Velox Clearing LLC has agreed to pay a fine of $ 1.3 million as part of a settlement with the Financial Industry Regulatory Authority (Finra).
Velox Clearing provides clearing services to various foreign financial institutions trading at subtle commercial, low prices through OMNIBUS accounts.
Since January 2019, Velox has failed to create and implement an AML program that was reasonably designed to detect and cause the suspicious transactions obtained in the business, in violation of the FINRA 3310 and 2010 rules.
As a result, the company failed to detect or explore the red flags of forgery, stratification, bid support and closing note.
The company also failed to maintain and review business communications on communications platforms that do not belong, in violation of the Law on Exchanges § 17 (A), the law on the exchange of Article 17A 4 and the Rules 3110, 4511 and 2010.
In addition, from January 2019 and February 2024, the company failed to logically supervise external brokerage accounts in violation of Rule 3110 (d).
For these violations, Velox was accused, imposed a fine of $ 1.3 million and agreed to maintain an independent adviser.