STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

Are you planning to sit for the Securities Industry Essentials (SIE) Exam? Make sure that you are familiar with the definition of Money Laundering and its three stages. FINRA publishes a Content Outline for the SIE exam, and it includes Anti-Money Laundering in Section 3.2.3. The Content Outline specifically mentions the three stages of Money Laundering - Structuring, Layering, and Placement. Bob Eder covers  Money Laundering  in detail in his SIE study guide, Study for the Securities Industry Essentials Exam . Here is a sample of Bob Eder's discussion: "Three Stages of Money Laundering                         (3.2.3) "Criminal justice authorities have identified three stages of money laundering: placement, layering, integrating. "Placement In this initial stage, criminals try to insert monies from criminal activities into the financial system. For example, smuggl...

The Securities Industry Essentials (SIE) exam covers anti-money laundering, and the topic is found in FINRA's Content Outline in Section 3.2.3. Please take a look at this Content Outline because it lists all the subtopics under Anti-Money Laundering (AML) that you should study. For example, the Content Outline lists the stages of AML: structuring, layering and placement. You should know the meaning of each of these stages, and have examples in mind. Bob Eder's SIE manual, Study for the Securities Industry Exam, has full treatment of AML on pages 258-259.  Here is Bob Eder's definition of layering, one of the three AML stages: Layering "In this stage criminals try to transfer monies from one legitimate account to another, so as to make tracing difficult. Examples are the purchase of financial assets, like stocks and bonds; moving monies from one account to another; moving monies from one company to another, where the companies are under common control." Here is t...

If you are sitting for the SIE exam, you need to study rules of FINRA and the SEC, especially rules regarding anti-money laundering and safeguarding the financial privacy of customers and clients. FINRA requires all member broker/dealers to establish an anti-money laundering compliance program. There must be procedures put in writing to safeguard against money laundering. There must be reports sent periodically to a firm's senior management. As to safeguarding privacy of customers' financial information, the SEC has adopted Regulation S-P, that prohibits the disclosure of sensitive financial information of clients and customers. Regulation S-P mandates certain periodic written disclosures to customers advising them of their privacy rights. If you are fuzzy about these concepts, meaning that you are unable to confidently state, for example, the three stages of money laundering, or the substance of Regulation S-P, then you need to do more study preparation.  Bob Eder J.D....