The Compliance Heat Is On
Financial Planning (08/03) p.46; McGinnis, Steven K.

Financial planners should anticipate a greater level of scrutiny as they seek to comply with new regulatory mandates, this article says. The Financial Crimes Enforcement Network requires that securities investment advisors create an anti-money laundering program as mandated under the USA Patriot Act. Firms must also appoint an anti-money laundering officer who will oversee the compliance process. The Patriot Act also demands that firms adopt formal procedures for obtaining and inspecting client identification and for monitoring client transactions for suspicious activities. Failure to report suspicious activity to the government has resulted in fines and the permanent revocation of securities licenses.

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