FINRA Fines $17 Million Raymond James

FINRA Fines $17 Million Raymond James Systemic Anti-Money Laundering.

By Eric on Friday,
FINRA Fines $17 Million Raymond James . The Financial Industry Regulatory Authority Inc. slapped two units of Raymond James Financial Inc. FINRA Fines $17 Million Raymond James, with a record $17 million in fines for widespread compliance failures in the brokerage firm’s anti-money laundering programs.

The Financial industry regulatory Authority (FINRA) proclaimed these days that it’s punished Raymond James & Associates, Inc. (RJA) and Raymond James Financial Services, Inc. (RJFS), a total of $17 million for widespread failures associated with the firms’ anti-money laundering (AML) programs. FINRA Fines $17 Million Raymond James, RJA was punished $8 million and RJFS was fined $9 million for failing to set up and create adequate AML rules, which resulted in the firms’ failure to properly prevent or find, investigate, and report suspicious activity for several years. RJA’s former AML Compliance Officer, Linda L. Busby, was also punished $25,000 and suspended for three months.

RJA and RJFS’ significant growth between 2006 and 2014 was not matched by commensurate growth in their AML compliance systems and processes. This left RJA and Busby, as RJA’s AML Compliance Officer from 2002 to February 2013, and RJFS unable to set up AML programs tailored to every firm’s business, and forced them instead to rely on a patchwork of written rules and systems across different departments to sight suspicious activity. The result was that certain “red flags” of doubtless suspicious activity went undetected or inadequately investigated. These failures are notably about given that RJFS was sanctioned in 2012 for inadequate AML rules and, as part of that settlement, had agreed to check its program and rules, and certify that they were reasonably designed to create compliance.

Brad Bennett, FINRA’s Executive Vice President and Chief of enforcement, said about FINRA Fines, “Raymond James had significant general AML failures over an extended period, made even added egregious by the fact the firm was before sanctioned in this space. The monitoring for suspicious transactions is an essential a part of protective our economic system and companies should divide adequate resources to their AML compliance efforts. This case demonstrates that when there area unit broad-based failures at intervals specific areas of responsibility, we can get personal liability wherever right.”

During its investigation, FINRA found that the firms didn’t conduct needed due diligence and periodic risk reviews for foreign financial establishments and that busby unsuccessful to make sure that RJA’s reviews were conducted. RJFS also unsuccessful to prove and carry on an adequate client Identification Program.

In concluding these settlements, Raymond James & Associates, Inc., Raymond James Financial Services, Inc., and Busby neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Investors can get more info about, and the disciplinary record of, any FINRA-registered broker or brokerage firm by using FINRA’s BrokerCheck. FINRA makes BrokerCheck available at no charge. In 2015, members of the public used this service to conduct 71 million reviews of broker or firm records. Investors can use BrokerCheck at or by calling (800) 289-9999. Investors may notice copies of this disciplinary action as well as different disciplinary documents in FINRA’s Disciplinary Actions on-line info. Investors can also call FINRA’s Securities Helpline for Seniors at (844) 57-HELPS for help or to boost issues about problems they have with their brokerage accounts and investments.

FINRA, the Financial industry regulatory Authority, is the largest independent regulator for all securities firms doing business in the united states. FINRA is dedicated to investor protection and market integrity through effective and economical regulation and complementary compliance and technology-based services. FINRA touches almost each facet of the securities business – from registering and educating all trade participants to check securities firms, writing rules, enforcing those rules and the federal securities laws, and informing and educating the investing public. In addition, FINRA provides surveillance and other restrictive services for equities and options markets, as well as trade reporting and different trade utilities. FINRA also administers the largest dispute resolution forum for investors and firms. For more info, please visit


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