RBC Dain Rauscher Fined $90K for Compliance Program Flaws

The New York Stock Exchange Regulation Inc. announced that RBC Dain Rauscher Inc. consented to be fined $90,000 for failures related to its anti-money laundering compliance program.

According to an exchange press release, the Minneapolis-based firm failed to establish written procedures regarding filing of suspicious activity reports. Additionally, the exchange alleged, the firm did not have an adequate monitoring system to review and document follow-up on exceptions found by the firm’s department, the release stated.

The firm, which neither admitted nor denied the allegations, consented to the fine and a censure, according to the release.

The action came under the exchange’s most recent round of enforcement activity in which 11 individuals also were disciplined on allegations that included books-and-records and supervisory deficiencies, sales-practice misconduct, and failure to disclose prior criminal history, the release noted.

Regulatory cases such as this are subject to review by the Securities and Exchange Commission and possibly, federal courts.

More information is available on NYSE Regulation’s Web site at: https://www.nyse.com/DiscAxn/discAxn_05_2007.html.

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