Brokerage firm pays $1M for BSA violations
The Securities and Exchange Commission has announced that E.S. Financial Services (now know as Brickell Global Markets), a Miami-based brokerage firm, has consented to an Order to pay a $1 million penalty to settle charges that it violated anti-money laundering rules by allowing foreign entities to buy and sell securities without verifying the identities of the non-U.S. citizens who beneficially owned them. An SEC examination found the firm twice failed to provide required books and records identifying certain foreign customers whom they were soliciting directly and providing investment advice to. Federal law requires all financial institutions to maintain an adequate customer identification program (CIP) to ensure financial institutions know their customers and do not become conduits for money laundering or terrorist financing.