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SIE: Trading & Settlement
SIE practice questionmediumBeneficial Ownership

FINRA requires broker-dealers to determine beneficial ownership of accounts for which reason?

  1. ATo avoid securities registration
  2. BTo recommend margin trading to all customers
  3. CTo comply with anti-money laundering regulations✓ Correct answer
  4. DTo set interest rates
Explanation

Why CTo comply with anti-money laundering regulations

Determining beneficial ownership helps comply with anti-money laundering regulations by identifying the real parties behind accounts. The other choices are unrelated.

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