FINRA Hits Scottrade With Fine Over Monitoring Failures

Law360, New York (October 26, 2009, 7:35 PM EDT) -- In a move some observers have called a warning to the rest of the industry, the Financial Industry Regulatory Authority has hit online brokerage company Scottrade with a $600,000 fine over its failure to put in place adequate systems for flagging suspicious activity that could be associated with money laundering, identify theft or other illegal acts.

FINRA announced the action Monday, contending that Scottrade did not adhere to the agency's rules or the Bank Secrecy Act by failing to establish a sufficient anti-money laundering program to...
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