The Securities and Exchange Commission (SEC) today announced settled charges against California-based registered broker-dealer Velox Clearing LLC for violating federal securities laws governing the submission of suspicious activity reports (SARs).
As part of the settlement, Velox agreed to pay a civil penalty of $500,000.
According to the SEC’s order, from at least July 2019 through December 2022, Velox did not reasonably design or adequately implement its anti-money laundering policies and procedures to address the risks associated with its business. The order further finds that due to these deficiencies, and Velox’s failure to sufficiently investigate red flags, Velox failed to file SARs for numerous suspicious transactions.
Specifically, according to the order, Velox’s policies and procedures did not include red flags identified in public regulatory guidance relevant to the firm’s business, such as transactions…
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