Finra Fine Sends a Warning: Clearing Firms Must Know Their Customers, Uncover Suspicious Activity

By Brian Monroe

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...