NFA Fines Firm and Principal for Failing to Observe High Standards of Commercial Honor and Failure to Supervise

The National Futures Association ("NFA") fined FX Evolve and its principal (together, "FX Evolve") for failing to observe high standards of commercial honor and failing to supervise.

The NFA found that FX Evolve violated NFA Compliance Rule 2-36(c) when it knowingly conducted business with firms and individuals that were not registered with the NFA and facilitated unauthorized trades between individuals who had previously pleaded guilty to bank fraud, conspiracy and income tax evasion.

The NFA also found that FX Evolve violated NFA Compliance Rule 2-9(c) when the firm (i) failed to provide AML training to its employees and (ii) implemented an inadequate AML program when the program failed to identify individuals who had pleaded guilty to bank fraud, conspiracy and income tax evasion.

To settle the charges, FX Evolve agreed that if the firm applies for NFA membership, associate membership or principal status with any NFA Member, FX Evolve shall pay a fine of $50,000 to the NFA due on or before the date of any such application.

See: NFA Complaint; NFA Decision.