Anti-Money laundering Compliance
Anti-Money Laundering (AML) Program Audit Services
FINRA Rule 3011 requires that ALL firm members, regardless of their business or size, develop and implement a written AML program that is reasonably designed to achieve and monitor compliance with the requirements of the Bank Secrecy Act. Paragraph (c) of the rule further requires firms to provide for independent testing of the program for compliance. This test may be conducted by member personnel or a qualified outside party. But small firms such as yours may not have enough employees to satisfy the “independent” aspect of the testing requirement.
That’s where BARR CPA LLC comes in. Our AML professionals are members of the Association of Certified Anti-Money Laundering Specialists (ACAMS), and hold the CAMS (Certified Anti-Money Laundering Specialist) designation.
Our AML Audit examines the key components identified by the regulators as essential for an effective AML program including:
- Written Supervisory Procedures and program documents related to AML including previous audit results and subsequent program updates
- Firm risk and exposure with respect to size, business lines, customer base and geographic location
- Customer identification and verification procedures including checking federal lists
- Procedure and review activities for monitoring suspicious activity including provisions for confidentiality
- Record keeping and retention procedures
- Reliance relationships and supporting documentation
- Training program content and scope
The AML audit package includes:
- Comprehensive report with point by point results for Senior Management review
- Recommendations for enhancing the efficiency of your AML Program if warranted
- Follow-up support to complete any updates recommended
- Reporting and review procedures for Suspicious Activity including electronic systems
The USA PATRIOT Act of 2001, section 352, requires NFA Member futures commission merchants ( FCMs), brokers (IBs), money services businesses (MSBs), and NASD broker/dealer firms to have anti-money laundering (AML) compliance programs in place as of April 24, 2002. For your convenience we’d like to highlight the important elements of AML compliance requirements, and explain how our training programs and audit/consulting services can fully meet all requirements of the CFTC, SEC, NFA, FINRA, and FinCEN.
The USA PATRIOTAct of 2001 requires the following:
- Development of internal policies, procedures and controls
- Designation of a Compliance Officer at your firm
- Ongoing employee training program
- Independent audit function to test your AML programs
Here’s more about the requirements under the Patriot Act:
Development of Policies, Procedures and Controls Every firm must have a written AML Policy and Procedures Statement. This Statement must cover your firm’s internal policies, procedures, and controls in place to prevent potential money laundering activities. This Statement should provide information about what the consequences are if an employee does not follow the firm’s AML policy, as well as which senior management in the firm is responsible for written approval of the firm’s AML program.
Most large firms have a written Policy and Procedure document in place already. While your firm should have a plan which meets your needs, we have a prototype (or template) Policy and Procedures document as an example.
Designation of a Compliance Officer At each firm at least one person must be designated as the “AML Compliance Officer”, and who has the responsibility to oversee your firm’s AML program. This person should have the authority to ensure that your firm meets all federal and regulatory requirements under the Patriot Act.
Ongoing Employee Training Program All regulated financial institutions must provide ongoing education and training programs on at least an annual basis. The training must cover your firm’s policies and procedures, and relevant federal laws and regulatory AML requirements. Records should be maintained which provide evidence that such training was accomplished by your employees.
Independent Audit Function to Test AML Programs Regulated financial institutions must conduct annual testing of their AML compliance program. This testing can be done by the firm’s personnel (e.g. internal audit staff) who are independent of the employees working in areas that are exposed to potential money laundering risks, or by engaging an outside party with experience in this type of audit. The results of this audit should be documented and reported to the firm’s senior management or internal audit committee.