The SEC Enforcement of FinCEN Regulations, Bank Secrecy Act, and Anti-Money Laundering Act

Pending in Supreme Court is a matter of the Securities and Exchange Commission (SEC) ability to enforce the Department of Treasury FinCEN regulations. Warren Law Group is closely following certiorari before the Supreme Court from the Second Circuit where the SEC is asserting its jurisdiction to enforce the Bank Secrecy Act (BSA) and Anti-Money Laundering Act (AML)

Managing Partner and founder, Christopher Warren states, “The SEC is aggressively enforcing the Bank Secrecy Act and Anti-Money Laundering Act of 2020 by bootstrapping its enforcement authority under the exchange act record-keeping requirements, also codified in FINRA rule 4510. It appears the SEC is pushing a harsher interpretation of liability with more severe civil penalties than would be enforced against Broker-Dealers and Financial Institutions (such as a money services business or money transmitter business) by FinCEN.”

Thomas McCabe, Partner at WLG and former head of enforcement and compliance at the American Stock Exchange added, “The SEC’s standard is far more rigid than the U.S. Treasury Department’s FinCEN Bureau. Broker-Dealers and Financial Institutions should take affirmative action to reduce potential financial liability or FINRA and SEC enforcement actions by implementing AML processes into its KYC obligations.”

If you are a financial institution or broker-dealer make sure you have implemented proper procedures and policies to identify when a Suspicious Activity Report (SAR) is required pursuant to FinCEN. Proper Securities counsel should be retained to protect your business and assets in the event of an investigation.

If you have received a subpoena from the SEC, a request for information under FINRA rule 8210, or a Wells Notice from the SEC or FINRA, you should immediately contact the attorneys at Warren Law Group. Call (866) WLGROUP or email info@warren.law for a complimentary assessment.

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Warren Law Group

WLG provides legal representation to financial services professionals and business owners in regulatory and compliance matters, litigation, and securities.