Disable ads (and more) with a membership for a one time $2.99 payment
Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program?
Designating an AML compliance officer
Filing of the firm's AML program with FINRA
Conducting background checks of all employees
Identifying to regulators the employees responsible for Currency Transition Reports (CTRs)
The correct answer is: Designating an AML compliance officer
A broker-dealer's anti-money laundering (AML) program must include the designation of an AML compliance officer. This requirement is essential for ensuring that there is a dedicated individual responsible for overseeing the implementation and adherence to the AML policies and procedures established by the firm. The compliance officer plays a vital role in monitoring transactions, reporting suspicious activities, and ensuring that the firm complies with all applicable laws and regulations related to money laundering and the financing of terrorism. Designating an AML compliance officer is a critical component because it helps create accountability and ensures that someone is specifically tasked with managing the AML program. This position is necessary for fostering a culture of compliance within the organization and for serving as a point of contact with regulators. While other actions listed might be beneficial (such as conducting background checks on employees or submitting certain reports), they are not explicitly mandated as part of the core AML program requirements set by regulations. Moreover, it is not a requirement to file an AML program with FINRA, nor is it necessary to identify employees responsible for CTRs to regulators, making the designation of an AML compliance officer the key action needed to fulfill the AML program requirements.