Compliance Officer Settles FINRA Charges for AML Failures

A registered representative and compliance supervisor ("respondent") settled FINRA charges for improper supervision of his firm's AML program.

In a FINRA Letter of Acceptance, Waiver and Consent, FINRA found that the respondent failed to (i) implement and monitor the firm's AML program, (ii) supervise AML staff, (iii) perform required reviews of surveillance reports, (iv) file Suspicious Activity Reports and (v) ensure adequate AML investigations. In August 2020 the respondent's employer settled FINRA charges in violation of Rules 3310 ("Anti-Money Laundering Compliance Program") and 2010 ("Standards of Commercial Honor and Principles of Trade") during the period that respondent was the AML Compliance Officer.

To settle the FINRA charges, the respondent agreed to (i) a two-month suspension from the industry, (ii) a $25,000 fine and (iii) comply with undertakings, including 10 hours of continuing education related to AML responsibilities.

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