Anti-money laundering (AML) laws are a cornerstone of the securities industry. They are designed to prevent illegal transactions that could support fraud, trafficking, or other criminal activity. FINRA Rule 3310 in particular sets requirements for brokerage firms to detect and report suspicious activities that might point to money laundering. For investors, these safeguards are meant to protect both the integrity of the market and their financial interests.
If your financial advisor or brokerage firm failed to comply with anti-money laundering (AML) requirements, putting your investments at risk, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in brokerage firm and broker misconduct cases and will help to guide you through the process with a free consultation.
Understanding FINRA Rule 3310 Requirements

To comply with anti-money laundering laws like Rule 3310, brokerage firms must establish AML programs that are customized to their operations. The structure of these programs will vary depending on whether a firm serves individual investors or manages large institutional accounts.
Core Elements of AML Programs
At minimum, a compliant AML program should include:
- A written framework approved by senior management.
- Ongoing monitoring of transactions to identify unusual activity.
- Up-to-date customer information that reflects risk-based assessments.
- Suspicious Activity Reports (SARs) filed with FinCEN when money laundering is suspected.
By requiring these elements, FINRA ensures that firms not only build compliance on paper but also take active steps to detect and prevent illegal activities.
Tailored Approaches for Different Firms
Because every brokerage operates differently, AML programs are expected to adapt. For example, a retail firm may emphasize detecting irregularities in individual client accounts, while an institutional firm might focus on monitoring complex, high-value transactions. This flexibility allows Rule 3310 to be effective across the industry.
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The Importance of Suspicious Activity Reporting (SAR)
A major part of AML compliance involves filing Suspicious Activity Reports when questionable transactions occur. These reports help regulators investigate potential wrongdoing and prevent financial systems from being misused.
Filing Requirements for SARs
Brokerage firms must meet strict deadlines and recordkeeping standards, including:
- Filing within 30 days of detecting suspicious activity (or 60 days if no suspect is identified).
- Retaining SAR documentation for five years.
- Cooperating with regulatory and law enforcement requests tied to the reports.
These requirements are designed to ensure that red flags do not go unnoticed, giving investigators the tools they need to act quickly.
Why Timeliness Matters for Investors
When SARs are filed properly, regulators have a better chance of uncovering financial crimes before they grow larger. On the other hand, when firms delay or fail to report, investors may unknowingly be exposed to schemes or fraudulent behavior that could put their accounts at risk.
Best Practices and Red Flags for AML Compliance
Even beyond the formal requirements of Rule 3310, strong firms often adopt additional safeguards. These practices not only protect the firm from penalties but also provide investors with greater confidence in the system.
Best Practices for Compliance
Brokerage firms can strengthen their AML programs by:
- Conducting independent testing of AML processes to uncover weaknesses.
- Training employees regularly to recognize and respond to suspicious activity.
- Building a culture of compliance that encourages reporting without fear of retaliation.
Together, these practices make compliance more than a regulatory checkbox—they create an environment where potential risks can be identified early.
Recognizing Red Flags
From an investor’s perspective, it’s also helpful to know what behaviors may indicate money laundering. Some of the most common red flags firms look for include:
- Transactions that don’t match a client’s financial profile.
- Large deposits or withdrawals that lack a clear business reason.
- Clients unwilling to provide complete financial information.
- Activity designed to avoid reporting thresholds, such as frequent small transfers.
- Use of multiple accounts for similar transactions.
When brokerage firms fail to identify and act on these signs, investors can be left vulnerable to suspicious or illegal financial activity.
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How Meyer Wilson Werning Helps Investors Impacted by AML Failures
For investors, trust in the financial system depends on firms following anti-money laundering regulations like FINRA Rule 3310. Unfortunately, when advisors or brokerages fail to uphold these responsibilities, investors may face exposure to fraud, hidden risks, or financial losses.
At Meyer Wilson Werning, we help investors hold firms accountable when AML safeguards are ignored or neglected. If you have concerns about whether your investments were affected by AML non-compliance, our team is here to help you understand your options. Contact us today to schedule a consultation and discuss your situation in detail.
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Frequently Asked Questions

What is FINRA Rule 3310?
FINRA Rule 3310 requires brokerage firms to establish and maintain an anti-money laundering (AML) program tailored to their business. The program must include written procedures, transaction monitoring, risk-based customer due diligence, and the timely filing of Suspicious Activity Reports (SARs).
What is a Suspicious Activity Report (SAR), and when is it required?
A SAR is a confidential report filed with FinCEN when a firm detects potential money laundering or other suspicious behavior. Firms must file within 30 days of identifying suspicious activity—or within 60 days if no suspect is known.
What are some red flags for money laundering in the securities industry?
Common indicators include frequent transactions just below reporting thresholds, clients reluctant to share financial details, unusual trading patterns, and the use of multiple accounts for similar transactions.
What happens if a firm fails to comply with AML regulations?
Non-compliance can lead to regulatory penalties, enforcement actions, reputational damage, and in some cases, criminal liability. Firms must conduct independent testing and employee training to ensure AML programs are effective and current.
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