Tennessee Department of Commerce and Insurance’s Post

In February 2024, #FinCEN proposed a rule requiring #investment advisers to comply with AML/CFT requirements under the Bank Secrecy Act (#BSA). This included implementing risk-based AML/CFT programs, reporting #suspiciousactivity to FinCEN, and meeting #recordkeeping requirements. However, at that time, #FinCEN did not propose a customer #identification program for investment advisers. The following #proposal complements the February rule. ✴ Earlier this week, #SEC and the #FinCEN jointly proposed a new rule. This rule mandates that SEC-registered investment advisers (#RIAs) and exempt reporting advisers (#ERAs) establish, document, and maintain written customer identification programs (#CIPs). ✴The aim is to strengthen the AML/CFT framework for the investment adviser sector and to prevent #illicit finance activity. ✴ The proposal requires RIAs and ERAs to implement reasonable procedures to #identify and #verify their customers' identities. ✴This rule would make it more difficult for #criminal, #corrupt, or #illicit actors to use #false identities to establish customer relationships with investment advisers for ML, TF, or other illicit activities. ✴Under the proposed rule, #RIAs and #ERAs must #establish, #document, and #maintain #CIPs appropriate for their size and business. ✴ These CIPs must include #risk-based procedures for #verifying customer identities before or after opening accounts. ✴ They must obtain certain identifying information, such as #name, date of birth or formation, address, and #identification number, and maintain records of this information. Customers would also be notified that their information is being requested for identity #verification purposes. ✴ The proposal aligns with #CIP requirements for other financial institutions, such as brokers, dealers in securities, and mutual funds. 👉 #SEC Chair Gary Gensler supports the proposed rule, stating it will make it harder for criminals to use false identities to access U.S. financial markets for illicit purposes. 👉 #FinCEN Director Andrea Gacki adds that the rule will help investment advisers better identify and prevent misuse by illicit actors. 👉 The proposal will be published on SEC.gov and in the Federal Register. The public comment period will remain open for 60 days following the Federal Register publication. #AntiMoneyLaundering #AMLRegulations #SEC #FinCEN #TerrorismFinancing #CustomerIdentificationProgram

The U.S. Securities and Exchange Commission (SEC) has taken enforcement action against 26 broker-dealers, investment advisers, and dually-registered firms for widespread violations in maintaining and preserving electronic communications. The charges highlight longstanding failures by these firms to comply with federal record-keeping requirements. https://lnkd.in/gaicbCQd #SEC #ecomms #enforcementaction #conductbreach #securitieslaws #compliance #offchannelcomms #investmentadvisorsact SteelEye VoxSmart

The U.S. Securities and Exchange Commission (SEC) has taken enforcement action against 26 broker-dealers, investment advisers, and dually-registered firms for widespread violations in maintaining and preserving electronic communications. The charges highlight longstanding failures by these firms to comply with federal record-keeping requirements. https://lnkd.in/gaicbCQd #SEC #ecomms #enforcementaction #conductbreach #securitieslaws #compliance #offchannelcomms #investmentadvisorsact SteelEye VoxSmart

The U.S. Securities and Exchange Commission (SEC) has taken enforcement action against 26 broker-dealers, investment advisers, and dually-registered firms for widespread violations in maintaining and preserving electronic communications. The charges highlight longstanding failures by these firms to comply with federal record-keeping requirements. https://lnkd.in/gaicbCQd #SEC #ecomms #enforcementaction #conductbreach #securitieslaws #compliance #offchannelcomms #investmentadvisorsact SteelEye VoxSmart

On August 14, the U.S. Securities and Exchange Commission (SEC) announced charges against 26 firms, including broker-dealers and investment advisers, for widespread recordkeeping failures. These violations have resulted in a total of $392.75 million in civil penalties. Key highlights: - Self-Reporting Benefits: Three firms that self-reported violations received reduced penalties. - Firms Penalized: Notable penalties include $50 million each for Ameriprise Financial Services, Edward Jones, LPL Financial, and Raymond James. - Off-Channel Communications: The charges stem from firms' use of unapproved communication methods, depriving the SEC of vital records during investigations. Stay updated with Global Regulatory Insights for the latest on financial regulations and enforcement actions. #SEC #Compliance #FinancialRegulation #GRI

**Addressing Integrity in Financial Advisory: A Reflective Perspective** In light of recent events surrounding a distinguished member of the financial advisory community, it's imperative we revisit the essence of ethical conduct within our industry. William Bravato, an advisor at Wells Fargo Clearing Services, faces serious allegations regarding unauthorized financial activities concerning a client’s capital. This situation underscores the critical importance of transparency and trust between clients and their financial advisors. It serves as a reminder to all in the financial services industry of our irreplaceable role in safeguarding client interests and ensuring every decision aligns with rigorous ethical standards. As we await further details and the results of thorough investigations, let us reaffirm our commitment to upholding the highest standards of conduct and rectitude in all our professional undertakings. For more detailed information, refer to the discussion at [Investment Fraud Lawyers](https://lnkd.in/e-MPb5ta). #Finance #Ethics #Investment #Advisory #Transparency https://lnkd.in/e-MPb5ta

Wealth Managers & Stockbrokers: Are You Ready for an unannounced visit from the Financial Conduct Authority (FCA)? On 8 November, the FCA wrote to CEOs in the Wealth Management & Stockbroking sector to outline their expectations of firms in the industry. Through more assertive supervision, the FCA will prioritise tackling financial crime and ensuring effective implementation of the Consumer Duty. With the promise of more unannounced visits and increased use of regulatory intervention, we recommend carefully considering your responsibilities, assessing your compliance frameworks and taking action before the FCA does. Learn more: https://lnkd.in/eY66_fSm #wealthmanagement #financialcrime #compliance

Do whistleblowers need to provide evidence that their company intended to retaliate against them for blowing the whistle to win their case? Not anymore. Huge news in Whistleblower world this week - the U.S. Supreme Court issued a unanimous watershed decision clarifying that the contributing factor standard in the Sarbanes-Oxley whistleblower protection statute does not require whistleblowers to bring specific proof of intent to court. The standard means what it is says - if the protected activity is a mere contributing factor, the whistleblower has enough evidence to win. In doing so, the Court reinstated a $2.6 million award, including nearly $1 million in damages, to a former UBS bank bond strategist named Trevor Murray, who had accused the company of firing him in retaliation for refusing to publish misleading research reports and complaining about being pressured to do so. The plaintiff worked in the mortgage securitization unit and accused the company of pressuring him to issue bogus, skewed research on commercial mortgage-backed securities more favorable to the bank's trading and underwriting operations. Two months after he allegedly refused, he was fired despite his excellent performance reviews. The takeaway for whistleblowers? If you see something, say something, and always call a lawyer as soon as possible. The takeaway for companies? Start treating whistleblower claims with the seriousness they deserve.⚖ #whistleblower #SCOTUS #update

🍁🍁🍁 Financial Frauds 🍁🍁🍁 Bernie Madoff is a name synonymous with one of the largest financial frauds in history. His Ponzi scheme, which defrauded thousands of investors out of billions of dollars, serves as a stark reminder of the importance of due diligence and ethical practices in finance. Madoff's scheme was elaborate, leveraging his reputation and the trust of investors to create the illusion of consistent returns. However, beneath the surface, it was a house of cards built on deceit. The fallout from his arrest in 2008 was immense, with many investors losing their life savings and trust in the financial system. Key Lessons from the Madoff Scandal: 🍁 Due Diligence is Crucial : Always conduct thorough research before investing. Verify the credentials and track record of fund managers and investment opportunities. 🍁 Transparency and Accountability : Financial institutions must prioritize transparency and hold themselves accountable to maintain investor trust. 🍁 Ethical Standards : Upholding high ethical standards is non-negotiable. The long-term consequences of unethical behavior can be devastating. 🍁 Regulatory Oversight : Robust regulatory frameworks and vigilant oversight are essential to prevent and detect fraudulent activities. Bernie Madoff's story is a cautionary tale, but it also underscores the need for vigilance, integrity, and continuous improvement in the financial sector. As we move forward, let's ensure we learn from the past and build a more transparent and trustworthy financial landscape. #Inspiration #Motivation #SuccessMindset #PersonalDevelopment #GoalSetting #Persistence #PositiveVibes #SelfImprovement #ProfessionalJourney #CareerAdvice #ProfessionalDevelopment #CareerGrowth #LeadershipSkills #Networking #Entrepreneurship #WorkLifeBalance #DigitalMarketing #BusinessStrategy #IndustryInsights #leadership #leader #management #employement #employees #health #jobs #job #world #consulting #business #technology #recruitment #finance #fintech #p2p #lending #funding #finance #wealth #wealthcreation #financialservices

Financial crime 💰👮♀️in wealth management has been flagged 🚩by the Financial Conduct Authority (FCA) as one of its supervisory priorities 🎯, and a ‘key harm’ firms in the sector must proactively help prevent ⛔️. Under the threat of regulatory penalty ❌️, wealth managers need a comprehensive strategy 💡 to protect themselves and their business🔓. My report for thewealthnet 👇 https://lnkd.in/esX96BSe