A $1 million penalty for anti-money laundering failures against an Omaha, NE independent clearing firm ratchets up the pressure on similar operations and their introducing broker clients, say compliance professionals. COR Clearing LLC lacked a written program to monitor transactions for anti-money laundering (AML) red flags, inadequately staffed its compliance effort and failed to review its 86 clearing clients' AML programs, according to the Financial Industry Regulatory Authority (Finra). In addition, many of the clearing firm's clients had checkered regulatory enforcement histories, but weren't properly vetted on account opening nor given adequate ongoing due diligence, according to the Finra settlement...
The nation's largest private securities regulator penalized Oppenheimer & Co. more than $1.4 million for violations related to penny stock trades, a fine that could spur smaller firms to review for similar problems.
Securities regulators are likely to increasingly penalize firms that fail to identify the beneficial owners of accounts controlled by so-called "master" accounts, according to Alma Angotti, the former senior counsel in the Financial Industry Regulatory Authority's enforcement department.
Some firms under the purview of the nation's largest independent securities regulator are failing to meet anti-money laundering compliance standards despite spending enough money to do so, according to an agency regulator.
E*Trade has been fined $1 million by the Financial Industry Regulatory Authority for inadequate anti-money laundering policies and procedures. The action follows on a $1 million penalty levied by the Securities and Exchange Commission six months ago against the on-line brokerage.