In the news: UBS
On December 17, 2018, UBS was assessed a penalty of $14.5 million for failing to establish and implement an adequate anti-money laundering (AML) program. UBS was penalized for insufficiently monitoring certain high-risk transactions in customer accounts, including foreign currency wire transfers and penny stock trading activity. FINRA found that the firm processed thousands of foreign currency wires for billions of dollars without sufficient oversight; and facilitated the trading of more than 30 billion shares of penny stocks valued at over $545 million through an omnibus account for undisclosed customers.
“AML systems must be reasonably designed to monitor transactions for potentially suspicious activity,” said Susan Schroeder, FINRA’s Executive Vice President, Department of Enforcement. “When firms are part of global operations involving high-risk international securities trades and money movements, it is critical that they design and implement an AML program tailored for their business model.”
This case is a clear demonstration of the dangers of using legacy transaction monitoring systems plagued by insufficient detection capabilities and limited data sets. The issues went undetected for more than eight years, and the firm then took 5 more years to implement a reasonable replacement system, highlighting the challenges of implementing large and complex on-premises technology.
Beam is the ideal solution to augment and enhance the transaction-monitoring capabilities of securities firms such as broker-dealers, clearing firms, asset managers, and investment banks. Beam yields higher catch rates and substantially lower false positives – saving your analysts time and increasing the quality of alerts and cases. It streamlines the investigation process and helps maximize the performance of your team, all the way through the SAR filing. Request a demo to find out how we can help you avoid the expense and reputational risk of non-compliance.