IIROC Imposes $250,000 Fine on Laurentian Bank Securities Inc.
The Investment Industry Regulatory Organization of Canada fines Laurentian Bank Securities Inc. US$250,000 for not using a transaction monitoring system
What Happened?
April 16, 2020: Laurentian Bank Securities Inc.–a regulated investment dealer under the jurisdiction of the Investment Industry Regulatory Organization of Canada (IIROC)–was charged with failing to implement and maintain an adequate trading supervision system, which resulted in the organization failing to comply with AML obligations.
In a hearing that took place on April 24, 2020, the IIROC Hearing Panel accepted a settlement agreement, according to which Laurentian Bank Securities Inc. agreed to pay US$250,000 in fines.
Source: https://www.iiroc.ca/Documents/2020/227d22f8-bca1-49f9-8161-157d63ea9ffd_en.pdf
Who Is Impacted?
Businesses that facilitate the trading or exchange of regulated assets–including equities, debt, derivatives, and cryptocurrencies.
Why This Matters?
Failing to have a transaction monitoring system in place creates the risk of money laundering going unnoticed within your business.
Transaction monitoring is a requirement that, when overlooked, will result in staggering fines, sanctions, and damage to the integrity of your brand’s reputation.
What’s Next?
IIROC’s Trading Conduct Compliance department (TCC) is tasked with regularly examining and testing their participant’s transaction monitoring systems to identify any problems or concerns.
Laurentian Bank Securities Inc. will be required to address these concerns and to correct the deficiencies. Going forward, the firm can expect to face increased scrutiny and reputation damage and will continue to appear in AML screening for Adverse Media and Watchlists for years to come.
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
Centralized Digital Identity and ID “Phone Home” Privacy Alarms
As digital ID systems expand globally, centralised platforms like One Login and Aadhaar raise major concerns about privacy, data security, and surveillance. This article explores the risks of identity systems that phone home and how iComply’s decentralised identity verification solution offers a more secure and compliant path forward.
How to Do a KYC Refresh the Right Way
KYC refresh is a critical part of ongoing due diligence. This guide explains how to build an efficient, risk-based KYC refresh strategy using identity verification tools to improve compliance, customer experience, and operational performance.
Accelerating Ultimate Beneficial Ownership Discovery with KYB Compliance Software
Beneficial ownership discovery doesn’t need to be slow or manual. This article explores how firms can use advanced KYB software to comply with UBO requirements from AUSTRAC, FCA, FinCEN, and the EU AMLA – while improving customer satisfaction and operational efficiency.
