Patriot Act & Client InformationNeedless to say, the more information we acquire about an investor the better we are able to offer products and enhance the services we provide. We value the trust our clients have placed in us and understand the importance of maintaining the confidentiality of personal information. Morgan Wilshire does not voluntarily share client information for any reason. The Patriot Act The United States Government enacted the Patriot Act (the “Act”) in response to the terrorist attacks of September 11th, 2001. The purpose of this legislation is to help prevent the financial system and markets of the United States from being used to fund terrorism and any other criminal actions by requiring, among other things, that securities broker dealers and financial institutions take certain measures and actions in accordance with national efforts to detect suspicious transactions and money laundering actions committed by their clients. Essentially, money laundering consists of any and all necessary steps taken to hide or conceal illegally obtained funds or those used in the commission of illegal activities to create the appearance that said funds were obtained from or used by law abiding persons, legal sources and legally sanctioned activities. Money laundering activity is not confined to terrorist sources alone but includes a varied number of criminal acts, such as illegal arms sales, black market transactions, illegal narcotics, racketeering, robbery and fraud. In order to comply with the provisions of the Patriot Act, Morgan Wilshire Securities, Inc. has initiated policies and procedures laid out in a detailed anti-money laundering program. This program (the “Program”) features: 1) the designation of a specialized anti-money laundering compliance officer, known as an “AML Officer”; 2) uncovering and reporting any and all suspicious financial transactions to the United States Government; 3) specialized training to enable Morgan Wilshire personnel to identify “red flags” that may indicate such activity; 4) continuing education requirements for such personnel focusing on anti-money laundering practices and procedures, and 5) annual independent audits to monitor the effectiveness of the Program. Why We Need to Obtain Clients’ Personal Information It is important that our clients understand that the Act and the regulations promulgated in accordance with it additionally require broker-dealers and financial institutions to collect and verify the correctness of their clients’ personal information, including: 1) actual identities, verified by such documentation as social security or taxpayer identification numbers (or similar types of documentation for foreign clients) and drivers’ licenses; 2) the source of funds being deposited into client accounts, and 3) how clients obtained their financial assets. Morgan Wilshire Securities, Inc. acknowledges and sincerely thanks its clients for their cooperation and assistance in complying with its legal obligations as specified in the Patriot Act in the continuing fight against terrorism, criminal acts and money laundering activities. |