Ensuring compliance with anti-money laundering (AML) rules is a critical component of the efforts of the SEC and law enforcement to protect investor assets and preserve the integrity of the financial markets, the SEC Division of Examinations (Division) stressed in a recent risk alert on AML compliance by broker-dealers (Risk Alert). The Division’s latest alert focuses on deficiencies observed with respect to AML program testing, training and identification, as well as verification of customers and beneficial owners. Like many others, the Risk Alert also provides an overview of the relevant regulations. This Risk Alert complements a 2021 risk alert that addressed compliance issues related to suspicious activity monitoring and reporting by broker-dealers. This article assesses the key takeaways from the latest Risk Alert. See “AML Compliance Officers May Be Held Personally Responsible for AML Program Failures
” (Mar. 24, 2022); and “AML Program Failures May Draw Scrutiny From Multiple Regulators
” (Sep. 10, 2020).