SEC fines Wells Fargo $7M for anti-money laundering lapses

The Securities and Trade Fee mentioned Friday that Wells Fargo Advisors had agreed to pay $7 million to settle fees of anti-money laundering associated violations.

The regulator mentioned Wells Fargo Advisors didn’t file not less than 34 Suspicious Exercise Experiences in a well timed method between April 2017 and October 2021.

The lapse arose as a result of the dealer didn’t correctly implement and take a look at a brand new model of its inner anti-money laundering transaction monitoring and alert system adopted in January 2019, the SEC mentioned. The system didn’t reconcile the totally different nation codes used to watch international wire transfers.

Because of this, Wells Fargo Advisors didn’t well timed file not less than 25 SARs associated to suspicious transactions in its prospects’ brokerage accounts involving wire transfers to or from international nations that it decided to be a danger for laundering, terrorist financing, or different unlawful cash actions.

“At Wells Fargo Advisors, we take regulatory obligations severely,” financial institution spokeswoman Shea Leordeanu mentioned in an emailed assertion. “This matter refers to legacy points that impacted a transaction monitoring system and the problems have been resolved promptly upon discovery.”

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