OCIE Chief Says 50% of Firms Cited for AML Compliance Deficiencies
The SEC’s Director of the Office of Compliance Inspections and Examinations, Carlo di Florio, stressed the importance of anti-money laundering examinations to the exam process. Mr. di Florio explained that AML non-compliance often indicated a broader fraud. He said that 46% of broker-dealers examined in 2010 were cited for AML deficiencies. He listed common deficiencies as those related to independent testing, filing Suspicious Activity Reports, failing to conduct sufficient customer identification, and weak policies and procedures. For 2011, he outlined exam priorities to include clearing firms, direct access by foreign customers, outsourcing, “free-delivery” accounts, reliance on RIAs, and mutual fund transfer agents.
OUR TAKE: We are not sure why nearly 50% of firms have cited deficiencies. Perhaps firms have diminished focus on AML as other issues have become more newsworthy. We suspect that some of the more arcane requirements may result in more technical compliance issues than in other areas.
Posted by Todd Cipperman at 3/7/2011 6:53 AM 
Categories: Distribution and Broker-Dealers
Tags: antimoney laundering deficiencies ocie
Categories: Distribution and Broker-Dealers
Tags: antimoney laundering deficiencies ocie
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