June 21, 2016
If you believe that only banks and broker-dealers need to worry about the anti-money laundering laws… well, the world’s changing and there are proposed regulations you need to consider. Under the proposed rule, if your firm is registered or should be registered with the SEC, you and your firm will be subject to the recordkeeping, reporting, and anti-money laundering laws that banks and other financial institutions have been subject to for years as part of the USA PATRIOT Act and the Bank Secrecy Act (BSA).
This proposal has been in the headlines more and more of late as a key step in the global war against terrorism. Undoubtedly, you feel there is little likelihood of your firm aiding and abetting a terrorist organization; nonetheless, with the expansion of who is covered in the new regulations, it’s important that your firm puts a program in place—beyond just know-your-client (“KYC”) best practices.