SEC Sets Sights on Brokers Failing to Flag Money Laundering
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The U.S. Securities and Exchange Commission has opened several investigations as part of a new initiative to root out brokers turning a blind eye to illicit trading, an agency official said.
The SEC opened dozens of probes after finding that a “disturbingly large” number of the 4,800 U.S.-registered brokers had reported zero or few instances to regulators of possibly illegal trades over extended periods of time, SEC Enforcement Director Andrew Ceresney said in a speech Wednesday in New York.