What do SEC examinations involving anti-money laundering, cybersecurity and protection of customer funds have in common? Examination efforts in these areas are examples of the agency protecting retail investors. So said SEC Office of Compliance Inspections and Examinations Director Peter Driscoll, who recently addressed the SIFMA Operations Conference in Boca Raton, FL.
The SEC wants anti-money laundering rules followed - and will go after both firms and individuals at firms that it believes violate those rules. A compliance officer at a dually-registered adviser and broker-dealer learned this the hard way earlier this month after he allegedly failed to file Suspicious Activity Reports on hundreds of transactions.
They all support anti-money laundering. They just differ with the government - and to some degree, with each other - on how to get there. The Investment Adviser Association, the Managed Funds Association and the Private Equity Growth Capital Council sent separate comment letters to the Treasury Departments Financial Crimes Enforcement Network suggesting limits to various parts of its proposed anti-money laundering rule.
After more than 12 years of false starts, an anti-money laundering rule for advisers may just get through this time. The Treasury Departments Financial Crimes Enforcement Network on August 25 issued an 86-page proposed rule that, if adopted, would require investment advisers to join banks, broker-dealers and other financial organizations in adopting an anti-money laundering program and filing suspicious activity reports.
After years of false starts, a Treasury Department rule requiring investment advisers to create an anti-money laundering program may be on its way, but that doesnt mean you should wait before adopting anti-money laundering policies and procedures. Even without a rule, the SEC expects advisers to have anti-money laundering programs in place. If you havent created one yet, do so now.
On one hand, having no rule can be technically less expensive and a relief.
Broker-Dealers May Continue To Rely On Advisers For Certain AML Compliance, Provided New Conditions...
SIFMA has once again successfully persuaded the SEC to extend relief permitting a broker-dealer to rely on an advisers performance with respect to certain anti-money laundering (AML) obligations.As part of a broker-dealers AML procedures, it must maintain a customer identification program (CIP) under rule 31 CFR 103.122. Pursuant to the rule, a broker may rely […]
As of tomorrow, six-year old no-action relief benefitting advisers was going away. In an eleventh-hour action, the SEC has given it another year of life.Since 2004, a broker has been able to rely on an advisers performance to satisfy certain of its obligations to maintain a customer identification program (CIP) under rule 31 CFR 103.122. […]