NASD Launches Tool to Help Brokers Spot Terrorists That May Be Involved in Money Laundering
Washington, D.C. — NASD is providing its member firms an automated method of searching the U.S. Treasury's Office of Foreign Asset Control's (OFAC) "Specially Designated Nationals and Blocked Persons" (SDN) list. The SDN list contains names of known or suspected terrorists.
In the wake of the September 11 attacks, President Bush signed into law the USA PATRIOT Act, which is designed to detect, deter, and punish terrorists in the United States and abroad. The Act imposed new anti-money laundering requirements on brokerage firms and financial institutions. By April 24, 2002, all brokerage firms were required to have comprehensive anti-money laundering programs.
As part of their anti-money laundering programs, brokers must check whether a customer's name appears on any list of known or suspected terrorists or terrorist organizations, such as the SDN list. The new NASD tool allows brokers to perform an automated search of the thousands of names contained on the SDN list, letting them more easily identify individuals and organizations that may be involved in money laundering.
"We are working closely with the SEC and the securities industry to make sure that our financial markets are not used by criminals to facilitate terrorism or other crimes. The automated search link is the latest step in the NASD's ongoing efforts to help implement the PATRIOT Act and educate brokers about the importance of developing effective anti-money laundering compliance programs," said Mary L. Schapiro, President of NASD Regulation, Inc.
Both the new tool and other anti-money laundering resources are available on the NASD Website Anti-Money Laundering Web page, www.nasdr.com/money.asp
The National Association of Securities Dealers, Inc. is the largest securities industry, self-regulatory organization in the United States. It is the parent organization of NASD Regulation, Inc.; the American Stock Exchange, LLC; and NASD Dispute Resolution, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdr.com; www.amex.com; www.nasdadr.com.