On July 31, the Securities and Exchange Commission (SEC) Division of Examinations released a risk alert, “recommending that broker-dealers tighten their anti-money laundering (AML) programs,” according to an Aug. 24 article by Partners Patrick Campbell, Jonno Forman and Jonathan New, along with Associate Christina Gotsis.
Published in Westlaw, their article details deficiencies the SEC found in broker-dealer AML programs, including issues with independent testing and training, complying with U.S. sanctions programs, and adhering to customer identification and customer due diligence rules.
“The risk alert makes clear that broker-dealers’ AML programs must be more than just paper,” the authors write.