Introduction
Welcome to Anti-Money Laundering (AML) Compliance - one of the most heavily tested regulatory topics on the Securities Industry Essentials (SIE) exam.
Exam Weight: Part of 23 questions (31% of exam)
What You'll Learn
- What money laundering is, why it's illegal, and how it threatens financial markets
- The three stages of money laundering: placement, layering, and integration
- FINRA Rule 3310 requirements, Customer Identification Programs, and AML compliance
- When and how to file Suspicious Activity Reports and the tipping-off prohibition
- The $10,000 cash threshold, Currency Transaction Reports, and structuring violations
- How FinCEN collects and analyzes financial intelligence for law enforcement
- OFAC sanctions screening, the SDN List, and blocked transaction requirements
Why This Matters
Every broker-dealer in the United States must have an AML compliance program. Failing to detect and report suspicious activity can result in massive fines, criminal penalties, and loss of registration. The SIE exam tests your knowledge of the specific rules, thresholds, and reporting requirements that make up the AML framework.
The key to mastering this unit is understanding the relationships between the players (FinCEN, OFAC, FINRA) and the tools they use (SARs, CTRs, the SDN List) to combat financial crime.