Anti-Money Laundering

This page provides information about anti-money laundering (AML) rules, regulations, and compliance.

 

• Important Information
• AML Guidance
• News
• Tools
• AML Rules & Regulations
• Regulatory Notices
• NYSE Regulation Information Memos
• AML Forms
• AML Education & Training
• AML Updates by Email
• AML FAQs

 

Important Information

FinCEN publishes important advisories with detailed information about a variety of money laundering threats.  These advisories should be reviewed on a regular basis to ensure that you take advantage of the information provided as appropriate.

 

SEC SAR Alert Message Line
Firms may, but are not required to, contact the SEC to report situations that may require immediate attention by the SEC. The SEC SAR Alert Message Line number should only be used in cases where a broker-dealer has filed a SAR that may require immediate attention by the SEC and wants to alert the SEC about the filing. The SEC SAR Alert Message Line phone number is 202-551-SARS (7277). Calling the SEC SAR Alert Message Line does not alleviate the broker-dealer's obligation to file a SAR or notify an appropriate law enforcement authority. Firms wishing to voluntarily report suspicious transactions that may relate to terrorist activity can call the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) hotline at 1-866-556-3974.

 

FinCEN Suggestions for Addressing Common Errors Noted in Suspicious Activity Reports (SARs)

 

FinCEN Guidance on Suspicious Activity Reports (SARs) Supporting Documentation
Clarifies the Bank Secrecy Act requirement that financial institutions provide SAR supporting documentation to FinCen and appropriate law enforcement or supervisory agencies.
 
Submit AML Compliance Officer Contact Information to FINRA Contact System (FCS)
Each FINRA member firm must submit contact information for its AML Compliance Officer through the FINRA Contact System (FCS).

 
Customer Identification Program Notice
FINRA has produced the Customer Identification Program (CIP) Notice to assist firms with this notification requirement. This CIP Notice replaces the FINRA AML Statement Stuffer.

 

AML Guidance

• Federal Financial Institutions Examination Council (FFIEC) revised manual: Banks and credit unions should direct questions about the manual to their primary federal regulator. (April 29, 2010)
• FinCen Guidance: Guidance on Obtaining and Retaining Beneficial Ownership Information (March 5, 2010)
• FinCen News Release: FinCen Clarifies Expectations Regarding Beneficial Ownership (Guidance Released in Conjunction with Financial Regulators) (March 5, 2010)
• Financial Action Task Force (FATF): FATF’s Public Statements on Country Risk (February 18, 2010)
• FATF Guidance: Improving Global AML/CFT Compliance: On-going Process (February 18, 2010)
• FinCen Guidance: Final Rule on Expansion of Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity (February 10, 2010)
• The SAR Activity Review – By the Numbers, Issue 13 (January 2010)
• FATF Guidance: Money Laundering and Terrorist Financing in the Securities Sector (October 2009)
• FinCEN Guidance: Advisory to Financial Institutions on Filing Suspicious Activity Reports Regarding TARP-related Programs (October 14, 2009)
• The SAR Activity Review – Trends, Tips & Issues, Issue 16 (October 2009)
• Guidance from the Staffs of the Department of the Treasury and the SEC – Question and Answer Regarding the Broker-Dealer Customer Identification Program Rule (31 CFR 103.122) (October 1, 2003)
• The SAR Activity Review – By the Numbers, Issues 1 (October 2003) - Issue 12 (July 2009)
• FinCen Advisory: North Korea Government Agencies’ and Front Companies’ Involvement in Illicit Financial Activities (June 18, 2009)
• FinCen Guidance: FinCen Guidance Clarifies 314(b) Information Sharing
• The SAR Activity Review – Trends, Tips & Issues, Issue 15 (May 2009). This issue features In focus: The Securities and Futures Industries
• Organisation for Economic Co-Operation and Development (OECD) Guidance: Release of Report on Abuse of Charities or Money-Laundering and Tax Evasion (March 2009)
• FinCen Guidance:   Frequently Asked Questions – Anti-Money Laundering Program and Suspicious Activity Reporting Requirements for Insurance Companies (March 20, 2008)
• FinCen Guidance (PDF 99 KB):  Guidance to Financial Institutions on Filing Suspicious Activity Reports regarding the Proceeds of Foreign Corruption (April 17, 2008)
• FinCEN Guidance: Application of Correspondent Account Rules to the Presentation of Negotiable Instruments Received by a Covered Financial Institution for Payment (January 30, 2008)
• Anti-Money Laundering Frequently Asked Questions
• SEC and FinCEN re-extend no-action letter relief for CIP reliance upon investment advisers.
• FinCen Guidance: Interpretive Guidance on the Application of the Correspondent Account Rule to Executing Dealers Operating in Over-The-Counter Foreign Exchange and Derivatives Markets Pursuant to Prime Brokerage Arrangements (September 5, 2007)
• Treasury Department guidance on the application final rules implementing section 312 of the USA PATRIOT Act.
• Joint SEC and Treasury guidance on CIP program responsibilities under the Agency Lending Disclosure Initiative.
• Joint CFTC and Treasury guidance on the application of the CIP rule for futures commission merchants and introducing brokers.
• Comparison of the AML Customer Identification Rule and the SEC Books & Records Customer Account Records Rule
• Financial Crimes Enforcement Network (FinCEN) is the Bureau of the US Department of the Treasury responsible for the administration of the Bank Secrecy Act. 
• Guidance clarifying the date on which certain U.S. financial institutions must complete Foreign Bank Re-certifications under 31C.F.R. Section 103.177.
• Guidance confirming that securities broker-dealers, futures commission merchants, and introducing brokers in commodities may share Suspicious Activity Reports with parent entities, both domestic and foreign.
• Section 314(a) Facts and Figures: FinCEN frequently publishes valuable information about the benefit to law enforcement of its Rule 314(a) requests for information.
• Law Enforcement Cases Supported by BSA Filings
• Guidance on Preparing a Complete and Sufficient Suspicious Activity Report Narrative (Nov. 2003)
• Preparation Guidelines for Suspicious Activity Report Form (SAR), June 2000 (SAR Guidelines)
• Guidance on Application of the Customer Identification Program Rule to Futures Commission Merchants Operating as Executing and Clearing Brokers in Give-Up Arrangements (April 20, 2007)
• Section 311 Special Measures: Under Section 311 of the USA PATRIOT Act, the Secretary of the Treasury can designate particular jurisdictions or financial institutions to be of “primary money laundering concern.”
• Money Laundering: A Banker’s Guide to Avoiding Problems.
  Office of the Comptroller of the Currency (2002)
• American Bankers Association Resource Guide: Identification and Verification of Account Holders
• AML Examination Handbook issued by the five federal banking regulators
• Financial Action Task Force (FATF)
• FATF Non-Cooperative Territories and Countries
• FATF Money Laundering and Terrorist Financing Typologies (2004 - 2005)
• FATF Guidance on the Risk-Based Approach to Combating Money Laundering and Terrorist Financing
• Foreign Assets Control Regulations for the Securities Industry

 

Office of Foreign Assets Control (OFAC) Guidance

• The Office of Foreign Assets Control (OFAC), a Bureau of the Treasury Department, The Office of Foreign Assets Control ("OFAC") of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under US jurisdiction.
• Recent OFAC Actions
• OFAC Guidance: Opening Securities and Futures Accounts from an OFAC Perspective (November 2008)

 

News

• Bank Secrecy Act Obligations of a U.S. Clearing Broker-Dealer Establishing a Fully Disclosed Clearing Relationship with a Foreign Financial Institution
• Customer Identification Program Rule No-Action Position Respecting Broker-Dealers Operating Under Fully Disclosed Clearing Agreements According to Certain Functional Allocations
• Banks AML Examination Manual: Federal Financial Institutions Examination Council AML Examination Manual
• The Financial Crimes Enforcement Network (FinCEN) Issues Final Rule for Special Due Diligence Programs for Certain Foreign Accounts
   

Tools

• FINRA AML Small Firm Template
• OFAC Search Tool enables searches of the U.S. Treasury's Office of Foreign Asset Control's (OFAC) Sanctions Program Listings
   

AML Rules & Regulations

• FINRA AML Rule 3310
• USA PATRIOT Act
• U.S. Treasury Department Rules
• MSRB Final Rule G-41
  
   

Regulatory Notices

• 12-08 SEC Requests Broker-Dealers Make SARs and SAR Information Available to FINRA
• 09-60 SEC Approval and Effective Dates for New Consolidated FINRA Rules;Effective Date (all rules except FINRA Rule 3310): December 14, 2009;Effective Date (FINRA Rule 3310): January 1, 2010
• 07-17 NASD and NYSE Joint Release Regarding Special Measures against specified Banks Pursuant to Section 311 of the USA Patriot Act.
• 06-41 NASD and NYSE Joint Release on Section 311 of the USA PATRIOT Act. Special Measures against Specified Banks Pursuant to Section 311 of the USA PATRIOT Act.
• 06-07 SEC Approves Amendments to Anti-Money Laundering Program Compliance Rule and Adoption of Interpretive Material; Effective Date: March 6, 2006
• 03-34 Treasury and SEC Issue Final Rule Regarding Customer Identification Programs for Broker/Dealers; Effective Date: October 1, 2003
• 02-80 Development Regarding Treasury Information Requests Under Section 314 of the PATRIOT Act
• 02-78 NASD Adopts Amendments to Rule 3011 to Require Members to Provide to NASD Contact Information for an Anti-Money Laundering Compliance Person(s)
• 02-50 Treasury and SEC Request Comment on Proposed Regulation Regarding Broker/Dealer Anti-Money Laundering Customer Identification Requirements; Comment Period Expires September 6, 2002
• 02-47 Treasury Issues Final Suspicious Activity Reporting Rule for Broker/Dealers; Effective Date: Transactions After December 30, 2002
• 02-21 NASD Provides Guidance to Member Firms Concerning Anti-Money Laundering Compliance Programs Required By Federal Law
• 01-67 Executive Order Targeting Terrorists
  
   

NYSE Regulation Information Memos

• NYSE 02-21 Approval of New Rule 445 – Anti-Money Laundering Compliance Program
• NYSE 06-4 Amendments to Rule 445 (“Anti-Money Laundering Compliance Program”) 
  
   

AML Forms

• Suspicious Activity Report (SAR S-F)
• Blocked Properties Reporting Form (OFAC)
• Voluntary Form for Reporting Blocked Transactions (OFAC)
• Voluntary Form for Reporting Rejected Transactions (OFAC)
• Report of Foreign Bank and Financial Accounts (FBAR)
• Currency Transaction Report (CTR)
• Report of International Transportation of Currency or Monetary Instruments (CMIR)
• Suspicious Activity Report for Insurance Companies (proposed) (SAR-IC) 
  
   

AML Education & Training 

Resource Document

• AML Reviews During Routine Exams (PDF 86 KB)

 

E-Learning Courses

FINRA offers a series of 15 AML E-Learning Courses:

• AML—Institutional: Customer Identification Procedures
• AML—Institutional: Escalating Concerns of Unusual Activity and
  Responsibilities for Due Diligence
• AML—Institutional: Exploring New Risks
• AML—Institutional: Identification and Reporting Issues
• AML—Institutional: Identifying and Managing Higher-Risk Clients
• AML—Institutional: Recognizing Red Flags
• AML—Operations: Customer Identification Procedures
• AML—Operations: Escalating Concerns of Unusual Activity and
  Responsibilities for Due Diligence
• AML—Operations: Recognizing Red Flags
• AML—Retail: Customer Identification Procedures
• AML—Retail: Exploring New Risks
• AML—Retail: Recognizing and Escalating Suspicious Activity
• AML—Retail: Recognizing Red Flags
• AML—Retail: The Responsibility to Know Your Customer
• AML—Retail: Variable Annuities and Variable Life Insurance

 

AML Updates by Email

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• AML Template
• OFAC Search Tool