On Sep. 17, FINMA announced Credit Suisse AML failure re FIFA. Announced the conclusion of two investigations into AML failings at Credit Suisse. Overview An investigation identified deficiencies in anti-money laundering due diligence, re suspected corruption involving FIFA, Petrobras, Petróleos de Venezuela (PDVSA). Second re significant business relationship with politically exposed person (PEP). Deficiencies in AML…
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HK SFC AML Monitoring Exams
On Aug. 31, HK SFC issued circular on AML inspections findings. Found AML deficiencies in inspections of licensed corporations (LCs) in last year. In meeting the expected regulatory standards, for AML/CFT measures, controls. Scope of Reviews This followed thematic inspection focusing on 13 LCs’ measures and controls for identifying and mitigating money laundering and terrorist…
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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…
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SEC Fine Broker AML Reports
On Aug. 8, 2018, SEC issued no-action relief under S.206(4) and Rule 206(4)-3). Allows investment adviser to pay Schwab cash for solicitation of advisory clients. SEC enforcement would otherwise stop IAs making payment directly or indirectly. Background: On Jul. 9, SEC fined Schwab for not reporting IA suspicious trades. Charles Schwab settled charges it failed…
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FINRA Customer Diligence Rule
On Jul. 30, 2018 NFA announced compliance rule amendments to incorporate CDD. Applies to FCM, IB members must comply, identify beneficial owners, diligence. Also updated self-exam questionnaire and AML Procedures web client system. All changes are immediately effective, as required by the CDD rules in effect.
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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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