UBS fined $125 million by US regulators for money laundering violations
FinCEN said UBSFS failed to monitor about 60,000 foreign-currency wires worth $10 billion and must face an independent AML review.
- On Monday, the Financial Crimes Enforcement Network ordered UBS Financial Services to pay a $125 million penalty for willful violations of the Bank Secrecy Act, the largest penalty the regulator has ever imposed against a broker-dealer.
- Between January 2019 and June 2023, UBSFS failed to monitor about 60,000 foreign currency wires valued at about $10 billion; the firm switched to an automated system in 2021 but "failed to properly configure the data flowing into the new system," the CFTC said.
- Director Andrea Gacki stated the action should send "a clear message that recidivist financial institutions will face severe repercussions," citing UBSFS failures to monitor high-risk customers in Iran, Russia, Venezuela, and at the Southwest border of the U.S.
- UBSFS must undergo an independent AML review with FinCEN waiving up to $15 million in expenses, while the firm also faces additional fines from the Financial Industry Regulatory Authority , the CFTC, and the Securities and Exchange Commission.
- A UBS spokesperson said Monday the announcement "brings closure to this legacy matter," yet the firm faced a FinCEN consent order in December 2018 that resulted in $14.5 million in penalties for similar BSA violations.
39 Articles
39 Articles
US Broker-Dealer Receives Heaviest-Ever Penalty as Regulators Fine UBS $125 Million for Anti-Money Laundering Shortfalls
U.S. regulators hit UBS Financial Services with a record $125 million civil penalty for willful Bank Secrecy Act violations tied to poor monitoring of foreign wires. The firm had ignored prior warnings after a 2018 fine. The post US Broker-Dealer Receives Heaviest-Ever Penalty as Regulators Fine UBS $125 Million for Anti-Money Laundering Shortfalls appeared first on The Daily Hodl.
UBS Financial Services Hit With $125 Million in Anti-Money Laundering Fines
Multiple federal agencies on Aug. 3 announced $125 million in fines levied against UBS Financial Services (UBSFS) for repeatedly violating the Bank Secrecy Act. The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said it fined UBSFS $125 million for repeatedly failing to properly monitor anti-money laundering (AML) transactions and maintain safeguards designed to prevent terrorist groups from using the U.S. financial sys…
U.S. regulators today fined global financial services firm UBS $125 million for violating the Bank Secrecy Act, the largest fine ever imposed on a broker or dealer for violating anti-money laundering laws.
The big bank, called "recidivist", has to pay a fine for not reporting money laundering cases. The Paradeplatz establishment has acknowledged its culpritsUBS was on Monday sentenced to a total fine of $125 million (101 million) in the United States for failing to comply with its anti-money laundering obligations. This is the most severe penalty ever imposed on a broker for breaching the bank secrecy law, says the US agency FinCEN, in a press rel…
Coverage Details
Bias Distribution
- 40% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
