FINRA sets fine ranges for AML failures, removes limits on certain penalties
The Financial Industry Regulatory Authority (FINRA) increased penalties for member violations of securities rules in new guidance.
Revisions to FINRA’s sanctions guidelines, effective Sept. 29, split the current guidelines for sanctions between individuals and firms and separate fine ranges for the latter into one range for small firms and another for mid-sized to large firms.
The guidelines establish new penalties for anti-money laundering (AML) violations, including removing the upper limit on certain fines for violations like failing to reasonably monitor and report suspicious transactions. The guidelines also provide fine ranges for individuals and lay out when a firm or individual should be suspended or expelled for misconduct.