FINRA Updates AML Template for Small Broker-Dealers

FINRA advised broker-dealers to also note that they may access all of the guidance FINRA has provided regarding FINRA Rule 3310 on its Anti-Money Laundering main page.

A recently released report by Eversheds Sutherland found anti-money laundering was the top enforcement issue for FINRA in 2017 measured by total fines assessed, with FINRA reporting 16 AML cases in 2017, resulting in $14.6 million in fines.

FINRA’s first exam findings report, released last December, also found that firms with effective AML programs actively “tailor their risk-based AML program to the firm’s business model and associated AML risks as opposed to simply implementing a more ‘generic’ program.”

These firms also conducted “independent testing” that included sampling customer accounts in order to test whether the firm was collecting and verifying customer identification information on all individuals and entities that would be considered customers under the BSA, as well as trading and money movement activity to test whether the firm was performing adequate monitoring for and investigations of potentially suspicious activity.

— Check out FINRA Warns of Data Aggregation Dangers on ThinkAdvisor.