Interactive Brokers allegedly failed to investigate suspicious activity because it did not have sufficient personnel and a reasonably designed case management system. The broker-dealer also allegedly failed to establish and implement policies, procedures, and internal controls reasonably designed to cause the reporting of suspicious transactions as required by the Bank Secrecy Act (BSA)
The broker-dealer agreed to pay FINRA $15 million in penalties and to certify that it will implement the recommendations of a third-party consultant to address its anti-money laundering failures.
Failure to implement procedures to detect & report suspicious transactions
Meanwhile, the CFTC alleged that Interactive Brokers failed to diligently supervise the handling of several commodity trading accounts by its agents, employees, and officers.
The regulator also alleged that it failed to adequately implement procedures to detect and report suspicious transactions as required under federal anti-money laundering laws and regulations.
