A broker or dealer in securities shall be
deemed to satisfy the requirements of 31 U.S.C. 5318(h)(1) if the
broker-dealer implements and maintains a written anti-money laundering
program approved by senior management that:
(a) Complies with
the requirements of sections 1010.610 and 1010.620 of this chapter
and any applicable regulation of its Federal functional regulator
governing the establishment and implementation of anti-money laundering
programs;
(b) Includes, at a minimum:
(1) The establishment and implementation
of policies, procedures, and internal controls reasonably designed
to achieve compliance with the applicable provisions of the Bank Secrecy
Act and the implementing regulations thereunder;
(2) Independent testing for compliance
to be conducted by the broker-dealer’s personnel or by a qualified
outside party;
(3) Designation of
an individual or individuals responsible for implementing and monitoring
the operations and internal controls of the program;
(4) Ongoing training for appropriate persons;
and
(5) Appropriate risk-based procedures
for conducting ongoing customer due diligence, to include, but not
be limited to:
(i)
Understanding the nature and purpose of customer relationships for
the purpose of developing a customer risk profile; and
(ii) Conducting ongoing monitoring to
identify and report suspicious transactions and, on a risk basis,
to maintain and update customer information. For purposes of this
paragraph (b)(5)(ii), customer information shall include information
regarding the beneficial owners of legal entity customers (as defined
in section 1010.230 of this chapter); and
(c) Complies with the rules, regulations, or requirements of its
self-regulatory organization governing such programs; provided that
the rules, regulations, or requirements of the self-regulatory organization
governing such programs have been made effective under the Securities
Exchange Act of 1934 by the appropriate Federal functional regulator
in consultation with FinCEN.
