Financial Industry Regulatory Authority (FINRA)

Financial Industry Regulatory Authority (or FINRA) is a nonprofit government agency that aims to protect U.S. investors and ensure market integrity, supervises U.S. brokers. Founded in 2007, Financial Industry Regulatory Authority FINRA supervises and regulates more than 4250 brokerage firms in the USA.

Roles of FINRA

We have said that the purpose of FINRA is to protect investors' rights and to ensure the stability of the markets. FINRA takes on some duties and responsibilities to achieve this goal.

  • Auditing the qualifications of brokerage firms
  • Protecting the integrity of the market
  • Raising awareness of investors and protecting investors' rights
  • Checking whether brokerage firm employees have the necessary licenses.
  • Reducing financial crime risks in the investment sector
  • FINRA Customer Due Diligence rule needs to be applied, requiring companies to identify the beneficiaries of legal entity clients, understand the nature and purpose of client accounts, and continuously monitor client accounts.

Anti-Money Laundering – FINRA

Financial institutions serving in the USA have to comply with the "Bank Secrecy Act." The BSA money laundering law contains a number of lawsThe purpose of Anti-Money Laundering/Counter-Terrorism Financing regulations is to detect and prevent crimes such as money laundering, terrorist financing, corruption, and bribery. FINRA audits whether companies comply with their obligations of AML regulations. An AML compliance program under FINRA 3310 must have some basic principles. If we examine these principles;

  • The company's AML compliance program must be approved by the senior manager or board of directors.
  • The AML compliance program must be designed to enable the company to detect and report suspicious activities.
  • Companies must collect customer information in customer account opening processes and check the accuracy of this information.
  • Companies must implement a risk-based approach to all AML control processes by applying risk assessment to their customers.

In addition, FINRA organizes Anti-Money Laundering (AML) courses to train AML compliance officers. Companies are also referred to as the Money Laundering Reporting Officer, MLRO, who will analyze money laundering and report suspicious situations to the necessary institutions. MLRO meaning can be said as providing anti-money laundering regulations in the company.


FINRA AML fines companies that fail to meet their obligations and violate investor rights. If we examine the fines of FINRA; Companies in the U.S. were fined $ 176 million in 2016, $ 65 million in 2017, and $ 68 million in 2018.

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