This slide deck was prepared as a fictional compliance project. It contains helpful information from FINRA for broker/dealers on the importance of knowing your customer, anti-money laundering, and how the suitability rule should be applied.
Know More About KYC and Money Laundering Procedure by DHFLDHFL
Do you understand KYC and Anti money laundering procedures completely? Why KYC and AML norms are followed by all banks and housing finance companies? Know more about KYC, anti-money laundering procedures and many other processes followed by banks and housing finance companies to know their customers better.
Temaswiss' Integrated Key Risk Controls (IKRC) best-practice design for Commercial Banking KYC and AML Transactions Monitoring.
- Commoditised Consulting & FSI Advisory packages.
- Tailored to your data & process realities.
- Budget- & Time-bound.
Even after the long permitting process Altos Escondidos SA has been following all international Banking laws in KYC ( Know your Client ). Altos Escondidos SA has declined several JV partner and funding offers from Far- East and Latin America as Altos Escondidos SA has a very tight policy on "proof of funds" and " Source of funds " in compliance with ALL International Banking laws.
Know More About KYC and Money Laundering Procedure by DHFLDHFL
Do you understand KYC and Anti money laundering procedures completely? Why KYC and AML norms are followed by all banks and housing finance companies? Know more about KYC, anti-money laundering procedures and many other processes followed by banks and housing finance companies to know their customers better.
Temaswiss' Integrated Key Risk Controls (IKRC) best-practice design for Commercial Banking KYC and AML Transactions Monitoring.
- Commoditised Consulting & FSI Advisory packages.
- Tailored to your data & process realities.
- Budget- & Time-bound.
Even after the long permitting process Altos Escondidos SA has been following all international Banking laws in KYC ( Know your Client ). Altos Escondidos SA has declined several JV partner and funding offers from Far- East and Latin America as Altos Escondidos SA has a very tight policy on "proof of funds" and " Source of funds " in compliance with ALL International Banking laws.
Startup Basics: Legal, Business, and Financing StrategiesRoger Royse
Visit our website rroyselaw.com for more resources on developing successful startups. Royse Law Firm has extensive experience helping startups in the Silicon Valley become successful by setting them on the right track from the beginning.
Crowdfinance -101 (Series: Crypto, Crowdfunding & Other Crazy Concepts)Financial Poise
What is the “crowd” in Crowdfinance? What does the crowd thus buy and by what means and modes? And why should the crowd do this rather than put its money to work otherwise? What are the old (and continuing) modes for marketing and selling private securities? What is it like to purchase private securities from on-line portals? How are risks of fraud and mistake allocated there? Do on-line portals help get the rest of us in on unicorns in utero? How are equity securities purchased by the crowd turned into money? Is there a secondary market for private securities? Should ICOs be understood as crowdfinance by other means?
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/crowdfinance-101-2021/
Travel fraud kyc as fraud tool masha cilliers 210217Masha Cilliers
Leveraging KYC and Authentication technology for fighting fraud - fraud management techniques for retailers, airlines, online travel agents, hotels and other merchants. Looking at the tools and how they can fit with fraud management strategy.
All clients are required to provide up-to-date identification details and apprise the company in any changes or modification. The Client must hand over current the following identification information, complete name, current residence, a document or proof of previous, history of online transaction and e-mail address.
Crowdfunding and Other Innovative Private Fundraising Optionsideatoipo
Raising money for your startup via traditional channels can be a challenge. The advent of crowdfunding and other innovative private funding options for entrepreneurs has democratized the fundraising landscape.
The private fundraising environment has dramatically changed in recent years as a result of new technologies, laws and business models. In addition to traditional private placements, the private fundraising marketplace now includes internet portals, publicly solicited accredited-only financings and crowdsourced investment funds.
The speaker will discuss new sources of private financing and the consequent business and legal issues including:
•Non-solicited private placements of securities under Rule 506(b) of Regulation D;
•Publicly solicited accredited-only offerings of securities under Rule 506(c) of Regulation D;
•Regulation of investment advisers and broker- dealers;
•Reg CF and Reg A+ crowdfinancing
• Conducting an ICO (Initial Coin Offering).
and more!
Startup Basics: Legal, Business, and Financing StrategiesRoger Royse
Visit our website rroyselaw.com for more resources on developing successful startups. Royse Law Firm has extensive experience helping startups in the Silicon Valley become successful by setting them on the right track from the beginning.
Crowdfinance -101 (Series: Crypto, Crowdfunding & Other Crazy Concepts)Financial Poise
What is the “crowd” in Crowdfinance? What does the crowd thus buy and by what means and modes? And why should the crowd do this rather than put its money to work otherwise? What are the old (and continuing) modes for marketing and selling private securities? What is it like to purchase private securities from on-line portals? How are risks of fraud and mistake allocated there? Do on-line portals help get the rest of us in on unicorns in utero? How are equity securities purchased by the crowd turned into money? Is there a secondary market for private securities? Should ICOs be understood as crowdfinance by other means?
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/crowdfinance-101-2021/
Travel fraud kyc as fraud tool masha cilliers 210217Masha Cilliers
Leveraging KYC and Authentication technology for fighting fraud - fraud management techniques for retailers, airlines, online travel agents, hotels and other merchants. Looking at the tools and how they can fit with fraud management strategy.
All clients are required to provide up-to-date identification details and apprise the company in any changes or modification. The Client must hand over current the following identification information, complete name, current residence, a document or proof of previous, history of online transaction and e-mail address.
Crowdfunding and Other Innovative Private Fundraising Optionsideatoipo
Raising money for your startup via traditional channels can be a challenge. The advent of crowdfunding and other innovative private funding options for entrepreneurs has democratized the fundraising landscape.
The private fundraising environment has dramatically changed in recent years as a result of new technologies, laws and business models. In addition to traditional private placements, the private fundraising marketplace now includes internet portals, publicly solicited accredited-only financings and crowdsourced investment funds.
The speaker will discuss new sources of private financing and the consequent business and legal issues including:
•Non-solicited private placements of securities under Rule 506(b) of Regulation D;
•Publicly solicited accredited-only offerings of securities under Rule 506(c) of Regulation D;
•Regulation of investment advisers and broker- dealers;
•Reg CF and Reg A+ crowdfinancing
• Conducting an ICO (Initial Coin Offering).
and more!
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2021
See more at https://www.financialpoise.com/webinars/
Auditing Principles for college students. Audit Risk, Business Risk, Information Risk, Assurance, Auditing system, System process, Stages audit, External Auditors, Auditors Responsibility, Auditors independence, Auditors due care, professional skepticism, audit purpose, attestation, Financial reporting, Attestations, Assurance services, Audit services, Express an opinion, Reasonable assurance, Engagement planning, Types of fraud, Frauds, Employee fraud, Advance Business Consulting, jose cintron, mba4help.com, Auditing Principles for college students. Audit Risk, Business Risk, Information Risk, Assurance, Auditing system, System process, Stages audit, External Auditors, Auditors Responsibility, Auditors independence, Auditors due care, professional skepticism, audit purpose, attestation, Financial reporting, Attestations, Assurance services, Audit services, Express an opinion, Reasonable assurance, Engagement planning, Types of fraud, Frauds, Employee fraud, Advance Business Consulting, jose cintron, mba4help.com
Dodd-Frank Compliance and Technology Summer Meeting 2013Jeffrey C.Y. Li
Atlas Communications Technology recently co-sponsored the Dodd-Frank Compliance and Technology Summer Meeting. The presentation was an introduction to the complexities of the Dodd-Frank Wall Street Reform and Consumer Protection Act, what firms need to do to bring themselves into compliance, and the technology that can help enterprises meet the stringent demands of the act.
For more information about this conference, or to learn about our Fall meeting in September featuring one of the authors of the act, Congressman Jim Himes, please call 1-855-Dodd Frank (1-855-363-3372) for any questions, or if you wish to talk to one of our presenters today to talk about taking the next steps towards Dodd-Frank Compliance
Atlas Presentation 2013 07-09 dodd-frank summer meeting v1-0 (for online)
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How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
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Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
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Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
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INTRODUCTION
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KYC - Know Your Costumer and the Importance of Suitability
1. KYC – KNOW YOUR
CUSTOMER and SUITABILITY
THE WHAT, WHO, WHEN, HOW, AND WHY
ITS ADHERENCE IS CRITICAL
2. KYC – WHAT IS IT
FINRA rule 2090 requires that all firms use “reasonable diligence” in regard to
opening and maintenance of every account, to know the “essential facts” concerning
every customer – KNOW YOUR CUSTOMER
What are “essential facts”
Fact are considered essential when they are required to:
(a) effectively service the customer’s account,
(b) act in accordance with any special handling instructions for the account,
(c) understand the authority of each person acting on behalf of the customer, and
(d) comply with applicable laws, regulations, and rules.
3. KYC – WHO DOES IT APPLY TO
Obligation applies to all clients
New customers and
Existing customers
4. KYC – WHEN DOES IT APPLY
Obligation arises at the beginning of the customer-broker
relationship.
This does not depend on whether the broker has made a
recommendation.
The rule does not specifically address orders, supervision or
account opening.
5. KYC – THE PROCESS
KYC is an on-going process for prudent practices
As a firms we have compliance systems to make sure brokers or associated
persons are always aware of who and what their clients are:
It is the broker’s duty to:
(a) Update customer information records at reasonable intervals
(b) Maintain proper records of their clients
(c) Monitor and check unusually large cash transactions, especially those that
are out of character with the client’s history
(d) Comply with applicable laws, regulations, and rules.
6. KYC – STAGES KYC WILL BE CARRIED OUT
KYC will be carried out at the following stages:
(a)Opening new account
(b)Opening subsequent accounts while KYC documents have not been submitted
(c)When there are changes to signatories, mandate holders, and beneficial owners
(d)When AML concerns are triggered
7. AML – ANTI-MONEY LAUNDERING
The Bank Secrecy Act, among other things, requires financial institutions, including broker-
dealers, to develop and implement AML compliance programs. FINRA Rule 3310 sets the
standards on which this firm created its AML compliance program:
What is Money Laundering?
Money laundering is the process by which large amounts of illegally obtained money (from
drug trafficking, terrorist activities and other serious crimes) is given the appearance of
having originated from a legitimate source
8. AML – UNDERSTANDING THE PROCESS
Placement: First deposits are placed into the financial system, usually the deposits are
broken up into smaller amounts in an attempt to avoid detection. Breaking up the deposit
like this, with the intention to avoid having to report it to the Department of the Treasury, is
called structuring. And it’s illegal.
Layering: The second step involves carrying out complex financial transactions to
camouflage the illegal source of the cash typically by the use of placement and extraction
over and over again, using varying amounts each time, to make tracing transactions as hard
as possible.
Integrations: Now that the money is part of the financial system, it is removed as “clean
money”.
9. AML – ANTI-MONEY LAUNDERING
Brokers must adhere to the AML requirements on every client and must be aware and report any
of the following activities to the compliance department
Federal regulations require an broker to file a Suspicious Activity Report (SAR) when
(a) A transaction (or attempted transaction) of more than $5,000 takes place and the broker
suspects that money laundering or other illegal activity is involved, the transaction is an
attempt to avoid Bank Secrecy Act (BSA) regulations, or the trans-action isn’t one this customer
would usually engage in
(b) A criminal violation occurs and an insider is suspected
(c) A criminal violation of $5,000 or more occurs and the broker can identify the suspect
(d) A criminal violation of $25,000 occurs, even if the broker can’t identify the suspect
10. AML - BEST PRACTICES BY BROKERS
Customer Identification Program (CIP): collection, verification and record keeping of customer
identification information and screening of customers against lists of known criminals.
Basic Customer Due Diligence (“CDD”) is information obtained for all customers to verify the
identity of a customer and asses the risks associated with that customer.
Enhanced Due Diligence (“EDD”) is additional information collected for higher-risk customers to
provide a deeper understanding of customer activity to mitigate associated risks.
Customer risk assessments can be used to determine which level of due diligence to apply (CDD
v. EDD).
11. SUITABILITY
FINRA Rule 2111 requires, in part, that a broker-dealer or associated
person:
“have a reasonable basis to believe that a recommended transaction or
investment strategy involving a security or securities is suitable for the
customer, based on the information obtained through the reasonable
diligence of the [firm] or associated person to ascertain the customer’s
investment profile.”
12. SUITABILITY – 3 MAIN OBLIGATIONS
Reasonable-basis Suitability - a broker must perform reasonable diligence
to understand the nature of the recommended security or investment
strategy involving a security or securities, as well as the potential risks and
rewards, and determine whether the recommendation is suitable for at
least some investors based on that understanding
Customer-specific Suitability - a broker must have a reasonable basis to
believe that a recommendation of a security or investment strategy
involving a security or securities is suitable for the particular customer
based on the customer’s investment profile); and
Quantitative Suitability - a broker who has control over a customer account
must have a reasonable basis to believe that a series of recommended
securities transactions are not excessive.
13. SUITABILITY – ONE RULE AT A TIME
Reasonable-basis Suitability - a broker must:
(a)Perform reasonable diligence to understand the potential risks and
rewards,
(b)Determine whether the recommendation is suitable for at least some
investors based on that understanding
Reasonable diligence vary depending on the risks associated with the
securities or investment strategies. The lack of such an understanding when
recommending a security or strategy violates the suitability rule.
14. SUITABILITY – ONE RULE AT A TIME
Customer-specific Suitability - a broker must:
(a)have a reasonable basis to believe that a recommendation of a security
or investment strategy involving a security or securities is suitable for
the particular customer based on the customer’s investment profile
Our compliance program mandates that customers must fill out an
investment profile (IP) at the initial application process and it must
be updated on a yearly basis or any time a material event in our
customer’s life requires it.
15. SUITABILITY – ONE RULE AT A TIME
Customer-specific Suitability – Investment Profiles
The IP must include the customer’s:
(a) Age and investment time horizon
(b) Financial situation and needs
(c) Other investments;
(d) Tax status
(e) Investment objectives including
(a) might include generating income
(b) funding retirement, buying a home
(c) preserving wealth or market speculation;
(f) Investment experience;
(g) Risk tolerance
(h) Marital status
(i) Any other relevant information that will help the broker make suitable decisions
16. SUITABILITY – ONE RULE AT A TIME
Quantitative Suitability - a broker who has control over a customer account
must have a reasonable basis to believe that a series of recommended
securities transactions are not excessive.
Brokers who have actual or de facto control over a customer account to must have a reasonable basis for
believing that a series of recommended transactions, even if suitable when viewed in isolation, are not
excessive and unsuitable for the customer when taken together in light of the customer's investment profile, as
delineated in Rule 2111(a).
Excessive Activity factors are often seen as turnover rate, the cost-equity ratio, and the use of in-and-out
trading in a customer's account may provide a basis for a finding that a member or associated person has
violated the quantitative suitability obligation.
17. SUITABILITY – CONSIDERATIONS
One of the most common claims made by a customer against a brokerage
firm and/or account executive is that a particular investment or investment
strategy is unsuitable for the client. While this concept is rudimentary,
many issues relating to the theory of suitability are not that easy to discern.
Broker’s must always consider their client’s needs, age in relation to
amount of risk that they can tolerate, employment and years they working
years the clien has, their liquidity needs, their ability to understand the
complexity of the broker’s investment recommendations, and any other
factors that will enable the client to better make a decision.
18. POP QUIZ
A 75 year old mother of 4 children and grandmother of 13 recently lost her
husband. She has a portfolio with the firm totaling $3.8M. Her husband was
a successful broker his entire life and was heavily invested in mortgage-
backed securities, asset-backed securities, collateralized mortgage
obligations even into his 70’s. Should her investments be reevaluated in
light of her new circumstances?
A couple marries soon after he receives a JD degree. She has her master’s
degree in social work. Both are working and are interested in opening an
investment account for their ‘future’. What information would you want to
know? What investment strategy would you recommend? How would their
investment strategy be different from that of the 75 year old grandmother?