Conversation on Low-Priced Securities and AML Disciplinary Actions

In March, 2020, FINRA fined $45,000 and censured a retail broker for lack of procedures to identify red-flags related to low-priced securities trading. Similarly, disciplinary actions were brought against 2 introducing brokers in 2018 where both were fined heavily, over $1M, for not having supervision and oversight of low-priced securities to detect pump-n-dump schemes, and subsequently not filing required Suspicious Activity reports as stated in the US Patriot Act.

George and I discuss these cases and the red-flags firms should be aware of.

Links related to each of the cases discussed:

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