Ch 5 Deck 5 Flashcards
(27 cards)
A SAR is filed with
Department of Treasury’s Financial Crimes Enforcement Network (FinCEN)
A SAR must be filed within
30 days of discovery (30 days after the date of initial detection of the facts that formed the basis for filing the SAR)
When filing a SAR, the financial institution may not inform the client
that a SAR has been filed on them.
All reports and documentation relating to MILs, CTRs, and SARs should be kept for
five years.
Any activity having to do with sanctioned countries such as Cuba or North Korea should be reported to
OFAC (Office of Financial Assets Control)
Any activity having to do with sanctioned countries must be reported to OFAC (Office of Financial Assets Control) within
10 days of discovery.
OFAC is
(Office of Financial Assets Control)
Employees of member firms are allowed to open up investment accounts at
other member firms.
Spouses and minor children of employees of member firms are allowed to open up investment accounts at
other member firms.
If an employee, Spouses or minor children of employee of a member firms opens up an investment accounts at another member firm, the employee must
notify both the employer member and the executing member of the other firm (don’t need prior APPROVAL - exam)
If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to notify
the member employer in writing of account opening (prior to executing any transactions).
If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to Provide
duplicate account statements to the employer member when requested.
If an employee of a member (or spouse/children) opens an account at another member firm, the executing member at that firm is obligated to inform the associated person
of the executing member’s intention to provide account information to the employer member.
If an employee of a member (or spouse/children) opens an account at another member firm, it is not necessary for the executing member to
receive prior approval from the employer member for each transaction in the associated person’s account.
Member firms are required to regulate the outside
outside business activities of its representatives.
Registered representatives are prohibited from being paid from another business activity unless
he/she provides prompt written notice to his/her supervisor before participating.
Any securities transaction outside the regular scope of an associated person’s employment with a member is called a
a private securities transaction
private securities transactions include
private placements
DPP’s
Participation in a private securities transaction in which compensation is received requires
prior written notice to the employing firm with details of the transaction.
When a member gives prior written notice of Participation in a private securities transaction The member firm will then
approve or deny the person’s participation.
If a member approves of an associated person’s Participation in a private securities transaction
the associated person may participate in the transaction under supervision.
If a member denies an associated person’s Participation in a private securities transaction
the person may not participate either directly or indirectly in the transaction.
An associated person that wishes to participate in a private securities transaction in which he will not receive a selling commission is
still required to provide his member firm with prior written notice.
An exception to the need for associated persons to seek permission from their firm to participate in a private securities transaction is
Transactions among family members where NO compensation is paid
