SEC Press press_release 7 KB 3,575 chars

Press Release: SEC and FinCEN Sign Information Sharing Agreement; 2006-217; Dec. 21, 2006

Release: 2006-217

summary

The SEC and FinCEN signed a December 21, 2006, Memorandum of Understanding to share information on Bank Secrecy Act compliance by broker-dealers and investment companies, enhancing joint efforts to detect and deter money laundering and terrorist financing without specifying any individual fraud case or penalty.

paragraph

On December 21, 2006, the U.S. Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) entered into a Memorandum of Understanding to establish routine quarterly information sharing on Bank Secrecy Act (BSA) compliance by SEC-regulated firms, including broker-dealers and investment companies. The agreement enables the SEC to provide FinCEN with examination and enforcement data, while FinCEN supplies analytical reports and suspicious activity insights to strengthen anti-money laundering oversight. No specific fraud cases, dollar amounts, or enforcement actions against individuals or firms are detailed, as this is a procedural cooperation framework, not a punitive action.

narrative

On December 21, 2006, the U.S. Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) signed a Memorandum of Understanding (MOU) to formalize routine information sharing on Bank Secrecy Act (BSA) compliance among SEC-regulated entities, including broker-dealers and investment companies. The MOU mandates quarterly exchanges of examination and enforcement data from the SEC to FinCEN, while FinCEN provides analytical support, suspicious transaction reports, and expertise to enhance anti-money laundering efforts. This collaboration aims to improve detection, deterrence, and interdiction of money laundering and terrorist financing within the U.S. financial system. The agreement aligns with similar MOUs FinCEN has established with federal banking agencies and the IRS, reinforcing a coordinated regulatory approach. Both agencies emphasized that the MOU strengthens an already active working relationship, not a new enforcement action. No specific fraud cases, financial penalties, or individual misconduct are referenced in the release, as the focus is on systemic compliance and interagency coordination. The SEC and FinCEN committed to regular meetings to continuously improve anti-money laundering and counter-terrorist financing programs across the securities industry. The BSA framework, which underpins this agreement, requires financial institutions to report suspicious activity and maintain customer identification programs to increase transparency.

Enriched metadata

Scheme: non-corporate (100%)

Classified non-corporate(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Entities 11

agency assistance and analytical reports to the sec
person christopher cox
person financial institutions
person information sharing agreement
person robert werner
agency sec and fincen
agency sec and sros
agency sec-regulated firms
agency sec-regulated firms have robust anti-money laundering programs
agency Securities and Exchange Commission
agency u.s. department of the treasury

Triples 19

Sec And Fincen Sign Information Sharing Agreement Information Sharing Agreement
Sec And Fincen Announce Agreement Agreement for the routine exchange of examination and enforcement information relating to sec-regulated firms' compliance with the Bank Secrecy Act (BSA)
Agreement Have Goal To assist in the identification, deterrence, and interdiction of terrorist financing and money laundering
Agreement Ensure Compliance Sec-regulated firms have robust anti-money laundering programs
Agreement Assist Efforts Identify financial institutions with significant BSA violations or deficiencies and take enforcement and other action when appropriate
BsA Be Designed To Protect U.S. financial system from money laundering and other financial crime through a system of regulatory controls and reporting aimed at increasing transparency in the U.S. financial system
Sec-regulated firms Include Entities Broker-dealers in securities and investment companies
Agencies Enter Into Memorandum Of Understanding (MOU) Memorandum of Understanding (MOU) under which the SEC will provide FinCEN with detailed information on a quarterly basis regarding the SEC's and the securities self-regulatory organizations' anti-money laundering examination and enforcement activities
FinCEN Provide Assistance Assistance and analytical reports to the SEC
Mou Be Consistent With Those that FinCEN has reached with the federal banking agencies and the Internal Revenue Service
Robert Werner Say Agreement Is Cornerstone Another cornerstone in FinCEN's continuing effort to strengthen communication and cooperation among federal regulators that examine financial institutions for compliance with the Bank Secrecy Act and other anti-money laundering regulations to further support our ability to follow up on and address financial crime
Christopher Cox Say Agreement Improves Efforts We are pleased to formalize our already strong working relationship with FinCEN. The agreement will improve our joint efforts to ensure aggressive anti-money laundering compliance programs to deter potential money laundering and terrorist financing activities in the U.S.
Sec And Fincen Meet Regularly As part of the agencies' continuing efforts to improve anti-money laundering and anti-terrorist financing compliance
Sec Be Responsible For Administering the federal securities laws
Sec And Sros Conduct Examinations Of the anti-money laundering obligations of securities firms and enforce compliance with the relevant SEC and SRO rules
Fincen Be Bureau Within U.S. Department of the Treasury
Fincen Administer BsA
Fincen Promulgate Regulations Requiring financial institutions to report suspicious transactions, as well as implement anti-money laundering and customer identification programs
Financial Institutions Be Subject To These requirements include, among others, broker-dealers in securities and mutual funds

View original SEC press releasesec.gov

Extracted body text (3,575c)

Joint Release U.S. Securities and Exchange Commission (SEC) Financial Crimes Enforcement Network (FinCEN) SEC and FinCEN Sign Information Sharing Agreement FOR IMMEDIATE RELEASE 2006-217 Washington, D.C., Dec. 21, 2006 - The Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) today announced that they have reached an agreement for the routine exchange of examination and enforcement information relating to SEC-regulated firms' compliance with the Bank Secrecy Act (BSA). The goal of the agreement is to assist in the identification, deterrence, and interdiction of terrorist financing and money laundering. The agreement will better ensure that SEC-regulated firms have robust anti-money laundering programs and assist the agencies' efforts to identify financial institutions with significant BSA violations or deficiencies and take enforcement and other action when appropriate. The BSA was designed to protect the U.S. financial system from money laundering and other financial crime through a system of regulatory controls and reporting aimed at increasing transparency in the U.S. financial system. SEC-regulated firms include, among others, broker-dealers in securities and investment companies. The agencies entered into a Memorandum of Understanding (MOU) under which the SEC will provide FinCEN with detailed information on a quarterly basis regarding the SEC's and the securities self-regulatory organizations' anti-money laundering examination and enforcement activities. For its part under the agreement, FinCEN will provide assistance and analytical reports to the SEC. The MOU is consistent with those that FinCEN has reached with the federal banking agencies and the Internal Revenue Service. "This agreement is another cornerstone in FinCEN's continuing effort to strengthen communication and cooperation among federal regulators that examine financial institutions for compliance with the Bank Secrecy Act and other anti-money laundering regulations to further support our ability to follow up on and address financial crime," said Robert Werner, Director of FinCEN. SEC Chairman Christopher Cox said, "We are pleased to formalize our already strong working relationship with FinCEN. The agreement will improve our joint efforts to ensure aggressive anti-money laundering compliance programs to deter potential money laundering and terrorist financing activities in the U.S." The SEC and FinCEN will meet regularly as part of the agencies' continuing efforts to improve anti-money laundering and anti-terrorist financing compliance. * * * The SEC is an independent federal agency responsible for administering the federal securities laws. The SEC and the self-regulatory organizations (SROs) it oversees conduct examinations of the anti-money laundering obligations of securities firms and enforce compliance with the relevant SEC and SRO rules. The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury, is the administrator of the BSA. FinCEN has promulgated regulations requiring financial institutions to report suspicious transactions, as well as implement anti-money laundering and customer identification programs. Financial institutions currently subject to these requirements include, among others, broker-dealers in securities and mutual funds. # # # SEC Contact: John Heine, (202) 551-4120 FinCEN Contacts: Steve Hudak, (703) 905-5149 Anne Marie Kelly, (703) 905-5023 http://www.sec.gov/news/press/2006/2006-217.htm Home | Previous Page Modified: 12/21/2006

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