FINRA Bars Broker-Dealer for Lack of AML Program

The Financial Industry Regulatory Authority (FINRA) has “expelled” broker-dealer Biremis Corporation and banned its CEO from “associating with any FINRA member firm in any capacity” for not complying with anti-money laundering rules. From banking and finance litigator David Smyth (at law firm Brooks Pierce): 

“FINRA found Biremis and [CEO Peter] Beck liable for a host of violations. FINRA alleged that among other things, Biremis failed to implement an adequate anti-money laundering (‘AML’) program, failed to maintain necessary net capital reserves, failed to maintain required e-mails for a six-year period, and failed to establish written supervisory procedures reasonably designed to comply with the applicable regulations prohibiting manipulative trading activity. As Biremis’s president and CEO, Beck was responsible for ensuring that Biremis was in compliance with securities laws, regulations, and SRO rules. He allegedly didn’t do that, so he had to fall as well…

FINRA found that Biremis failed to implement an adequate AML program to detect and report transactions required under 31 U.S.C. § 5318(g) and to achieve compliance with the Bank Secrecy Act.”

Read the full update, FINRA Expels Biremis Corp. for Anti-Money Laundering Abuses - Brooks Pierce