Interactive Brokers to Pay $38M in Settlement Over AML Lapses
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Brokerage firm Interactive Brokers LLC agreed to pay $38 million in penalties to settle charges related to lapses in Anti-Money Laundering (AML) requirements and failure to flag suspicious transactions, according to a recent announcement by the Securities and Exchange Commission (SEC).
The announcement said that, over a one-year period, Interactive Brokers failed to file about 150 Suspicious Activity Reports to the SEC and also did not properly investigate suspicious activity as required under procedure.
- Under terms of the pact, the brokerage firm will pay the SEC $11.5 million, FINRA $15 million and the CFTC, $11.5 million.
- According to FINRA’s announcement, between January 2013 and September 2018, Interactive Brokers failed to devote its attention to meeting AML guidelines. The announcement added that the firm also did not adequately examine its customers’ wire transfers for suspicious activity, including the ones that originated in countries recognized as “high risk” by regulators.
- As part of the settlement, the brokerage will also be required to make necessary changes suggested by a third-party consultant to remedy the issues.
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