Credit Suisse Securities (USA) has been fined $16.5m by the Financial Industry Regulatory Authority (FINRA) for anti-money laundering (AML), supervision and other deficiencies.
FINRA accused the firm of failing to effectively review trading for AML reporting from January 2011 through September 2013, and mainly relying on its registered representatives to identify and report suspicious trading.
The regulator also alleged that the firm’s automated surveillance system to monitor suspicious transactions was not properly implemented as several data feeds were missing information or had issues compromising the system’s effectiveness.
FINRA also found that the company lacked sufficient staffing to review the numerous alerts that the automated system generated in a year.
FINRA executive vice president and chief of enforcement Brad Bennett said: "It’s critical that firms have effective AML systems in place so that they can comply with their obligations to review and report suspicious transactions, including those involving trading in microcap securities or potentially suspicious money transfers.”
Credit Suisse agreed to the settlement with FINRA without admitting or denying the charges.