U.S. to Enlist Advisors Against Money Laundering
An anti-money-laundering proposal could soon put financial advisors in the role of watchdogs, writes Financial Planning.
The proposal, from the Treasury Department’s Financial Crimes Enforcement Network, is nearing the end of a development process that started a year and a half ago, an SEC official tells the publication.
The AML rule requires advisors to maintain formal anti-money-laundering programs, with oversight of advisors’ programs handled by the SEC.
Advisors would have to establish policies and procedures to identify suspicious activity, Financial Planning explains. They would designate a compliance officer to steer the program, and would also train employees, arrange independent audits and come up with a way to evaluate suspicious activity.
President Trump has sought to put the brakes on new regulations, but Treasury could be allowed to move forward, according to Stephanie Brooker, a lawyer and former director of FinCen enforcement.
“I think the view of most people in the bank secrecy-AML community is that this area of the law is perhaps less likely to be subject to deregulation in the new administration, given that it does focus on money laundering and anti-terrorist financing,” Brooker tells Financial Planning.