US-based electronic trading platform Webull is among
three companies that settled with the US securities regulator regarding
suspicious activity reports that did not include important and required
information.
Webull Financial, Lightspeed Financial Services Group,
and Paulson Investment Company, LLC, reportedly agreed to pay the regulator a
total of $275,000 for reportedly submitting suspicious activity reports that
lacked critical information over a four-year period.
Suspicious Activity Reports
The SEC explained in the official announcement of the enforcement action that SARs are tools for law enforcement, offering insights into transactions that may signal illegal activity. Federal law mandates that broker-dealers file SARs explaining transactions deemed unusual or
suspicious.
Commenting about the fine, Jason Burt, the Director of
the SEC’s Denver Regional Office, said: “Suspicious activity reports play a
vital role in keeping our markets safe, and the failure of broker-dealers to
include necessary information to explain suspicious transactions deprives law
enforcement and regulatory agencies of valuable and timely intelligence,
undermining the very purpose of the SARs.”
According to the SEC, the three firms failed to meet
this standard between 2018 and 2022, submitting reports with missing or
incomplete details. In addition to paying fines, Webull and Paulson agreed
to hire compliance consultants to review their anti-money-laundering programs.
Intelligence to Combat Financial Crime
According to the regulator, failure to provide
complete and concise information in SARs deprives law enforcement and
regulators of valuable intelligence needed to combat financial crime. The investigation was led by the SEC’s Denver Regional
Office and involved the Financial Industry Regulatory Authority.
Expect ongoing updates as this story evolves.
US-based electronic trading platform Webull is among
three companies that settled with the US securities regulator regarding
suspicious activity reports that did not include important and required
information.
Webull Financial, Lightspeed Financial Services Group,
and Paulson Investment Company, LLC, reportedly agreed to pay the regulator a
total of $275,000 for reportedly submitting suspicious activity reports that
lacked critical information over a four-year period.
Suspicious Activity Reports
The SEC explained in the official announcement of the enforcement action that SARs are tools for law enforcement, offering insights into transactions that may signal illegal activity. Federal law mandates that broker-dealers file SARs explaining transactions deemed unusual or
suspicious.
Commenting about the fine, Jason Burt, the Director of
the SEC’s Denver Regional Office, said: “Suspicious activity reports play a
vital role in keeping our markets safe, and the failure of broker-dealers to
include necessary information to explain suspicious transactions deprives law
enforcement and regulatory agencies of valuable and timely intelligence,
undermining the very purpose of the SARs.”
According to the SEC, the three firms failed to meet
this standard between 2018 and 2022, submitting reports with missing or
incomplete details. In addition to paying fines, Webull and Paulson agreed
to hire compliance consultants to review their anti-money-laundering programs.
Intelligence to Combat Financial Crime
According to the regulator, failure to provide
complete and concise information in SARs deprives law enforcement and
regulators of valuable intelligence needed to combat financial crime. The investigation was led by the SEC’s Denver Regional
Office and involved the Financial Industry Regulatory Authority.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
