LPL Financial settles SEC anti-money laundering charges for $18 million

Investing.com -- The Securities and Exchange Commission (SEC) has announced charges against broker-dealer and investment adviser LPL Financial (NASDAQ:LPLA ) LLC due to numerous failures in its anti-money laundering (AML) program. To settle the charges, LPL has agreed to pay an $18 million civil penalty and make enhancements to its AML procedures and policies.

The SEC order states that from May 2019 to December 2023, LPL had persistent issues with its customer identification program, including not closing accounts in a timely manner when it had not adequately verified the customer's identity. Additionally, LPL did not close or limit thousands of high-risk accounts, such as those related to cannabis and foreign accounts, which were not allowed under the company's AML policies.

Stacy Bogert, Associate Director of the SEC’s Division of Enforcement, emphasized that federal law compels broker-dealers to verify the identity of their customers and regularly conduct customer due diligence to assist the government in detecting and preventing money laundering. She added that when firms like LPL do not fulfill their AML obligations, they expose the securities markets to risk.

The SEC's order determined that LPL knowingly violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 under it. Without admitting or denying the SEC's findings, the firm consented to a censure and a cease-and-desist order, in addition to the $18 million penalty. The SEC order also instructs LPL to continue its collaboration with a compliance consultant to assess and propose modifications to the company's AML policies and procedures.

The SEC's investigation was led by Ada Fernandez Johnson and John Ponyicsanyi, and was overseen by Pei Y. Chung and Ms. Bogert.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com

Останні публікації
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Аналіз ринку Як вплине завтра звіт NFP на курс долара США?