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

WTC Wolfsberg AML Questionnaire 2016 

COMPLIANCE REQUIREMENTS FOR DTCC CLIENTS



OFAC Certifications

Certain Members and Participants 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. Member or Participant (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. Members and Participants must renew their OFAC Confirmation on or prior to the expiration date.

Members and Limited Members 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. Members and Participants to renew their confirmations electronically rather than by submitting a hard copy confirmation. The OFAC Confirmation application also allows U.S. Members and Participants 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. Member or Participant may renew the confirmation in the OFAC Confirmation web application.  The Access Coordinator for the U.S. Member or Participant may register the OFAC Compliance Officer for the application.

Members and Participants 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, call the DTCC Compliance Hotline at __________

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 customers and the customers 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 customers and existing customers 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 Members and Participants are required to inform DTCC, in a timely manner, of business changes, which include changes to a Member or Participant 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 five 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.

Slavery and Human Trafficking Statement

This statement is made on behalf of DTCC Europe Limited (“DEL”) and The Depository Trust & Clearing Corporation (“DTCC”), (together, the “Company”),1 pursuant to section 54 of the Modern Slavery Act 2015 (“Act”) in respect of the steps taken to combat modern slavery and human trafficking occurring within supply chains in relation to the financial year ended 31 December 2016.

Modern Slavery Act 2015: Slavery and Human Trafficking Statement for Financial Year Ended 31 Dec 2016

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.

 SEC U.S. Securities and Exchange Commission 
  • National Securities Clearing Corporation (NSCC)
  • Fixed Income Clearing Corporation (FICC)
  • The Depository Trust Company (DTC)
  • DTCC ITP LLC
 Federal Reserve Bank - NY  Federal Reserve Bank of New York

  • The Depository Trust Company (DTC)
  • The Warehouse Trust Company, LLC (WTC)
 NY State Department Financial Services  New York State Department of Financial Services

  • The Depository Trust Company (DTC)
  • The Warehouse Trust Company, LLC (WTC)
 ASIC  Australian Securities and Investment Commission

  • DTCC Data Repository (Singapore) PTE Ltd 
 FCA  United Kingdom Financial Conduct Authority (FCA)

  • DTCC Derivatives Repository Limited 
  •  DTCC ITP (UK) Limited
 Autoritie des Marches Financiers   Autorité des marches financiers (Quebec)

  • DTCC Data Repository (U.S.) LLC 
 OSC  Ontario Securities Commission

  • DTCC ITP Matching (Canada) Limited
  • DTCC Data Repository (U.S.) LLC
 US Commodity Futures Trading Commission  U.S. Commodity Futures Trading Commission

  • DTCC Data Repository (U.S.) LLC 
 J-FSA  Japan Financial Services Agency (J-FSA)

  • DTCC Data Repository (Japan) KK
 MAS  Monetary Authority of Singapore (MAS)

  • DTCC Data Repository (Singapore) PTE Ltd.
 ESMA  European Securities and Markets Authority (ESMA)

  • DTCC Derivatives Repository Limited
 Manitboa Securities Commission  Manitoba Securities Commission

  • DTCC Data Repository (U.S.) LLC


Contact the Compliance Hotline: +1-212-855-8030 or DTCCComplianceHotline@dtcc.com





    




dtccdotcom
Compliance provides oversight and supports DTCC business areas and subsidiaries globally in establishing internal controls to identify, escalate, and manage regulatory compliance risk and facilitate ongoing compliance with laws and regulations. DTCC holds itself to the highest ethical standards and complies with all applicable laws and regulations in the jurisdictions where it conducts business globally. This section of DTCC’s website provides useful compliance information for DTCC’s Clients as well as its Service Providers, Partners, and Third Parties. Outside parties can view DTCC’s Code of Conduct as well as additional information pertaining to Compliance at DTCC. DTCC’s Clients can access information pertaining to Anti-Money Laundering, OFAC Certifications, KYC Requirements and Fines & Waivers information here. DTCC’s Service Providers, Partners and Third Parties can view the Company Profile, Ownership Statement and learn about our regulators here.