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NFA Sharpens Its Teeth on AML Deficiencies

By May 23, 2018October 7th, 2021No Comments


♦NFA: AML Kid Gloves Are Coming Off♦

The National Futures Association is apparently taking a tougher stance on Anti-Money Laundering program deficiencies. Yesterday’s Notice to Members I-18-11 puts FCMs and IBs on alert that failure to adhere to AML program requirements may result in disciplinary action.

The notice provides a link to previous disciplinary actions, presumably sending a message that the level of enforcement actions is likely to increase.

Training and audit deficiencies appear to be at the heart of this action; the notice states that “Recently, NFA noted that a number of firms failed to provide AML training and/or conduct an independent AML audit as required by NFA. In some instances, these AML-related deficiencies resulted in NFA’s Business Conduct Committee issuing a Complaint and charging the firm with failure to fully implement an AML program.”

Exchange Analytics can help on both fronts. Our AML Awareness courses have been satisfying the NFA training requirement for more than 15 years, and our affiliate EA Compliance has been performing independent AML audits since 2006.

Is your firm at risk? Among other requirements, NFA Complicane Rule 2-9(c) requires FCMs and IBs to:

    • Provide training for all appropriate personnel at least every 12 months on the firm’s AML policies and procedures, the relevant federal laws, and NFA guidance.
    • Conduct independent testing of the adequacy of the AML program by firm personnel or by a qualified outside party at least every 12 months.