SIE practice questionmediumBeneficial Ownership
FINRA requires broker-dealers to determine beneficial ownership of accounts for which reason?
- ATo avoid securities registration
- BTo recommend margin trading to all customers
- CTo comply with anti-money laundering regulations✓ Correct answer
- DTo set interest rates
Explanation
Why C — To 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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