Canaccord Genuity Fined 80 Million Dollars for AML Lapses
The broker-dealer failed to monitor suspicious trades and file required activity reports. Regulators found employees falsified records to hide oversight gaps.
CANACCORD GENUITY GROUP INC has agreed to pay a record $80 million civil penalty to settle allegations of widespread compliance failures in the United States. The settlement addresses charges that the firm willfully violated the Bank Secrecy Act by failing to monitor and report suspicious trading activities between 2019 and 2022. The Financial Crimes Enforcement Network (FinCEN) identified this as the largest penalty ever levied against a broker-dealer for such violations.
Investigators revealed that the firm failed to file at least 160 suspicious activity reports during the period, leaving thousands of questionable transactions unreviewed for months or even years. Among the flagged activities was an account for a firm based in Cyprus that was allegedly used to help oligarchs from Russia move funds out of their home country. Furthermore, the probe found that two compliance employees had falsified records to create the illusion that trade surveillance reports were being properly reviewed.
