Oversights and Failures in Compliance Procedures
Beyond system flaws, FINRA claimed EFG also fell short in its periodic account reviews and failed to investigate rejected wire transfers flagged by other financial institutions for compliance reasons.
The organization emphasized that these issues echoed earlier AML weaknesses — notably, a 2018 settlement in which EFG faced claims it failed to properly review wire activities of clients whose accounts were held by its Swiss affiliate.
EFG Says Case Resolves ‘Legacy Issues’
Responding to the enforcement action, an EFG spokesperson said the company was “pleased to have resolved this matter,” stressing that the settlement “fully resolves legacy issues identified in 2021 and 2022 related to certain AML policies, procedures, and systems.”
The representative added that the resolution will not have a material financial impact and reflects EFG’s cooperation and remediation efforts throughout FINRA’s investigation.
Legal Representation and Next Steps
FINRA’s case was led by Seth Kean and Evan Ennis, while Ivan Harris of Morgan Lewis & Bockius LLP represented EFG Capital. FINRA did not immediately respond to requests for comment.
The FINRA $650K broker fine serves as a stark reminder to the financial sector that system errors and delayed oversight can carry costly consequences, even years after the fact — a warning that compliance lapses, no matter how technical, never escape the regulator’s radar.
