Two Have Settled, but One AML CO Will Contest the Case
A recent anti-money laundering (“AML”) enforcement action reminds us of the increasing risk of individual liability for alleged violations of the Bank Secrecy Act (“BSA”), a key issue about which we have blogged.
Specifically, the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) announced last week that Aegis Capital Corporation (“Aegis”), a New York-based brokerage firm, admitted that it failed to file Suspicious Activity Reports (“SARs”) on numerous transactions. Although most of the attention regarding this enforcement action has focused on Aegis, the more interesting development here is the role of individuals — particularly a contested action filed against a former AML compliance officer who has declined to settle and who apparently is proceeding to trial on these allegations before a SEC Administrative Law Judge (“ALJ”). This should be a litigation to watch.