---
kind: "section"
citation: "22 C.F.R. § 1508.330"
title: "22"
number: "1508.330"
heading: "What requirements must I pass down to persons at lower tiers with whom I intend to do business?"
url: "https://uscodex.org/cfr/22/1508.330"
---

# §1508.330. What requirements must I pass down to persons at lower tiers with whom I intend to do business?


Before entering into a covered transaction with a participant at the next lower tier, you must require that participant to—

- (a) **Comply with this subpart as a condition of participation in the transaction.** You may do so using any method(s), unless [§ 1508.440](/cfr/22/1508.440.md) requires you to use specific methods.
- (b) Pass the requirement to comply with this subpart to each person with whom the participant enters into a covered transaction at the next lower tier.

## Notes

### Authority

Authority: Sec. 2455, Pub.L. 103-355, 108 Stat. 3327; E.O. 12549, 3CFR, 1986 Comp., p.89; E.O. 12689, 3CFR, 1989 Comp., p. 235.

### Source

Source: 68 FR 66590, 66592, Nov. 26, 2003, unless otherwise noted.