What does PCMLTFA require brokers to establish?

• A. A compliance regime including appointment of a compliance officer and written policies.
• B. No formal requirements
• C. A public awareness campaign
• D. Only a yearly audit

Answer: (A)

Under PCMLTFA, brokers must have a formal AML (anti-money laundering) compliance framework in place. The foundation of that framework is the appointment of a designated compliance officer and written policies and procedures that explain how the broker will identify and assess money laundering and terrorist financing risks, verify client identities, monitor and report suspicious activity, maintain records, and train staff. This setup creates a structured approach to meeting the law’s requirements rather than leaving AML compliance to ad-hoc practices.

The other options don’t fit because PCMLTFA isn’t satisfied by doing nothing formal, by running a public awareness campaign, or by focusing only on a yearly audit. While an annual audit is typically part of the overall regime, the act requires establishing the ongoing compliance program with policies and a designated officer as its core, with other elements like training and ongoing controls built around that framework.