The Securities and Exchange Commission (SEC) is the primary federal regulatory and enforcement authority for the US securities markets. Established by the Securities Exchange Act of 1934 in the aftermath of the Wall Street Crash, the SEC’s core mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation. It regulates broker-dealers, investment advisers, investment companies, securities exchanges, and public companies — requiring disclosure, registration, and adherence to conduct standards across the US securities industry. The SEC is an independent federal agency headed by five commissioners appointed by the President, and it has broad civil enforcement powers including the ability to bring injunctive actions, impose disgorgement of profits, levy substantial civil penalties, and bar individuals from the securities industry.
In the financial crime compliance context, the SEC is relevant primarily as a securities fraud and market manipulation enforcement authority rather than as a dedicated AML supervisor — that role in the securities sector falls primarily to FinCEN and FINRA. However, the SEC has increasingly engaged with AML and financial crime matters, particularly through its enforcement of the Foreign Corrupt Practices Act (FCPA) jointly with the Department of Justice, and through its oversight of broker-dealer AML programmes. The SEC also plays a critical role in the cryptoasset space, asserting jurisdiction over digital assets that qualify as securities and bringing enforcement actions against fraudulent token offerings and unregistered exchanges. For international compliance professionals, the SEC is significant because its disclosure and enforcement regime affects any company with securities listed on a US exchange, regardless of where that company is headquartered.
SEC site: https://www.sec.gov/
