A UBS unit in the U.S. has been fined millions of U.S. dollars for a violation of the banking secrecy act.
The U.S. Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Treasury, issued a fine of $14.5 million against UBS Financial Services for a violation of the banking secrecy act, according to a statement released on Monday.
FinCEN concluded that UBS Financial Services had failed to develop and implement an appropriate, risk-based anti-money laundering program, adequate for the risks associated with accounts that included brokerage and banking services.
Improvements Made
«Over several years, UBSFS processed through certain of its brokerage accounts hundreds of transactions that exhibited red flags associated with shell company activity,» said FinCEN in its statement. «It was unable to identify and investigate potentially suspicious transactions based on the presence of important risk factors, such as jurisdiction and the involvement of politically exposed persons.»
The U.S. authority also said that the company since has made «significant investments» in staffing and technology to comply with the banking secrecy act and anti-money laundering regulation. This included an upgraded anti-money laundering surveillance monitoring system.
