OTC Link agrees to pay $1.19M for AML failures (2024)

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Sponsored by: AccuSystems Training View All 2024 Operations Compliance Triage Conference 2024 Bank Security Conference 2024 Lending Compliance Triage Conference Sign up for FREE Email Briefings From the NewsWire The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings SB Financial Group and Marblehead Bancorp Announce Agreement to Merge Ottawa Bancorp, Inc.Announces Second Quarter 2024 Results Jeffersonville Bancorp Announces Second Quarter Earnings of $3,031,000 or $0.72 per share and Year to Date Earnings of $5,584,000 or $1.32 per share; Declares Dividend of $0.15 First National Corporation and Touchstone Bankshares, Inc.Announce Receipt of Regulatory Approvals for Merger Penalties View All Oriental Bank pays $447,125 for flood insurance violations Spring Valley Bank pays $1,500 for flood insurance rules violations CNB Bank pays $13,000 for flood insurance rules violations Guaranty Bank and Trust pays $80,500 flood insurance penalty Collins State Bank pays $2,000 for flood insurance violations North Shore Bank of Commerce pays $4,800 for flood insurance violations Select Bank pays $9,600 for flood insurance violations Regions Bank pays $2.95M for flood insurance violations Deutsche Bank Trust Company Americas pays flood penalty Customers Bank pays $41,500 flood insurance penalty PNC Bank, NA, pays $2.6M for flood insurance violations Michigan bank pays $3.6 million for flood insurance penalties Washington Federal pays flood penalty The Federal Savings Bank pays $193K flood penalty USAA FSB pays $382,500 flood insurance penalty Former credit union BSA officer fined $100K for multiple BSA violations Shinhan Bank America fined $25M by FDIC, FinCEN, and NYSDFS Puerto Rican IBE pays $15M for willful BSA violations Kingdom Trust Company pays $1.5M BSA penalty Bittrex, Inc., fined $5M for BSA Act violations Bank of Morton ordered to pay $600,000 for BSA violations Shinhan Bank America fined $25M by FDIC, FinCEN, and NYSDFS Bancorp Bank pays BSA/AML penalty California Pacific Bank to pay BSA/AML penalty Alma Bank - BSA/AML penalty Metropolitan Commercial Bank fined $29.5M for CIP and vendor risk deficiencies National Bank of Pakistan pays $55.4M for AML violations U.S. Bancorp pays $15M for BSA/AML failures Mega International Commercial Bank pays $29M BSA penalty Deutsche Bank AG to pay $41M penalty for AML deficiencies Sterling Bank and Trust FSB pays $6 million for failings CommunityBank of Texas fined for BSA/AML violations Washington Federal Bank pays $2.5M BSA/AML penalty NJ bank director and BSA officer pay for BSA violations First Abu Dhabi Bank USA pays BSA/AML penalty Interactive Brokers LLC paying $38M for BSA/AML failures Bank of China NY Branch gets BSA fine Aegis Capital assessed $1.3 million for SAR filing failures FINRA fines Credit Suisse Securities $16.5M for AML faults State Street settles for $7.5M penalty with OFAC Utah bank fined for failure to pay FDIC assessment OCC fines JPMorgan Chase Bank, N.A. for inadequate monitoring City National Bank pays $65M for systemic deficiencies FAQs References
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OTC Link LLC, a New York-based broker-dealer, has agreed to pay $1.19 million to settle SEC charges that it failed to file numerous reports of suspicious financial transactions (SARs) for a period of more than three years, according to an SEC news release.

The SEC’s order finds that, from March 2020 through May 2023, OTC Link failed to adopt or implement reasonably designed anti-money laundering (AML) policies and procedures to surveil transactions conducted through its three alternative trading systems (ATSs) for possible red flags of suspicious activity. As a result, OTC Link did not file a single SAR over this time period. The three ATSs are used by broker-dealers on a daily basis to execute or facilitate tens of thousands of transactions in over-the-counter (OTC) securities, many of which are considered microcap or penny stock securities.

Without admitting or denying the SEC’s findings, OTC Link agreed to a censure and a cease-and-desist order in addition to the $1.19 million penalty. The SEC’s order also directs OTC Link to continue its engagement of a compliance consultant to review and recommend changes to the firm’s AML policies and procedures.

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First published on:

08/14/2024

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Penalties View All

  • Flood
  • BSA/AML
  • Other Civil Money
  • FDIC
  • FRB
  • OCC
  • NCUA
07/01/2024

$447,125

Oriental Bank pays $447,125 for flood insurance violations

Issued by FDIC

05/15/2024

$1,500

Spring Valley Bank pays $1,500 for flood insurance rules violations

Issued by FDIC

04/04/2024

$13,000

CNB Bank pays $13,000 for flood insurance rules violations

Issued by FDIC

02/12/2024

$80,500

Guaranty Bank and Trust pays $80,500 flood insurance penalty

Issued by FDIC

01/18/2024

$2,000

Collins State Bank pays $2,000 for flood insurance violations

Issued by FDIC

07/18/2024

$4,800

North Shore Bank of Commerce pays $4,800 for flood insurance violations

Issued by FRB

02/09/2024

$9,600

Select Bank pays $9,600 for flood insurance violations

Issued by FRB

08/14/2023

$2,945,500

Regions Bank pays $2.95M for flood insurance violations

Issued by FRB

09/22/2022

$41,500

Customers Bank pays $41,500 flood insurance penalty

Issued by FRB

07/18/2022

$2,614,456

PNC Bank, NA, pays $2.6M for flood insurance violations

Issued by OCC

12/28/2021

$3,620,000

Michigan bank pays $3.6 million for flood insurance penalties

Issued by OCC

08/12/2021

$40,500

Washington Federal pays flood penalty

Issued by OCC

01/08/2021

$193,105.50

The Federal Savings Bank pays $193K flood penalty

Issued by OCC

11/11/2020

$382,500

USAA FSB pays $382,500 flood insurance penalty

Issued by OCC

  • FinCEN
  • FDIC
  • FRB
  • OCC
  • Other
01/31/2024

$100,000

Former credit union BSA officer fined $100K for multiple BSA violations

Issued by FinCEN

09/29/2023

$25 million

Shinhan Bank America fined $25M by FDIC, FinCEN, and NYSDFS

Issued by FDIC, FinCEN, State Agency

09/15/2023

$15 million

Puerto Rican IBE pays $15M for willful BSA violations

Issued by FinCEN

04/25/2023

$1,500,000

Kingdom Trust Company pays $1.5M BSA penalty

Issued by FinCEN

10/11/2022

$5,000,000 (net)

Bittrex, Inc., fined $5M for BSA Act violations

Issued by FinCEN

12/28/2023

$600,000

Bank of Morton ordered to pay $600,000 for BSA violations

Issued by FDIC

09/29/2023

$25 million

Shinhan Bank America fined $25M by FDIC, FinCEN, and NYSDFS

Issued by FDIC, FinCEN, State Agency

12/18/2019

$7,500,000

Bancorp Bank pays BSA/AML penalty

Issued by FDIC

10/17/2019

$225,000

California Pacific Bank to pay BSA/AML penalty

Issued by FDIC

04/04/2019

$1,250,000

Alma Bank - BSA/AML penalty

Issued by FDIC

10/16/2023

$29,478,676

Metropolitan Commercial Bank fined $29.5M for CIP and vendor risk deficiencies

Issued by FRB, State Agency

02/22/2022

$55.4 million

National Bank of Pakistan pays $55.4M for AML violations

Issued by FRB, State Agency

02/15/2018

$15 million

U.S. Bancorp pays $15M for BSA/AML failures

Issued by FRB

01/17/2018

$29 million

Mega International Commercial Bank pays $29M BSA penalty

Issued by FRB, State Agency

05/26/2017

$41 million

Deutsche Bank AG to pay $41M penalty for AML deficiencies

Issued by FRB

09/27/2022

$6,000,000

Sterling Bank and Trust FSB pays $6 million for failings

Issued by OCC

12/17/2021

$9 million

CommunityBank of Texas fined for BSA/AML violations

Issued by FinCEN, OCC

09/30/2021

$2,500,000

Washington Federal Bank pays $2.5M BSA/AML penalty

Issued by OCC

10/13/2020

$39,000

NJ bank director and BSA officer pay for BSA violations

Issued by OCC

10/09/2020

$5,000,000

First Abu Dhabi Bank USA pays BSA/AML penalty

Issued by OCC

08/10/2020

$38 million

Interactive Brokers LLC paying $38M for BSA/AML failures

Issued by SEC, FINRA

04/24/2018

$12,500,000

Bank of China NY Branch gets BSA fine

03/28/2018

$1,300,000

Aegis Capital assessed $1.3 million for SAR filing failures

Issued by FINRA, SEC

12/05/2016

$16.5 million

FINRA fines Credit Suisse Securities $16.5M for AML faults

Issued by FINRA

06/01/2016

$300,000

Issued by SEC

07/26/2024

$7,452,501

State Street settles for $7.5M penalty with OFAC

Issued by OFAC

03/28/2024

$6,097.72

Utah bank fined for failure to pay FDIC assessment

Issued by FDIC

03/14/2024

$250,000,000

OCC fines JPMorgan Chase Bank, N.A. for inadequate monitoring

Issued by OCC

03/08/2024

$98,167,980

Issued by FRB

01/31/2024

$65 million

City National Bank pays $65M for systemic deficiencies

Issued by OCC

OTC Link agrees to pay $1.19M for AML failures (2024)

FAQs

OTC Link agrees to pay $1.19M for AML failures? ›

OTC Link LLC to pay $1.19m for failing to file suspicious activity reports. Case brought over failure to file any SARs for over three years. New York-based broker-dealer OTC Link LLC has agreed to pay $1.19m to settle charges for failing to file numerous reports of suspicious financial transactions.

What are OTC settlements? ›

Contracts. An over-the-counter is a bilateral contract in which two parties (or their brokers or bankers as intermediaries) agree on how a particular trade or agreement is to be settled in the future. It is usually from an investment bank to its clients directly. Forwards and swaps are prime examples of such contracts.

What are the red flags for AML brokerage? ›

Firms should look out for activity that is inconsistent with their expected behavior, such as large cash payments, unexplained payments from a third party, or use of multiple or foreign accounts. These are all AML red flags.

What is the OTC allowance? ›

An OTC benefit is a part of most Medicare Advantage plans. It gives you money to spend on eligible OTC products. This is typically a fixed allowance that comes every month or quarter.

What are OTC funds? ›

The over-the-counter market—commonly known as the OTC market—is where securities that aren't listed on the major exchanges are traded. Stocks and bonds that trade on the OTC market are typically from smaller companies that don't meet the requirements to be listed on a major exchange.

What does an AML check look at? ›

An AML Check, or Anti-Money Laundering Check, is a type of identity verification process used to establish whether an individual is involved in money laundering activities.

How to spot an AML? ›

Other actions that are considered AML red flags in terms of suspicious transactions include large cash payments, unexplained third-party transactions, the use of multiple accounts, or the use of foreign bank accounts or virtual wallets, especially if they originate from diverse jurisdictions.

What is AML flag? ›

Red flag indicators in Anti-Money Laundering can vary depending on the country and industry, but they can be a helpful indication of suspicious or potentially fraudulent activity. This blog will explore some of the most common AML red flags to help businesses identify and address money laundering risks.

What does OTC mean in payment? ›

November 9, 2022. Every business needs to process customer orders efficiently and get paid for them in a timely way. The order-to-cash (OTC) cycle comprises all the steps that make that happen, from order placement to payment.

What does OTC mean funds? ›

Definition. An over-the-counter (OTC) market is decentralize and where participants trade stocks, commodities, currencies, or other instruments directly between two parties, without a central exchange or broker.

What does OTC stand for? ›

over-the-counter.

What is OTC cash withdrawal? ›

“Cash over counter,” also known as “over-the-counter (OTC) cash withdrawal,” is a financial service that allows individuals to withdraw cash directly from a bank or financial institution's counter, as opposed to using an ATM or other automated methods.

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