Miningwatchdog Marketplace Policies

This template is provided to assist small firms in fulfilling their responsibilities to establish an Anti-Money Laundering (AML) Program as required by the Bank Secrecy Act (BSA) and its implementing regulations and FINRA Rule 3310 (AML Compliance Program). Nothing in this template creates any new requirements for AML programs. Furthermore, following this template does not guarantee compliance with AML Program requirements or provide a safe harbor from regulatory responsibility. There is no exemption from the AML rules for small broker-dealers.

Your firm’s AML program should be “risk-based.” That means that the program’s AML policies, procedures and internal controls should be designed to address the risk of money laundering specific to your firm. Your firm can identify that risk by looking at the type of customers it serves, where its customers are located, and the types of services it offers. It is a good practice to develop a written analysis of your firm’s money laundering and terrorist financing risk and how your firm’s AML procedures manage that risk. This “risk-assessment” will help to ensure that the AML program is the right one for your firm and is a useful tool for demonstrating to your firm’s examiner that the firm used a reasonable approach for designing its AML program.

In addition, where certain AML rules may be inapplicable due to the limited nature of your firm’s business, FINRA expects your firm to have internal controls in place to identify when circumstances change in such a way as to trigger previously inapplicable AML requirements and to amend your AML policies and procedures to accurately reflect all AML requirements that are applicable to your business. For example, a firm with no customer accounts within the definition of the Customer Identification Program (CIP) rule would not be expected to have a CIP. However, the firm must have procedures in place to identify when the firm’s business activities have shifted in such a way as to require compliance with the CIP rule. In addition, notwithstanding the fact that the firm does not have accounts for CIP purposes, the firm is expected to identify and develop procedures for any additional AML requirements that do apply (e.g., suspicious activity monitoring and reporting).

The language in this template is provided only as a helpful starting point to walk you through developing your firm’s program. If any of the language does not adequately address your firm’s business situation in any respect, you will need to prepare your own language. You are responsible for ensuring that the program fits your firm’s risk level and that you implement the program.

Miningwatchdog Marketplace are provided to give you sample language that you can modify, as necessary, to fit your firm’s needs in creating your firm’s program.

Material in italics provides instructions and citations to the relevant rules, and other resources that you can use to develop your firm’s program.

The FINRA AML web page includes important information and links to other websites with useful information. You should also consult the websites maintained by the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC), including the SEC’s AML Source Tool, for additional information and guidance. For historical guidance and background, you may wish to consult NASD Notices to Members (NTM) 02-21, 02-47, 02-50, 02-78, 02-80, 03-34, 06-07, 06-41 and 07-17. Regulatory Notices 07-42, 08-66, 09-05, 12-08, 17-40 18-19, and 19-18 provide additional guidance information about firms’ AML obligations. In order to submit BSA filings, including Suspicious Activity Reports (SARs), to FinCEN, firms must use FinCEN’s BSA E-Filing System.