Anti-Money Laundering (AML) Program
Compliance and Supervisory Procedures
Atlanta Gold & Silver, LLC acknowledges its responsibility as a small firm to
establish an Anti- Money Laundering (AML) Program as required by the Bank
Secrecy Act (BSA) as well as its’ procedural regulations and FINRA Rule 3310
(AML Compliance Program).
Atlanta Gold & Silver, LLC adheres to existing requirements for a responsible AML
program.
Atlanta Gold & Silver, LLC has implemented a “risk-based” program, meaning that
our AML policies, procedures and internal controls are specific to the risks of money
laundering specific to Atlanta Gold & Silver, LLC.
It is the policy of Atlanta Gold & Silver, LLC to prohibit and actively prevent money
laundering and any activity that facilitates money laundering or the funding of
terrorist or criminal activities by complying with all applicable requirements under
the Bank Secrecy Act (BSA) and its implementing regulations.
Money laundering is generally defined as acts designed to conceal or disguise the
true origins of criminally derived proceeds so that the proceeds appear to have
derived from legitimate origins or constitute legitimate assets.
Generally, money laundering occurs in three stages.
1. Cash first enters the financial system at the “placement” stage, where the cash generated from
criminal activities is converted into monetary instruments, such as money orders or traveler’s
checks, or deposited into accounts at financial institutions.
2. At the “layering” stage, the funds are transferred or moved into other accounts or other financial
institutions to further separate the money from its criminal origin.
3. At the “integration” stage, the funds are reintroduced into the economy and used to purchase
legitimate assets or to fund other criminal activities or legitimate businesses.
Terrorist financing may not involve the proceeds of criminal conduct, but instead
the attempt to hide either the origin of the funds or their intended use, which could
be for criminal purposes. Legitimate sources of funds are a key difference between
terrorist financiers and traditional criminal organizations.Atlanta Gold & Silver, LLC Anti-Money Laundering policies, procedures and
internal controls have been designed so as to ensure compliance with all applicable
BSA regulations, as well as FINRA rules and thus will be reviewed and updated on
a regular basis to ensure appropriate policies, procedures and internal controls are
in place to account for not only changes in regulations, but also changes in the
business of Atlanta Gold & Silver, LLC.
Atlanta Gold & Silver, LLC’s compliance person is responsible for analyzing each
order based on location and amount. Since Atlanta Gold & Silver, LLC requires a
bank account number on USD transactions. If Atlanta Gold & Silver, LLC deems a
transaction suspicious, we reserve the right to cancel the transaction.
Atlanta Gold & Silver, LLC has designated Danielle Dawkins-Osborne as its Anti-
Money Laundering Program Compliance Person (AML Compliance Person), with
full responsibility for the firm’s AML program. The company is signed up with
FinCEN as a Precious Metals Dealer. Danielle is qualified by experience, knowledge
and training within the precious metals industry.
The duties of the AML Compliance Person include monitoring the firm’s compliance
with AML guidelines; overseeing firm communication and training for all
employees, as well as looking over all transactions and maintaining email
conversations with as many clients as possible.
The AML Compliance Person will also ensure that Atlanta Gold & Silver,
LLC maintains all of the required AML records and will ensure that Suspicious
Activity Reports (SAR-SFs) are filed with the Financial Crimes Enforcement
Network (FinCEN) if appropriate. The AML Compliance Person is vested with full
responsibility and authority to enforce the firm’s AML program.
Atlanta Gold & Silver, LLC has provided FinCEN with contact information for the
AML Compliance Person, including: (1) name; (2) title; (3) mailing address; (4)
email address; (5) telephone number; and (6) facsimile number through the FinCEN
E-Filing System.
Atlanta Gold & Silver, LLC will promptly notify FinCEN of any change in this
information through the E-Filing system available at www.fincen.gov, and will
review, and if necessary update, this information each two years, as it currently
understands to be the requirement.
An annual review of FinCEN information will be conducted by Danielle and will be
completed with all necessary updates being provided no later than 17 business days
following the end of each calendar year. In addition, if there is any change to the
information, Danielle will update the information promptly, but in any event not
later than 30 days following the change.Pursuant to the BSA and its implementing regulations, financial institutions are
required to make certain searches of their records upon receiving an information
request from FinCEN. Atlanta Gold & Silver, LLC will require a subpoena to hand
over any customer information. Once received, the subpoena will have to be studied
by our legal team. This is in no way to subvert legal proceedings, but instead to
protect the privacy of our customers. Giving AML information to Federal Law
Enforcement Agencies and Other Financial Institutions is taken seriously by
Atlanta Gold & Silver, LLC pursuant to USA Patriot Act Section 314(a).
Atlanta Gold & Silver, LLC will respond to a Financial Crimes Enforcement
Network (FinCEN) request concerning accounts and transactions (a 314(a) Request)
by immediately searching our records to determine whether we maintain or have
maintained any account for, or have engaged in any transaction with, each
individual, entity or organization named in the 314(a) Request as outlined in the
Frequently Asked Questions (FAQ) located on FinCEN’s secure Web site.
We have come to understand that we have 14 days (unless otherwise specified by
FinCEN) from the transmission date of the request to respond to a 314(a) Request.
We will designate through the FinCEN E-Filing System one or more persons to be
the point of contact (POC) for 314(a) Requests and will promptly update the
information following any change in such information.
Unless otherwise stated in the 314(a) Request or specified by FinCEN, Atlanta Gold
& Silver, LLC is required to search those documents outlined in FinCEN’s FAQ.
If we find a match, Danielle will report it to FinCEN via FinCEN’s Web-based
314(a) E-Filing System within 14 days or within the time requested by FinCEN in
the request. If the search parameters differ from those mentioned above (for
example, if FinCEN limits the search to a geographic location), Danielle will
structure our search accordingly.
If Danielle searches our records and does not find a matching account or
transaction, then Danielle will reply to the 314(a) Request to impart this. We will
maintain documentation that we have performed the required search by printing a
search self-verification document from FinCEN’s 314(a) Secure Information Sharing
System confirming that Atlanta Gold & Silver, LLC has searched the 314(a) subject
information against your records OR maintaining a log showing the date of the
request, the number of accounts searched, the name of the individual conducting
the search and a notation of whether or not a match was found.
We will not disclose the fact that FinCEN has requested or obtained information
from us, except to the extent necessary to comply with the information request.
Danielle will review, maintain and implement procedures to protect the security
and confidentiality of requests from FinCEN similar to those procedures established
to satisfy the requirements of Section 501 of the Gramm-Leach-Bliley Act with
regard to the protection of customers’ nonpublic information.We will direct any questions we have about the 314(a) Request to the requesting
federal law enforcement agency as designated in the request.
Unless otherwise stated in the 314(a) Request, we will not be required to treat the
information request as continuing in nature, and we will not be required to treat
the periodic 314(a) Requests as a government provided list of suspected terrorists
for purposes of the customer identification and verification requirements.
National Security Letters
National Security Letters (NSLs) represent written investigative demands that may
be issued by the local Federal Bureau of Investigation and other federal government
authorities in the name of counterintelligence and counterterrorism investigations
to obtain, among other things, financial records of broker-dealers such as Atlanta
Gold & Silver, LLC.
NSLs are highly confidential. Atlanta Gold & Silver, LLC has policies and
procedures in place for processing and maintaining confidentiality of NSLs. Upon
receiving an NSL, Atlanta Gold & Silver, LLC could deem a transaction suspicious
and move towards filing a Suspicious Activity Report.
Grand juries reserve the right to issue subpoenas per investigative proceedings. The
receipt of a grand jury subpoena does not require the filing of a Suspicious Activity
Report, but will lead Atlanta Gold & Silver, LLC to re-assess transactions if Atlanta
Gold & Silver, LLC deems the subpoena pertains to a prior Atlanta Gold & Silver,
LLC customer. If we find suspicious activity, we will then file a Sar-SF in
accordance with the Sar-SF filing requirements. Grand Jury proceedings are
confidential, and a broker-dealer that receives a subpoena is prohibited from
directly or indirectly alerting the subject of the investigation about the existence of
the grand jury subpoena regarding their person, its contents or the information
used to reply to it. If you file a SAR-SF after receiving a grand jury subpoena, the
SAR-SF should not contain any reference to the receipt or existence of it. The Sar-
SF should provide detailed information about the facts and circumstances of the
detected suspicious activity
Voluntary Information Sharing With Other Financial Institutions Under USA
PATRIOT Act Section 314(b)
BSA regulations allow financial institutions to share information with other
financial institutions under the protection of a safe harbor if certain procedures are
followed. Atlanta Gold & Silver, LLC will not share its’ clients or users information
(anyone on the website at all) unless it is bound to do so by law.Checking the Office of Foreign Assets Control Listings
The Office of Foreign Assets Control ( OFAC) compliance is often performed in
conjunction with AML compliance, despite not being officially apart of BSA AML
procedures. OFAC, an office in the U.S. Treasury, administers and enforces
economic sanctions and embargoes based on U.S. foreign policy and national
security goals that target geographic regions and governments (e.g., Cuba, Sudan
and Syria), as well as individuals or entities that could be anywhere (e.g.,
international narcotics traffickers, foreign terrorists and proliferators of weapons of
mass destruction).
OFAC has a list of Specially Designated Nationals and Blocked Person (SDN list),
including names of companies and individuals connected with the sanctions targets.
US persons are prohibited from dealing with SDNs wherever they are located, and
all SDN assets must be blocked. OFAC’s programs change often, so Atlanta Gold &
Silver, LLC is dedicated to ensuring that its SDN list is current and that Atlanta
Gold & Silver, LLC has complete information regarding economic sanctions and
embargoes enforced by the OFAC affecting countries and parties before opening an
account and for existing accounts.
Customer Identification Program
Atlanta Gold & Silver, LLC is required to have and follow reasonable procedures to
document and verify the identity of its customers who open new accounts. These
procedures address the types of information the firm will collect from the customer
and how it will verify the customers’ identity. These procedures are required to
allow Atlanta Gold & Silver, LLC to collect from its’ customers information needed
to reasonably know a clients’ true identity.
Atlanta Gold & Silver, LLC requires knowing your true identity while doing
business.
Relevant legislation: FINRA Rule 2010 (Standards of Commercial Honor and
Principles of Trade), NASD Rules 2310 (Recommendations to Customers –
Suitability) and 3110 (Books and Records) and Securities Exchange Act of 1934
(Exchange Act) Rules 17a-3(a)(9) (Beneficial Ownership regarding Cash and Margin
Accounts) and 17a-3(a)(17) (Customer Accounts).
Atlanta Gold & Silver, LLC has established a documented and maintained
Customer Identification Program. We will collect certain customer identification
information from each customer opening an account, then utilize our risk-based
AML measures to verify the identity of each customer. A customer cannot receive
product without unveiling who they are via shipping methods, and via data
collected such as IPs through WordPress technology and/or bank account
information, reasonable belief can establish true identity.To be sure, however, Atlanta Gold & Silver, LLC does not open or maintain
“customer” accounts within the meaning of 31 CFR 103.122(a)(1)(i), in that we do
not establish formal relationships with “customers” for the purpose of effecting
transactions in securities nor do we plan to (Bitcoin legislation aside, we do not
foresee any scenario in which this plays out.)
Prior to opening an account, Atlanta Gold & Silver, LLC will collect the following
information for all accounts, if applicable, for any person, entity or organization that
is opening a new account and whose name is on the account:
(1) the name;
(2) an address, which will be a residential or business street address (for an
individual), an Army Post Office (APO) or Fleet Post Office (FPO) box number, or
residential or business street address of next of kin or another contact individual
(for an individual who does not have a residential or business street address), or a
principal place of business, local office, or other physical location (for a person other
than an individual); and
(3) a bank account number
(4) an IP
(5) a phone number
(6) an e-mail address
Customers Who Refuse to Provide Information
If a potential customer refuses to provide information described above when
request or appears to have intentionally provided misleading information, our firm
will not open a new account and, after considering the risks involved, consider
closing any existing account. In either case, our AML Compliance Person will be
notified so that we can determine whether we should report the situation to
FinCEN on a SAR-SF.
Verifying Information
Based on the risk, and to the extent reasonable and practicable, Atlanta Gold &
Silver, LLC will ensure that we have a reasonable belief that we know the true
identity of our customers by using risk-based procedures to verify and document the
accuracy of the information we get about our customers. Our Compliance person
will analyze the information we obtain to determine whether the information is
sufficient to form a reasonable belief that we know the true identity of the customer.
No items listed on Atlanta Gold & Silver, LLC can be received by any other person
than the name on our account, verified via the US Postal Service inregistered/insured mail boxes. Atlanta Gold & Silver, LLC cannot guarantee full
refund on returned items.
Customer identity will be obtained mainly through documentary means, non-
documentary means or both.
Appropriate documents for verifying the identity of customers include the following:
• For an individual, an unexpired government-issued identification evidencing
nationality or residence and bearing a photograph or similar safeguard, such as a
driver’s license or passport is required upon receipt of registered/insured mail.
• For a person other than an individual, documents showing the existence of the
entity, such as certified articles of incorporation, a government-issued business
license, a partnership agreement or a trust instrument.
We understand that we are not required to take steps to determine whether the
document that the customer has provided to us for identity verification has been
validly issued and that we may rely on a government-issued identification as
verification of a customer’s identity. If, however, we note that the document shows
some obvious form of fraud, we must consider that factor in determining whether
we can form a reasonable belief that we know the customer’s true identity.
We will use the following non-documentary methods of verifying identity:
• Independently verifying the customer’s identity through the comparison of
information provided by the customer with information obtained from incoming
funds (wire transfers, IPs), public database or other source [identify reporting
agency, database, etc.]
• Referencing reporting agencies or public forum. For Bitcoiners can be used to
collect identity verification.
We will use non-documentary methods of verification when:
(1) the customer is unable to present an unexpired government-issued identification
document with a photograph or other similar safeguard;
(2) the firm is unfamiliar with the documents the customer presents for
identification verification;
(3) the customer and firm do not have face-to-face contact; and
(4) there are other circumstances that increase the risk that the firm will be unable
to verify the true identity of the customer through documentary means.
We will verify the information within a reasonable time before or after the account
is opened or ordered is made. Depending on the nature of the account and requested
transactions, we may refuse to complete a transaction before we have verified the
information, or in some instances when we need more time, we may, pending
verification, restrict the types of transactions or dollar amount of transactions. If we
find suspicious information that indicates possible money laundering, terrorist
financing activity, or other suspicious activity, we will, after internal consultation
with the firm’s AML Compliance Person, file a SAR-SF in accordance withapplicable laws and regulations.
Atlanta Gold & Silver, LLC recognizes that the risk that we may not know the
customer’s true identity may be heightened for certain types of accounts, such as an
account opened in the name of a corporation, partnership or trust that is created or
conducts substantial business in a jurisdiction that has been designated by the U.S.
as a primary money laundering jurisdiction, a terrorist concern, or has been
designated as a non-cooperative country or territory. We will identify customers
that pose a heightened risk of not being properly identified.
Rule: 31 C.F.R. §103.122(b).
Lack of Verification
If Atlanta Gold & Silver, LLC cannot, in accordance with law, form a reasonable
belief that we know the true identity of a customer, we will do the following: (1) not
open an account; (2) impose terms under which a customer may conduct
transactions while we attempt to verify the customer’s identity; (3) close an account
after attempts to verify customer’s identity fail; and (4) determine whether it is
necessary to file a SAR-SF in accordance with applicable laws and regulations.
Rule: 31 C.F.R. §103.122(b)(2)(iii).
Bookkeeping
Atlanta Gold & Silver, LLC will document our verification, including all identifying
information provided by a customer, the methods used and results of verification,
and the resolution of any discrepancies identified in the verification process. We will
keep records containing a description of any document that we relied on to verify a
customer’s identity, noting the type of document, any identification number
contained in the document, the place of issuance, and if any, the date of issuance
and expiration date. With respect to non-documentary verification, we will retain
documents that describe the methods and the results of any measures we took to
verify the identity of a customer. We will also keep records containing a description
of the resolution of each substantive discrepancy discovered when verifying the
identifying information obtained. We will retain records of all identification
information for five years after the account has been closed; we will retain records
made about verification of the customer’s identity for five years after the record is
made.
Rule: 31 C.F.R. §103.122(b)(3).
Comparison with Government-Provided Lists of Terrorists
At such time as Atlanta Gold & Silver, LLC receives notice that a federal
government agency has issued a list of known or suspected terrorists and identified
the list as a list for CIP purposes, we will, within a reasonable period of time after
an account is opened (or earlier, if required by another federal law or regulation orfederal directive issued in connection with an applicable list), determine whether a
customer appears on any such list of known or suspected terrorists or terrorist
organizations issued by any federal government agency and designated as such by
Treasury in consultation with the federal functional regulators. We will follow all
federal directives issued in connection with such lists.
Atlanta Gold & Silver, LLC complies separately with OFAC rules prohibiting
transactions with certain foreign countries or their nationals.
Rule: 31 C.F.R. §103.122(b)(4).
Resources: NTM 02-21, page 6, n.24; 31 C.F.R. § 103.122.
Notice to Customers
Atlanta Gold & Silver, LLC will provide notice to customers that the firm is seeking
information from them to verify their identities, as required by federal law. We will
use the following method to provide notice to customers: Email, phone call.
To help the government fight the funding of terrorism and money laundering
activities, federal law requires institutions like Atlanta Gold & Silver, LLC to
obtain, verify, and record information that identifies each person who opens an
account. Atlanta Gold & Silver, LLC complies with this regulation.
What this means for a customer of Atlanta Gold & Silver, LLC: When you open an
account, we may ask for your name, address, date of birth and other information
that will allow us to identify you. We may also ask to see your driver’s license or
other identifying documents. Many of Atlanta Gold & Silver, LLC’s orders are not
substantial enough or constant so as to fit within the purview of money laundering
as current law currently stipulates.
Rule: 31 C.F.R. §103.122(b)(5).
Reliance on other firms.
Atlanta Gold & Silver, LLC does not foresee the need to verify information via other
financial firms. We do, however, reserve the right to seek public information in
order to verify customers (Social Media, forums)
Rule: 31 C.F.R. § 103.122(b)(6).
General Customer Due Diligence is fundamental to Atlanta Gold & Silver, LLC’s
strong AML compliance program. It is broader than the aforementioned CIP. The
CDD is not required by AML rules. It is however impossible, based on current law
to have a complete AML program without proper and ongoing due diligence.
CDD enables Atlanta Gold & Silver, LLC to evaluate the risk presented by each
customer and provides the firm with a baseline for evaluating customertransactions to determine whether the transactions are suspicious and need to be
reported. See NTM 02-21, page 7.
Atlanta Gold & Silver, LLC may deem some accounts to be of higher risk based on:
• customer’s actual or anticipated business activity;
• customer’s ownership structure;
• anticipated or actual volume and types of transactions;
• transactions involving high-risk jurisdictions.
Higher risk accounts should be subject to greater due diligence.
It is important to Atlanta Gold & Silver, LLC’s AML and SAR-SF reporting
program that we obtain sufficient information about each customer to allow us to
evaluate the risk presented by that customer and to detect and report suspicious
activity. When we open an account for a customer, the due diligence we perform
may be in addition to customer information obtained for purposes of our CIP.
We will take steps to obtain sufficient customer information to comply with our
suspicious activity reporting requirements. Such information should include
• the customer’s business;
• the customer’s anticipated account activity (both volume and type);
• the source of the customer’s funds.
For accounts that we have deemed to be higher risk, we will obtain the following
information
• the purpose of the account;
• the source of funds and wealth;
• the beneficial owners of the accounts;
• the customer’s (or beneficial owner’s) occupation or type of business;
• financial statements;
• banking references;
• domicile (where the customer’s business is organized);
• description of customer’s primary trade area and whether international
transactions are expected to be routine;
• description of the business operations and anticipated volume of trading;
• explanations for any changes in account activity.
We will also ensure that the customer information remains accurate by requesting
updated information quarterly.
Detecting and Closing Correspondent Accounts of Foreign Shell Banks
Financial firms might be prohibited from establishing, maintaining, administering
or managing correspondent accounts in the United States for foreign shell banks.
Broker-dealers also must take reasonable steps to ensure that any correspondent
account established, maintained, administered or managed by the broker-dealer in
the United States for a foreign bank is not being used by that foreign bank toindirectly provide banking services to a foreign shell bank. The BSA regulations
allow covered financial institutions to receive a safe harbor for compliance with
these requirements if they use the certification process described in the regulations.
A covered financial institution must obtain a certification from each foreign bank
for which it maintains a correspondent account “at least once every three years” to
maintain the safe harbor.
In the context above, “correspondent account” is an account established for a foreign
bank to receive deposits from, or to make payments or other disbursements on
behalf of, the foreign bank, or to handle other financial transactions related to a
such foreign bank.
Foreign shell banks are foreign banks without a physical presence in any country. A
“foreign bank” is any bank organized under foreign law or an agency, branch or
office of a bank located outside the U.S. The term does not include an agent, agency,
branch or office within the U.S. of a bank organized under foreign law.
The prohibition does not include foreign shell banks that are regulated affiliates.
Foreign shell banks that are regulated affiliates are affiliates of a depository
institution, credit union or foreign bank that maintains a physical presence in the
U.S., or a foreign country, and are subject to supervision by a banking authority in
the country regulating that affiliated depository institution, credit union or foreign
bank. Foreign branches of a U.S. broker-dealer are not subject to this requirement,
and “correspondent accounts” of foreign banks that are clearly established,
maintained, administered or managed only at foreign branches are not subject to
this regulation.
Atlanta Gold & Silver, LLC will identify foreign bank accounts and any such
account that is a correspondent account (any account that is established for a
foreign bank to receive deposits from, or to make payments or other disbursements
on behalf of, the foreign bank, or to handle other financial transactions related to
such foreign bank) for foreign shell banks. Upon finding or suspecting such
accounts, firm employees will notify the AML Compliance Person, who will
terminate any verified correspondent account in the United States for a foreign
shell bank. We will also terminate any correspondent account that we have
determined is not maintained by a foreign shell bank but is being used to provide
services to such a shell bank. We will exercise caution regarding liquidating
positions in such accounts and take reasonable steps to ensure that no new
positions are established in these accounts during the termination period. We will
terminate any correspondent account for which we have not obtained required
information.
Rules: 31 C.F.R. §§103.175, 103.177.Certifications
Atlanta Gold & Silver, LLC will require our foreign bank account holders to identify
the owners of the foreign bank if it is not publicly traded, the name and street
address of a person who resides in the United States and is authorized and has
agreed to act as agent for acceptance of legal process, and an assurance that the
foreign bank is not a shell bank nor is it facilitating activity of a shell bank. With
knowledge of this information the foreign bank may submit the Certification
Regarding Correspondent Accounts for Foreign Banks provided in the BSA
regulations. We will re-certify when we believe that the information is no longer
accurate or at least once every three years.
Rules: 31 C.F.R. §§ 103.175, 103.177.
Resources: 31 C.F.R., Pt. 103, Subpt. I, App. A (Certification Regarding
Correspondent Accounts for Foreign Banks); FIN-2006-G003: Frequently Asked
Questions: Foreign Bank Recertification under 31 C.F.R. § 103.77 (February 3,
2006).
Recordkeeping for Correspondent Accounts for Foreign Banks
Atlanta Gold & Silver, LLC must keep records identifying the owners of foreign
banks with U.S. correspondent accounts and the name and address of the U.S.
agent for service of legal process for those banks.
Therefore, Atlanta Gold & Silver, LLC will keep records identifying the owners of
foreign banks with U.S. correspondent accounts and the name and address of the
U.S. agent for service of legal process for those banks.
Rules: 31 C.F.R. §§ 103.175, 103.177.
Summons or Subpoena of Foreign Bank Records; Termination of Correspondent
Relationships with Foreign Bank
The Secretary of the Treasury or the Attorney General of the United States may
issue a summons or subpoena to any foreign bank that maintains a correspondent
account in the United States and may request records related to such correspondent
account, including records maintained outside of the United States relating to the
deposit of funds into the foreign bank. The summons or subpoena may be served on
the foreign bank in the United States if the foreign bank has a representative in the
United States, or in a foreign country pursuant to any mutual legal assistance
treaty, multilateral agreement or other request for international law enforcement
assistance.
A financial firm that maintains a correspondent account for a foreign bank in the
United States may need to maintain records in the United States identifying the
owners of such foreign bank whose shares are not publicly traded and the name and
street address of a person who resides in the United States and is authorized, andhas agreed to be an agent to accept service of legal process for the foreign bank’s
correspondent account. Upon receipt of a written request from a federal law
enforcement officer for this information, the broker-dealer must provide such
information to the requesting officer no later than seven days after receipt of the
request.
Additionally, such broker-dealer must terminate any correspondent relationship
with a foreign bank not later than 10 business days after receipt of written notice
from the Secretary of the Treasury or the Attorney General of the United States
that the foreign bank has failed to: (1) comply with a summons or subpoena issued
by these two entities; or (2) initiate proceedings in a United States court contesting
such summons or subpoena.
Hereafter we describe Atlanta Gold & Silver, LLC’s procedures for handling
requests from federal law enforcement officers for the information described above,
and if necessary, terminating a correspondent relationship with a foreign bank that
has failed to comply or contest a summons or subpoena issued by the Secretary of
the Treasury or the Attorney General of the United States.
To reiterate, When Atlanta Gold & Silver, LLC receives a written request from a
federal law enforcement officer for information identifying the non-publicly traded
owners of any foreign bank for which we maintain a correspondent account in the
United States and/or the name and address of a person residing in the United
States who is an agent to accept service of legal process for a foreign bank’s
correspondent account, we will provide that information to the requesting officer not
later than seven days after receipt of the request.
Atlanta Gold & Silver, LLC will close, within 10 days, any correspondent account
for a foreign bank that we learn from FinCEN or the Department of Justice has
failed to comply with a summons or subpoena issued by the Secretary of the
Treasury or the Attorney General of the United States or has failed to contest such
a summons or subpoena. We will scrutinize any correspondent account activity
during that 10-day period to ensure that any suspicious activity is appropriately
reported and to ensure that no new positions are established in these correspondent
accounts. We will notify our client of the changes to their account and allow
withdrawals, unless instructed otherwise via court order.
Rule: 31 C.F.R. § 103.185.
Due Diligence and Enhanced Due Diligence Requirements for Correspondent
Accounts of Foreign Financial Institutions
The BSA, as amended by Section 312 of the USA PATRIOT Act, and the rules
promulgated thereunder require, in part, that Atlanta Gold & Silver, LLC, as part
of its anti-money laundering program, establish a due diligence program that
includes appropriate, specific, risk-based and, where necessary, enhanced policies,procedures and controls that are reasonably designed to enable the firm to detect
and report, on an ongoing basis, any known or suspected money laundering activity
conducted through or involving any correspondent account established, maintained,
administered or managed by the firm for a foreign financial institution.
A foreign financial institution is:
(1) a foreign bank;
(2) any branch or office located outside the United States of a broker-dealer; futures
commission merchant or introducing broker; or open-end mutual fund company;
(3) any other person organized under foreign law (other than a branch or office of
such person in the United States) that, if it were located in the United States, would
be a broker-dealer; futures commission merchant or introducing broker; or open-end
mutual fund company; and
(4) any person organized under foreign law (other than a branch or office of such
person in the United States) that is engaged in the business of, and is readily
identifiable as: (a) a currency dealer or exchanger; or (b) a money transmitter.
A person, however, is not “engaged in the business” of a currency dealer, a currency
exchanger or a money transmitter if such transactions are merely incidental to the
person’s business.
A “correspondent account” is defined in this context as any account established for a
foreign financial institution to receive deposits from, or to make payments or other
disbursement on behalf of, the foreign financial institution, or to handle other
financial transactions for the foreign financial institution. “Account” is defined as
any formal relationship established with a broker or dealer in securities to provide
regular services to effect transactions in securities, including but not limited to, the
purchase or sale of securities and securities loaned and borrowed activity, and to
hold securities or other assets for safekeeping or as collateral.
For Atlanta Gold & Silver, LLC, correspondent accounts established on behalf of
foreign financial institutions include, but are not limited to: (1) accounts to
purchase, sell, lend, or otherwise hold securities, including securities repurchase
programs; (2) prime brokerage accounts that clear and settle securities transactions
for clients; (3) accounts for trading foreign currency; (4) custody accounts for holding
securities or other assets in connection with securities transactions as collateral;
and (5) over-the-counter derivative contracts.
On January 30, 2008, FinCEN issued guidance clarifying that covered financial
institutions (which includes U.S. broker-dealers) presenting a negotiable
instrument for payment to a foreign financial institution on which the instrument is
drawn would not, by itself, be establishing a correspondent account between the
covered financial institution and the paying institution. See FinCEN Guidance on
Application of Correspondent Account Rules to the Presentation of Negotiable
Instruments Received by a Covered Financial Institution for Payment (1/30/08).And so, Atlanta Gold & Silver, LLC will conduct an inquiry to determine whether a
foreign financial institution has a correspondent account established, maintained,
administered or managed by the firm.
If we have correspondent accounts for foreign financial institutions, we will assess
the money laundering risk posed, based on a consideration of relevant risk factors.
We can apply all or a subset of these risk factors depending on the nature of the
foreign financial institutions and the relative money laundering risk posed by such
institutions.
The relevant risk factors can include:
• the nature of the foreign financial institution’s business and the markets it serves;
• the type, purpose and anticipated activity of such correspondent account;
• the nature and duration of the firm’s relationship with the foreign financial
institution and its affiliates;
• the anti-money laundering and supervisory regime of the jurisdiction that issued
the foreign financial institution’s charter or license and, to the extent reasonably
available, the jurisdiction in which any company that is an owner of the foreign
financial institution is incorporated or chartered; and
• information known or reasonably available to the covered financial institution
about the foreign financial institution’s anti-money laundering record.
In addition, our due diligence program will consider additional factors that have not
been enumerated above when assessing foreign financial institutions that pose a
higher risk of money laundering.
We will apply our risk-based due diligence procedures and controls to each financial
foreign institution correspondent account on an ongoing basis. This includes
periodically reviewing the activity of each foreign financial institution
correspondent sufficient to ensure whether the nature and volume of account
activity is generally consistent with the information regarding the purpose and
expected account activity and to ensure that the firm can adequately identify
suspicious transactions. Ordinarily, we will not conduct this periodic review by
scrutinizing every transaction taking place within the account. One procedure we
may use instead is to use any account profiles for our correspondent accounts (to the
extent we maintain these) that we ordinarily use to anticipate how the account
might be used and the expected volume of activity to help establish baselines for
detecting unusual activity.
If no report is filed, it is because Atlanta Gold & Silver, LLC have reviewed our
accounts and we do not have, nor do we intend to open or maintain, correspondent
accounts for foreign financial institutions.
Rules: 31 C.F.R. §§ 103.175, 103.176.
Resources: FIN-2006-G009 Application of the Regulations Requiring Special Due
Diligence Programs for Certain Foreign Accounts to the Securities and Futures
Industries (May 10, 2006).Enhanced Due Diligence
The BSA, as amended by Section 312 of the USA PATRIOT Act, and the rules
promulgated thereunder require, in part, that a firm’s due diligence program for
correspondent accounts of foreign financial institutions include the performance of
enhanced due diligence on correspondent accounts for any foreign bank that
operates under:
(1) an offshore banking license;
(2) a banking license issued by a foreign country that has been designated as non-
cooperative with international anti-money laundering principles or procedures by
an intergovernmental group or organization of which the United States is a member
and with which designation the U.S. representative to the group or organization
concurs; or
(3) a banking license issued by a foreign country that has been designated by the
Secretary of the Treasury as warranting special measures due to money laundering
concerns.
Atlanta Gold & Silver, LLC will assess any correspondent accounts for foreign
financial institutions to determine whether they are correspondent accounts that
have been established, maintained, administered or managed for any foreign bank
that operates under:
(1) an offshore banking license;
(2) a banking license issued by a foreign country that has been designated as non-
cooperative with international anti-money laundering principles or procedures by
an intergovernmental group or organization of which the United States is a member
and with which designation the U.S. representative to the group or organization
concurs; or
(3) a banking license issued by a foreign country that has been designated by the
Secretary of the Treasury as warranting special measures due to money laundering
concerns.
If we determine that we have any correspondent accounts for these specified foreign
banks, we will perform enhanced due diligence on these correspondent accounts.
The enhanced due diligence that we will perform for each correspondent account
will include, at a minimum, procedures to take reasonable steps to:
(1) conduct enhanced scrutiny of the correspondent account to guard against money
laundering and to identify and report any suspicious transactions. Such scrutiny
will not only reflect the risk assessment that is described in Section 8.a. above, but
will also include procedures to, as appropriate:
(i) obtain (e.g., using a questionnaire) and consider information related to the
foreign bank’s AML program to assess the extent to which the foreign bank’s
correspondent account may expose us to any risk of money laundering;
(ii) monitor transactions to, from or through the correspondent account in a manner
reasonably designed to detect money laundering and suspicious activity (this
monitoring may be conducted manually or electronically and may be done on an
individual account basis or by product activity); and(iii) obtain information from the foreign bank about the identity of any person with
authority to direct transactions through any correspondent account that is a
payable-through account (a correspondent account maintained for a foreign bank
through which the foreign bank permits its customer to engage, either directly or
through a subaccount, in banking activities) and the sources and beneficial owners
of funds or other assets in the payable-through account.
(2) determine whether the foreign bank maintains correspondent accounts for other
foreign banks that enable those other foreign banks to gain access to the
correspondent account under review and, if so, to take reasonable steps to obtain
information to assess and mitigate the money laundering risks associated with such
accounts, including, as appropriate, the identity of those other foreign banks; and
(3) if the foreign bank’s shares are not publicly traded, determine the identity of
each owner and the nature and extent of each owner’s ownership interest. We
understand that for purposes of determining a private foreign bank’s ownership, an
“owner” is any person who directly or indirectly owns, controls or has the power to
vote 10 percent or more of any class of securities of a foreign bank. We also
understand that members of the same family shall be considered one person.
Rules: 31 C.F.R. §§ 103.175, 103.176.
c. Special Procedures When Due Diligence or Enhanced Due Diligence Cannot Be
Performed
A firm must include procedures to follow in circumstances where the firm cannot
perform appropriate due diligence for a correspondent account of a foreign financial
institution or the enhanced due diligence that is required for correspondent
accounts for certain foreign banks.
Atlanta Gold & Silver, LLC, in the event there are circumstances in which we
cannot perform appropriate due diligence with respect to a correspondent account,
will determine, at a minimum, whether to refuse to open the account, suspend
transaction activity, file a SAR-SF, close the correspondent account and/or take
other appropriate action.
Rules: 31 C.F.R. §§ 103.175, 103.176.
Due Diligence and Enhanced Due Diligence Requirements for Private Banking
Accounts/Senior Foreign Political Figures
Hereafter, Atlanta Gold & Silver, LLC describes its’ due diligence program for
“private banking” accounts for non-U.S. persons. Atlanta Gold & Silver, LLC must
have a due diligence program that is reasonably designed to detect and report any
known or suspected money laundering conducted through or involving any private
banking account maintained by or on behalf of a non-U.S. person, as well as the
existence of the proceeds of foreign corruption in any such account.
This requirement applies to all private banking accounts for non-U.S. persons,
regardless of when they were opened, per the United States Patriot Act.Accounts requested or maintained by or on behalf of “senior foreign political
figures,” which is defined below and includes their immediate family members and
close known associates, require enhanced scrutiny. Senior foreign political figures
are often referred to as “politically exposed persons” or “PEPs.”
A “private banking” account is an account (or any combination of accounts) that
requires a minimum aggregate deposit of $1,000,000, is established for one or more
individuals and is assigned to or administered or managed by, in whole or in part,
an officer, employee or agent of a financial institution acting as a liaison between
the financial institution and the direct or beneficial owner of the account.
A “senior foreign political figure” includes a current or former senior official in the
executive, legislative, administrative, military or judicial branches of a foreign
government (whether elected or not), a senior official of a major foreign political
party, or a senior executive of a foreign government-owned commercial enterprise; a
corporation, business, or other entity formed by or for the benefit of any such
individual; an immediate family member of such an individual; or any individual
widely and publicly known (or actually known by the firm) to be a close personal or
professional associate of such an individual.
To be sure, Atlanta Gold & Silver, LLC does not maintain private banking accounts
as we have no deposits, and so these regulations do not apply to our services. If
Atlanta Gold & Silver, LLC changes this, our policy will be revealed.
Rules: 31 C.F.R. §§ 103.175, 103.178.
Guidance on Enhanced Scrutiny for Transactions that May Involve the Proceeds of
Foreign Official Corruption.
Compliance with FinCEN’s Issuance of Special Measures Against Foreign
Jurisdictions, Financial Institutions or International Transactions of Primary
Money Laundering Concern:
Atlanta Gold & Silver, LLC will comply with the BSA, as amended by Section 311 of
the USA PATRIOT Act, which grants the Secretary of the Treasury the authority,
after finding that reasonable grounds exist for concluding that (1) a jurisdiction
outside of the United States; (2) one or more financial institutions operating outside
of the United States; (3) one or more classes of transactions within, or involving, a
jurisdiction outside of the United States; or (4) one or more types of accounts is of
“primary money laundering concern,” to require domestic financial institutions,
such as broker-dealers, to take certain “special measures” against the primary
money laundering concern. There is a special section on the FinCEN Web site where
all the Section 311 designations are listed. See Section 311 – Special Measures.
If FinCEN issues a final rule imposing a special measure against one or more
foreign jurisdictions or financial institutions, classes of international transactions ortypes of accounts deeming them to be of primary money laundering concern, Atlanta
Gold & Silver, LLC understands that we must read FinCEN’s final rule and follow
any prescriptions or prohibitions contained in that rule. For example, if the final
rule deems a certain bank and its subsidiaries (Specified Bank) to be of primary
money laundering concerns, a special measure may be a prohibition from opening or
maintaining a correspondent account in the United States for, or on behalf of, the
Specified Banks. In that case, we will take the following steps:
(1) Atlanta Gold & Silver, LLC will review our account records, including
correspondent account records, to ensure that our accountholders and
correspondent accountholders maintain no accounts directly for, or on behalf of, the
Specified Banks; and
(2) Atlanta Gold & Silver, LLC will apply due diligence procedures to our
correspondent accounts that are reasonably designed to guard against indirect use
of those accounts by the Specified Banks. Such due diligence may include:
• Notification to Correspondent Accountholders
• Identification of Indirect Use
We will take reasonable steps in order to identify any indirect use of our
correspondent accounts by the Specified Banks. We will determine if such indirect
use is occurring from transactional records that we maintain in the normal course of
business. We will take a risk-based approach when deciding what, if any, additional
due diligence measures we should adopt to guard against the indirect use of
correspondent accounts by the Specified Banks, based on risk factors such as the
type of services offered by, and geographic locations of, their correspondents.
We understand that we have an ongoing obligation to take reasonable steps to
identify all correspondent account services our correspondent accountholders may
directly or indirectly provide to the Specified Banks.
Rules: 31 C.F.R. §§ 103.186, 103.187, 103.188, 103.192, 103.193.
Resources: Section 311 – Special Measures (for information on all special measures
issued by FinCEN); NTM 07-17; NTM 06-
Monitoring Accounts for Suspicious Activity
Atlanta Gold & Silver, LLC must establish risk-based procedures reasonably
designed to detect and report suspicious transactions in order to comply with the
BSA and FINRA Rule 3310.
Atlanta Gold & Silver, LLC’s customers are located primarily in the United States.
The average transaction size is $1,000. We have identified our customer as between
25-34 years old, male. It is paramount that Atlanta Gold & Silver, LLC monitors its
customers based on our products and services identified risks.High risk accounts and transactions with Atlanta Gold & Silver, LLC are
considered those transactions of similar amounts with regularity. Any consistent
business in amount over $600. Atlanta Gold & Silver, LLC does not allow
transactions over 10k within 24 hours.
Atlanta Gold & Silver, LLC will monitor account activity for unusual size, volume,
pattern or type of transactions, taking into account risk factors and red flags that
are appropriate to our business. (Red flags are identified in Section 11.b. below.)
Rules: 31 C.F.R. §103.19; FINRA Rule 3310(a).
Resource: Final Rule Release: 67 Fed. Reg. 44048 (July 1, 2002) (“it is intended that
broker-dealers, and indeed every type of financial institution to which the
suspicious transaction reporting rules of 31 CFR part 103 apply, will evaluate
customer activity and relationships for money laundering risks, and design a
suspicious transaction monitoring program that is appropriate for the particular
broker-dealer in light of such risks”).
Emergency Notification to Law Enforcement by Telephone
In situations involving violations that require immediate attention, such as
terrorist financing or ongoing money laundering schemes, Atlanta Gold & Silver,
LLC will immediately call an appropriate law enforcement authority. If a customer
or company appears on OFAC’s SDN list, we will call the OFAC Hotline at (800)
540-6322. Other contact numbers we will use are: FinCEN’s Financial Institutions
Hotline ((866) 556-3974) (especially to report transactions relating to terrorist
activity), local U.S. Attorney’s office (insert contact number), local FBI office (insert
contact number) and local SEC office (insert contact number) (to voluntarily report
such violations to the SEC in addition to contacting the appropriate law
enforcement authority). If we notify the appropriate law enforcement authority of
any such activity, we must still file a timely SAR-SF.
Although we are not required to, in cases where we have filed a SAR-SF that may
require immediate attention by the SEC, we may contact the SEC via the SEC SAR
Alert Message Line at (202) 551-SARS (7277) to alert the SEC about the filing. We
understand that calling the SEC SAR Alert Message Line does not alleviate our
obligations to file a SAR-SF or notify an appropriate law enforcement authority.
Rule: 31 C.F.R. § 103.19.
Resources: FinCEN’s Web site; OFAC Web page; NTM 02-21; NTM 02-47.
Red Flags
Red flags that signal possible money laundering or terrorist financing include, but
are not limited to:Customers – Insufficient or Suspicious Information
• Provides unusual or suspicious identification documents that cannot be readily
verified.
• Reluctant to provide complete information about nature and purpose of business,
prior banking relationships, anticipated account activity, officers and directors or
business location.
• Refuses to identify a legitimate source for funds or information is false,
misleading or substantially incorrect.
• Background is questionable or differs from expectations based on business
activities.
• Customer with no discernable reason for using the firm’s service.
Efforts to Avoid Reporting and Recordkeeping
• Reluctant to provide information needed to file reports or fails to proceed with
transaction.
• Tries to persuade an employee not to file required reports or not to maintain
required records.
• “Structures” deposits, withdrawals or purchase of monetary instruments below a
certain amount to avoid reporting or recordkeeping requirements.
• Unusual concern with the firm’s compliance with government reporting
requirements and firm’s AML policies.
Certain Funds Transfer Activities
• Wire transfers to/from financial secrecy havens or high-risk geographic location
without an apparent business reason.
• Many small, incoming wire transfers or deposits made using checks and money
orders. Almost immediately withdrawn or wired out in manner inconsistent with
customer’s business or history. May indicate a Ponzi scheme.
• Wire activity that is unexplained, repetitive, unusually large or shows unusual
patterns or with no apparent business purpose.
Certain Deposits or Dispositions of Physical Certificates
• Physical certificate is titled differently than the account.
• Physical certificate does not bear a restrictive legend, but based on history of the
stock and/or volume of shares trading, it should have such a legend.
• Customer’s explanation of how he or she acquired the certificate does not make
sense or changes.
• Customer deposits the certificate with a request to journal the shares to multiple
accounts, or to sell or otherwise transfer ownership of the shares.
Certain Securities Transactions
• Customer engages in prearranged or other non-competitive trading, including
wash or cross trades of illiquid securities.
• Two or more accounts trade an illiquid stock suddenly and simultaneously.• Customer journals securities between unrelated accounts for no apparent
business reason.
• Customer has opened multiple accounts with the same beneficial owners or
controlling parties for no apparent business reason.
•. Customer transactions include a pattern of receiving stock in physical form or the
incoming transfer of shares, selling the position and wiring out proceeds.
• Customer’s trading patterns suggest that he or she may have inside information.
Transactions Involving Penny Stock Companies
• Company has no business, no revenues and no product.
• Company has experienced frequent or continuous changes in its business
structure.
• Officers or insiders of the issuer are associated with multiple penny stock issuers.
• Company undergoes frequent material changes in business strategy or its line of
business.
• Officers or insiders of the issuer have a history of securities violations.
• Company has not made disclosures in SEC or other regulatory filings.
• Company has been the subject of a prior trading suspension.
Transactions Involving Insurance Products
• Cancels an insurance contract and directs funds to a third party.
• Structures withdrawals of funds following deposits of insurance annuity checks
signaling an effort to avoid BSA reporting requirements.
• Rapidly withdraws funds shortly after a deposit of a large insurance check when
the purpose of the fund withdrawal cannot be determined.
• Cancels annuity products within the free look period which, although could be
legitimate, may signal a method of laundering funds if accompanied with other
suspicious indicia.
• Opens and closes accounts with one insurance company then reopens a new
account shortly thereafter with the same insurance company, each time with new
ownership information.
• Purchases an insurance product with no concern for investment objective or
performance.
• Purchases an insurance product with unknown or unverifiable sources of funds,
such as cash, official checks or sequentially numbered money orders.
Activity Inconsistent With Business
• Transactions patterns show a sudden change inconsistent with normal activities.
• Unusual transfers of funds or journal entries among accounts without any
apparent business purpose.
• Maintains multiple accounts, or maintains accounts in the names of family
members or corporate entities with no apparent business or other purpose.
• Appears to be acting as an agent for an undisclosed principal, but is reluctant to
provide information.
Other Suspicious Customer Activity
• Unexplained high level of account activity with very low levels of securities
transactions.• Funds deposits for purchase of a long-term investment followed shortly by a
request to liquidate the position and transfer the proceeds out of the account.
• Law enforcement subpoenas.
• Large numbers of securities transactions across a number of jurisdictions.
• Buying and selling securities with no purpose or in unusual circumstances (e.g.,
churning at customer’s request).
• Payment by third-party check or money transfer without an apparent connection
to the customer.
• Payments to third-party without apparent connection to customer.
• No concern regarding the cost of transactions or fees (i.e., surrender fees, higher
than necessary commissions, etc.).
c. Responding to Red Flags and Suspicious Activity
When an employee of Atlanta Gold & Silver, LLC detects any red flag, or other
activity that may be suspicious, he or she will notify management which will notify
the compliance person. An investigation with commence.
Under the direction of the AML Compliance Person, the firm will determine
whether or not and how to further investigate the matter. This may include
gathering additional information internally or from third-party sources, contacting
the government, freezing the account and/or filing a SAR-SF.
Suspicious Transactions and BSA Reporting
Atlanta Gold & Silver, LLC’s procedures for identifying any suspicious transactions
and determining if they need further investigation or warrant filing a SAR-SF.
These procedures should also cover the maintenance of SAR documentation and the
preservation of its confidentiality, and BSA reporting. Note that firms must exercise
due diligence in monitoring suspicious activity as the regulations require firms to
file a SAR-SF when they “know, suspect, or have reason to suspect” that
transactions involve certain suspicious activities.
Rule: 31 C.F.R. §103.19.
Filing a SAR-SF
Atlanta Gold & Silver, LLC will file SAR-SFs with FinCEN for any transactions
(including deposits and transfers) conducted or attempted by, at or through our firm
involving $5,000 or more of funds or assets (either individually or in the aggregate)
where we know, suspect or have reason to suspect:
(1) the transaction involves funds derived from illegal activity or is intended or
conducted in order to hide or disguise funds or assets derived from illegal activity as
part of a plan to violate or evade federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
(2) the transaction is designed, whether through structuring or otherwise, to evadeany requirements of the BSA regulations;
(3) the transaction has no business or apparent lawful purpose or is not the sort in
which the customer would normally be expected to engage, and after examining the
background, possible purpose of the transaction and other facts, we know of no
reasonable explanation for the transaction; or
(4) the transaction involves the use of the firm to facilitate criminal activity.
We will also file a SAR-SF and notify the appropriate law enforcement authority in
situations involving violations that require immediate attention, such as terrorist
financing or ongoing money laundering schemes. In addition, although we are not
required to, we may contact that SEC in cases where a SAR-SF we have filed may
require immediate attention by the SEC. See Section 11 for contact numbers. We
also understand that, even if we notify a regulator of a violation, unless it is
specifically covered by one of the exceptions in the SAR rule, we must file a SAR-SF
reporting the violation.
We may file a voluntary SAR-SF for any suspicious transaction that we believe is
relevant to the possible violation of any law or regulation but that is not required to
be reported by us under the SAR rule. It is our policy that all SAR-SFs will be
reported regularly to the Board of Directors and appropriate senior management,
with a clear reminder of the need to maintain the confidentiality of the SAR-SF.
Atlanta Gold & Silver, LLC will report suspicious transactions by completing a
SAR-SF, and we will collect and maintain supporting documentation as required by
the BSA regulations. We will file a SAR-SF no later than 30 calendar days after the
date of the initial detection of the facts that constitute a basis for filing a SAR-SF. If
no suspect is identified on the date of initial detection, we may delay filing the SAR-
SF for an additional 30 calendar days pending identification of a suspect, but in no
case will the reporting be delayed more than 60 calendar days after the date of
initial detection. The phrase “initial detection” does not mean the moment a
transaction is highlighted for review. The 30-day (or 60-day) period begins when an
appropriate review is conducted and a determination is made that the transaction
under review is “suspicious” within the meaning of the SAR requirements. A review
must be initiated promptly upon identification of unusual activity that warrants
investigation.
We will retain copies of any SAR-SF filed and the original or business record
equivalent of any supporting documentation for five years from the date of filing the
SAR-SF. We will identify and maintain supporting documentation and make such
information available to FinCEN, any other appropriate law enforcement agencies,
federal or state securities regulators or SROs upon request.
We will not notify any person involved in the transaction that the transaction has
been reported, except as permitted by the BSA regulations. We understand that
anyone who is subpoenaed or required to disclose a SAR-SF or the information
contained in the SAR-SF will, except where disclosure is requested by FinCEN, the
SEC, or another appropriate law enforcement or regulatory agency, or an SRO
registered with the SEC, decline to produce the SAR-SF or to provide anyinformation that would disclose that a SAR-SF was prepared or filed. We will notify
FinCEN of any such request and our response.
Rules: 31 C.F.R. §103.19, FINRA Rule 3310(a).
Resources: FinCEN’s Web site contains additional information, including
information on the BSA E-Filing System, the SAR-SF Form (fill-in version), and the
biannual SAR Activity Reviews and SAR Bulletins, which discuss trends in
suspicious reporting and give helpful tips. SAR Activity Review, Issue 10 (May
2006) (documentation of decision not to file a SAR; grand jury subpoenas and
suspicious activity reporting, and commencement of 30-day time period to file a
SAR); FinCEN SAR Narrative Guidance Package (11/2003), FinCEN Suggestions
for Addressing Common Errors Noted in Suspicious Activity Reporting
(10/10/2007);NTM 02-21; NTM 02-47.
Currency Transaction Reports
Atlanta Gold & Silver, LLC must file a currency transaction report (CTR) for each
deposit, withdrawal, exchange of currency, or other payment or transfer by, through
or to the firm that involves a transaction in currency of more than $10,000 or for
multiple transactions in currency of more than $10,000 when a financial institution
knows that the transactions are by or on behalf of the same person during any one
business day, unless the transaction is subject to certain exemptions. “Currency” is
defined as “coin and paper money of the United States or of any other country” that
is “customarily used and accepted as a medium of exchange in the country of
issuance.” Currency includes U.S. silver certificates, U.S. notes, Federal Reserve
notes, and official foreign bank notes that are customarily used and accepted as a
medium of exchange in a foreign country.
Atlanta Gold & Silver, LLC prohibits transactions involving currency and has the
following procedures to prevent such transactions: illegal and above $10,000. If we
discover such transactions have occurred, we will file with FinCEN CTRs for
currency transactions that exceed $10,000. Also, we will treat multiple transactions
involving currency as a single transaction for purposes of determining whether to
file a CTR if they total more than $10,000 and are made by or on behalf of the same
person during any one business day. We will use the CTR Form provided on
FinCEN’s Web site.
Rules: 31 C.F.R.§§103.11, 103.22.
Resource: BSA E-Filing System.
Currency and Monetary Instrument Transportation Reports
A currency and monetary instrument transportation report (CMIR) must be filed
whenever more than $10,000 in currency or other monetary instruments is
physically transported, mailed or shipped into or from the United States. A CMIRalso must be filed whenever a person receives more than $10,000 in currency or
other monetary instruments that has been physically transported, mailed or
shipped from outside the United States and a CMIR has not already been filed with
respect to the currency or other monetary instruments received. A CMIR is not
required to be filed by a securities broker-dealer mailing or shipping currency or
other monetary instruments through the postal service or by common carrier.
“Monetary instruments” include the following: currency (defined above); traveler’s
checks in any form; all negotiable instruments (including personal and business
checks, official bank checks, cashier’s checks, third-party checks, promissory notes
and money orders) that are either in bearer form, endorsed without restriction,
made out to a fictitious payee or otherwise in such form that title passes upon
delivery; incomplete negotiable instruments that are signed but omit the payee’s
name; and securities or stock in bearer form or otherwise.
Atlanta Gold & Silver, LLC prohibits both the receipt of currency or other monetary
instruments that have been transported, mailed or shipped to us from outside of the
United States, and the physical transportation, mailing or shipment of currency or
other monetary instruments by any means other than through the postal service or
by common carrier. We will file a CMIR with the Commissioner of Customs if we
discover that we have received or caused or attempted to receive from outside of the
U.S. currency or other monetary instruments in an aggregate amount exceeding
$10,000 at one time (on one calendar day or, if for the purposes of evading reporting
requirements, on one or more days). We will also file a CMIR if we discover that we
have physically transported, mailed or shipped or caused or attempted to physically
transport, mail or ship by any means other than through the postal service or by
common carrier currency or other monetary instruments of more than $10,000 at
one time (on one calendar day or, if for the purpose of evading the reporting
requirements, on one or more days). We will use the CMIR Form provided on
FinCEN’s Web site.
Rules: 31 C.F.R. §§103.11, 103.23.
Foreign Bank and Financial Accounts Reports
The regulations under the BSA require broker-dealers to report and keep records
related to any financial interest in, or signature authority over, a bank account,
securities account or other financial account that the firm has in a foreign country
in which the aggregate value of any accounts exceed $10,000. Foreign bank and
financial accounts reports (FBARs) must be filed with the Commissioner of the IRS
on or before June 30th of each calendar year for the previous year in which such
accounts exist.
Atlanta Gold & Silver, LLC does not maintain such accounts.
Monetary Instrument Purchases
No financial institution may issue or sell a bank check or draft, cashier’s check,money order or traveler’s check for $3,000 to $10,000 inclusive in currency unless it
obtains and records certain information when issuing or selling one or more of these
instruments to any individual purchaser. A financial institution issuing or selling
one or more of these instruments to any individual purchaser in excess of $10,000
will also need to file a CTR. See Section 12.b.
When we issue or sell a bank check or draft, cashier’s check, money order or
traveler’s check in the amounts of $3,000 to $10,000 inclusive, we will maintain
records of the following information:
(i) (A) the name of the purchaser;
(B) the date of purchase;
(C) the type(s) of instrument(s) purchased;
(D) the serial number(s) of each of the instrument(s) purchased; and
(E) the amount in dollars of each of the instrument(s) purchased.
(ii) In addition, we must verify that the individual is a deposit accountholder or
must verify the individual’s identity. Verification may be either through a signature
card or other file or record provided the deposit accountholder’s name and address
were verified previously and that information was recorded on the signature card or
other file or record; or by examination of a document which is normally acceptable
as a means of identification when cashing checks for non-depositors and which
contains the name and address of the purchaser. If the deposit accountholder’s
identity has not been verified previously, we shall verify the deposit accountholder’s
identity by examination of a document which is normally acceptable within the
community as a means of identification when cashing checks for non-depositors and
which contains the name and address of the purchaser, and shall record the specific
identifying information (e.g., driver’s license number and state of issuance).
(2) If the purchaser does not have a deposit account with us:
(i) (A) the name and address of the purchaser;
(B) the Social Security number of the purchaser, or if the purchaser is an alien and
does not have a Social Security number, the alien identification number;
(C) the date of birth of the purchaser;
(D) the date of purchase;
(E) the type(s) of instrument(s) purchased;
(F) the serial number(s) of the instrument(s) purchased; and
(G) the amount in dollars of each of the instrument(s) purchased.
(ii) In addition, we shall verify the purchaser’s name and address by examination of
a document which is normally acceptable within the community as a means of
identification when cashing checks for non-depositors and which contains the name
and address of the purchaser, and shall record the specific identifying information
(e.g., driver’s license number and state of issuance).
(b) Contemporaneous purchases of the same or different types of instruments
totaling $3,000 or more shall be treated as one purchase. Multiple purchases during
one business day totaling $3,000 or more shall be treated as one purchase if an
individual employee, director, officer or partner of the Atlanta Gold & Silver, LLC
has knowledge that these purchases have occurred.(c) We shall keep records required to be kept for a period of five years, and such
records shall be made available to the federal and state authorities or SROs upon
request at any time.
Rule: 31 C.F.R. § 103.29. See also 31 C.F.R. 103.22(b).
Resources: 52 Fed. Reg. 52250 (October 17, 1994) (Final Rule Amendments to BSA
Regulations Relating to Identification Required to Purchase Bank Checks and
Drafts, Cashier’s Checks, Money Orders, and Traveler’s Checks).
Funds Transmittals of $3,000 or More Under the Travel Rule
When the transmitter’s financial institution deals in funds of $3,000 or more, we
will retain either the original or a copy (e.g., microfilm, electronic record) of the
transmittal order. We will also record on the transmittal order the following
information: (1) the name and address of the transmitter; (2) if the payment is
ordered from an account, the account number; (3) the amount of the transmittal
order; (4) the execution date of the transmittal order; and (5) the identity of the
recipient’s financial institution. In addition, we will include on the transmittal order
as many of the following items of information as are received with the transmittal
order: (1) the name and address of the recipient; (2) the account number of the
recipient; (3) any other specific identifier of the recipient; and (4) any form relating
to the transmittal of funds that is completed or signed by the person placing the
transmittal order.
We will also verify the identity of the person placing the transmittal order (if we are
the transmitting firm), provided the transmittal order is placed in person and the
transmitter is not an established customer of the firm (i.e., a customer of the firm
who has not previously maintained an account with us or for whom we have not
obtained and maintained a file with the customer’s name, address, taxpayer
identification number, or, if none, alien identification number or passport number
and country of issuance). If a transmitter or recipient is conducting business in
person, we will obtain: (1) the person’s name and address; (2) the type of
identification reviewed and the number of the identification document (e.g., driver’s
license); and (3) the person’s taxpayer identification number (e.g., Social Security or
employer identification number) or, if none, alien identification number or passport
number and country of issuance, or a notation in the record the lack thereof. If a
transmitter or recipient is not conducting business in person, we shall obtain the
person’s name, address, and a copy or record of the method of payment (e.g., check
or credit card transaction). In the case of transmitters only, we shall also obtain the
transmitter’s taxpayer identification number (e.g., Social Security or employer
identification number) or, if none, alien identification number or passport number
and country of issuance, or a notation in the record of the lack thereof. In the case of
recipients only, we shall obtain the name and address of the person to which the
transmittal was sent.
Rule: 31 C.F.R. §103.33(f) and (g).AML Recordkeeping
Responsibility for Required AML Records and SAR-SF Filing
Your firm must establish procedures to maintain all applicable AML program
records and reviews.
Our AML Compliance Person and his or her designee will be responsible for
ensuring that AML records are maintained properly, and that SAR-SFs are filed as
required.
In addition, as part of our AML program, Atlanta Gold & Silver, LLC will create
and maintain SAR-SFs, CTRs, CMIRs, FBARs, and relevant documentation on
customer identity and verification (See Section 5 above) and funds transmittals.
Atlanta Gold & Silver, LLC will maintain SAR-SFs and their accompanying
documentation for at least five years. We will keep other documents according to
existing BSA and other recordkeeping requirements, including certain SEC rules
that require six-year retention periods (e.g., Exchange Act Rule 17a-4(a) requiring
firms to preserve for a period of not less than six years, all records required to be
retained by Exchange Act Rule 17a-3(a)(1)-(3), (a)(5), and (a)(21)-(22) and Exchange
Act Rule 17a-4(e)(5) requiring firms to retain for six years account record
information required pursuant to Exchange Act Rule 17a-3(a)(17)).
Rules: 31 C.F.R. § 103.38, Exchange Act Rule 17a-8 (requiring registered broker-
dealers subject to the Currency and Foreign Transactions Reporting Act of 1970 to
comply with the BSA regulations regarding reporting, recordkeeping and record
retention requirements), FINRA Rule 3310.
SAR-SF Maintenance and Confidentiality
Describe your firm’s retention and confidentiality requirements for SAR-SFs.
We will hold SAR-SFs and any supporting documentation confidential. We will not
inform anyone outside of FinCEN, the SEC, an SRO registered with the SEC or
other appropriate law enforcement or regulatory agency about a SAR-SF. We will
refuse any subpoena requests for SAR-SFs or for information that would disclose
that a SAR-SF has been prepared or filed and immediately notify FinCEN of any
such subpoena requests that we receive. See Section 11 for contact numbers. We
will segregate SAR-SF filings and copies of supporting documentation from other
firm books and records to avoid disclosing SAR-SF filings. Our AML Compliance
Person will handle all subpoenas or other requests for SAR-SFs. We may share
information with another financial institution about suspicious transactions in
order to determine whether we will jointly file a SAR according to the provisions of
Section 3.d. In cases in which we file a joint SAR for a transaction that has been
handled both by us and another financial institution, both financial institutions will
maintain a copy of the filed SAR.Rules: 31 C.F.R. §103.19(e); 67 Fed. Reg. 44048, 44054 (July 1, 2002).
Resources: NTM 02-47.
Additional Records
In general, this regulation does not apply to the type of business conducted by
Atlanta Gold & Silver, LLC
Training Programs
Atlanta Gold & Silver, LLC will develop ongoing employee training under the
leadership of the AML Compliance Person and senior management. Our training
will occur on at least an annual basis. It will be based on our firm’s size, its
customer base, and its resources and be updated as necessary to reflect any new
developments in the law.
Our training will include, at a minimum: (1) how to identify red flags and signs of
money laundering that arise during the course of the employees’ duties; (2) what to
do once the risk is identified (including how, when and to whom to escalate unusual
customer activity or other red flags for analysis and, where appropriate, the filing of
SAR-SFs); (3) what employees’ roles are in the firm’s compliance efforts and how to
perform them; (4) the firm’s record retention policy; and (5) the disciplinary
consequences (including civil and criminal penalties) for non-compliance with the
BSA.
We will develop training in our firm, or contract for it. Delivery of the training may
include educational pamphlets, videos, intranet systems, in-person lectures and
explanatory memos. We will maintain records to show the persons trained, the
dates of training and the subject matter of their training.
We will review our operations to see if certain employees, such as those in
compliance, margin and corporate security, require specialized additional training.
Our written procedures will be updated to reflect any such changes.
Rule: FINRA Rule 3310.
Resources: See NTM 02-21, FinCEN SAR Narrative Guidance Package (11/2003),
FinCEN Suggestions for Addressing Common Errors Noted in Suspicious Activity
Reporting (10/10/2007).
Program to Independently Test AML Program
The testing of our AML program will be performed at least annually (on a calendar
year basis) by an independent third party. We will evaluate the qualifications of the
independent third party to ensure they have a working knowledge of applicable
requirements under the BSA and its implementing regulations. Independent testing
will be performed more frequently if circumstances warrant.
Evaluation and ReportingAfter we have completed the independent testing, staff will report its findings to
senior management. We will promptly address each of the resulting
recommendations and keep a record of how each noted deficiency was resolved.
Rules: 31 C.F.R. § 103.120; FINRA Rule 3310.
Monitoring Employee Conduct and Accounts
Atlanta Gold & Silver, LLC will subject employee accounts to the same AML
procedures as customer accounts, under the supervision of the AML Compliance
Person. We will also review the AML performance of supervisors, as part of their
annual performance review. The AML Compliance Person’s accounts will be
reviewed by Andre Osborne.
Rules: 31 C.F.R. §§ 103.19, 103.120; FINRA Rule 3310.
Confidential Reporting of AML Non-Compliance
Employees will promptly report any potential violations of Atlanta Gold & Silver,
LLC’s AML compliance program to the AML Compliance Person, unless the
violations implicate the AML Compliance Person, in which case the employee shall
report to Andre Osborne. Such reports will be confidential, and the employee will
suffer no retaliation for making them.
Rules: 31 C.F.R. § 103.120; FINRA Rule 3310.
Monetary Instrument Purchases
No financial institution may issue or sell a bank check or draft, cashier’s check,
money order or traveler’s check for $3,000 to $10,000 inclusive in currency unless it
obtains and records certain information when issuing or selling one or more of these
instruments to any individual purchaser. A financial institution issuing or selling
one or more of these instruments to any individual purchaser in excess of $10,000
will also need to file a CTR. See Section 12.b.
When Atlanta Gold & Silver, LLC issues or sells a bank check or draft, cashier’s
check, money order or traveler’s check in the amounts of $3,000 to $10,000
inclusive, we will maintain records of the following information:
(a) (1) If the purchaser has a deposit account with us:
(i) (A) the name of the purchaser;
(B) the date of purchase;
(C) the type(s) of instrument(s) purchased;
(D) the serial number(s) of each of the instrument(s) purchased; and
(E) the amount in dollars of each of the instrument(s) purchased.
(ii) In addition, we must verify that the individual is a deposit accountholder or
must verify the individual’s identity. Verification may be either through a signature
card or other file or record provided the deposit accountholder’s name and addresswere verified previously and that information was recorded on the signature card or
other file or record; or by examination of a document which is normally acceptable
as a means of identification when cashing checks for non-depositors and which
contains the name and address of the purchaser. If the deposit accountholder’s
identity has not been verified previously, we shall verify the deposit accountholder’s
identity by examination of a document which is normally acceptable within the
community as a means of identification when cashing checks for non-depositors and
which contains the name and address of the purchaser, and shall record the specific
identifying information (e.g., driver’s license number and state of issuance).
(2) If the purchaser does not have a deposit account with us:
(i) (A) the name and address of the purchaser;
(B) the Social Security number of the purchaser, or if the purchaser is an alien and
does not have a Social Security number, the alien identification number;
(C) the date of birth of the purchaser;
(D) the date of purchase;
(E) the type(s) of instrument(s) purchased;
(F) the serial number(s) of the instrument(s) purchased; and
(G) the amount in dollars of each of the instrument(s) purchased.
(ii) In addition, we shall verify the purchaser’s name and address by examination of
a document which is normally acceptable within the community as a means of
identification when cashing checks for non-depositors and which contains the name
and address of the purchaser, and shall record the specific identifying information
(e.g., driver’s license number and state of issuance).
(b) Contemporaneous purchases of the same or different types of instruments
totaling $3,000 or more shall be treated as one purchase. Multiple purchases during
one business day totaling $3,000 or more shall be treated as one purchase if an
individual employee, director, officer or partner of the [Name of Firm] has
knowledge that these purchases have occurred.
(c) We shall keep records required to be kept for a period of five years, and such
records shall be made available to the federal and state authorities or SROs upon
request at any time.
Rule: 31 C.F.R. § 103.29. See also 31 C.F.R. 103.22(b).
Resources: 52 Fed. Reg. 52250 (October 17, 1994) (Final Rule Amendments to BSA
Regulations Relating to Identification Required to Purchase Bank Checks and
Drafts, Cashier’s Checks, Money Orders, and Traveler’s Checks).
Funds Transmittals of $3,000 or More Under the Travel Rule
When we are the transmitter’s financial institution in funds of $3,000 or more, we
will retain either the original or a copy (e.g., microfilm, electronic record) of the
transmittal order. We will also record on the transmittal order the following
information: (1) the name and address of the transmitter; (2) if the payment is
ordered from an account, the account number; (3) the amount of the transmittal
order; (4) the execution date of the transmittal order; and (5) the identity of the
recipient’s financial institution. In addition, we will include on the transmittal orderas many of the following items of information as are received with the transmittal
order: (1) the name and address of the recipient; (2) the account number of the
recipient; (3) any other specific identifier of the recipient; and (4) any form relating
to the transmittal of funds that is completed or signed by the person placing the
transmittal order.
AML Recordkeeping
a. Responsibility for Required AML Records and SAR-SF Filing
Your firm must establish procedures to maintain all applicable AML program
records and reviews.
Atlanta Gold & Silver, LLC’s AML Compliance Person and his or her designee will
be responsible for ensuring that AML records are maintained properly and that
SAR-SFs are filed as required.
In addition, as part of our AML program, our firm will create and maintain SAR-
SFs, CTRs, CMIRs, FBARs, and relevant documentation on customer identity and
verification (See Section 5 above) and funds transmittals. We will maintain SAR-
SFs and their accompanying documentation for at least five years. We will keep
other documents according to existing BSA and other recordkeeping requirements,
including certain SEC rules that require six-year retention periods (e.g., Exchange
Act Rule 17a-4(a) requiring firms to preserve for a period of not less than six years,
all records required to be retained by Exchange Act Rule 17a-3(a)(1)-(3), (a)(5), and
(a)(21)-(22) and Exchange Act Rule 17a-4(e)(5) requiring firms to retain for six years
account record information required pursuant to Exchange Act Rule 17a-3(a)(17)).
Rules: 31 C.F.R. § 103.38, Exchange Act Rule 17a-8 (requiring registered broker-
dealers subject to the Currency and Foreign Transactions Reporting Act of 1970 to
comply with the BSA regulations regarding reporting, recordkeeping and record
retention requirements), FINRA Rule 3310.
SAR-SF Maintenance and Confidentiality
Atlanta Gold & Silver, LLC will hold SAR-SFs and any supporting documentation
confidential. We will not inform anyone outside of FinCEN, the SEC, an SRO
registered with the SEC or other appropriate law enforcement or regulatory agency
about a SAR-SF. We will refuse any subpoena requests for SAR-SFs or for
information that would disclose that a SAR-SF has been prepared or filed and
immediately notify FinCEN of any such subpoena requests that we receive. See
Section 11 for contact numbers. We will segregate SAR-SF filings and copies of
supporting documentation from other firm books and records to avoid disclosing
SAR-SF filings. Our AML Compliance Person will handle all subpoenas or other
requests for SAR-SFs. We may share information with another financial institution
about suspicious transactions in order to determine whether we will jointly file a
SAR according to the provisions of Section 3.d. In cases in which we file a joint SAR
for a transaction that has been handled both by us and another financial
institution, both financial institutions will maintain a copy of the filed SAR.
Rules: 31 C.F.R. §103.19(e); 67 Fed. Reg. 44048, 44054 (July 1, 2002).Resources: NTM 02-47.
c. Additional Records
Atlanta Gold & Silver, LLC is required by the BSA to retain either an original or a
microfilm copy or some other form of copy of certain records. 31 C.F.R. §§ 103.33
and 103.35(b).
Atlanta Gold & Silver, LLC shall retain either the original or a microfilm or other
copy or reproduction of each of the following:
• A record of each extension of credit in an amount in excess of $10,000, except an
extension of credit secured by an interest in real property. The record shall contain
the name and address of the person to whom the extension of credit is made, the
amount thereof, the nature or purpose thereof and the date thereof;
• A record of each advice, request or instruction received or given regarding any
transaction resulting (or intended to result and later canceled if such a record is
normally made) in the transfer of currency or other monetary instruments, funds,
checks, investment securities or credit, of more than $10,000 to or from any person,
account or place outside the U.S.;
• A record of each advice, request or instruction given to another financial
institution (which includes broker-dealers) or other person located within or without
the U.S., regarding a transaction intended to result in the transfer of funds, or of
currency, other monetary instruments, checks, investment securities or credit, of
more than $10,000 to a person, account or place outside the U.S.;
• Each document granting signature or trading authority over each customer’s
account;
• Each record described in Exchange Act Rule 17a-3(a): (1) (blotters), (2) (ledgers for
assets and liabilities, income, and expense and capital accounts), (3) (ledgers for
cash and margin accounts), (4) (securities log), (5) (ledgers for securities in transfer,
dividends and interest received, and securities borrowed and loaned), (6) (order
tickets), (7) (purchase and sale tickets), (8) (confirms), and (9) (identity of owners of
cash and margin accounts);
• A record of each remittance or transfer of funds, or of currency, checks, other
monetary instruments, investment securities or credit, of more than $10,000 to a
person, account or place, outside the U.S.; and
• A record of each receipt of currency, other monetary instruments, checks or
investment securities and of each transfer of funds or credit, of more than $10,000
received on any one occasion directly and not through a domestic financial
institution, from any person, account or place outside the U.S.
Rules: 31 C.F.R. §§ 103.33, 103.35(b).
14. Clearing/Introducing Firm Relationships
Atlanta Gold & Silver, LLC will work closely with our clearing firms to detect
money laundering. We will exchange information, records, data and exception
reports as necessary to comply with AML laws. Both our firm and our clearing firm
have filed (and kept updated) the necessary annual certifications for such
information sharing, which can be found on FinCEN’s Web site. As a generalmatter, we will obtain and use the following exception reports offered by our
clearing firm in order to monitor customer activity and we will provide our clearing
firm with proper customer identification and due diligence information as required
to successfully monitor customer transactions. We have discussed how each firm
will apportion customer and transaction functions and how we will share
information and set forth our understanding in a written document. We understand
that the apportionment of functions will not relieve either of us from our
independent obligation to comply with AML laws, except as specifically allowed
under the BSA and its implementing regulations.
Rules: 31 CFR 103.110; FINRA Rule 3310, NASD Rule 3230.
Resources: FIN-2006-G003: Frequently Asked Questions: Foreign Bank
Recertification under 31 C.F.R. § 103.77 (February 3, 2006).
Training Programs
Our training will include, at a minimum: (1) how to identify red flags and signs of
money laundering that arise during the course of the employees’ duties; (2) what to
do once the risk is identified (including how, when and to whom to escalate unusual
customer activity or other red flags for analysis and, where appropriate, the filing of
SAR-SFs); (3) what employees’ roles are in the firm’s compliance efforts and how to
perform them; (4) the firm’s record retention policy; and (5) the disciplinary
consequences (including civil and criminal penalties) for non-compliance with the
BSA.
We will develop training in our firm, or contract for it. Delivery of the training may
include educational pamphlets, videos, intranet systems, in-person lectures and
explanatory memos. Currently our training program is: We will maintain records to
show the persons trained, the dates of training and the subject matter of their
training.
We will review our operations to see if certain employees, such as those in
compliance, margin and corporate security, require specialized additional training.
Our written procedures will be updated to reflect any such changes.
Rule: FINRA Rule 3310.
Resources: See NTM 02-21, FinCEN SAR Narrative Guidance Package (11/2003),
FinCEN Suggestions for Addressing Common Errors Noted in Suspicious Activity
Reporting (10/10/2007).
16. Program to Independently Test AML Program
a. Staffing
The testing of our AML program will be performed at least annually (on a calendar
year basis). We will evaluate the qualifications of the independent third party to
ensure they have a working knowledge of applicable requirements under the BSA
and its implementing regulations.
Rules: 31 C.F.R. §§ 103.19, 103.120; FINRA Rule 3310.
18. Confidential Reporting of AML Non-ComplianceDescribe how you ensure that employees who report suspected violations of AML
compliance are protected from retaliation.
Employees will promptly report any potential violations of the firm’s AML
compliance program to the AML Compliance Person, unless the violations implicate
the AML Compliance Person, in which case the employee shall report to Andre
Osborne. Such reports will be confidential, and the employee will suffer no
retaliation for making them.
Rules: 31 C.F.R. § 103.120; FINRA Rule 3310.
Senior Manager Approval
Senior management has approved this AML compliance program in writing as
reasonably designed to achieve and monitor our firm’s ongoing compliance with the
requirements of the BSA and the implementing regulations under it.
Rules: 31 C.F.R. § 103.120; FINRA Rule 3310.