Regulatory Alerts2020-09-25
SEC Guidelines on Risk-Based AML/CFT Implementation and Risk Rating System for Covered Persons
The Securities and Exchange Commission issued guidelines requiring all covered persons to implement a risk-based approach to Anti-Money Laundering and Combating the Financing of Terrorism. These entities must conduct comprehensive institutional risk assessments and develop internal risk management frameworks to identify and mitigate money laundering and terrorist financing vulnerabilities. The Commission also adopted an AML/CFT Risk Rating System to evaluate compliance effectiveness and determine the appropriate level of supervisory attention and enforcement actions.
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