On June 13, CFTC charged FCM in $5.5mn precious metal scam. Enforcement action against Omega Knight 2, Aviv Michael Hen, and Erez Hen. Alleged Violations For making false statements to sell leveraged, financed, and fully-paid trades. 90 customers paid total of $5.5mn in connection with these false transactions. Funds paid personal, business expenses and so…
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UK FCA Fines Canara GBP 900K
On Jun. 6, FCA issued final notice on Canara bank for AML failure. FCA penalized Canara bank for significant failures regarding AML systems, controls. Allegations Nov. 2012, Mar. 2013 FCA visited Canara as part of Trade Finance Thematic Project. Canara placed on notice of serious weaknesses identified in AML systems, controls. Canara confirmed remedial steps…
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AUSTRAC CBA $700mn AML Fine
On Jun. 4, AUSTRAC said CBA agreement to pay $700mn for AML. Follows AUSTRAC Dec. 2017 expanded case, 100 further breaches, see #33474. Penalty Agreement Agreement reached between AUSTRAC and the Commonwealth Bank of Australia for $700mn penalty, to resolve proceedings relating to breaches of AML/CTF law. Parties will jointly approach Federal Court, seeking orders…
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SEC Fines 13 PFs for Reporting
On 1 June, SEC charged 13 private fund advisers for filing failures. The SEC announced settled charges against 13 registered investment advisers. For failing to provide required information that the agency uses to monitor risk. Failure to File Form PF Advisers failed to file Form PF annual reports, to notify the funds they advised. On…
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SEC LI Broker Investment Scam
On May 30, SEC charged broker with defrauding clients up to $8mn. Charged former registered representative with defrauding long-standing brokerage customers in an $8mn investment scam, including senior citizens, misled investors. Alleged Fraud Steven Pagartanis, affiliated with broker dealer, told customers would invest in public traded or private land development companies, promised safe investment returns,.…
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HK SFC Fine on Sales Controls
On May 29, HK SFC fined Noah Holdings HK$5mn for sales controls. SFC fined Noah Holdings HK$5mn for system and control failure in product sales. Alleged Violations Internal system, control failures, in sale and distribution of investment products. Failure to comply with requirements on know-your-client, product due diligence, suitability assessment, information to clients and sales…
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