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The BD/IA Regulator Providing securities regulatory, enforcement and litigation trends for broker-dealers, investment advisers and investment funds

Tag Archives: anti-money laundering

AML Enforcement Focuses on BDs Doing Business in Mexico

Posted in Anti-Money Laundering, Broker-Dealer Regulation, FINRA Enforcement

FINRA recently took formal disciplinary action against a New York-based broker-dealer that is affiliated with a Mexican broker-dealer and with a Mexican bank for inadequate anti-money laundering (AML) systems and procedures. FINRA also found that the broker-dealer failed to register 200 to 400 foreign finders who functioned as the firm’s primary points of contact with… Read More

FINRA Continues Its Crackdown on Companies That Fail to Respond to Red Flags

Posted in Anti-Money Laundering, Broker-Dealer Regulation, Enforcement, FINRA Enforcement

FINRA continues to discipline broker-dealers that fail to detect and investigate so-called “red flags” of suspicious account activity. Yesterday, FINRA announced a $1 million fine against COR Clearing LLC (the “Firm”) – formerly Legent Clearing LLC – citing its failure to implement procedures designed to detect suspicious account activity and to report that activity once… Read More

FINRA Increases the Cost of Penny Stock-Related AML Deficiencies

Posted in Anti-Money Laundering, Broker-Dealer Regulation

The price tag for failing to detect suspicious activity in penny stocks through an adequate anti-money laundering program continues to increase.  Oppenheimer & Co., Inc. recently agreed to pay FINRA more than $1.4 million to settle a disciplinary proceeding brought in May 2013 based on problems in the firm’s supervisory system and anti-money laundering program…. Read More

FINRA Settlements Reveal Focus on Response to Red-Flags

Posted in Anti-Money Laundering, Broker-Dealer Regulation, FINRA Enforcement

Firms that let suspicious account activity go undetected have caught FINRA’s attention, and have paid for their oversight – or, indeed, lack of oversight — in the form of penalties and employee suspensions, as detailed in recently-publicized settlements. While, at first blush, each settlement – with Atlas One Financial Group, Firstrade Securities Inc. and World… Read More

SEC Enforcement Priorities and Compliance Opportunities

Posted in Enforcement, FINRA Enforcement, SEC Enforcement

We recently peered into our crystal ball to divine the SEC’s 2013 enforcement priorities for advisers to private funds (i.e., hedge funds and private equity funds), but came up empty. Instead, we looked at the SEC’s public statements and prior enforcement actions, which reveal four areas of enforcement risk for private fund advisers. First, the SEC will… Read More