12/15/2003 Broker-Dealer Fined by FinCEN
Broker-Dealer Fined for Foreign Shell Bank Correspondent Accounts
As an indication that broker-dealers holding correspondent accounts will face enforcement actions for failure to take required actions regarding those accounts, the Financial Crimes Enforcement Network has leveled a fine against a Georgia broker-dealer. In the action, In the Matter of Hartsfield Capital Securities, Inc., FinCEN entered into a consent involving a civil money penalty and undertakings with the broker-dealer. The broker-dealer had failed in a timely fashion to close correspondent accounts for which it had not received necessary certifications, had continued to allow trading through accounts where certifications were inadequate, and had not obtained information on agents for service of process on the accounts. FinCEN's action will be analyzed in a forthcoming issue of the USA PATRIOT Act Monitor.
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