Reported by Kenneth Corbin

The agency has issued a risk alert detailing the findings of a series of exams focusing on brokers’ AML programs, identifying a number of failures in a compliance area regulators see as important in preventing the illicit movement of money.

“[S]ome registrants did not appear to devote sufficient resources, including staffing, to AML compliance given the volume and risks of their business,” the SEC says. “Second, the staff observed that the effectiveness of policies, procedures, and internal controls was reduced when firms did not implement those measures consistently.”

Brokers’ AML obligations are well-established rules under the Bank Secrecy Act and the implementing regulations enacted under that law.

Read full report: https://www.barrons.com/amp/advisor/articles/sec-warns-brokerage-firms-anti-money-laundering-2046d2a5

Read SEC Risk Alert: https://www.sec.gov/files/risk-alert-aml-compliance-examinations-bd-073123.pdf