On Feb. 16, FINRA fined Legend Securities $200k re sale supervision. Office of Hearing Officers decision became final and the firm was fined $200k. Alleged Violations Firm failed to supervise representative who fraudulently churned an account. Fraud against elderly and blind customer resulted in net losses of over $170k. Customer was charged a total $232k…
Read more
FINRA Wedbush Client Assets
On Feb. 5, FINRA fined Wedbush $1.5mn for client asset violations. To punish violations of Customer Protection and Net Capital Rules, and related supervisory and books and records failures over period of 2009-2016, several consumers defrauded. Customer Protection, Net Capital Rule Broker-dealer obligated to protect customer assets as custodian for investments must be segregated in…
Read more
South Africa – SARB Sanctions China Bank
On 2 February, SARB imposes sanctions on China Construction Bank. South African Reserve Bank (SARB) imposes administrative sanctions on China Construction Bank Corp. Johannesburg Branch for non-compliance with the Financial Intelligence Centre Act 38 of 2001 (FIC), as amended. SARB has directed the Bank to take remedial action. SARB Inspection SARB conducted an inspection in…
Read more
U.S. Fed Taiwanese Bank AML Fine
On Jan. 17, Fed fined Mega Int. Commercial bank $29mn for AML. Taipei, Taiwan, based bank breached US AML regulations, and was fined $29mn. Taiwan FSC asked bank to fully explain to Fed, its efforts to enhance compliance. Findings Followed Fed review of bank's branches in New York, Chicago, and Silicon Valley. US bank operations…
Read more
U.S. DoJ, SEC Och-Ziff Fraud, FCPA
On Jan. 3, 2018, DoJ charged Michael Cohen, for scheme to defraud charitable client. When recommending investments in African mining sector, to a charitable foundation. Violated fiduciary duties to charity, by making misrepresentation, concealing conflicts. One mine seller, owed Cohen millions of dollars, on a delinquent $18mn personal loan. Cohen had made the loan…
Read more
U.S. OFAC Human Rights Abusers
On Dec. 21, Treasury OFAC sanctioned 13 for abuse, corruption. Executive Order implemented global Magnitsky Human Rights Accountability Act. Executive action was taken on 13 serious human rights abusers and corrupt actors. OFAC, also imposed sanctions on an additional 39 affiliated individuals and entities. Yahya Jammeh Ex-President of Gambia 1994-2017 engaged in human rights abuses…
Read more