FINRA Fines Broker for Anti-Money Laundering Violations

On September 9, FINRA settled charges with a broker (respondent) for alleged breaches of its Anti-Money Laundering (AML) compliance program. According to the Acceptance, Waiver and Consent Letter, Defendant failed to, among other things: (i) establish a reasonably designed AML program; (ii) implement a customer identification program; (iii) reasonably supervise potentially manipulative transactions; and (iv) preserve and maintain certain electronic communications. Additionally, FINRA found that the defendant had unreasonably relied on manual reviews of the daily trading log to identify market manipulation. FINRA’s order includes alleged violations of FINRA Rule 2010, Rule 3110, Rule 3310(a)-(b) and Rule 4511. FINRA also determined that the Respondent had violates Section 17(a) and Section 17a-4(b) of the Securities Exchange Act of 1934. )(4). The Respondent agreed to pay a civil penalty of $450,000 to FINRA and is prohibited from providing market access for two years.

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