In response to a spate of costly enforcement actions and increasingly probing questions from regulators, some U.S. financial institutions have implemented controls to better identify parties invested in omnibus accounts.
The U.S. Securities and Exchange Commission is taking a deeper look at suspicious activity reports following an overhaul of the federal database of Bank Secrecy Act regulatory filings, according to an agency official.
Plans by the U.S. securities market regulator to more strictly enforce regulations will result in a jump in anti-money laundering penalties both by the agency and its private sector partner.
As investment firms look toward new markets to turn a profit, the individuals charged with auditing their compliance program should take note. Bad audits remain a common thread of costly regulatory penalties.
Changes to how and how often securities firms report suspicious activity are helping to clarify the scope of a long-familiar financial crime: microcap fraud.