Circumstances for Refusing, Restricting, or Closing Accounts

What this video covers

• The four mandatory refusal triggers: missing Customer Identification Program (CIP) information, suspicious activity under anti-money laundering (AML) rules, Office of Foreign Assets Control (OFAC) specially designated nationals (SDN) list matches, and unacknowledged unsuitable activity
• Why a CIP refusal is regulatory compliance, not illegal discrimination based on protected characteristics
• The dual mandate for OFAC SDN matches: block the account immediately AND report to OFAC, never just one or the other
• The $5,000 threshold for filing a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN), and the absolute prohibition on tipping off the customer
• Pattern day trading requirements: four or more day trades in five business days, the $25,000 minimum equity rule, and the separate 90-day cash-available restriction for unmet special maintenance margin calls
• Free-riding in cash accounts: the 90-day freeze when buying and selling before paying, and why the account is restricted not closed
• Account closure for legitimate business reasons with reasonable notice, and the Automated Customer Account Transfer Service (ACATS) timeline: one business day to validate or take exception, then three business days to complete