SEC Charges Merrill Lynch, Parent Company With Failing to File Suspicious Activity Reports
July 11 2023 - 1:06PM
Dow Jones News
By Stephen Nakrosis
The Securities and Exchange Commission said Tuesday it charged
Merrill Lynch, Pierce, Fenner & Smith and parent company BAC
North America Holding for failing to file hundreds of suspicious
activity reports from 2009 to late 2019.
The SEC said BAC North America used a $25,000 threshold instead
of the required $5,000 threshold "for reporting suspicious
transactions or attempted transactions where a suspect may have
been seeking to use Merrill Lynch to facilitate criminal activity
and could not be identified." As a result, the parent company
caused Merrill Lynch's failure to file many required suspicious
activity reports, according to the SEC.
Merrill Lynch and BAC North America Holding didn't admit or deny
the SEC's findings, the agency said. However, they agreed to "cease
and desist from committing or causing violations of those
provisions," the SEC said, adding Merrill Lynch agreed to a censure
and will pay a $6 million civil penalty.
Merrill Lynch will also pay a separate $6 million fine to settle
charges brought by the Financial Industry Regulatory Authority,
without admitting or denying charges, the authority said.
A spokesperson for Merrill Lynch said, "Following an internal
review, we reported this matter to regulators and have enhanced our
process and training regarding these filings."
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
July 11, 2023 12:51 ET (16:51 GMT)
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