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FINRA Podcast: AML Evolution and Best Practices

In a recent episode of FINRA Unscripted, Jason Foye, an expert in Anti-Money Laundering (AML), shared his insights on the evolving AML landscape and effective practices to combat money laundering and financial crime.

Evolving AML Landscape

The AML space is constantly changing due to shifting threats, regulations, and rules. To stay ahead of these changes, FINRA emphasizes the importance of quality assurance programs that review and analyze the effectiveness of member firms’ AML programs.

Effective Practices for AML Compliance

One crucial aspect of AML compliance is delegation and communication. Foye emphasized the need for clear escalation procedures, ensuring that all personnel understand their roles and responsibilities in identifying and reporting suspicious activity.

Clear escalation procedures are essential for effective AML compliance.
Quality assurance programs review and analyze member firms’ AML programs to ensure effectiveness.

2022 Risk Monitoring Report

The 2022 Risk Monitoring Report serves as a valuable resource for member firms to assess their AML programs and identify areas for improvement. The report includes straightforward questions that help firms evaluate their current practices and consider new emerging risks.

“Left of Boom” Approach

Foye also highlighted the concept of “left of boom,” referring to preventative measures taken before suspicious activity occurs, rather than reactive measures after the fact. He emphasized the importance of educating the industry and providing training on effective practices to combat AML threats.

“Left of boom” refers to preventative measures taken before suspicious activity occurs, emphasizing the importance of proactive approaches in AML compliance.
The 2022 Risk Monitoring Report provides a valuable resource for assessing AML programs and identifying areas for improvement.

Conclusion

In conclusion, Foye stressed the significance of collaboration between FINRA, member firms, and other stakeholders in sharing intelligence and combating financial crime. By adopting best practices and staying vigilant, the industry can proactively address emerging risks and protect investors and markets.

Stay up-to-date with the latest trends and insights in the AML space by subscribing to FINRA Unscripted wherever you listen to podcasts. If you have any ideas for future episodes, email [email protected].