---
kind: "section"
citation: "31 C.F.R. § 1023.210"
title: "31"
number: "1023.210"
heading: "Anti-money laundering program requirements for brokers or dealers in securities."
url: "https://uscodex.org/cfr/31/1023.210"
---

# §1023.210. Anti-money laundering program requirements for brokers or dealers in securities.


A broker or dealer in securities shall be deemed to satisfy the requirements of [31 U.S.C. 5318(h)(1)](/usc/31/5318.md?p=h-1) if the broker-dealer implements and maintains a written anti-money laundering program approved by senior management that:

- (a) Complies with the requirements of §§ [1010.610](/cfr/31/1010.610.md) and [1010.620](/cfr/31/1010.620.md) of this chapter and any applicable regulation of its Federal functional regulator governing the establishment and implementation of anti-money laundering programs;
- (b) **Includes, at a minimum—**
  - (1) The establishment and implementation of policies, procedures, and internal controls reasonably designed to achieve compliance with the applicable provisions of the Bank Secrecy Act and the implementing regulations thereunder;
  - (2) Independent testing for compliance to be conducted by the broker-dealer's personnel or by a qualified outside party;
  - (3) Designation of an individual or individuals responsible for implementing and monitoring the operations and internal controls of the program;
  - (4) Ongoing training for appropriate persons; and
  - (5) Appropriate risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to:
    - (i) Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and
    - (ii) Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. For purposes of this [paragraph (b)(5)(ii)](#b-5-ii), customer information shall include information regarding the beneficial owners of legal entity customers (as defined in [§ 1010.230](/cfr/31/1010.230.md) of this chapter); and
- (c) Complies with the rules, regulations, or requirements of its self-regulatory organization governing such programs; provided that the rules, regulations, or requirements of the self-regulatory organization governing such programs have been made effective under the Securities Exchange Act of 1934 by the appropriate Federal functional regulator in consultation with FinCEN.

## Notes

### Amendments

[81 FR 29457, May 11, 2016]

### Authority

Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 701, Pub. L. 114-74, 129 Stat. 599.

### Source

Source: 75 FR 65812, Oct. 25, 2010, unless otherwise noted.

### Amendments

[81 FR 29457, May 11, 2016]