Refusing, Restricting, and Closing Accounts

What this video covers

• Why the designated principal, not the registered representative, holds sole authority to refuse, restrict, or close any customer account
• The five grounds for refusing to open an account: customer identification program (CIP) failure, Office of Foreign Assets Control (OFAC) sanctions match, Financial Crimes Enforcement Network (FinCEN) order, information refusal, and product mismatch
• What account restriction actually means: limiting activity without closing, and why restrictions for anti-money laundering (AML) investigations trigger strict suspicious activity report (SAR) confidentiality
• The tipping-off violation: what you can tell the customer about a restriction versus what must stay secret forever
• Who qualifies as a specified adult under the senior-investor protection rule, and why age 65-plus is automatic while age 18-plus requires impairment
• The exact hold timeline: 15 business days initial, plus 10 with internal review support, plus 30 after reporting to regulators, capped at 55 total
• The critical exception: senior-investor holds can be authorized by supervisory, compliance, or legal personnel who need not be registered principals
• The four buckets for account closure and why even a screaming customer cannot force instant unilateral closure by a rep