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SEC Brings First Patriot Act Case

The Securities and Exchange Commission yesterday announced its first-ever enforcement action under the USA Patriot Act, Denise Diaz reports via the blog CompanyCounselor.  Diaz writes:

"The SEC announced its first enforcement action under the USA Patriot Act, which requires broker-dealers to implement and document identity verification procedures for all new accounts. The SEC has sanctioned broker-dealer Crowell, Weedon & Co. for failing to properly document its customer identification program."

Crowell, Weedon consented to the issuance of a cease and desist order, Diaz says.

What does the Patriot Act have to do with securities enforcement? In the SEC's announcement, it offers this explanation:

"The USA PATRIOT Act seeks to protect the U.S. financial system from money laundering and terrorist financing by, among other things, requiring broker-dealers to implement and document identity verification procedures for all new accounts."

Posted by Robert J. Ambrogi on May 23, 2006 at 01:41 PM | Permalink | Comments (0) | TrackBack (0)

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