FINRA AML Guide - Penny Stocks

FINRA AML GUIDE..

Red Flags
Red flags that signal possible money laundering or terrorist financing include, but are not limited to:
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Transactions Involving Penny Stock Companies

• 	Company has no business, no revenues and no product.

• 	Company has experienced frequent or continuous changes in its business structure.

• 	Officers or insiders of the issuer are associated with multiple penny stock issuers.

• 	Company undergoes frequent material changes in business strategy or its line of business.

• 	Officers or insiders of the issuer have a history of securities violations.

• 	Company has not made disclosures in SEC or other regulatory filings.

• 	Company has been the subject of a prior trading suspension.