News

In response to a spate of costly enforcement actions and increasingly probing questions from regulators, some U.S. financial institutions have implemented controls to better identify parties invested in omnibus accounts. The accounts, which allow foreign financial institutions, brokers and other firms to provide their customers direct access to the U.S. securities market through the operational platform of an American company, have become a major focus of regulators, said John Davidson, global head of anti-money laundering (AML) for New York-based E-Trade. "You have [customer identification program] requirements under certain circumstances and, if you're allowing trading on your platform, you definitely have...