FINRA Levies Record $8M Fine Over Penny Stock Transactions

Law360, New York (February 5, 2014, 12:55 PM EST) -- The Financial Industry Regulatory Authority said Wednesday it hit investment bank and securities firm Brown Brothers Harriman & Co. with a record $8 million fine for anti-money laundering compliance failures related to penny stock transactions, the highest fine the agency has levied for anti-money laundering violations.

The regulator claims New York-based Brown Brothers did not have an adequate anti-money laundering program in place to detect and investigate suspicious penny stock transactions, which generated at least $850 million in proceeds for Brown Brothers' customers. FINRA also said...
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