The charges come as investment advisors increasingly use ESG metrics to appeal to investors, according to SEC Enforcement Division Deputy Director Sanjay Wadhwa.
Casey Franz replaces Kabir Sethi as its new head of platforms and capabilities.
President Melanie Senter Lubin said the rule would offer state regulators additional means to take action against registrants that don't pay up.
SEC Enforcement Division Director Gurbir S. Grewal said the enforcement action indicated that 'AML obligations are sacrosanct' for registrants.