatives Repository Limited
  • European Securities and Markets Authority
  • United Kingdom Financial Conduct Authority
DTCC Data Repository (Singapore) PTE Limited
  • Monetary Authority of Singapore
  • Australian Securities and Investments Commission
DTCC Data Repository (Japan) KK
  • Japan Financial Services Agency
Omgeo Matching Services - U.S., LLC
  • U.S. Securities and Exchange Commission
Omgeo Limited
  • United Kingdom Financial Conduct Authority
Omgeo Canada Matching Limited
  • Ontario Securities Commission
  • Autorité des marchés financiers (Quebec)

SEC NY State Department Financial Services  Federal Reserve Bank - NY  US Commodity Futures Trading Commission  OSC  Autoritie des Marches Financiers  Manitboa Securities Commission
 ASC  British Columbia Securities Commission  Financial and Consumer Services Commission  Novia Scotia Securities Commission  Nunavut  FCAA  Yukon Government
 Newfoundland Labrador  ESMA  FCA  MAS  ASIC  J-FSA  


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