United States SEC & FINRA Fine Merrill Lynch & Parent Bank of America Total of $12 Million for Failing to File Hundreds of Suspicious Activity Reports from 2009 to 2019, Used $25,000 Threshold Instead of Required $5,000 Threshold to Report Suspicious Transactions
12th July 2023 | Hong Kong
The United States SEC (Securities & Exchange Commission) & FINRA (Financial Industry Regulatory Authority) has fined Merrill Lynch & parent Bank of America a total of $12 million for failing to file hundreds of suspicious activity reports from 2009 to 2019, using a $25,000 threshold instead of the required $5,000 threshold to report suspicious transactions. United States SEC: “The Securities and Exchange Commission today announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. Merrill Lynch agreed to pay a $6 million penalty to settle the SEC charges and, in a parallel action, Merrill Lynch agreed to pay a separate $6 million fine to settle charges brought by the Financial Industry Regulatory Authority (FINRA). According to the SEC’s order, BACNAH assumed responsibility for creating and implementing Merrill Lynch’s SAR policies and procedures and for filing Merrill Lynch’s SARs. Over the course of a decade, however, BACNAH improperly 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, BACNAH caused Merrill Lynch’s failure to file hundreds of required SARs. Katharine E. Zoladz, Co-Acting Regional Director of the Los Angeles Regional Office: “Broker-dealers have a critical obligation to report suspicious activity in their accounts. Merrill Lynch and BACNAH did not file hundreds of Merrill Lynch SARs because they failed to comply with one of the most basic requirements for a SAR program.”
” United States SEC & FINRA Fine Merrill Lynch & Parent Bank of America Total of $12 Million for Failing to File Hundreds of Suspicious Activity Reports from 2009 to 2019, Used $25,000 Threshold Instead of Required $5,000 Threshold to Report Suspicious Transactions “
United States SEC & FINRA Fine Merrill Lynch & Parent Bank of America Total of $12 Million for Failing to File Hundreds of Suspicious Activity Reports from 2009 to 2019
- SEC Charges Merrill Lynch and Parent Company for Failing to File Suspicious Activity Reports
11th July 2023 – The Securities and Exchange Commission today announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. Merrill Lynch agreed to pay a $6 million penalty to settle the SEC charges and, in a parallel action, Merrill Lynch agreed to pay a separate $6 million fine to settle charges brought by the Financial Industry Regulatory Authority (FINRA).
According to the SEC’s order, BACNAH assumed responsibility for creating and implementing Merrill Lynch’s SAR policies and procedures and for filing Merrill Lynch’s SARs. Over the course of a decade, however, BACNAH improperly 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, BACNAH caused Merrill Lynch’s failure to file hundreds of required SARs.
The SEC’s order finds that Merrill Lynch violated the books and records provisions of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 thereunder and that BACNAH caused those violations. Without admitting or denying the SEC’s findings, Merrill Lynch and BACNAH agreed to cease and desist from committing or causing violations of those provisions, and Merrill Lynch also agreed to a censure and the aforementioned $6 million civil penalty.
The SEC’s investigation was conducted by staff at the Los Angeles Regional Office and supervised by Finola H. Manvelian. The SEC appreciates the assistance of FINRA.
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- June 2024 - Hong Kong
- June 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
