Get Copyright Permission The Bipartisan Budget Act of BBA replaced the existing rules for auditing large partnerships with a new set of streamlined rules that take effect January 1,
Before we begin, I would also like to state that my comments here today are mine and mine alone, and do not necessarily represent the views of the SEC, the Commissioners, or the Staff. As you all know, AML includes far more than just preventing traditional money laundering.
Broker-dealers must report large cash transactions and retain records on wire transfers regardless of whether any potential criminal activity is suspected.
Broker-dealers must also monitor for and report suspicious activity, including activity that has no business or apparent lawful purpose. This goes beyond activity that implicates drug cartels or terrorist rings — it also includes activity that might indicate fraud, insider trading, or manipulative trading schemes.
As you also know, OCIE expects you and your firms to implement robust compliance programs that are targeted to the specific risks at your firms, and AML is no exception.
AML, however, has important implications that proliferate far beyond your firms. Widespread AML lapses threaten our standing in the international community — not only for you as individual firms but for the United States as a whole.
In fulfilling their important AML obligations, broker-dealers play a vital front line role in assisting regulators and law enforcement in identifying and addressing suspicious activities to prevent our financial systems from being used for criminal purposes.
Your obligation is a proactive one, not a ministerial one. OCIE strives to be transparent about our focus areas and concerns, so I want to highlight that we take AML very seriously and will take great exception to firms that view AML as a peripheral or unimportant component of their compliance program.
Quite the opposite in fact, I believe that a minimal or weak AML program implicates the entire compliance program, while a strong AML program can serve as the cornerstone. In the absence of regular risk assessments as to how your firm could be used by sophisticated individuals and entities seeking to evade the law, it is difficult to know how you could meet your critically important AML obligations.
I want to encourage you to evaluate your current program against the points I raise today so that when OCIE examiners walk in your door, they will find a robust AML program that is worthy of the important gatekeeper role you play. Significance of AML  While at first blush AML obligations may seem to be the mechanical process of monitoring and reporting cash flows and securities transactions, AML programs are actually much more.
It is therefore understandable that when firms are not meeting their obligations, the consequences are severe. I point to two recent cases that, while not brought against broker-dealers, illustrate lessons that, I believe, can and should be learned by all firms.
I would add that the SEC has also brought several actions against broker-dealers for violations in the AML arena, some of which I will discuss in a few minutes.
So, I suggest to you that conducting an overall analysis of the risk posed by your business is a critical step towards implementing an effective AML program where you employ adequate resources and put them where they are needed the most.
And, please be sure that you are providing resources commensurate with the risks identified. In a second more recent case JanuaryJ. Over a multi-year period, multiple red flags were identified. Morgan was concerned enough that it reduced its financial exposure to Madoff funds in response to those red flags.
However, even after J.Bill Text. The people of the State of California do enact as follows: he or she has completed a minimum of six hours of coursework or applied experience under supervision in suicide risk assessment and intervention. This requirement shall be met in one of the following ways: (1) Obtained as part of his or her qualifying graduate degree.
With respect to the annual assessment work requirements this issue is usually resolved in the courts, whereas the five hundred () dollar assess- ment work requirement for the issuance of a patent is usually resolved in the De-. Security risk assessment should be a continuous activity.
A comprehensive enterprise security risk assessment should be conducted at least once every two years to explore the risks associated with the organization’s information systems. Step 2 was eliminated from the goodwill impairment test as the FASB sought to simplify accounting in a new standard issued Thursday.
SEC filers are required to adopt the new standard for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, Get Journal of Accountancy news alerts. On October 11, , the SEC issued a proposed rule 1 in response to recommendations in the SEC staff’s Report on Modernization and Simplification of Regulation S-K, which was issued on November 23, 2 The proposed rule would make specific revisions to a limited group of items in Regulation S-K and is intended to streamline and improve.
Section 7 Consultation The latter is a generic term used to document analyses and Section 7 determinations when a Biological Assessment is not required. For additional guidance in making a Section 7 determination, please see our Section 7(a)(2) Process (Steps ) website.