Wells Fargo Advisors Financial Network, LLC is a brokerage firm in the United States. Its products and services include investment planning, trust and lending services, mutual funds, annuities and insurance, retirement programs, and asset management services. Wells Fargo Advisors Financial Network, LLC has strategic partnership with Ahrens-Naef Consulting and Business Transitions, LLC. Wells Fargo Advisors Financial Network, LLC was formerly known as Wachovia Securities Financial Network, LLC and changed its name to Wells Fargo Advisors Financial Network, LLC in 2009. The company was founded in 2001 and is based in St. Louis, Missouri. Wells Fargo Advisors Financial Network, LLC operates as ...
One North Jefferson Avenue
St. Louis, MO 63103
Founded in 2001
Financial Industry Regulatory Authority Fines Wells Fargo Advisors and Wells Fargo Advisors Financial Network for Anti-Money Laundering Failures
Dec 18 14
The Financial Industry Regulatory Authority announced that it has ordered Wells Fargo Advisors and Wells Fargo Advisors Financial Network, to pay a joint fine of $1.5 million for anti-money laundering failures. For nine years, the firms failed to comply with a key aspect of the anti-money laundering compliance program for broker-dealers by failing to subject approximately 220,000 new customer accounts to the required identity-verification process. As part of the AML compliance program requirements, broker-dealers must establish and maintain a written Customer Identification Program that enables them to verify the identity of each customer opening a new account. Through the CIP, the broker-dealer must obtain and verify certain minimum identifying information from each customer prior to opening an account, maintain records of that identity-verification process, and provide customers with notice that information is being collected to verify their identities. FINRA found that the firms CIP system was deficient, as the electronic systems supporting it contained a design flaw, which persisted from 2003 to 2012. When the firms transaction-processing system assigned customer identifiers to new customer accounts, it sometimes recycled identifiers previously assigned to accounts that had been closed. When that recycled identifier was transmitted to the firms CIP system for verification of customer identities, the system did not recognize it as being assigned to new customer accounts, and therefore did not subject those new customers to identity verification. This resulted in the failure to conduct customer identity verification for nearly 220,000 new accounts. Further, approximately 120,000 accounts that had never been subjected to identity verification were already closed when the problem came to light.