U.S. Broker-Dealers Face Compliance Complexities with Clients Investing in Marijuana Businesses

Alma Angotti Quoted on Wall Street Journal Risk & Compliance Page

Disparity in federal and state laws governing marijuana has complicated investment policies at U.S. brokerages. 

In an interview for the Wall Street Journal’s Risk & Compliance page, Alma Angotti, managing director and co-lead for the global investigations and compliance practice, shared her thoughts on the compliance complexities faced by broker-dealers with clients investing in marijuana businesses. 

“The firms, which are regulated by agencies such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority, the self-regulatory organization for securities firms, are trying to determine how deeply they need to dig to vet new clients’ sources of income to ensure that none is derived from marijuana-related businesses,” she said.

U.S. financial institutions, including broker-dealers, are required to follow anti-money laundering regulations and are forbidden from making transactions involving proceeds from federally prohibited businesses. 

 
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The firms, which are regulated by agencies such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority, the self-regulatory organization for securities firms, are trying to determine how deeply they need to dig to vet new clients’ sources of income to ensure that none is derived from marijuana-related businesses.

Alma Angotti, Managing Director and Global Investigations and Compliance Co-Lead

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