Anti-Money Laundering purpose for the rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.
Financial Industry Regulatory Authority Inc reviews a firm’s compliance with AML rules under FINRA Rule 3310, which sets forth minimum standards for a firm’s written AML compliance program. The basic tenets of an AML compliance program under FINRA 3310 include the following.
- The program has to be approved in writing by a senior manager.
- It must be reasonably designed to ensure the firm detects and reports suspicious activity.
- It must be reasonably designed to achieve compliance with the AML Rules, including, among others, having a risk-based customer identification program (CIP) that enables the firm to form a reasonable belief that it knows the true identify of its customers.
- It must be independently tested to ensure proper implementation of the program.
- Each FINRA member firm must submit contact information for its AML Compliance Officer through the FINRA Contact System (FCS).
- Ongoing training must be provided to appropriate personnel.
Anti-Money Laundering is considered a Know Your Customer regulation.
More Information#There might be more information for this subject on one of the following:
- Bank Secrecy Act
- Customer Identification Program
- Electronic Identity Verification
- Financial Crimes Enforcement Network
- Financial Industry Regulatory Authority Inc
- Payment Service Provider