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Series 7 practice questionmediumAccount Documentation — USA PATRIOT Act

Under the USA PATRIOT Act, broker-dealers are required to implement anti-money laundering (AML) programs. Which of the following is NOT typically a component of a firm's AML program?

  1. ADesignation of an AML compliance officer
  2. BOngoing employee training on AML procedures
  3. CGuaranteeing all customer accounts against losses✓ Correct answer
  4. DIndependent testing of the AML program
Explanation

Why C — Guaranteeing all customer accounts against losses

A broker-dealer's AML program under the USA PATRIOT Act must include: written policies and procedures, designation of an AML compliance officer, ongoing employee training, and independent testing (audit) of the program. Guaranteeing customer accounts against losses is not an AML requirement; it is unrelated to anti-money laundering compliance.

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