Anti-Money Laundering

Firms must comply with the Bank Secrecy Act and its implementing regulations (“AML rules”). The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.

FINRA reviews a firm’s compliance with AML rules under FINRA Rule 3310, which sets forth minimum standards for a firm’s written AML compliance program. The basic tenets of an AML compliance program under FINRA 3310 include the following.

  1. The program has to be approved in writing by a senior manager.
  2. It must be reasonably designed to ensure the firm detects and reports suspicious activity.
  3. It must be reasonably designed to achieve compliance with the AML Rules, including, among others, having a risk-based customer identification program (CIP) that enables the firm to form a reasonable belief that it knows the true identify of its customers.
  4. It must be independently tested to ensure proper implementation of the program.
  5. An individual responsible for AML must be designated to FINRA.
  6. Ongoing training must be provided to appropriate personnel.

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Titlesort descendingTypeDate
FINRA Sanctions LPL Financial LLC $11.7 Million for Widespread Supervisory Failures Related to Complex Products Sales, Trade Surveillance and Trade Confirmations DeliveryNews Release05-06-2015
MSRB Final Rule G-41Link02-18-2015
SEC and FinCEN re-extend no-action letter relief with some changes for CIP reliance upon investment advisersLink02-18-2015
The Office of Foreign Assets Control (OFAC)
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.
Link02-18-2015
Report of Blocked Transactions Form: Please fax completed form to: (202) 622-2426
Please fax completed form to: (202) 622-2426
Form02-13-2015
Report of International Transportation of Currency or Monetary Instruments (CMIR)Link02-13-2015
FinCEN Mandatory E-Filing FAQLink02-13-2015
Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN 114) Line Item Electronic Filing InstructionsLink02-13-2015
FinCEN’s SAR Activity Reviews – By the NumbersLink02-13-2015
FinCEN’s SAR Activity Reviews – Trends, Tips & IssuesLink02-13-2015
Section 311 Special Measures
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.”
Link02-13-2015
Suspicious Activity ReportForm02-12-2015
Currency Transaction Report (CTR)Link02-12-2015
American Bankers Association Resource Guide: Identification and Verification of AccountLink02-12-2015
FATF Guidance on the Risk-Based Approach to Combating Money Laundering and Terrorist FinancingLink02-12-2015
The Financial Action Task Force (FATF)Link02-12-2015
FATF High Risk and Non-Cooperative JurisdictionsLink02-12-2015
FATF Methods and Trends for Money Laundering and Financing Illicit ActivitiesLink02-12-2015
Federal Financial Institutions Examination Council (FFIEC)Link02-12-2015
Financial Crimes Enforcement Network (FinCEN)Link02-12-2015
Section 314(a) Facts and Figures
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
Link02-12-2015
Recent OFAC ActionsLink02-12-2015
Report a Blocked or Rejected Transaction to OFAC ElectronicallyLink02-12-2015
OFAC Search ToolTool / Resource02-10-2015
Frequently Asked Questions Regarding the FinCEN Suspicious Activity Report (SAR) FAQ02-06-2015

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