FINRA Fines Firms $750,000 for Inadequate Anti-Money Laundering Programs, Other Violations
Penson Financial Services Fined $450,000 for Inadequate Review of Hundreds of Thousands of Trades a Day;
Pinnacle Capital Markets Fined $300,000 for Failing to Verify Foreign Customer Identities and to Detect and Report Suspicious Activity
Washington, D.C. —The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Penson Financial Services, a Dallas-based securities clearing firm, $450,000 for failing to establish and implement an adequate anti-money laundering (AML) program to detect and trigger reporting of suspicious transactions, as required by the Bank Secrecy Act and FINRA rules and other violations. In a similar matter, FINRA has censured and fined Pinnacle Capital Markets of Raleigh, NC, $300,000 for failing to implement AML procedures reasonably designed to detect and cause the reporting of suspicious activity as well as to verify the identity of customers.
“Firms must tailor their AML programs to fit their business models and must consider the technological environment in which they operate and the nature of their client base,” said Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement. “They also must adopt adequate procedures for an AML compliance program, be vigilant in monitoring for suspicious transactions, and allocate adequate resources to their AML compliance efforts. Penson and Pinnacle failed to do so.”
Detailed news link: here