UBS Financial Services to pay $14.5 million for Anti-Money Laundering failures

UBS Financial Services has been ordered to pay a fine of $14.5 million as a civil penalty with regards to the willful violations for the Anti-Money laundering failures with regards to the Bank Secrecy Act, the Financial Crimes Enforcement Network (FinCEN).

Of the fine of $14.5 million, UBS had to pay $5 million to the US treasury department, while the remainder will be divided in line of the penalties imposed by the Securities & Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”)

As per the assessment carried out by FinCEN, it was observed that UBS had failed to develop and implement an appropriate, risk based anti –money laundering (“AML”) program that adequately addressed the risks associated with accounts that include both brokerage related and banking services. UBS has also failed to implement policies and procedures in order to detect and report suspicious transactions related to these accounts. UBS did not adequately structure its Anti-Money Laundering program, in order to detect transactions in the securities accounts.

Date: 18 December 2018

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