Posts Tagged ‘Know Your Customer’
Robinhood, Part II: Due Diligence Fails
Today I want to return to FINRA’s enforcement action against Robinhood, that online stock trading app with the terrible track record at customer due diligence and risk profiling. Even though the case involves the somewhat rarified compliance rules for broker-dealer firms, there’s a lot here that speaks to technology and due diligence challenges overall. Robinhood,…
Read MoreCapital One Whacked on AML Failures
Talk about mistakes that come back to haunt you: Capital One just agreed to pay a $390 million penalty for anti-money laundering compliance failures in a check-cashing unit the bank hasn’t even owned for seven years. The settlement was announced by FinCEN last Friday. The 22-page statement of facts is a tale of poor risk…
Read MoreRegulators Talk PEPs, Due Diligence
Banking regulators have published fresh guidance about how financial firms should perform due diligence on “politically exposed persons” — stressing that you don’t need to take extra steps simply because a customer is a PEP, although banks do need to understand the higher corruption risks PEPs can pose. The guidance is a joint statement from…
Read MoreDeutsche Bank’s Many Epstein Failures
New York banking regulators hit Deutsche Bank with a $150 million penalty Tuesday for its business dealings with notorious sex trafficker Jeffrey Epstein, and painted a damning picture of compliance failures that went on for years at the bank while it reaped millions from such a lucrative customer. The New York Department of Financial Services…
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