Oppenheimer Fined by Finra Over Anti-Money Laundering Rules
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Oppenheimer Holdings Inc. will pay $1.4 million to settle a brokerage industry regulator’s claims that it had an inadequate anti-money laundering program and failed to detect and report suspicious penny stock transactions.
The company’s brokerage unit failed to identify as “red flags” sales of more than 1 billion shares of 20 low-priced, highly speculative unregistered securities from August 2008 to September 2010, the Financial Industry Regulatory Authority said in a statement today. The firm also failed to conduct adequate due diligence on a correspondent account of a broker in the Bahamas, Finra said.