FINRA Fine Lek Securities AML

• On Jun. 1, an SEC order became final and Lek Securities Corporation was
  fined $100,000, sustaining the NAC's findings and sanctions imposed.

Alleged Violations

• Such sanctions were based on Lek's failure to establish effective AML
  policies, procedures, controls to adequately report suspicious transactions.
• Such failure caused Lek to not meet the obligations of Bank Secrecy Act.
• SEC found Lek depended on manual, undocumented system of monitoring
  for wash trades and other methods of money laundering. Such a system
  was inadequate for Lek's typically high-volume electronic trading volume.

Insufficient Improvements

• Although Lek improved AML processes later, documentation was still poor.
• Firm failed to document review, investigation and determination regarding
  any specific, potentially suspicious trading or its SARs filing decisions.