DIFFERENT ANGLE by Kenneth Rijock
The National Association of Securities dealers, the broker-dealer industry regulator, has fined Banc of America Investment Securities Inc. (BAIS) $3m for multiple customer information programme and SAR violations. The firm, which neither admitted nor denied the allegations, consented to the penalty imposed. Issues regarding beneficial owners of accounts of entities incorporated in the Isle of Man were specifically mentioned by the regulator in its findings.
The NASD stated that Banc of America Investment Securities Inc failed to obtain customer information for certain high-risk accounts, and that it failed to adequately communicate with the parent bank to ensure that its SAR filing requirements were met.
Specifically, the regulator found:
- That BAIS did not require the names of beneficial owners of Isle of Man corporate entities with up to $93m in assets, even after one of its senior attorneys and the Risk Committee determined that the information must be obtained.
- BAIS failed to obtain the names of beneficial owner, and to forward them to its clearing house, notwithstanding repeated requests.
- BAIS's compliance programme was inadequate for SAR reporting.
More details can be found at:
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
Print Article
Email Article
SEND ARTICLE TO A FRIEND
More Articles
Subscribe to Newsletter
Please take note of the following content change to be applied to the Data-File on 19 December, 2008. In order to avoid any potential problems please ensure that your datab...more
Make this my homepage
Bookmark
