The Securities and Exchange Commission said Friday that Wells Fargo Advisors had agreed to pay $7 million to settle charges of anti-money laundering violations.
The regulator said Wells Fargo Advisors failed to file at least 34 suspicious activity reports in a timely manner between April 2017 and October 2021.
The failure occurred because the broker failed to properly implement and test a new version of its internal anti-money laundering transaction monitoring and alerting system adopted in January 2019, the SEC said. The system failed to reconcile the different country codes used to monitor foreign wire transfers.
As a result, Wells Fargo Advisors failed to timely file at least 25 SARs related to suspicious transactions in its clients’ brokerage accounts involving wire transfers to or from foreign countries it determined to be risky. money laundering, terrorist financing or other illegal funds. movements.
“At Wells Fargo Advisors, we take regulatory responsibilities seriously,” bank spokeswoman Shea Leordeanu said in an emailed statement. “This case relates to legacy issues that impacted a transaction monitoring system and the issues were resolved promptly upon discovery.”