§ 1023.210. Anti-money laundering program requirements for brokers or dealers in securities.

285 words·~1 min read·/us/cfr/t31/s§ 1023.210·

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A broker or dealer in securities shall be deemed to satisfy the requirements of 31 U.S.C. 5318(h)(1) if the broker-dealer implements and maintains a written anti-money laundering program approved by senior management that:

(a)Complies with the requirements of §§ 1010.610 and 1010.620 of this chapter and any applicable regulation of its Federal functional regulator governing the establishment and implementation of anti-money laundering programs;

(b)Includes, at a minimum:

(1)The establishment and implementation of policies, procedures, and internal controls reasonably designed to achieve compliance with the applicable provisions of the Bank Secrecy Act and the implementing regulations thereunder;

(2)Independent testing for compliance to be conducted by the broker-dealer's personnel or by a qualified outside party;

(3)Designation of an individual or individuals responsible for implementing and monitoring the operations and internal controls of the program;

(4)Ongoing training for appropriate persons; and

(5)Appropriate risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to:

(i)Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and

(ii)Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. For purposes of this paragraph (b)(5)(ii), customer information shall include information regarding the beneficial owners of legal entity customers (as defined in § 1010.230 of this chapter); and

(c)Complies with the rules, regulations, or requirements of its self-regulatory organization governing such programs; provided that the rules, regulations, or requirements of the self-regulatory organization governing such programs have been made effective under the Securities Exchange Act of 1934 by the appropriate Federal functional regulator in consultation with FinCEN. \[81 FR 29457, May 11, 2016\]

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IRM

IRM 4.26.5
Bank Secrecy Act History and Law

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U.S. Code

Compliance, exemptions, and summons authority
§ 5318

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§ 1023.210

Anti-money laundering program requirements for brokers or dealers in securities.

Fed. Reg.×52

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U.S.C.§ 5318

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