SEC Approves New FINRA Rules to Strengthen Anti-Money Laundering Programs

Effective Dates Set for New Rules

Washington D.C., October 10, 2012 - The Securities and Exchange Commission (SEC) has approved new rules from the Financial Industry Regulatory Authority (FINRA) aimed at strengthening anti-money laundering (AML) programs in the securities industry.

New Rules to Enhance AML Programs

The new rules require FINRA member firms to maintain robust AML programs that detect and prevent money laundering and terrorist financing. The rules also set out specific requirements for reporting suspicious transactions and maintaining customer identification records.

• Effective on [insert date], the new rules will help ensure that FINRA member firms are equipped to identify and prevent money laundering and terrorist financing activities.
• The rules harmonize AML requirements across the securities industry, making it easier for firms to comply with multiple regulations.

SEC Approval Follows Lengthy Review Process

The SEC approval comes after a lengthy review process, during which the agency solicited comments from industry stakeholders and analyzed the proposed rules’ impact on market participants.

“Effective AML programs are critical to ensuring the integrity of our financial markets,” said FINRA Chairman and CEO Richard G. Ketchum. “These new rules will help ensure that our member firms are equipped to identify and prevent money laundering and terrorist financing activities.”

FINRA Releases FAQs to Assist Member Firms

In related news, FINRA has released a series of Frequently Asked Questions (FAQs) to help member firms understand their AML program obligations under the new rules. The FAQs cover topics such as:

• Program requirements
• Customer identification
• Suspicious transaction reporting

Learn More about FINRA’s AML Program and New Rules

For more information on FINRA’s AML program and the new rules, please visit [insert website URL].