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The Bank Secrecy Act requires firms to monitor and file SARs for suspicious activity involving money laundering or fraud. Firms must file within 30 days of detection and maintain strict confidentiality.

Supervisors must correct and report violations involving excessive commissions. Even if clients consent, charges beyond regulatory limits are prohibited. Corrective action includes refunding clients and reporting misconduct if necessary. FINRA Rule 2121 governs fair pricing and commissions.

Failing to disclose and explain risks for complex products violates the suitability standard under Rule 2111. Supervisors must review these recommendations carefully.

The Customer Identification Program (CIP) requires firms to verify identity at account opening. Supervisors ensure documents like government-issued ID are obtained and verified before transactions occur.

Reps must perform reasonable diligence before recommending products. Supervisors ensure compliance with Rule 2111, which requires product knowledge and suitability review.