The Commission also alleged that the broker-dealer lacked adequate anti-money laundering surveillance program to detect suspicious transactions in U.S. microcap securities.
Interactive Brokers agreed to pay civil penalties of $11.5 million to resolve the allegations of the SEC. The broker-dealer settled without admitting or denying the Commission’s charges.
In a statement, SEC New York Regional Office Director Marc Berger said, SAR filings are an essential tool in assisting regulators and law enforcement to detect potential violations of the securities laws, particularly in the microcap space. Today’s multi-agency settlement reflects the seriousness we place on broker-dealers complying with their SAR reporting obligations and maintaining appropriate anti-money laundering controls.”
Widespread anti-money laundering failures
On the other hand, FINRA alleged that Interactive Brokers engaged in widespread anti-money laundering failures.
According to FINRA, the broker-dealer failed to detect anti-money laundering concerns related to hundreds of millions of dollars of its customers’ wire transfers that included third-party deposits into customer accounts from “high-risk” countries.
