William O’Neil + Co. MEMBER OF THE NEW YORK AND AMERICAN STOCK EXCHANGES
I N C O R P O R A T E D
12655 BEATRICE STREET, LOS ANGELES, CALIFORNIA 90066-7002 (310) 448-6800
William O’Neil + Co. Incorporated
Anti-Money Laundering (AML) Program:
Compliance and Supervisory Procedures
1. William O’Neil + Company AML Policy1
William O’Neil + Company, as an Institutional Brokerage Firm, has a responsibility and
a commitment to prohibit and actively prevent money laundering and any activity that
facilitates money laundering or the funding of terrorist or criminal activities. To fulfill
this goal we have implemented a specific, comprehensive, internal Anti-Money
Laundering Policy. Associates of William O’Neil + Company are considered members of
the William O’Neil + Company team, and individually share in the responsibility of
fulfilling this commitment. To that end, all William O’Neil + Company associates are
apprised of this policy so even those who don’t trade understand our obligations.
What is Money Laundering?
Money laundering is generally defined as engaging in acts designed to conceal or
disguise the true origins of criminally derived proceeds so that the unlawful proceeds
appear to have been derived from legitimate origins or constitute legitimate assets.
Generally, money laundering occurs in three stages: (1) cash first enters the financial
system at the "placement" stage, where the cash generated from criminal activities is
converted into monetary instruments, such as money orders or traveler's checks, or
deposited into accounts at financial institutions; (2) at the "layering" stage, the funds are
transferred or moved into other accounts or other financial institutions to further separate
the money from its criminal origin; and (3) at the "integration" stage, the funds are
reintroduced into the economy and used to purchase legitimate assets or to fund other
criminal activities or legitimate businesses. Terrorist financing may not involve the
proceeds of criminal conduct, but rather attempt to conceal the origin or intended use of
the funds, which will later be used for criminal purposes.
On October 26, 2001, President George W. Bush signed into law the USA PATRIOT
Act, which, among other things, strengthens the anti- money laundering provisions put
into place by earlier legislation and includes new anti- money laundering provisions that
are applicable to broker/dealers. These regulations apply to William O’Neil + Company
in operating Institutional Services and Institutional Trading.
1 Last reviewed December 2006
The AML Compliance Components of William O’Neil + Company
2. AML Compliance Officer Designation and Duties2
William O’Neil + Company designates its CCO as its Anti-Money Laundering Program
Compliance Officer (“AML CO”), to supervise William O’Neil + Company’s AML
Program. The AML CO is qualified by experience, knowledge and training, including
membership in The National Society of Compliance Professionals, and receives their
monthly newsletter (the “Hotline Memo”), which identifies new industry issues, includes
membership to the Securities Industry Association with access to their web information, and
a weekly e- mail update. She receives an electronic subscription to the Compliance Reporter,
which compiles regulatory news stories segregated by category and date. To supplement
these sources, the AML CO attends regulatory conferences. William O’Neil + Company has
also designated a backup AML CO.3
Senior Management decided to implement a “Captain Structure” to front- line manage the
AML duties and to communicate effectively within relevant departments. Each department
has a Manager Captain and Department Captains. 4 The Captains are trained in William
2 Last reviewed December 2006
O’Neil + Company AML policies and procedures and are responsible for disseminating
updated information to their departments, whether it be internal or regulatory.
The supervisory duties of the AML CO include: monitoring William O’Neil + Company’s
AML compliance, overseeing communication, as well as coordinating and conducting
training for Captains and employees. William O’Neil + Company has reviewed NASD Rules
1021 and 1031 for any applicable registration requirements, and the AML CO is properly
registered, as is the backup Compliance Officer. The AML CO and Captains will also ensure
that proper AML records are kept. When warranted, the AML CO will ensure Suspicious
Activity Reports (SARs) are filed. William O’Neil + Company has provided the NASD with
contact information for the AML CO, including name, title, mailing address, e- mail address,
telephone number and facsimile number via the NASD AML Web site. William O’Neil +
Company will promptly notify NASD of any change to this information.
After each regulatory exam and internal audit of William O’Neil + Company’s AML
Program, senior management will review the report to ensure compliance and update the
AML Program accordingly.
3. Giving AML Information to Federal Law Enforcement Agencies and
Other Financial Institutions5
a. FinCEN Requests Under PATRIOT Act Section 314
Under Treasury’s final regulations (published in the Federal Register on September 26,
2002), William O’Neil + Company will respond to a Financial Crimes Enforcement Network
(FinCEN) requests about accounts or transactions by immediately searching our records, to
determine whether we maintain or have maintained any account for, or have engaged in any
transaction with, each individual, entity, or organization named in FinCEN's request. Upon
receiving a 314(a) request, the AML CO will be the point of contact regarding the request
and future requests. (For changes and updates to point of contact information go to
http://www.fincen.gov/poc_change_314a.pdf). Unless otherwise stated in FinCEN's request,
we are required to and will search current accounts, accounts maintained by a named suspect
during the preceding 12 months, and transactions conducted by or on behalf of or with a
named subject during the preceding six months. If we find a match, we will report it to
FinCEN by using the Secure Information Sharing System within 14 days of receiving a
314(a) request, or by any other means specified by FinCEN. If the search parameters differ
from those mentioned above (for example, if FinCEN requests longer periods of time or
limits the search to a geographic location), we will follow their instructions and search
accordingly. If we search our records and do not uncover a matching account or transaction,
then we will not reply to a 314(a) request.
William O’Neil + Company will not disclose the fact that FinCEN has requested or obtained
information from us, except to the extent necessary to comp ly with the information request.
We maintain procedures to protect the security and confidentiality of requests from FinCEN,
such as those established to satisfy the requirements of Section 501 of the Gramm- Leach-
3 Last reviewed December 2006
We will direct any questions we have about the request to the requesting Federal law
enforcement agency as designated in the 314(a) request.
Unless otherwise stated in the information request, William O’Neil + Company will not be
required to treat the information request as continuing in nature, and we will not be required
to treat the request as a list for purposes of the customer identification and verification
requirements. William O’Neil + Company will not use information provided to FinCEN for
any purpose other tha n: (1) to report to FinCEN as required under Section 314 of the
PATRIOT Act; (2) to determine whether to establish or maintain an account, or to engage in
a transaction; or (3) to assist William O’Neil + Company in complying with any requirement
of Section 314 of the PATRIOT Act.
b. Sharing Information With Other Financial Institutions
William O’Neil + Company will share information about those suspected of terrorist
financing and money laundering with other financial institutions for the purpose of
identifying and reporting activities that may involve terrorist acts or money laundering
activities, and to determine whether to establish or maintain an account or engage in a
transaction. As required, William O’Neil + Company will file an initial notice with FinCEN
before any sharing occurs. William O’Neil + Company will file annual notices thereafter
with our primary supervisory agency using the notice form found at www.fincen.gov.
Additionally, we will file an update timely upon the change of any reported information.
Before we share information with another financial institution, we will take reasonable steps
to verify that the other financial institution has submitted the requisite notice to FinCEN,
either by obtaining confirmation from the financial institution or by consulting a list of such
financial institutions that FinCEN will make available. We understand that this requirement
applies even with respect to financial institutions with whom we are affiliated, and so we will
obtain the requisite notices from affiliates and follow all required procedures.
We employ strict procedures both to ensure that only relevant information is shared and to
protect the security and confidentiality of this information, including segregating it from
William O’Neil + Company’s other books and records and preserving the information in
accordance with the prescribed record retention period. In addition to sharing information
with other financial institutions about possible terrorist financing and money laundering, we
will also share information about particular suspicious transactions with our clearing firm for
purposes of determining whether one of us will file a SAR-SF. In cases in which we file a
SAR-SF for a transaction that has been handled both by us and by the clearing firm, we may
share with the clearing firm a copy of the filed SAR-SF, unless it would be inappropriate to
do so under the circumstances, such as where we filed a SAR-SF concerning the clearing
firm or one of its employees.
4. Checking the Office of Foreign Assets Control (“OFAC”) List6
Before opening an account, and on an ongoing basis, William O’Neil + Company will check
to ensure that a customer or prospect does not appear on Treasury’s OFAC “Specifically
Designated Nationals and Blocked Persons” List (SDN List). We utilize an internal
automated search tool titled “The OFAC Analyzer” (using up to date data from the OFAC
Web site or the NASD Web site, which also has a link). This assures that each customer or
4 Last reviewed December 2006
prospect is not from, or engaging in transactions with people or entities from, embargoed
countries and regions listed on the OFAC Web site. Because the OFAC Web site is updated
frequently, we subscribe to receive updates when they occur. Based on the procedures
outlined below, the AML CO will be notified promptly in the event that Institutional Services
or Institutional Trading identifies that a customer, or someone with or for whom the customer
is transacting, is on the SDN List or is from or engaging in transactions with a person or
entity located in an embargoed country or region. After consulting with the OFAC Hotline,
the transaction will be rejected and/or we will block the customer's assets and file a blocked
assets and/or reject transaction form with OFAC. The Institutional Services department
maintains electronic copies of OFAC comparisons and hard copies of potential matches
cleared by the AML CO. Prior to all mass mailings, an OFAC search is conducted and a copy
of the correspondence along with the OFAC search is submitted to the AML CO and the
Sales Manager for documented approval, which is also maintained by the Institutional
When necessary, we will call the OFAC Hotline at 1-800-540-6322 for guidance,
verification, and reporting. Our clearing firm does not provide any AML compliance related
We use The OFAC Analyzer to compare the SDN List to our client lists. The occurrence of
this comparison is based on the frequency the SDN List is updated. This review will compare
existing accounts against the most recent SDN List. William O’Neil + Company documents
the review with a sign off by the AML CO on the printed comparison results. These results
are maintained by the designated Office Assistant and are retained in accordance with the
prescribed record retent ion period. The Institutional Trading Operations personnel screen
newly submitted sub-accounts against the SDN List. Evidence of such screening and results
are maintained with the settlement instructions. These records are maintained for the
prescribed period for account settlement instructions.
Account Executives are responsible to ensure that an OFAC search is conducted prior to
contacting and/or discussing our services with a prospect either in person, by phone, fax,
mail, or e- mail. The Account Executives bear the responsibility of not contacting a prospect
who is identified as being on the SDN List. The Account Executive and the AML CO are
immediately notified when a prospect is identified as such, and the Account Executive must
request and wait to receive clearance from the AML CO before this prospect can be
contacted. A current copy of an OFAC comparison must be attached if the Account
Executive submits a WONDA® trial form for a new prospect. All historical copies and a
current copy of the OFAC review and trial paperwork are attached to the Customer
Identification File (or “CIF”). These records are maintained for the prescribed period for
5 Last reviewed December 2006
5. Customer Identification and Verification7
In addition to the information we must collect under SEC Rules 17a-3(a)(9) (Beneficial
Ownership regarding Cash and Margin Accounts) and 17a-3(a)(17) (Customer Accounts)
NYSE Rule 405 (Diligence As To Accounts), NASD Rules 2110 (Standards of Commercial
Honor and Principles of Trade), 2310 (Recommendations to Customers - Suitability), and
3110 (Books and Records), we have established, documented, and maintained a written
Customer Identification Program (“CIP”). We collect certain customer identification
information from each customer who opens or maintains an account. This documentation is
kept in the CIF. We record customer identification information, verification methods, and
the results; documents are requested of all existing clients and prospective clients are notified
that certain documents are required in order to open an account. It is our policy to take
reasonable measures to compare the information provided by the customers with official
organizational records filed with state or other regulatory agency (corporate resolutions,
partnership or LLC agreements, or records filed with the SEC). All existing accounts and
sub-accounts are regularly compared to government-provided lists of suspected terrorists.
Note that as previously mentioned in Section 4, all existing and prospective clients are also
regularly compared to the SDN List.
Between every 24 and 36 months we send out letters to our existing clients requesting that
they verify that our records are up to date and accurately reflect their current business
information. If nothing has changed, no action is required from our clients, however, if
changes have been made to their business or personnel, we require that our clients send us
updated documents reflecting such changes. Any company updates that are supplied to us in
the interim that would affect any of the CIP documentation would initiate a review of the of
the company’s documents for additional changes.
a. Required Customer Information
For institutional customers, William O’Neil + Company gathers information about the
principal client through Institutional Services. This information is contained in the CIF. For
the sub-accounts of the principal client, additional information is provided to Institutional
Trading as required by our clearing firm and our own AML policies and procedures for
settlement purposes. The AML CO reviews sub-account settlement instructions when
prepared for submission to our clearing firm. Further information regarding sub-account
review is documented in Sections 4 and 6.
Prior to opening an account, we collect the following CIP documentation, as applicable, for
any institutional organizations opening a new account :
• The name of the organization;
• A business street address of the organization’s physical location (always required,
even if the customer uses a PO Box for mail);
• Documentation evidencing all individuals at each client’s organization who have the
authority to transact business on its behalf; and
• Documentation evidencing which individuals at each firm are authorized to exercise
discretion on behalf of the accounts for which trades are placed with our trading desk.
6 Last reviewed December 2006
b. Customers Who Refuse To Provide Information
If a potential or existing customer either refuses to provide the information described above
when requested, or appears to have intentionally provided misleading information, our firm
will not open a new account and, after considering the risks involved, consider closing any
existing account. In either case, our AML CO will be notified so that we can determine
whether we should report the situation to FinCEN (i.e., file a Form SAR-SF). The AML CO
will document on the account form of the account(s) being closed, the analysis that led to the
reporting or non-reporting to FinCEN. Note: the Sales Manager may make occasional
exceptions provided that the Account Executive records detailed information about the steps
that were followed to obtain the documents, and their records describe their knowledge of the
customer and what was reviewed for verification.
c. Verifying Information
To the extent reasonable and practicable, William O’Neil + Company will ensure that we
have a reasonable belief that we know the true identity of our customers by verifying and
documenting the accuracy of the information we get about the customers of Institutional
Services. In verifying customer identity, we analyze any logical inconsistencies in the
information we obtain.
William O’Neil + Company gathers information about the principal client through
Institutional Services and the CIP documentation. For the sub-accounts of the principal
client, additional information is provided to Institutional Trading as required by our clearing
firm and our own AML policies and procedures for settlement purposes. The AML CO
reviews sub-account settlement instructions when prepared for submission to our clearing
firm. Further information regarding sub-account review is documented in Sections 4 and 6.
We verify customer identity through documentary evidence, non-documentary evidence, or
both. We use documents to verify customer identity when appropriate documents are
available. In light of the increased instances of identity fraud, we will supplement the use of
documentary evidence by using the non-documentary means described below whenever
possible. We may also use such non-documentary means, after using documentary evidence,
if we are still uncertain about whethe r we know the true identity of the customer. In
analyzing the verification information, we will consider whether there is a logical
consistency among the identifying information provided, such as the customer’s name, street
address, zip code, telephone number, date of incorporation, formation of partnership, and
LLC or LLP.
Appropriate documents for verifying the identity of customers include, but are not limited to,
• For institutions, documents showing the existence of the entity, such as certified
articles of incorporation, a government- issued business license, a partnership
agreement, an LLC or LLP instrument, or regulatory filings; and
• For an individual representative of an institution, regulatory registration information
is on file with the various governing bodies. As a supplement, William O’Neil +
Company will request documentation from the institution evidencing that they are
aware that the individual receives our equity data research services for their brokerage
business with that institution.
7 Last reviewed December 2006
We understand that we are not required to take steps to determine whether the document that
the customer has provided to us for identity verification has been validly issued and that we
may rely on a government- issued identification as verification of a customer’s identity. If,
however, we note that any document shows some obvious form of fraud, we consider that
factor in determining whether we can form a reasonable belief that we know the customer’s
We use the following non-documentary methods of verifying identity:
• Visiting a customer at their place of business and maintaining records of those visits;
• Checking references with other financial institutions; or
• Obtaining an annual report or a financial statement.
We use non-documentary methods of verification in the following situations: (1) when the
customer is unable to present an unexpired government- issued document; (2) when William
O’Neil + Company is unfamiliar with the documents the customer presents for identification
verification; (3) when the customer and firm do not have face-to-face contact; and (4) when
there are other circumstances that make it difficult for William O’Neil + Company to verify
the true identity by documentary means.
William O’Neil + Company will verify the information within a reasonable time before the
account is opened. If account documents have not been reviewed and verified, services will
not be activated. In addition, review of preliminary documentation is required before a trial is
approved for prospective clients. Manager Captain, Henry D’Atri, Sales Manager of the
Institutional Services department, is responsible for the review and approval of trial and CIP
documents prior to the opening of an account. If we find suspicious information that
indicates possible money laundering or terrorist financing activity, we will, after internal
consultation with William O’Neil + Company's AML CO, file a SAR-SF in accordance with
applicable law and regulation.
We recognize that the risk that we may not know the customer’s true identity may be
heightened for certain types of accounts, such as an account opened in the name of a
corporation, partnership, or trust that is created or conducts substantial business in a
jurisdiction that has been designated by the United States as a primary money laundering
concern or has been designated as non-cooperative by an international body. We identify
customers that pose a heightened risk of not being properly identified. Due to the specific
profile of all customers of William O’Neil + Company, senior management is confident that
the identity of all customers will be verified. However, additional measures that may be used
are outlined in section d. that follows.
d. Lack of Verification
When William O’Neil + Company cannot form a reasonable belief that we know the true
identity of a prospect, we will do the following: (1) not allow a WONDA trial; or (2) impose
specific terms under which a prospect may receive a trial while we attempt to verify the
8 Last reviewed December 2006
When William O’Neil + Company cannot form a reasonable belief that we know the true
identity of a customer, we will do the following: (1) not open an account; (2) in
circumstances where the client is a well known entity, William O’Neil + Company will
accept publicly available documentation with specific notes of the Account Executive ’s
relationship and knowledge of the customer, which we refer to as a Past History Declaration
Memo. In the second instance, two senior officers must approve the account documentation.
Institutional Services maintains the CIP documentation for each customer in a central file in
alphabetical order. Institutional Services documents the identity verification of each customer
through the comparison of documents provided by the customer to information publicly
available. If Institutional Services uses non-documentary verification, they will retain
documents that describe the methods and the results of any measures taken to ve rify the
identity of a customer. Institutional Trading maintains settlement instructions for all sub-
accounts in a centralized file, by account number, in the trading department. The AML CO
indicates her verification and review of the sub-account information with her signature on the
form. Institutional Services and Institutional Trading will maintain records of all
identification information for the life of the account and for at least five years after the
account has been cancelled.
f. Comparison with Government Provided Lists of Terrorists and
As outlined in Section 4, William O’Neil + Company will do an OFAC comparison with all
existing accounts. The occurrence of this comparison is based on the frequency of the SDN
List being updated, through an in house automated system. . From time to time, William
O’Neil + Company may also receive notice that a Federal government agency has issued a
list of known or suspected terrorists or posted a notice regarding recent suspicious
transactions. Within a reasonable period of time after an account is opened (or earlier, if
required by another Federal law or regulation or Federal directive issued in connection with
an applicable list), we will determine whether a customer appears on any such list of known
or suspected terrorists or terrorist organizations issued by any Federal government agency
and designated as such by Treasury in consultation with the Federal functional regulators.
We follow all Federal directives issued in connection with such lists.
We continue to comply with Treasury’s Office of Foreign Asset Control rules prohibiting
transactions with certain foreign countries or their nationals.
g. Notice to Customers
We have provided written notice to all existing customers of Institutional Services that
documentation is required for us to comply with Federal Regulations. We provide notice to
customers via William O’Neil + Company’s Web site that William O’Neil + Company
requests information from them to verify their identities, as required by Federal law. The
following language is posted:
9 Last reviewed December 2006
Important Information About Our Account Requirements
To help the government fight the funding of terrorism and money laundering activities,
Federal law requires financial institutions to obtain, verify, and record customer account
information. At William O’Neil + Company, we collect public and nonpublic information
about our institutional clients as specifically mandated for customer identification and
verification by the US PATRIOT ACT, SEC 17a-3 (Books & Records Requirements),
NYSE Rule 405 (“Know Your Customer”) and NASD Conduct Rule 3110.
This Notice provides you with some answers about William O’Neil + Company’s
Customer Identification Program.
What types of information will I need to provide?
For an institutional account to be opened, William O’Neil + Company is required to
record and verify:
1a) The name(s) of the person(s) authorized to conduct business on behalf of your
1b) Whether or not your organization intends to have associates trade with our equity
desk. If your organization does intend to have associates trade with our equity desk,
we will need a trading authorization listing those associates and signed by a party
authorized to conduct business on behalf of your organization;
For your convenience, we have developed fill-in-the blank forms that, if filled in
completely and accurately, will satisfy the above requirements. When filling out the
form, if any of the specified terms do not apply, please make the necessary changes so
that all the information will reflect your organization appropriately, or contact your
Account Executive to help have a customized version created for you that satisfies our
requirements and better addresses your organization’s structure.
2.) A corporation, partnership, trust or other legal entity must also provide information
about its principal place of business and local office(s) with which we have a
business relationship, as noted within one of the following documents: certified
articles of incorporation, government-issued business license, LLC agreement(s), and
partnership or trust agreement(s) as applicable to the organization of the firm.
What happens if I don’t provide the information requested or my identity can’t be
If the above information is not provided or your organization’s identity cannot be
verified, William O’Neil + Company will be unable to open an account or carry out
transactions for your organization, and consequently any already existing accounts may
have to be closed. If you have not yet done so, please contact your Account Executive to
provide any of the necessary information noted above.
h. Reliance on Another Financial Institution for Identity Verification
With regard to the sub-accounts of our principal clients for which we process trades, William
O’Neil + Company relies on the expectation that the principal account who has the
relationship with their customer (the sub-account ) for whom they trade on behalf of with us,
has their own customer identification program. This obligates them to verify the identity of
the customers they introduce to William O’Neil + Company. This reliance is based on the
fact that our clients have a fiduciary responsibility to their customer and occurs when:
10 Last reviewed December 2006
• This reliance is reasonable under the circumstances; or
• That the other financial institution is subject to a rule implementing the anti-
money laundering compliance program requirements of 31 U.S.C. 5318(h),
and is regulated by a Federal functional regulator.
6. Foreign Correspondent Accounts and Foreign Shell Banks8
a. Detecting and Closing Correspondent Accounts of Unregulated
Foreign Shell Banks
Foreign Correspondent Accounts
A “Correspondent account” is defined as an account that has been established at a U.S.
financial institution by a foreign financial institution to receive deposits from or to make
payments or other distributions on behalf of, the foreign financial institution, or to handle
other financial transactions related to such foreign financial institution
William O’Neil + Company will conduct the following general due diligence in respect of
any foreign financial institution that maintains a correspondent account at the U.S.
1. Determine whether the account is subject to enha nced due diligence under Section
312 based on the risks associated with the particular account.
2. Assess the money laundering risk posed after considering: (a) the nature of the
foreign financial institution’s business and the markets it serves; (b) the type, purpose
and anticipated activity of such correspondent account; (c) the nature and duration of
the relationship with the foreign financial institution; (d) the AML regime of the
home country of the foreign financial institution; and (e) information known about the
AML record of the foreign financial institution.
3. Apply risk-based policies, procedures, and controls to each correspondent foreign
account designed to report and detect money laundering activity, including a periodic
review of the foreign correspondent account activity.
William O’Neil + Company will detect foreign correspondent accounts by strictly
adhering to our CIP (described in section 5). Specifically, we review each sub-account as
it opens to determine the settlement instructions. The settlement instructions will identify
the institutions used by those sub-accounts as noted on the account instructions page
maintained by Institutional Trading. Institutional Trading Operations personnel reviews
each instruction page to determine if the institution William O’Neil + Company’s
clearing firm is settling with is in the United States. The AML CO reviews all sub-
account forms. This satisfies the requirement for “reasonable steps” to be taken to ensure
that William O’Neil + Company only introduces customers to our clearing firm who
utilize U.S. institutions for settlement.
11 Last reviewed December 2006
Special Due Diligence for Foreign Banks
By adhering to our CIP, William O’Neil + Company will determine whether any foreign
correspondent account is maintained for a foreign bank that operates under offshore banking
licenses or under a banking license issued by certain jurisdictions specified in 31 C.F.R.
§103.176 (c) [See http://www1.oecd.org/fatf/NCCT_en.htm]. For such correspondent
accounts, William O’Neil + Company would apply the enhanced due diligence requirements
of 31 C.F.R. §103.176 (b), which includes enhanced scrutiny, a determination whether the
foreign bank maintains its own correspondent accounts for other foreign banks, and
identification of certain owners of the foreign bank. In appropriate circumstances, the
enhanced scrutiny will include closer monitoring of account activity, obtaining information
about sources and beneficial ownership of funds, identifying persons with trading authority,
and obtaining a completed US Treasury Department Foreign Bank Certification.
If we are considering opening a new account that would be subject to this enhanced due
diligence, the Account Executive would consult with the designated AML Captain for
Institutional Services. If we cannot perform due diligence adequately, we would not open the
Foreign Shell Banks
It is William O’Neil + Company’s policy not to establish, maintain, administer, or manage
correspondent accounts for unregulated foreign shell banks. The institution settling the
transaction on behalf of the sub-account carries the responsibility of confirming that they are
not indirectly providing correspondent banking services to foreign shell banks. Please also
refer to Section 5.h.
Upon finding or suspecting unregulated foreign shell bank accounts, the AML Captains will
notify the AML CO, who will terminate any verified correspondent account in the United
States for an unregulated foreign shell bank. We will also terminate any correspondent
account that we have determined is not maintained by an unregulated foreign shell bank but
is being used to provide services to such a shell bank. All institutional client trading accounts
with William O’Neil + Company are set up as DVP/RVP, whereby settlement is processed
by William O’Neil + Company’s clearing firm and the US clearing firm of the sub-account.
However, if William O’Neil + Company were to identify the need to liquidate positions, we
would exercise caution in doing so in such accounts and take reasonable steps to ensure that
no new positions are established in these accounts during the termination period. We will
terminate any correspondent account for which we have not obtained the information
described in Appendix A of the proposed regulations regarding shell banks within the time
periods specified in those regulations.
William O’Neil + Company requires our foreign bank clients to complete a foreign bank
certification issued by Treasury, which requires them to certify that they are not shell banks
and to provide ownership and agent information. We will re-certify when we believe that the
information is no longer accurate and at least every three years. If any prospective client
failed to provide us with the required certification, we would not engage them as a client.
12 Last reviewed December 2006
c. Recordkeeping for Foreign Financial Institutions
William O’Neil + Company has a limited number of foreign financial institutions as clients.
If the foreign financial institution is a foreign bank, we maintain a foreign bank certification.
William O’Neil + Company maintains detailed customer information for all accounts. We
will verify every 24-36 months that this information has not changed.
d. Summons or Subpoena of Foreign Bank Records; Termination of
If William O’Neil + Company were to receive a written request from a Federal law
enforcement officer for information concerning correspondent accounts, we will promptly
provide that information to the requesting officer not later than 7 days after receipt of the
request. We will close, within 10 days, any account for a bank that we learn from Treasury or
the Department of Justice, has failed to comply with a summons or has contested a summons.
We will scrutinize any account activity during that 10-day period to ensure that any
suspicious activity is appropriately reported and to ensure that no new positions are
established in these accounts.
7. Private Banking Accounts/Foreign Officials 9
William O’Neil + Company’s policy prohibits the opening of “private banking” accounts.
We have reviewed our accounts and determined that we have no private banking accounts
and therefore we do not need to conduct due diligence on such accounts. The AML Captains
will notify the AML CO upon identification or suspicion of a private banking relationship. If
a true private banking account were to be identified, we would perform the required due
diligence by conducting at a minimum, the following: (1) ascertaining the identity of all
beneficial owners over the account (Beneficial Owner is defined as an individua l who has a
level of control over, or entitlement to, the funds or assets in the account that, as a practical
matter, enables the individual, directly or indirectly, to control, direct or manage the
account); (2) ascertaining the source of funds deposited into the account; (3) ascertaining
whether any such holder may be a senior foreign political figure; and (4) detecting and
reporting, in accordance with applicable law and regulation, any known or suspected money
laundering and/or use of the proceeds of foreign corruption. Additionally, our AML CO, will
as appropriate, instruct the Account Executive not to open the private banking account, or
AML CO will suspend the transaction activity, file a SAR, or close the account pursuant to
our policy against offering private banking accounts.
8. Monitoring Accounts For Suspicious Activity10
Presently, we manually monitor a sufficient amount of account activity to permit
identification of patterns of unusual size, volume, pattern or type of transactions, geographic
factors such as whether jurisdictions designated as “non-cooperative” are involved, or any of
the “red flags” identified in Section 8. b. below. We look at transactions, including trading
and wire transfers, in the context of other account activity to determine if a transaction lacks
financial sense or is suspicious because it is an unusual transaction or strategy for that
customer. The AML CO and AML Captains are responsible for monitoring, documenting,
and reporting suspicious activities. The AML Captains report findings to the AML CO, and
13 Last reviewed December 2006
the AML CO conveys any final reporting to appropriate authorities. The AML CO will
determine whether to file a Form SAR-SF based on irregularities, inconsistencies, and
suspicious patterns in transaction size, location, type, number, and nature of the activity. Our
AML CO will conduct an appropriate investigation before a SAR is filed. Our monitoring of
specific transactions is multi- layered: first the AML Captains review daily, weekly, and
quarterly transactions followed with oversight by the AML CO, all of which is documented
with individual initials on the documents reviewed. The daily reviews will identify specific
transactional irregularities, where the monthly reviews will provide pattern identification, and
the quarterly reviews give a broader perspective of overall account activity.
a. Emergency Notification to the Government by Telephone
When conducting due diligence or opening an account, the AML CO will promptly call
Federal law enforcement when necessary. The following circumstances would constitute
immediate notification: a legal or beneficial account holder or person with whom the account
holder is engaged in a transaction is listed on or located in a country or region listed on the
SDN List, an account is held by an entity that is owned or controlled by a person or entity
listed on the SDN List, a customer tries to use bribery, coercion, or similar means to open an
account or carry out a suspicious activity, we have reason to believe the customer is trying to
move illicit cash out of the government’s reach, or we have reason to believe the customer is
about to use the funds to further an act of terrorism. In response to such findings, we will first
call the OFAC Hotline at 1-800-540-6322. The other contact numbers we will use are:
Financial Institutions Hotline (1-866-556-3974), local U.S. Attorney’s Office (1-916-445-
9555), local FBI Office (1-310-477-6565), and local SEC Office (1-323-965-3998).
b. Red Flags
Red flags that signal possible money laundering or terrorist financing include, but are not
• The customer exhibits unusual concern about William O’Neil + Company's
compliance with government reporting requirements and William O’Neil +
Company's AML policies (particularly concerning his or her identity, type of
business, and assets), or is reluctant or refuses to reveal any information concerning
business activities, or furnishes unusual or suspicious identification or business
• The customer wishes to engage in transactions that lack business sense or apparent
investment strategy or are inconsistent with the customer's stated business or
• The information provided by the customer that identifies a legitimate source for funds
is false, misleading, or substantially incorrect;
• The customer (or a person publicly associated with the customer) has a questionable
background or is the subject of news reports indicating possible criminal, civil, or
14 Last reviewed December 2006
• The customer exhibits a lack of concern regarding risks, commissions, or other
• The customer appears to be acting as an agent for an undisclosed principal, but
declines or is reluctant, without legitimate commercial reasons, to provide
information or is otherwise evasive regarding that person or entity;
• The customer has difficulty describing the nature of his or her business, or lacks
general knowledge of his or her industry;
• The customer is from, or has accounts in, a country identified as a non-cooperative
country or territory by the Financial Action Task Force (FATF);
• The customer or vendor makes multiple unexplained or sudden extensive wire
requests or transfers that have no apparent business purpose, especially in accounts
that had little or no previous activity, or the transfers are to or from a country
identified as a money laundering risk;
• The customer requests that a transaction be processed contrary to William O’Neil +
Company's normal documentation requirements;
• Follow up documentation that does not match information given over the phone or
via the Internet at the account opening;
• Transactions or requests seemingly designed to, or attempting to avoid reporting and
• Parties or businesses that do not meet our standard customer profiles –
unregistered/unlicensed businesses or unfamiliar account documentation;
• Unusual mixed forms of payments – money orders, third party checks, or personal
c. Responding to Red Flags and Suspicious Activity
When an AML Captain detects any red flag, or is notified of such, he or she will investigate
further under the direction of the AML CO. This may include gathering additional
information internally or from third-party sources. The AML CO is responsible for
contacting the government, freezing an account, or filing a Form SAR-SF when appropriate.
9. Suspicious Transactions and BSA Reporting 11
a. Filing a Form SAR-SF
William O’Neil + Company will file a Form SAR-SF for any account activity (including
deposits and transfers) conducted or attempted through our firm involving (or in the
aggregate) $5,000 or more of funds or assets where we know, suspect, or have reason to
suspect: (1) the transaction involves funds derived from illegal activity or is intended or
15 Last reviewed December 2006
conducted in order to hide or disguise funds or assets derived from illegal activity as part of a
plan to violate or evade Federal law or regulation, or to avoid any transaction reporting
requirement under Federal law or regulation; (2) the transaction is designed, whether through
structuring or otherwise, to evade any requirements of the BSA regulations; (3) the
transaction has no business or apparent lawful purpose or is not the sort in which the
customer would normally be expected to engage, and we know, after examining the
background along with the possible purpose of the transaction and other facts, of no
reasonable explanation for the transaction; or (4) the transaction involves the use of William
O’Neil + Company to facilitate criminal activity.
We do not base our decision on whether to file a SAR-SF solely on whether the transaction
falls above a set threshold. We will file a SAR-SF and notify law enforcement of all
transactions that raise an identifiable suspicion of criminal, terrorist, or corrupt activities.
[See: NtM 02-21, page 9.] In high- risk situations, we will notify the government
immediately (See Section 8 for contact numbers) and will file a SAR-SF with FinCEN.
Securities law violations that are reported to the SEC or a Self- Regulatory Organization
(SRO) may also be reported promptly to the local U.S. Attorney, as appropriate.
We will not file SAR-SFs to report violations of Federal securities laws or SRO rules by our
employees or registered representatives that do not involve money laundering or terrorism,
but we will report them to the SEC or SRO. [See: NtM 02-21, page 10, n.35.]
All SAR-SFs will be periodically reported to the Board of Directors and senior management,
with a clear reminder of the need to maintain the confidentiality of the SAR-SF.
William O’Neil + Company’s AML Captains and the AML CO monitor a sufficient amount
of account activity to permit identification of patterns of unusual size, volume, pattern or type
of transactions, geographic factors such as whether jurisdictions designated as “non-
cooperative” are involved, or any of the “red flags” identified in Section 8. b. above. William
O’Neil + Company will report suspicious transactions by completing a SAR-SF and we
collect and maintain supporting documentation as required by the BSA regulations. William
O’Neil + Company will file a SAR-SF no later than 30 calendar days after the date of the
initial detection of the facts that constitute a basis for filing a SAR-SF. If no suspect is
identified on the date of initial detection, we may delay filing the SAR-SF for an additional
30 calendar days pending identification of a suspect, but in no case, will the reporting be
delayed more than 60 calendar days after the date of initial detection.
William O’Neil + Company will retain copies of any SAR-SF filed and the original or
business record equivalent of any supporting documentation for at least seven years from the
date of filing the SAR-SF. We identify and maintain supporting documentation and make
such information available to FinCEN, any other appropriate law enforceme nt agencies, or
Federal or state securities regulators, upon request. (See also section 10 a. below)
We will not notify any person involved in the transaction that the transaction has been
reported, except as permitted by the BSA regulations. Except where disclosure is requested
by FinCEN, the SEC, another appropriate law enforcement or regulatory agency, or an SRO
registered with the SEC, we understand that anyone who is subpoenaed or required to
disclose a SAR-SF or the information contained in the SAR-SF will decline to produce the
SAR-SF or to provide any information that would disclose that a SAR-SF was prepared or
16 Last reviewed December 2006
filed. For such subpoenas or requests, prior to acting, William O’Neil + Company will
engage outside counsel. We will notify FinCEN of any such request and our response. (See
also section 10 a. below)
b. Currency Transaction Reports (CTR)
William O’Neil + Company prohibits the receipt of currency. This policy is long standing
and is documented in the AML Program, which all associates are encouraged to read upon
hire and every year thereafter. If currency is received, the AML CO is notified immediately
who then notifies FinCEN of the return. A photocopy record of the “currency” is maintained
along with receipt of return mailing. Even after the currency is returned, if instructed by
FinCEN, William O’Neil + Company will file a CTR for that reported receipt of “currency”
that exceeds $10,000. William O’Neil + Company is aware that multiple transactions should
be treated as a single transaction if they total more than $10,000 during any one-business
day. William O’Neil + Company is aware that the CTR form is available at
http://www.fincen.gov/reg_bsaforms.html#4789. The AML CO will maintain copies of the
“currency” and any filed forms in her CTR files for at least seven years.
c. Currency & Monetary Instrument Transportation Reports (CMIR)
William O’Neil + Company prohibits the receipt of monetary instruments as well as currency
as described above. Because it is William O’Neil + Company’s policy to return any currency
or monetary instruments received, the AML CO will file with the Commissioner of Customs
a CMIR in the event William O’Neil + Company transports, mails, ships, receives, or causes
or attempts to transport, mail, ship or receive monetary instruments of more than $10,000 at
one time (on one calendar day or, if for the purpose of evading the reporting requirements, on
one or more days) in or out of the United States. William O’Neil + Company is aware that a
CMIR must be filed for all such shipments or receipts of monetary instruments, except for
currency or monetary instruments shipped or mailed through the postal service or by
common carrier. We will, however, file a CMIR for such receipts of currency and monetary
instruments and for shipments and deliveries made by William O’Neil + Company by means
other than the postal service or common carrier, even when such shipment or transport is
made by William O’Neil + Company to an office of William O’Neil + Company located
outside the United States (note: at this time, William O’Neil + Company does not have any
offices outside the U.S. or any plans to have such). We will use the CMIR Form at
http://www.fincen.gov/reg_bsaforms.html#4790. The AML CO will maintain copies of all
such filed forms in her CMIR files for at least seven years.
d. Foreign Bank and Financial Accounts Reports (FBAR)
William O’Neil + Company does not maintain or plan to maintain any hold accounts with
foreign financial institutions, nor does William O’Neil + Company have a financial interest
in or authority over any accounts in foreign countries. William O’Neil + Company’s AML
CO would file an FBAR with FinCEN if a situation existed where we maintained a financial
account of more than $10,000 or if William O’Neil + Company had signature or other
authority over any accounts in a foreign country. The AML CO will use the FBAR Form at
17 Last reviewed December 2006
e. Transfers of $3,000 or More Under the Joint and Travel Rule
While it is not currently William O’Neil + Company’s policy to transfer funds, if an
exception were made and a transfer of $3,000 or more were to be processed, we would
record, in writing, on the transmittal order, at least the following information: the name and
address of the transmitter and recipient, the amount of the transmittal order, the identity of
the recipient’s financial institution, and the account number of the recipient. In an interview
with the AML CO, William O’Neil + Company will verify the identity of transmitters and
the purpose of the transfer to determine if an exception will be made. If the purpose is
determined to be permissible, William O’Neil + Company will confirm the existence and
veracity of the recipient’s information. In the AML CO’s absence such exception could be
granted by the CFO or President who would follow the same interviewing and verification
procedures. Documentation of any exceptions will be maintained in the accounting files for
the prescribed period for transfers.
10. AML Record Keeping12
a. SAR-SF Maintenance and Confidentiality
William O’Neil + Company regards SAR-SFs and any supporting documentation as highly
confidential. We will not inform anyone outside of a law enforcement or regulatory agency
or securities regulator about a SAR-SF. We will refuse any subpoena requests for SAR-SFs
or SAR-SF information and immediately inform FinCEN of any such subpoena we receive.
In addition, as noted above, William O’Neil + Company will engage outside counsel prior to
acting. The AML CO will segregate SAR-SF filings and copies of supporting documentation
from other firm books and records to avoid disclosing SAR-SF filings. William O’Neil +
Company’s AML CO will handle all subpoenas or other requests for SAR-SFs in order to
maintain confidentiality. The records are maintained in the AML CO’s office for which
access is limited to the President, AML CO, and back up CO. Physical records are
maintained in the AML CO’s office for no less than one year, after which they are moved to
William O’Neil + Company’s secure archive facility. Access to the archived records is also
As noted in our clearing agreement, and allowed by Section 314 of the USA PATRIOT Act,
William O’Neil + Company may work with the clearing firm on suspicious transactions in
order to determine when a SAR-SF should be filed. As mentioned earlier, we may share with
the clearing firm a copy of the filed SAR-SF unless it would be inappropriate to do so under
the circumstances, such as where we file a SAR-SF concerning the clearing firm or its
b. Responsibility for AML Records and SAR Filing
William O’Neil + Company’s AML CO and her designees are responsible to ensure that
AML records are maintained properly and that SARs are filed as required. All SARs will be
periodically reported to senior management and documented annually in the annual report to
the CEO with a clear reminder of the need to maintain the confidentiality of the SARs.
18 Last reviewed December 2006
c. Records Required
As part of our AML program, William O’Neil + Company will create and maintain: (1)
relevant documentation on customer identity and verification (See Sections 5 and 9 above);
(2) records related to customers listed on the SDN List; (3) funds transfers and transmittals ;
and (4) SAR-SFs, CTRs, CMIRs, FBARs (as necessary). All AML and BSA records and
accompanying documents will be maintained for at least seven years. (Note: SARs retention
requirement is five years and BSA records are required by the SEC to be retained for six
11. Clearing/Introducing Firm Relationships13
In August of 2006, Merrill Lynch (“ML”), our clearing firm, and William O’Neil +
Company entered into a new an Amended and Restated Clearing Agreement specifically
addressing the adoption of the AML requirements proscribed by the USA PATRIOT Act. In
this agreement ML outlined the role ML expected William O’Neil + Company to take as the
introducing firm. As stipulated in NASD NtM 02-21, as the introducing firm, William O’Neil
+ Company has the best opportunity to know and understand our clients, and we therefore
take full responsibility for acting as the first line of defense in detecting and deterring
suspicious activity. However, the amendment was identified by our outside independent
AML examiner, PricewaterhouseCoopers LLP (“PwC”), to be somewhat lacking in outlining
the clearing firm’s responsibilities. Based upon this criticism we sought to have ML clarify
their clearing responsibilities. ML made it clear to us that they expect William O’Neil +
Company to bear 100% of the detection, review and reporting responsibilities of all AML
activities. ML indicated that automated detection systems, “ad hoc reporting” are available
on BCOL (Broadcort online), however William O’Neil + Company did not receive
notification or training on this valuable function.
NASD Rule 3230 stipulates that introducing and clearing firms share responsibility under the
Money Laundering Abatement Act. Until ML shares in the AML responsibilities, or until we
engage a new clearing firm, William O’Neil + Company will perform 100% of the necessary
obligations to comply with AML laws. William O’Neil + Company works diligently to
detect money laundering.
12. Training Programs14
William O’Neil + Company delivers ongoing employee training under the leadership of the
AML CO, senior management, and AML Captains. Our training occurs on at least an annual
basis. It is based on our firm’s size, its customer base, and its resources.
At a minimum, William O’Neil + Company’s training covers the following: how to identify
red flags and signs of money laundering that arise during the course of the employees’ duties,
what to do once the risk is identified, what employees' roles are in William O’Neil +
Company's compliance efforts and how to perform them, William O’Neil + Company's
Record Retention Policy, and the disciplinary consequences (including civil and criminal
penalties) for non-compliance with the PATRIOT Act.
19 Last reviewed December 2006
Delivery of the training may include intranet systems, in-person lectures, and explanatory
memos. Currently our training program focuses on affected departments: Institutional
Services, Institutional Trading, and Accounting covering deposits and wires, OFAC/FATF
and FinCEN review, CIP procedures, and suspicious “red flag” activities. All affected new
employees are appropriately trained in a timely manner. William O’Neil + Company
maintains records reflecting the persons trained, the dates of training, and the subject matter
of their training.
Senior management reviews the firms operations regularly. If specialized additional training
is deemed necessary, the appropriate personnel would be so trained. Our written procedures
will be updated to reflect any changes.
13. Program to Test AML Program15
PricewaterhouseCoopers LLP, an independent third party, performs annual testing to assess
our AML program. Their qualifications include: extensive experience conducting money
laundering risk and control assessments, focused investigations, solution implementation
efforts, and several of PwC’s professionals served in the anti- money laundering regimes of a
number of countries, including the United States.
b. Evaluation and Reporting
Each year PwC conducts an extensive in- house review in accordance with Standards for
Consulting Services established by the American Institute of Certified Public Accountants.
After PwC completes the testing William O’Neil + Company receive s a detailed report. The
AML CO works with senior management to address each of the findings and
recommendations by implement ing necessary procedures and updating any policies as
As required in Section 352 of the USA Patriot Act and by NYSE Rule 445, this review
process will be conducted annually. Each review will assess William O’Neil + Company’s
current AML compliance program and test for compliance with the policies and procedures
of that program.
Additionally, the AML CO performs periodic reviews of CIFs, including correspondent
accounts, both independently, and as identified by regulatory exams and in- house reviews.
14. Monitoring Employee Conduct and Accounts16
William O’Neil + Company subjects employee accounts to the same AML procedures as
institutional client accounts. The AML CO reviews all account statements on a monthly
basis, with initials evidencing review. William O’Neil + Company also reviews the AML
performance of supervisors, as part of their annual performance review. The President of
William O’Neil + Company would review the AML CO’s accounts if she had any.
20 Last reviewed December 2006
15. Confidential Reporting of AML Non-Compliance17
Employees are instructed, as noted in the Compliance Manual, to report any violations of
William O’Neil + Company’s AML Program to the AML CO. If the violations implicate the
AML CO, the employee shall report to the President. Such reports are confidential, and as
outlined in the Compliance Manual, the employee will suffer no retaliation for making them.
16. Additional Areas of Risk
William O’Neil + Company has reviewed all areas of its business to verify that all potential
money laundering risks are covered in the procedures described above. No additional areas of
risk exist and therefore, no other procedures are necessary at this time.
17. Senior Manager Approval18
We have reviewed and approved this AML program as reasonably designed to achieve and
monitor William O’Neil + Company’s ongoing compliance with the requirements of the
USA PATRIOT Act and the BSA and the implementing regulations under it.
Susan McKnight, President & COO, reviewed and approved December 2006
Don Drake, Chief Financial Officer, reviewed and approved December 2006
Elizabeth Wilson, CCO and AML CO, reviewed and approved December 2006
Resources: NtM 02-21, page 5; SIA Preliminary Guidance for Deterring Money Laundering
Activity (“SIA Guidance”), at pages 2-3 (Feb. 2002).
Rule(s): NASD Rule 3011.
Resources: NtM 02-78. Firms submit their AML Compliance Officer information through
the NASD Contact System (NCS) by entitlement.
William O’Neil + Company’s Chief Compliance Officer (CCO) is Elizabeth Wilson and
the backup Compliance Officer and AML CO is Robert Thompson.
Institutional Trading: Captains are Marlyss Cranford, Sandra Mercer and LaRonda
Calloway. Institutional Services: Captains are Henry D’Atri (Manager Captain), Karen
Siegler, Andrew Garcia and Carole Palmer. Accounting: Captains are Don Drake (Manager
Captain) and Heather O’Connor.
Rules: NASD Rule 3011; Section 314 of the PATRIOT Act; 31 C.F.R. § 103.100.
www.fincen.gov/314a_pressrelease02062003.pdf; NASD Member Alert (2/14/03). Rules:
NASD Rule 3011; Section 314 of the PATRIOT Act; 31 C.F.R. §103.19; 31 C.F.R. §
Other Resources: The notice form can be found at http://www.fincen.gov
Other Resources: NtM 02-21, page 6, n.24;
SDN List- http://www.treas.gov/ofac/t11sdn.pdf.
21 Last reviewed December 2006
The OFAC Web site -- http://www.treas.gov/ofac/t11facsc.pdf -- contains checklists and
information for securities firms to follow in checking the SDN List. You can subscribe to
receive updates at http://www.treas.gov/press/email/subscribe.html.
NASD provides a search engine to automate SDN List searches at
Blocked Properties Reporting Form --
Voluntary Form for Reporting Blocked Transactions –
Voluntary Form for Reporting Rejected Transactions –
Rules: NASD Rule 3011; Section 326 of the PATRIOT Act; 31 C.F.R. §§103.122 et seq.
Other Resources: NtM 02-21, page 6, n.24; 31 C.F.R. §§ 103.122. Rule: 31 C.F.R.
§103.122(g). Rule: 31 C.F.R. §§ 103.122 et seq.
Rules: NASD Rule 3011; Section 313 of the PATRIOT Act; 31 C.F.R. §§103.175 et seq.
Rules: NASD Rule 3011; Section 313 of the PATRIOT Act; 31 C.F.R. §§103.175 et seq.
Rules: NASD Rule 3011; Sections 313 and 319 of the PATRIOT Act; 31 C.F.R. §§
103.175, 177. Rules: NASD Rule 3011; Sections 313 and 319 of the PATRIOT Act; 31
C.F.R. § 103.185.
Rules: NASD Rule 3011; Section 312 of the PATRIOT Act; 31 C.F.R. §§103.182.
Other Resources: Guidance on Enhanced Scrutiny for Transactions that May Involve the
Proceeds of Foreign Official Corruption - "Private Banking Activities" (June 30, 1997)
which involve personalized services such as money management, financial advice, and
investment services for high net worth clients etc, at
Guidance on Enhanced Scrutiny of Transaction That May Involve Proceeds of Foreign
Corruption – http://www.treas.gov/topics/law-enforcement/
Describe when and how your firm will call Federal law enforcement in emergencies. See:
NtM 02-21, page 13. Other Resources: SDN List -- http://www.treas.gov/ofac/t11sdn.pdf.
Rules: NASD Rule 3011; Section 356 of the PATRIOT Act; 31 C.F.R. §103.19.
Other Resources: FinCEN’s Web Site contains additional information (See www.fincen.gov),
including annual SAR Activity Reviews and SAR Bulletins, which discuss trends in suspicious
reporting and give helpful tips. NtM 02-21page 12, n.38; NtM 02-47.
SAR-SF Form (fill- in version) -- http://www.fincen.gov/fin101_formandinstructions.pdf
SAR Activity Reviews -- http://www.fincen.gov/pub_main.html
SAR Bulletins -- http://www.fincen.gov/pub_main.html Rules: 31 C.F.R.§§103.11, 103.22
Rules: 31 C.F.R. §§103.11, 103.23. Rules: 31 C.F.R. §103.24. Rules: 31 C.F.R. §103.33(f)
Rules: 31 C.F.R. §103.19; 67 Fed. Re g. 126, 44501-44502 (July 1, 2002). See: NtM 02-
21, page 14. Rules: NASD Rule 3011; 31 C.F.R. §103.19; 31 C.F.R. §103.33(f).
22 Last reviewed December 2006
Rules: NASD Rule 3011; Sections 314(b) and 352 of the PATRIOT Act; Section 3.b.
Rules: NASD Rule 3011; Section 352 of the PATRIOT Act.
Rules: NASD Rule 3011; Section 352 of the PATRIOT Act.
Rules: NASD Rule 3011; Section 352 of the PATRIOT Act.
Rules: NASD Rule 3011; Section 352 of the PATRIOT Act.
Rules: NASD Rule 3011.
23 Last reviewed December 2006