FINRA REQUIRES THAT EVERY BROKERAGE FIRM CREATE WRITTEN POLICIES ON ANTI-MONEY LAUNDERING (AML)
FINRA requires that every brokerage firm put into writing its policies on Anti-Money Laundering (AML). FINRA's Content Outline for the Securities Industry Essentials Exam lists the AML Compliance Program in Section 3.2.3, thus warning SIE Exam candidates that they should expect questions on the exam.
Bob Eder in his book Study for the Securities Industry Essentials (SIE) Exam discusses these rules designed to prevent money laundering in detail. Here is an example from Bob Eder's book:
Written Procedures (3.2.3)
A brokerage firm must put in writing its safeguards
against money laundering. FINRA Rule 3310 requires that every firm registered
with FINRA put in writing its compliance policies and procedures regarding
anti-money laundering.
EXAMPLE
FINRA walks in unannounced to the
main offices of XYZ Brokerage. Co. Mr. James, FINRA's chief investigator, asks
to see a copy of XYZ Brokerage Co.'s procedures and safeguards against money
laundering. XYZ's president confesses that XYZ has no such written procedures.
Mr. James on the spot writes up a FINRA complaint on his portable laptop.
Here is the link to FINRA's Content Outline for the SIE Exam. See the references to Anti-Money Laundering in FINRA's Content Outline, in Section 3.2.3.
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