FINRA Fine Lek Securities AML

On Aug. 15, FINRA fined Lek Securities Corporation for 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.