UBS Financial Services to pay US$125 million fine for AML violations

Published Aug 3, 04:17 PM UTC

UBS Financial Services, a subsidiary of UBS Group, has agreed to pay US$125 million in fines to settle allegations by the US government that it wilfully and repeatedly violated anti-money laundering (AML) rules. The US Treasury Department's Financial Crimes Enforcement Network (FinCen) called it the largest-ever fine against a broker-dealer for Bank Secrecy Act (BSA) violations. UBS failed to monitor more than 50,000 foreign currency wires totalling over US$10 billion, despite a 2018 consent decree requiring improved controls. As part of the settlement, UBS admitted wilfully violating the BSA, including failing to implement an AML programme or file suspicious activity reports. The penalties also include amounts paid to the SEC, FINRA, and CFTC. UBS stated the announcement closes a 'legacy matter' and that it has made significant investments to strengthen its AML programme.