FINRA In the Matter of Stash Capital LLC

Stash Capital LLC allegedly failed to establish and maintain a reasonable customer identification program (CIP), including written procedures for verifying identities, searching databases, manually reviewing customer information, and responding to red flags. According to FINRA, the firm approved numerous applications without sufficiently forming a reasonable belief of its customers' true identities. The firm also allegedly failed to establish and implement policies and procedures in its AML program that could have reasonably been expected to cause the reporting of transactions where red flags of potential new account fraud provided the firm with knowledge of or reason to suspect suspicious activity. FINRA further states the firm failed to detect, reasonably investigate, and report suspicious transactions, and failed to develop and implement a written Identity Theft Prevention Program (ITPP) reasonably designed to detect, prevent, and mitigate identity theft.

Summary generated from official Financial Industry Regulatory Authority press release