The US securities regulator has issued a
warning to broker-dealers urging them to strengthen their anti-money laundering
insurance policies and procedures, together with conducting due diligence when opening new
accounts for purchasers.
Moreover, the Securities and Change Fee (SEC) pointed
out that some broker-dealers weren’t devoting sufficient sources, together with
employees, to their anti-money laundering compliance applications. The regulator emphasised that
broker-dealers ought to flag suspicious transactions and conduct due diligence.
“Dealer-dealers are required to implement
and preserve a written anti-money laundering program, authorised in writing by
senior administration, that features, at minimal, insurance policies, procedures, and
inside controls fairly designed to realize compliance with the Financial institution
Secrecy Act (BSA) and the implementing laws,” the SEC defined.
Moreover, the regulator, which didn’t
title any specific firm, additionally found that some broker-dealers didn’t take a look at
their anti-cash laundering controls in a well timed method and didn’t conduct a
complete take a look at of their applications. The SEC additionally discovered that some
broker-dealers haven’t up to date their AML applications in keeping with the newest modifications.
Almost a month in the past, the regulator launched new modifications supposed
to guard shoppers within the securities buying and selling trade. Among the many modifications, the
SEC needs broker-dealers to separate prospects’ funds from their very own and to
calculate the money owed to prospects and different broker-dealers each day as an alternative of
weekly.
Defending Customers
In response to a report by Finance Magnates, the
regulator needs all of the broker-dealers with web money of a minimum of USD $250 million to
calculate the amount of cash they owe to prospects each day and to deposit the
money in reserves. Thus, the watchdog expects to guard the curiosity of
shoppers ought to a broker-dealer fail.
The most recent warning arrived amid heightened
scrutiny in opposition to broker-dealers working within the US. In April, the regulator
issued related warnings highlighting the necessity for broker-dealers to implement
correct insurance policies on safeguarding buyer information and data at their
department places of work.
“Whereas most of the (broker-dealers) have
carried out written insurance policies and procedures at their foremost workplace, some corporations
didn’t undertake or implement written insurance policies and procedures that handle
safeguards for his or her department places of work regardless of the existence of the identical or
related dangers,” the SEC stated.
The US securities regulator has issued a
warning to broker-dealers urging them to strengthen their anti-money laundering
insurance policies and procedures, together with conducting due diligence when opening new
accounts for purchasers.
Moreover, the Securities and Change Fee (SEC) pointed
out that some broker-dealers weren’t devoting sufficient sources, together with
employees, to their anti-money laundering compliance applications. The regulator emphasised that
broker-dealers ought to flag suspicious transactions and conduct due diligence.
“Dealer-dealers are required to implement
and preserve a written anti-money laundering program, authorised in writing by
senior administration, that features, at minimal, insurance policies, procedures, and
inside controls fairly designed to realize compliance with the Financial institution
Secrecy Act (BSA) and the implementing laws,” the SEC defined.
Moreover, the regulator, which didn’t
title any specific firm, additionally found that some broker-dealers didn’t take a look at
their anti-cash laundering controls in a well timed method and didn’t conduct a
complete take a look at of their applications. The SEC additionally discovered that some
broker-dealers haven’t up to date their AML applications in keeping with the newest modifications.
Almost a month in the past, the regulator launched new modifications supposed
to guard shoppers within the securities buying and selling trade. Among the many modifications, the
SEC needs broker-dealers to separate prospects’ funds from their very own and to
calculate the money owed to prospects and different broker-dealers each day as an alternative of
weekly.
Defending Customers
In response to a report by Finance Magnates, the
regulator needs all of the broker-dealers with web money of a minimum of USD $250 million to
calculate the amount of cash they owe to prospects each day and to deposit the
money in reserves. Thus, the watchdog expects to guard the curiosity of
shoppers ought to a broker-dealer fail.
The most recent warning arrived amid heightened
scrutiny in opposition to broker-dealers working within the US. In April, the regulator
issued related warnings highlighting the necessity for broker-dealers to implement
correct insurance policies on safeguarding buyer information and data at their
department places of work.
“Whereas most of the (broker-dealers) have
carried out written insurance policies and procedures at their foremost workplace, some corporations
didn’t undertake or implement written insurance policies and procedures that handle
safeguards for his or her department places of work regardless of the existence of the identical or
related dangers,” the SEC stated.
