Introduction Good morning. I am pleased to be here today to participate in the Securities Industry Association's conference on money laundering. I welcome the opportunity today to listen and learn from you. Today, I'd like to share with you our plans for a new SEC examination initiative designed to focus attention on money laundering compliance by broker-dealers and my thoughts about why money laundering should be a key part of your compliance efforts. I also wish to share with you some ideas to consider as you develop or enhance your anti-money laundering compliance program.
Money laundering is a crime that deserves serious attention by securities firms.
It's in the Commission's interests to learn how well firms have integrated anti-money laundering efforts into their overall compliance efforts, and what risks for money laundering exist in the securities industry. As you know, a number of depository institutions have faced close scrutiny from their regulators and from Congress because of gaps in their compliance programs to combat money laundering. It makes sense for us to address risks in the securities industry now, before these money launderers migrate, affecting firms or affecting the market. The securities business is not, for the most part, a cash business readily susceptible to money laundering abuses. Let's look at the big picture.