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UBS Financial Services Inc. (UBSFS) was assessed a $14.5 million penalty by the Financial Crimes Enforcement Network (FinCEN) for Bank Secrecy Act (BSA) violations. FinCEN found that from 2004 to 2017, UBSFS failed to implement adequate anti-money laundering (AML) and due diligence programs for foreign correspondent accounts.

The company "failed to develop and implement an appropriate, risk-based anti-money laundering (AML) program that adequately addressed the risks associated with accounts that included both traditional brokerage and banking-like services," FinCEN said.  

UBSFS processed hundreds of transactions through certain brokerage accounts that exhibited red flags associated with shell company activity. Other violations included failed attempts at capturing information for foreign wire transfers, insufficient resources to ensure day-to-day AML compliance and inadequate staffing.

FinCEN coordinated with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) on this settlement action.

NAFCU has resources on BSA compliance available on its website.