Wall Street Broker AF&Co Settles for $300,000 with SEC over SAR filings
- SEC hits Wall Street Firm AF&Co regarding failure to file Suspicious Activity Reports.
The U.S. Securities and Exchange Commission (SEC) just announced charges against Wall Street-based brokerage firm Albert Fried & Company (AF&Co) over failing to file Suspicious Activity Reports (SARs) for more than a five-year period, according to an official statement from the regulator.
The charges against AF&Co, based on an SEC investigation, found how the firm failed to file the required reports over the mentioned period even though there were numerous occasions that triggered the filing requirement based on red flags from client’s suspicious transactions.
Brokerage firms must take their anti-money laundering responsibilities seriously so they can serve as a line of defense against misconduct and market risks
$300,000 penalty to settle
SAR filings are required as part of the firm’s obligations under Anti-Money Laundering (AML) compliance and related regulations and the SEC order said that AF&Co had violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8.
AF&Co agreed to pay a penalty of $300,000 to settle the charges without admitting or denying them, and has already taken remedial action to prevent future related violations, and the SEC noted its cooperated in a statement while emphasising the importance that firms adhere to related AML compliance.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
AML Compliance
“Albert Fried & Company ignored numerous instances when customer trading activity should have triggered the firm to file SARs. Brokerage firms must take their anti-money laundering responsibilities seriously so they can serve as a line of defense against misconduct and market risks,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement, commenting in a statement.
The SEC noted that clients had high-volume liquidations of low-priced securities (i.e. penny stocks), and traded in stocks issued by companies with delinquent regulatory filings or involved in questionable penny stock promotions.
In addition, the SEC noted that on more than one instance client trading exceeded 80% of a given securities overall market volume. Many Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers also need to file SARs depending on where and how they operate, including relevant jurisdictions and regulatory environments.
It's not clear if the missed reports were due to inefficient compliance technology or other compliance shortfalls or both.
Nonetheless, as regulatory technology improves, such filings could be automatically created by firms based on triggers that detect related suspicious client behaviour that creates the need for the SAR filing. The news follows charges the SEC made against a Ponzi-scheme operator yesterday, which was detailed by Finance Magnates along with another SEC cases where an adviser delayed losses to allegedly charge incentive fees.
The U.S. Securities and Exchange Commission (SEC) just announced charges against Wall Street-based brokerage firm Albert Fried & Company (AF&Co) over failing to file Suspicious Activity Reports (SARs) for more than a five-year period, according to an official statement from the regulator.
The charges against AF&Co, based on an SEC investigation, found how the firm failed to file the required reports over the mentioned period even though there were numerous occasions that triggered the filing requirement based on red flags from client’s suspicious transactions.
Brokerage firms must take their anti-money laundering responsibilities seriously so they can serve as a line of defense against misconduct and market risks
$300,000 penalty to settle
SAR filings are required as part of the firm’s obligations under Anti-Money Laundering (AML) compliance and related regulations and the SEC order said that AF&Co had violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8.
AF&Co agreed to pay a penalty of $300,000 to settle the charges without admitting or denying them, and has already taken remedial action to prevent future related violations, and the SEC noted its cooperated in a statement while emphasising the importance that firms adhere to related AML compliance.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
AML Compliance
“Albert Fried & Company ignored numerous instances when customer trading activity should have triggered the firm to file SARs. Brokerage firms must take their anti-money laundering responsibilities seriously so they can serve as a line of defense against misconduct and market risks,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement, commenting in a statement.
The SEC noted that clients had high-volume liquidations of low-priced securities (i.e. penny stocks), and traded in stocks issued by companies with delinquent regulatory filings or involved in questionable penny stock promotions.
In addition, the SEC noted that on more than one instance client trading exceeded 80% of a given securities overall market volume. Many Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers also need to file SARs depending on where and how they operate, including relevant jurisdictions and regulatory environments.
It's not clear if the missed reports were due to inefficient compliance technology or other compliance shortfalls or both.
Nonetheless, as regulatory technology improves, such filings could be automatically created by firms based on triggers that detect related suspicious client behaviour that creates the need for the SAR filing. The news follows charges the SEC made against a Ponzi-scheme operator yesterday, which was detailed by Finance Magnates along with another SEC cases where an adviser delayed losses to allegedly charge incentive fees.