UBS Group AGUBSG
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UBS fined record $125 million for willful Bank Secrecy Act violations, with admitted failures and required compliance overhaul.
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Financials
UBS Group AGUBS Financial Services agreed to pay a $125 million civil penalty to the U.S. Treasury's Financial Crimes Enforcement Network for willful violations of the Bank Secrecy Act, the largest fine ever assessed against a broker-dealer for such violations. The settlement follows a previous $14.5 million penalty in December 2018 for similar failures, after which the firm failed to monitor more than 50,000 foreign currency wires worth over $10 billion between January 2019 and June 2023. FinCEN also found inadequate customer due diligence for high-risk clients tied to Russia and Latin America, and hundreds of late suspicious activity reports. As part of the consent order, UBS Financial Services admitted to the violations and must hire an outside consultant to review its anti-money laundering program, with up to $15 million of the fine waived if it implements the recommendations. The agreement also resolves parallel charges from the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Financial Industry Regulatory Authority.
UBS Group AGUBS fined record $125 million for willful Bank Secrecy Act violations, with admitted failures and required compliance overhaul.