This move should allow SEC resources to be deployed in a matter consistent with the overall Commission objectives and achieve uniformity within the SEC to closely adhere to those overall objectives. While this modification may slow down the commencement of investigations, regulated entitles will likely experience increased consistency in the approach and timing of investigations.

The takeaways from this matter are: (1) the term Money Services Business ("MSB") has a potentially broad, elastic definition—businesses regularly engaging in activities involving significant amounts of currency and funds (like the common carrier in this case) should carefully assess whether they fall under the expansive definition of an MSB (to the extent they are not already a financial institution under FinCEN regulations); (2) exemptions in this area, as in other areas of law, are very…

One of the five pillars of a reasonably designed anti-money laundering ("AML") program is the independent testing function. That is precisely why that requirement is enshrined in —each FINRA Member is required, on an annual (calendar-year basis), to have independent testing done by either a third party or an employee of the Firm who is not otherwise associated with AML functions. Such a process can identify (among other things) gaps or weaknesses in the overall AML Program.

In this…

It has long been fundamental in the investment management industry that participants must say what they do, and do what they say. In this matter, an SEC registered investment adviser ("RIA"), was an advisor to several pooled investment vehicles. The firm's private fund investors included a number of multiple foreign-based entities, some with certain opaque beneficial ownership and sources of wealth.

Because of its client base and business model, this RIA represented to clients that it…