US regulators impose largest-ever penalty on a broker-dealer for wilful Bank Secrecy Act violations linked to $10bn in unmonitored transactions.
UBS will pay a $125m civil penalty after US regulators found wilful breaches of anti-money laundering rules. The fine is the largest ever imposed on a broker-dealer under the Bank Secrecy Act, according to the Financial Crimes Enforcement Network.
This marks the second enforcement action against UBS Financial Services in five years. In 2018, the firm paid a $14.5m penalty for similar failings, including flaws in its automated surveillance system that left over 50,000 foreign currency wire transfers worth $10bn unmonitored.
Regulators said UBS failed to meet due diligence requirements, particularly for higher-risk clients tied to Russia and Latin America. The bank stated it has since strengthened its compliance programs and cooperated fully with authorities.