SEC Fines Wells Fargo Broker $7 Million Over Suspicious Activity Reporting
May 20 2022 - 11:00AM
Dow Jones News
By Dean Seal
The broker-dealer arm of Wells Fargo & Co. will pay the U.S.
Securities and Exchange Commission a $7 million fine to resolve
allegations that it failed to file at least 34 suspicious activity
reports in recent years.
Wells Fargo Advisers neither admits nor denies claims that it
failed to test a new version of its internal anti-money laundering
transaction monitoring system which, after being adopted in January
2019, was unable to reconcile different country codes used to
monitor foreign wire transfers.
As a result, the broker-dealer failed to flag at least 25
suspicious transactions involving wire transfers to or from foreign
countries that it considered to pose a moderate or high risk for
illegal money movements, such as money laundering or terrorist
financing, the SEC said.
The Wall Street regulator also alleges that Wells Fargo Advisers
didn't file at least nine other suspicious activity reports since
April 2017 due to failures in processing wire transfer data into
its anti-money laundering tracking system in certain situations,
like during bank holidays that didn't have a corresponding
brokerage holiday.
"This matter refers to legacy issues that impacted a transaction
monitoring system and the issues were resolved promptly upon
discovery," Wells Fargo Advisers said in a statement.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 20, 2022 10:45 ET (14:45 GMT)
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