SEC risk alert on Broker-Dealer deficiencies in AML Compliance

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The Division of Examinations of the U.S Securities and Exchange Commission (“SEC”) has issued a risk alert on its ‘Observations from Anti-Money Laundering Compliance Examinations of Broker-Dealers’.

The alert presents the division’s examination observations about key AML requirements, covering:

  • AML Programs: Spotlight on Independent Testing and Training;
  • Customer Identification Program (CIP) Rule; and
  • Customer Due Diligence and Beneficial Ownership Requirements.

Through the Risk Alert, The Division encourages registered firms to review and strengthen their policies, procedures, and internal controls, and to monitor for amendments, pursuant to The Anti-Money Laundering Act (“AMLA”) and The Corporate Transparency Act, to the rules implementing the Bank Secrecy Act (“BSA”).

https://www.sec.gov/files/risk-alert-aml-compliance-examinations-bd-073123.pdf

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