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?
- ADesignation of an AML compliance officer
- BOngoing employee training on AML procedures
- CGuaranteeing all customer accounts against losses✓ Correct answer
- 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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