# FinCEN Guidance FIN-2006-G008: Application of the Regulations regarding Special Due Diligence Programs for Certain Foreign Accounts to NSCC Fund/SERV Accounts > Federal · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G008 ## Section - **Citation:** FinCEN Guidance FIN-2006-G008 - **Heading:** Application of the Regulations regarding Special Due Diligence Programs for Certain Foreign Accounts to NSCC Fund/SERV Accounts - **Jurisdiction:** Federal - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** FinCEN Guidance (alerts, advisories, notices, bulletins, fact sheets) / Application of the Regulations regarding Special Due Diligence Programs for Certain Foreign Accounts to NSCC Fund/SERV Accounts ## Text The Financial Crimes Enforcement Network is issuing this guidance to clarify the due diligence obligations of mutual funds under the regulations implementing section 312 of the USA PATRIOT Act (“section 312”). 1 Specifically, this guidance addresses the issue of for whom a mutual fund establishes, maintains, administers, or manages an account when its shares are purchased or redeemed by a U.S. financial institution through the Fund/SERV system of the National Securities Clearing Corporation (“NSCC”) on behalf of a foreign financial institution. It is our understanding that NSCC’s Fund/SERV system streamlines the clearance and settlement of mutual fund transactions by enabling NSCC members to transact business with hundreds of mutual fund families and thousands of mutual funds through a single, standardized process. Transactions in mutual fund securities cleared and settled through Fund/SERV are recorded by a mutual fund’s transfer agent on the NSCC member’s account, although the member in certain circumstances also may rely upon the fund’s transfer agent to perform discrete recordkeeping tasks pursuant to a networking agreement. In order for a foreign financial institution to effect mutual fund purchases and redemptions through Fund/SERV it must either establish an account with an NSCC member, or become directly a member of NSCC. 2 Based on the facts and circumstances presented, we believe that when an NSCC member is a U.S. financial institution subject to the provisions of section 312 a mutual fund establishes, maintains, administers, or manages an account for the NSCC member, rather than for the NSCC member’s customer. 3 In the event that a foreign financial institution becomes an NSCC member, the mutual fund would be required to treat that foreign financial institution as a correspondent account subject to the appropriate level of due diligence and monitoring. ## Nearby sections - [FinCEN Guidance FIN-2006-G002 Guidance to Financial Institutions on the Provision of Financial Services to Belarusian Senior Regime Elements Engaged in Illicit Activities](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G002.md) - [FinCEN Guidance FIN-2006-G003 Frequently Asked Questions Foreign Bank Recertifications under 31 C.F.R. § 103.177](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G003.md) - [FinCEN Guidance FIN-2006-G004 Frequently Asked Question regarding Customer Identification Programs for Futures Commission Merchants and Introducing Brokers (31 CFR 103.123)](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G004.md) - [FinCEN Guidance FIN-2006-G005 Frequently Asked Questions Businesses Cashing Their Own Checks](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G005.md) - [FinCEN Guidance FIN-2006-G006 Registration and De-Registration of Money Services Businesses](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G006.md) - [FinCEN Guidance FIN-2006-G007 Frequently Asked Question Customer Identification Program Responsibilities under the Agency Lending Disclosure Initiative](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G007.md) - [FinCEN Guidance FIN-2006-G008 Application of the Regulations regarding Special Due Diligence Programs for Certain Foreign Accounts to NSCC Fund/SERV Accounts](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G008.md) - [FinCEN Guidance FIN-2006-G009 Application of the Regulations Requiring Special Due Diligence Programs for Certain Foreign Accounts to the Securities and Futures Industries](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G009.md) - [FinCEN Guidance FIN-2006-G010 Frequently Asked Questions Anti-Money Laundering Program and Suspicious Activity Reporting Requirements for Insurance Companies](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G010.md) - [FinCEN Guidance FIN-2006-G011 Application of the Regulations Requiring Special Due Diligence Programs for Certain Foreign Accounts to Certain Introduced Accounts and Give-Up Arrangements in the Futures Industries](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G011.md) - [FinCEN Guidance FIN-2006-G012 Frequently Asked Questions Conducting Independent Reviews of Money Services Business Anti-Money Laundering Programs](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G012.md) - [FinCEN Guidance FIN-2006-G013 Frequently Asked Questions Suspicious Activity Reporting Requirements for Mutual Funds](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G013.md) - [FinCEN Guidance FIN-2006-G014 Potential Money Laundering Risks Related to Shell Companies](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G014.md) - [FinCEN Guidance FIN-2006-G015 Frequently Asked Question Customer Identification Programs and Banks Serving as Insurance Agents](https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G015.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FINCEN_FIN2006G008. Check the current official text before relying on it. Not legal advice.