New SEC and FinCEN CIP reqs + TikTok Tightening on Money Laundering

GM! This is The Risk Radar. Your frontline agent, bringing you the latest intel from the money laundering battlefront.

TikTok Tightens the Screws on Money Laundering with New Seller Terms

TikTok has just given its Shop seller terms of service a serious makeover to clamp down on money laundering and ensure sanctions compliance. If you're selling on this platform, you'll want to listen up because these changes are more than just a fine print tweak.

Here’s the Scoop on the New Rules:

Starting now, all you TikTok sellers must toe the line with laws designed to squash money laundering and block any financing linked to naughty stuff like terrorism. It's not just about following the law; TikTok wants you to actively participate in keeping the platform squeaky clean. This means responding to TikTok's info requests and flagging any dodgy money moves you spot or suspect.

Deep Dive into the Legal Jargon:

1. Law Abiding Sellers: Make sure your business and any buddies you work with are on the up and up, strictly adhering to Anti-Money Laundering Laws. This isn’t just about staying out of trouble; it’s about making sure your operations don’t accidentally (or intentionally) end up playing on the wrong side of the legal fence.

2. Open Book Policy: TikTok might ask to poke around your records or conduct some audits to see if you’re keeping up with the rules. They expect full cooperation, so be ready to open up your books and let them take a peek to ensure everything is as it should be.

3. Snitch on Suspicious Activity: Got a hunch something fishy is going down? TikTok wants to know ASAP. Keeping quiet isn't an option here—transparency is the name of the game.

4. Breaking Rules Costs You: Slip up on these anti-money laundering obligations, and you could find your seller agreement cut short. TikTok isn’t playing games here; non-compliance can lead to termination of your seller status, and let’s just say, they won’t be writing you any apology letters for any losses you incur.

Indemnity Clause: If your missteps cause any financial harm to TikTok or its affiliates, guess who’s covering the bill? That’s right, you! So it’s best to play by the rules and keep everything above board.

Why This Matters:

With the digital marketplace booming, platforms like TikTok are on the front lines of preventing financial crimes that not only harm businesses but can undermine entire economic systems. By beefing up compliance requirements, TikTok is sending a clear message: it's serious about protecting its platform and its users from the dark underbelly of digital commerce.

So, TikTok sellers, it's time to brush up on those compliance protocols and ensure your business practices are as clean as your TikTok feeds. Stay vigilant, stay compliant, and keep selling!

Decoding the SEC and FinCEN's proposed customer identification program (CIP) requirements for investment advisers

The SEC and FinCEN are rolling out some new rules that might just make the world of investment advising a tad more secure.

Here's the lowdown on the latest customer identification program (CIP) requirements that are set to tighten the screws on illicit finance activities:

Who's on the Hook?

Covered Entities: If you're an SEC-registered investment adviser (RIA) or an exempt reporting adviser (ERA), get ready to scribble some serious compliance notes. You'll need to whip up, document, and religiously follow written CIPs. Oh, and if you're a state-registered adviser or a non-U.S. adviser not in the RIA or ERA club, you can breathe easy—you're not covered by this rule.

Why the Fuss?

Purpose: The big idea here is to stop the bad guys—think criminals, corrupt moguls, and other shady characters—from masquerading as legit clients to launder money, finance terrorism, or indulge in other no-no activities through investment advisers.

What’s in the Toolbox?

CIP Requirements: RIAs and ERAs, you’ll need to set up some reasonable procedures to not just meet and greet but truly know who your customers are. This means gathering info, verifying identities, checking those pesky government watchlists, and giving your customers a heads-up about what you’re doing with their details. Plus, there’s some recordkeeping gymnastics and a bit of tag-teaming allowed with other financial institutions.

Playing Well with Others

Alignment with Other Proposals: This isn't just a standalone act. It’s part of a bigger circus. This proposal is a snug fit with FinCEN's earlier move to label RIAs and ERAs as “financial institutions” under the Bank Secrecy Act, meaning more AML/CFT homework and suspicious activity reports.

So, whether you're jazzed about compliance or just trying to steer clear of regulatory quicksand, these new rules are all about making sure the investment advising world is as clean as a whistle. And hey, who doesn't like a cleaner, more secure financial environment? Let’s keep those investments clean and clear, folks!

Looking at a career in AML/KYC, here are some companies hiring:

• Stellar Bank - AML Specialist

• Northern Bank - Financial Crimes Specialist II

• BBVA - Sanctions Compliance Analyst