On Jul. 24, C-FINTRAC issued risks for precious metal dealers. Operational brief on risks, indicators for dealer in precious metals and stones (DPMS). Content Operational brief provides information and guidance on factors that expose retailers, wholesalers/suppliers, who are DPMS, to money laundering and terrorist financing. Indicators help DPMSs determine when to report suspicious transaction to…
Read more
SEC IA Examination Observations
On Jul. 23, SEC issued risk alert on observations from IA exams. Observations from examinations of investment advisers (IAs), covering areas of disciplinary histories, compliance program, supervision, conflicts of interest disclosure. Key takeaway: IAs should analyze risks of hiring supervised persons (SPs), who have disciplinary histories, and adopt policies and procedures to address those risks.…
Read more
U.S. – DoJ Elder Fraud Strike Force
On Jun. 13, DoJ announced transnational elder fraud strike force. The strike force will be a law enforcement effort bringing together the resources and expertise of the DoJ consumer protection, and USAO for 6 federal districts. Also includes the FBI, the US Postal Inspection Service, and other organizations. Collaboration There will also be collaboration with…
Read more
PHI SEC Investment Scams
On Jun. 11, PHI SEC penalized investment scams issued warnings. Continues to intensify efforts in protecting investing public from fraudulent schemes and abuses through its all-out campaign against various forms of investment scams. Warrants As part of this all-out campaign, a total of 24 search warrants were implemented in connection with the investment-taking activities of…
Read more
FINRA Client Terminated Broker
On May 10, FINRA issued investor alert on when a broker leaves. Follows FINRA Apr. 2019 notice communication for departing reps. Investor alert on how clients will be communicated with, when a broker leaves. Investor Guidance Complete answers about departing broker allows informed decision on account. Broker departure should not disrupt the service the firm…
Read more
DoJ Company Compliance Role
On Apr. 30, 2019, DoJ issued updated guidance on evaluating corporate compliance programs, and additional context for a multifactor analysis of compliance programs. Discussed factors for well-designed compliance program, risk assessments, policies and procedures, training and communications, confidential reporting, investigations. Provided metrics of program operating effectively, program's capacity for continuous improvement, periodic testing, investigation, analysis…
Read more