FINRA Fines Credit Sussie Securities $16.5 Million for Anti-Money Laundering Program Deficiencies

On December 5, 2016, FINRA reported that it fined Credit Suisse Securities (USA) LLC (CRD# 816) $16.5 million for anti-money laundering (“AML”), supervision and other violations.

According to the Acceptance, Waiver & Consent (“AWC”) entered into between Credit Suisse and FINRA, Credit Suisse neither admitted or denied the allegations but consented to the findings.

FINRA found that Credit Suisses’s suspicious activity monitoring program was deficient in that it relied on its registered representatives to identify and report potentially suspicious trading, including microcap transactions.  This self-regulation did not always work in practice, and high-risk activity was not always reported and investigated.

Additionally, Credit Suisse’s automated surveillance system to monitor for potentially suspicious money movements was not properly implemented.  FINRA found, among other things, that Credit Suisse did not have adequate staffing to review the tens of thousands of alerts the automated system generated in any given year.

These deficiencies led to Credit Suisse failing to effectively review trading for AML reporting purposes.  According to the news release, one firm customer, a New York-based hedge fund, had trading in his account that followed patterns commonly associated with microcap fraud – depositing and then quickly selling the securities – yet no one at the firm reviewed the activity in the account for AML purposes.

Due to the lack of review, FINRA found that from 2011 to 2013, the firm facilitated the illegal distribution of at least 55 million unregistered shares of securities.

While Credit Suisse settled the matter, such allegations if true can leave investors wondering if their money is safe or not.  Regulatory bodies like FINRA and the SEC help keep firms honest, but sometimes the damage has already been done and it is seemingly too late.  Such is not always the case, as FINRA arbitration presents an opportunity for investors to try and get their lost investments back.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Credit Suisse Securities and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.