Finra Warns Firms About Anti-Money Laundering Compliance

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Self-regulator Finra has issued a reminder on the type of activities for which its member firms must file suspicious activity reports (SARs), according to news reports.

Broker-dealers must abide by the industry self-regulator’s anti-money laundering compliance program in a way that complies with the Bank Secrecy Act and the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, ThinkAdvisor writes.

In its guidance issued last week, Finra reminded broker-dealers that they must file SARs to FinCEN if the transaction in question is conducted at, by or through their firm and involves assets of $5,000 or more, when the broker-dealer knows or has reason to suspect that the transaction could involve funds obtained from illegal activity or intended to hide or disguise funds obtained in that way, according to the publication.

Finra member-firms must also report transactions of more than $5,000 if they know or suspect they’re designed to evade BSA regulations, have no apparent business or lawful purpose, aren’t the type of transaction the client is expected to engage in, or involve using the broker-dealer to facilitate criminal actions, the regulator says, according to ThinkAdvisor.

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