RBC Capital Markets Settles FINRA Charges Over AML Rule Lapses
RBC Capital Markets has agreed to pay $275,000 to settle charges from FINRA related to lapses in its anti-money laundering (AML) procedures. The issues were identified during a cycle exam by the self-regulatory organization and allegedly occurred between February 2016 and September 2023. During this period, RBC's wealth management division failed to configure AML monitoring rules effectively, leading to missed suspicious transactions. According to FINRA’s letter of acceptance, several automated surveillance systems were set with thresholds too low or high to detect unusual activity, including accounts used for fund movements without trading and those conducting identical credit/debit cycles. Additionally, a rule meant to flag internal account transfers generated excessive false positives but remained unadjusted for years. RBC acknowledged the settlement and stated its commitment to strengthening compliance practices in line with regulatory expectations.
Topics: AML compliance financial regulation FINRA