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The USA PATRIOT Act: Brokers Face Many Challenges in Anti-Money Laundering Compliance
This TowerGroup Research Note looks into the impact of the new anti-money laundering regulations on broker/dealers.
Brokers are rushing to assess their readiness for the anti-money
laundering (AML) mandates placed upon the industry by the
USA PATRIOT Act, but their ultimate resolutions will depend on
their position in the market hierarchy. Sell-side firms are taking
different approaches, essentially relative to their size and technology
budgets. The largest firms, recognizing their dominant positions and
high profiles, must establish comprehensive anti-money laundering
programs that go beyond suitability analysis and fair practices
monitoring to an enterprise-wide, bulletproof solution. The public
will perceive anything short of that to be another sign of brokers
greed at the expense of their regulatory and ethical obligations.
At this sensitive and critical time for a brokerage industry clamoring
for positive press, that would be nothing short of a disaster for
top-tier firms, who can ill afford even a hint of impropriety.
- Sybase, an SAP company
- 11 May 2003
- 01 Mar 2003
- 12 Page(s)
- Analyst Report