FINRA censured and fined Larkspur, California-based Banyan Securities for failures related to anti-money laundering compliance rules dating back at least seven years.
Investigators found that Banyan Securities failed to conduct any independent testing of its anti-money laundering (AML) program over a period of at least seven years, dating back to at least 2018, which is a violation of the industry's AML policies that require annual AML compliance testing for all firms that execute transactions for customers or otherwise hold customer accounts.
Furthermore, Banyan Securities purportedly failed to include any procedures that would have provided for independent testing for compliance from 2022 through the present day.
FINRA found that in failing to meet these anti-money laundering compliance standards, Banyan Securities failed to "observe high standards of commercial honor and just and equitable principles of trade."
This is Banyan Securities' sixth regulatory disclosure. For instance, the Securities and Exchange Commission in 2022 filed a cease-and-desist order alleging that Banyan Securities failed to file with the SEC and deliver to retail investors a disclosure form called "CRS", a client relationship summary form mandatory for every broker or dealer registered with the SEC.
Prior to this, the New York Stock Exchange regulator in 2020 fined Banyan Securities for failing to enforce written supervisory procedures requiring its associated persons to actually be registered with the NYSE.
If you invested with Banyan Securities or with any broker or investment adviser whose failures to adopt safeguards to prevent fraud or other misconduct, such as anti-money laundering policies and procedures, has proven harmful to your investments or interests due to a preventable loss, misappropriation, theft, or other misconduct, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.