ANTI-MONEY LAUNDERING (AML)
Anti-Money Laundering (AML) Compliance
Firms must maintain current written AML compliance programs and provide ongoing training to appropriate personnel. Information and guidance relating to AML rules, regulations and compliance are available from a number of sources, such as the following:
FINRA’s AML Template for Small Firms reflects FINRA Rule 3310 (Anti-Money Laundering Compliance Program). FINRA also provides a three-part podcast series that guides firms through the process of setting up AML compliance and supervisory procedures.
• Anti-Money Laundering Template (Part 1)
Listen Now/Download | 11 min. 45 sec.
• Anti-Money Laundering Template (Part 2)
Listen Now/Download | 10 min. 35 sec.
• Anti-Money Laundering Template (Part 3)
Listen Now/Download | 10 min. 42 sec.
The SEC maintains and periodically updates its AML Source Tool for Broker-Dealers, a compilation of key AML laws, rules, orders and guidance applicable to broker-dealers.
SAR Information Accessibility
The Financial Crimes Enforcement Network (FinCEN) regulations regarding the confidentiality of suspicious activity reports (SARs) require a broker-dealer to make SARs and supporting documentation available to any SRO that examines the broker-dealer for compliance with the requirements of 31 CFR 1023.320 (Reports by brokers or dealers in securities of suspicious transactions), also known as the “SAR Rule,” upon the request of the SEC. On January 26, 2012, the SEC issued a letter to FINRA authorizing FINRA staff to ask for SARs and SAR information from firms in certain circumstances. On the same date, SEC staff also issued a letter to chief executive officers of all SEC-registered FINRA firms requesting that they make SARs and supporting documentation available to FINRA.
• FINRA Regulatory Notice 12-08 (February 2012): SEC Requests Broker-Dealers Make SARs and SAR Information Available to FINRA
SAR Alert Message Line
The SEC maintains a SAR Alert Message Line that securities firms can use to voluntarily report the filing of a SAR that may require the SEC’s immediate attention. Placing a call to the SEC’s SAR Alert Message Line does not alleviate a firm's obligation to file a SAR or notify an appropriate law enforcement authority.