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Credit Suisse Fined by Finra Over Money-Laundering Controls

Bank to pay $16.5 million for relying on brokers to identify and escalate potentially suspicious trading activity.

By Gregory Mott

(Bloomberg) --Credit Suisse Group AG will pay $16.5 million to settle Financial Industry Regulatory Authority claims that a U.S. unit violated rules meant to guard against money laundering.

Finra said Monday that Credit Suisse Securities USA erred by relying on brokers to identify and escalate potentially suspicious trading and by failing to properly implement an automated surveillance system to monitor money movements.

“It’s critical that firms have effective AML systems in place so that they can comply with their obligations to review and report suspicious transactions,” Finra enforcement chief Brad Bennett said in the regulator’s statement.

Finra’s AML Investigative Unit identified the violations during an examination, and the investigation was conducted by its Department of Enforcement, according to the statement.

The bank agreed to resolve the case without admitting or denying Finra’s findings, which cover a period from January 2011 through September 2013.

“Credit Suisse is pleased to have reached a settlement with Finra in this matter,” Andrew Wilson, a company spokesman, said in an e-mailed statement. “We cooperated with Finra’s inquiry and have been taking appropriate internal remedial efforts.”
 
To contact the reporter on this story: Gregory Mott in Washington at [email protected] To contact the editors responsible for this story: Jesse Westbrook at [email protected] Alexis Leondis, Gregory Mott

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