On Jul. 18, FATF issued report on concealing beneficial ownership. FATF and Egmont Group issued report on the concealment of beneficial ownership. Beneficial Ownership Corporate vehicles can be misused to conceal ownership of illegally gained assets. New report assesses vulnerabilities linked to concealment of beneficial ownership, in order to support further risk analysis by governments and…
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Cyprus – SEC Reminds of AML Amendment
On Jul. 18, 2018, CSEC issued reminder of the new provision on cash collection. New Art 5A of AML law prohibits receipt of cash of €10,000 or over, by persons selling gems, precious metal, motor vehicle, work of art, antiques, as business. Applies regardless if carried out in single act or in series of related…
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SEC Fine IA Mislead Investors
On Jul. 18, SEC charged advisor on risky investments for clients. Temenos Advisory, George Taylor, steered clients into illiquid private offerings. Alleged Violations Used $19mn of clients’ money from elderly investors’, savings, pension plans. Concealed from clients high commissions they took from risky and unsuitable investment recommendations, including cash, ownership in private companies. Fraudulently misled clients…
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CAL INS Bill To Protect Seniors
On Jul. 17, CAL INS said bill to protect seniors signed into law. Commissioner-Dave Jones, had sponsored the bill to protect California seniors Impact of Law Law improves long-term care insurance and accelerated death benefit statutes. Assembly Bill 2180, facilitates policy review process for more insurance choice. California is home to the largest number of…
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FINRA Fine for VA Redemptions
On Jul. 16, FINRA fined Cambridge $150k on redemption of VAs. Cambridge Investment Research fined for redemption of VA, leveraged ETFs. Alleged Violations Customers redeemed VAs, and moved their proceeds to an advisory account. Employees were involved with, and recommended some of the transactions. No systematic supervision or record of redemption or procedures for doing.…
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FINRA Fines for Unsuitable Trading
On Jul. 16, FINRA fined Capitol $100k for unsuitable fund advice. Capitol Securities Management, fined $100k, with $44.7k restitution to clients. For conducting unsuitable short-term trading, in unit investment trusts (UITs). Unsuitable Trades Failed to establish supervisory system to prevent unsuitable short-term trades. Did not enforced UIT switch form per policy, to detect premature sales…
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