In the Matter of The Ultima Global Markets (USA), Inc. fka BCS Global Markets

The Ultima Global Markets (USA), Inc. fka BCS Global Markets appears to have failed to establish and implement an AML program that could be reasonably expected to detect and cause the reporting of potentially suspicious activity relating to low-priced securities transactions in correspondent accounts controlled by the firm’s affiliated foreign financial institutions (FFIs), who traded on behalf of undisclosed customers. According to FINRA, the firm facilitated at least 332 low-priced securities transactions on behalf of these FFIs. The firm also appears to have lacked a reasonable means of assessing a customer’s trading in proportion to the daily trading volume of the security and, even when the firm identified low-priced securities transactions based on reports, it may have failed to appropriately investigate the identified trades. The firm appears to have also failed to establish and implement a reasonably designed due diligence program for correspondent accounts of FFIs, including by failing to conduct periodic reviews of account activity to determine whether the activity was consistent with the type, purpose, and anticipated activity of the account. The firm also appears to have failed to obtain sufficient information on the nature of the FFIs’ businesses and their anticipated trading activities, and may not have applied adequate risk-based procedures or controls on the trading activity, including by failing to conduct periodic reviews of correspondent account activity.

Summary generated from official Financial Industry Regulatory Authority press release