The USA PATRIOT Act of 2001 requires that all securities firms establish an Anti-Money Laundering Compliance Program to prevent and detect the act of money laundering. To meet the requirements of the PATRIOT Act, FINRA set forth Rule 3011 which establishes the requirements that all FINRA member firms must meet in order to have a compliant Anti-Money Laundering Compliance Program.
Per FINRA Rule 3011, each securities firm must:
Establish and implement policies and procedures to detect and report suspicious activities or suspicious transactions;
Establish and implement policies and procedures for the firm to achieve compliance with the anti-money laundering and the BSA requirements;
Design a program to independently test the firm for compliance to the firm's Anti-Money Laundering Program;
Designate an individual(s) who will be responsible for the day-to-day monitoring of the firm's Anti-Money Laundering Compliance Program; and
Provide anti-money laundering training to the firm's personnel.
Contact Brokerage Consulting Group today to discuss how we can help your firm develop a compliant Anti-Money Laundering Compliance Program. If your firm has an AML program in place, Brokerage Consulting Group can review and access the adequacy of the current program. Contact Brokerage Consulting Group to discuss your specific needs or to request a proposal.
Customer Information Program
As part of your firm's overall Anti-Money Laundering Compliance Program, your firm is required to create, maintain and enforce a Customer Identification Program. This program sets forth the requirements for the identification of customers and the verification of that identification.
Brokerage Consulting Group will create a Customer Identification Program for your firm. Contact Brokerage Consulting Group for more information, to get answers to your questions or to request a quote for the creation of a Customer Identification Program designed specifically for your firm.
Audit of the Anti-Money Laundering Program
Broker/Dealers are required to annually review and test the adequacy of the firm's Anti-Money Laundering Compliance Program. The audit must be conducted by an independent party (independent internal personnel or an outside vendor, like Brokerage Consulting Group) and findings must be reported to senior management.
To ensure the independence of your auditors, engage Brokerage Consulting Group to perform the test of your Anti-Money Laundering Compliance Program. Contact us today to discuss your needs and/or request a proposal.
FINRA Rule 3120 Reviews
FINRA Rule 3120 (Supervisory Control System) requires that FINRA member firms test and verify their supervisory procedures to ensure that the firm operates according to applicable rules and regulations of FINRA and the SEC and operates in accordance with its own set of written supervisory policies and procedures.
Brokerage Consulting Group can conduct a 3120 review and prepare a written report of findings to senior management. Following the review, we can create additionally required procedures or amend existing procedures. Contact Brokerage Consulting Group for more information.
Branch Office Audits
Every Broker/Dealer is required to conduct inspections of its business activities as outlined in Rule 3110. Some firms prefer to enlist the help of third parties, like Brokerage Consulting Group, to perform their branch office audits in order to ensure objectivity and independence. Firms with multiple branch offices often choose to outsource this task due to limited resources.
Our experienced consultants will alert your firm to mistakes and compliance violations that could result in regulatory action and recommend corrective measures. In short, our goal is to make sure that the firm is following the rules set forth in the Written Supervisory Procedures.
In addition to interviewing appropriate personnel at each location, we will review:
Supervisory structure
Customer information
Incoming and outgoing correspondence
Advertising, including business cards and stationery
Once the date for your FINRA exam has been set, we can help gather the documents that FINRA requests to ensure complete compliance with record requests. We will explain exactly what is required for each request item. We can also visit your office and provide on-site assistance or simply be available via telephone for any questions you have while preparing for the examination.
Our experience in many districts gives us a good perspective on additional items that examiners may request, and we can help anticipate any additional requirements and items that may need review or refinement. We have well-established relationships with examiners in many districts, and can utilize this experience to better prepare the firm for its upcoming examination.
