Regulator fines E-Trade units US$1 million
The independent Financial Industry Regulatory Authority has fined two units of E-Trade Financial a total of US$1 million for failing to implement adequate anti-money laundering (AML) procedures between Jan. 1, 2003 and May 31, 2007.
Under FINRA guidelines, brokerage firms' AML procedures must have a number of components, including "monitoring the trading in customer accounts as well as the flow of money into and out of these accounts," FINRA said in a statement Friday.
E-Trade did not have "separate and distinct monitoring procedures for suspicious trading activity in the absence of money movement," according to FINRA.
Instead, E-Trade analysts and other workers tracked suspect trades manually, and did not have "sufficient automated tools," FINRA said.
An E-Trade spokeswoman said via e-mail Friday that the company "has upgraded its systems to provide an automated method to monitor for this particular activity, and those systems have been in place for over a year."
E-Trade "promptly corrected the concern when FINRA advised the firm of its position," she added.
IDG News Service
pasmith
Kindle news: pricing, business models and ... source code?
mulderjoe
Cell phone gaming: In search of good mobile games
jfruh
The guts of the iPhone 3GS
Enter your caption for this week's cartoon! The winner will receive a $25 Amazon gift card. Go now!
Essential JavaFX
Get started building rich Web apps quickly with an introduction to the power of JavaFX key features -- scene node graphs, nodes as components, the coordinate system, layout options, colors and gradients, custom classes with inheritance, animation, binding, and event handlers.Enter now!
The Nomadic Developer
Consulting can be hugely rewarding, but it's easy to fail if you are unprepared. To succeed, you need a mentor who knows the lay of the land. Aaron Erickson is your mentor, and this is your guidebook. Enter now!
