Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

If a firm has no change in its anti-money laundering compliance officer designation, what must they do after the end of each calendar year?

1. Submit a new designation

2. Notify regulators immediately

3. Verify the name(s) of the compliance officer

4. Update the program within 30 days

The correct answer is: Verify the name(s) of the compliance officer

The correct answer emphasizes the importance of verifying the name(s) of the compliance officer after the end of each calendar year. Even if there has been no change in the designation of the anti-money laundering (AML) compliance officer, it is a best practice for firms to ensure that the current compliance officer's information is accurate and up to date. This verification process serves to affirm that the individual's position remains relevant and that they are still fulfilling their responsibilities effectively. Maintaining accurate records of compliance personnel is critical for regulatory audits and in demonstrating to regulators that the firm is committed to adhering to AML policies and procedures. By verifying the designation annually, a firm can also prevent any potential lapses in compliance due to administrative oversights. The focus on the compliance officer is particularly significant as this individual plays a key role in a firm's compliance efforts, including monitoring, reporting suspicious activities, and implementing AML training programs. Regularly checking and confirming this information underscores the firm's dedication to maintaining robust AML compliance practices.