A rule change approved by the Securities and Exchange Commission eliminates an exception that has let some broker-dealers use their own employees to test anti-money-laundering compliance.

The rule change originated with the Financial Industry Regulatory Authority, which felt the exception violated the Bank Secrecy Act. It had effectively allowed smaller broker-dealers to use certain employees to do the testing, provided the results could be reported to an officer senior to the firm's anti-money-laundering officer.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.