Anti-Money Laundering and Compliance

AML questions test whether you can connect customer onboarding, surveillance, reporting, and sanctions screening into a working compliance program. The Series 7 expects more than acronym recognition. It expects you to know what a firm must do, what red flags trigger escalation, and where legal reporting duties attach.

This chapter moves from the AML statutory framework into program design, reporting and recordkeeping, and the separate OFAC sanctions controls that firms must apply in practice.

In this section

• Regulatory Framework
  Review the Bank Secrecy Act, the USA PATRIOT Act, and the legal framework behind broker-dealer AML obligations.
• AML Program Requirements
  Understand CIP, customer due diligence, surveillance, and the core components of a broker-dealer AML program.
• Reporting and Recordkeeping
  Review CTRs, SARs, and the recordkeeping duties that support AML supervision and examination.
• OFAC and Sanctions Controls
  Understand OFAC screening, sanctions programs, and SDN-list controls within securities-firm compliance.