SEC: Cybersecurity Procedures Must be Reasonably Designed to Fit Specific Business Models

The Securities and Exchange Commission recently announced that a Des Moines-based broker-dealer and investment adviser has agreed to pay $1 million to settle charges related to its failures in cybersecurity policies and procedures surrounding a cyber intrusion that compromised personal information of thousands of customers. This is the latest SEC action demonstrating that cybersecurity must be tailored to the practices of the business.

The SEC charged Voya Financial Advisors Inc. (VFA) with violating the Safeguards Rule and the Identity Theft Red Flags Rule, which are designed to protect confidential customer information and protect customers from the risk of identity theft.  This is the first SEC enforcement action charging violations of the Identity Theft Red Flags Rule.

2018 SEC Examination Priorities: Anti-Money Laundering Programs

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) today announced its 2018 examination priorities. OCIE publishes its exam priorities annually to improve compliance, prevent fraud, monitor risk, and inform policy. Of particular interest this year will be matters involving critical market infrastructure, duties to retail investors, and developments in cryptocurrency, initial coin offerings, and secondary market trading.

This year, one of the five OCIE’s examination priorities is anti-money laundering programs. Examiners will review for compliance with applicable anti-money laundering requirements, including whether firms are appropriately adapting their AML programs to address their regulatory obligations.

Led by Certified Anti-Money Laundering Specialist (CAMS) Braden Perry, Kennyhertz Perry attorneys have broad BSA/AML experience across the spectrum of bank and non-bank financial institutions, including traditional chartered banks, broker-dealers, commodity trading advisors, money transmitters, non-bank lenders, and virtual currency businesses. We are experienced in counseling and drafting BSA/AML practices, policies, and procedures and can assist in any SEC examination or annual BSA/AML independent audit. Our combined knowledge and skill permits us to anticipate potential problems before they become serious issues and assist clients in responding effectively to regulatory and law enforcement criticisms or inquiries.

Kennyhertz Perry regularly counsels lenders, investment advisers, broker-dealers, and fund managers on the laws, rules, and regulatory developments affecting their business, including regulatory requirements, risk management, licensing and registration, sales and marketing practices and materials, manuals and training, day-to-day compliance.

Braden Perry Joins Elite Group of Anti-Money Laundering Specialists

Kennyhertz Perry, LLC, Attorneys at Law, today announced Braden Perry was awarded the widely recognized Certified Anti-Money Laundering Specialist (CAMS) credential by the Association of Certified Anti-Money Laundering Specialists (ACAMS), the world’s leading organization for professionals in the anti-money laundering (AML) field.

The CAMS designation is awarded to professionals who successfully complete a rigorous examination demonstrating their aptitude and expertise in anti-money laundering and terrorist financing detection and enforcement. The examination covers methods, and best practices to stop money laundering, terrorist financing, and other financial crimes. It also covers key legislation worldwide, global AML standards and developing defenses for financial institutions to curb the threats posed by illicit financial activity.

“Kennyhertz Perry’s BSA/AML team continually strives to be on the forefront and leaders in the field,” explains John Kennyhertz, co-founder of Kennyhertz Perry. “This further validates the experience and expertise Braden brings as the leader of the financial services group.”