National investment loss lawyers KlaymanToskes is investigating Merrill Lynch, Pierce, Fenner & Smith Inc. after the SEC and FINRA ordered the firm and its parent company, BAC North America Holding Co. (BACNAH) to pay $12 million for failing to properly file nearly 1,500 Suspicious Activity Reports (SARs) on suspected criminal activity.
Investors that suffered significant losses at Merrill Lynch should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lawrence@klaymantoskes.com for a free consultation to learn about recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes reports that the SEC has charged Merrill Lynch and its parent company, BAC North America Holding Co. (“BACNAH”), for failing to file numerous Suspicious Activity Reports (“SARs”) over a decade-long period from 2009 to 2019.
The SEC alleges that BACNAH incorrectly applied a $25,000 threshold instead of the required $5,000 threshold for reporting suspicious transactions. This alleged oversight resulted in hundreds of mandatory SARs not being filed. Merrill Lynch has agreed to pay a $6 million penalty to the SEC, and a separate $6 million fine as part of a parallel action by the Financial Industry Regulatory Authority (“FINRA”).
According to the Letter of Acceptance, Waive, and Consent (“AWC”) that Merrill Lynch entered into with FINRA, “Merrill Lynch and Bank of America, N.A. merged in January 2009, at which time Bank of America assumed responsibility for investigating suspicious activity at Merrill Lynch and filing any SARs.” The AWC further discloses that “In about September 2019, the firm discovered that it incorrectly had been applying the $25,000 threshold to brokerage account activity since the 2009 merger.”
According to FINRA’s Regulatory Notice 19-18 regarding Suspicious Activity Monitoring and Reporting Obligations, broker-dealers and national banks are required to file SARs in connection with, among other suspicious activity, suspected criminal activity that meets or exceeds certain dollar thresholds.
Further, FINRA Rule 3310 (Anti-Money Laundering Compliance Program) requires each member firm to “develop and implement a written anti-money laundering (AML) program reasonably designed to achieve and monitor the firm’s compliance with the requirements of the Bank Secrecy Act (BSA), and the implementing regulations promulgated thereunder by the Department of the Treasury (Treasury).”
A broker-dealer, such as Merrill Lynch, is obligated to report any suspicious transactions that could potentially involve criminal activity. In KlaymanToskes opinion, the alleged failure by Merrill Lynch and BACNAH to file hundreds of SARs represents a serious breach of this obligation.
KlaymanToskes can help you determine if your investment loss is due to the misconduct and/or securities violations of your brokerage firm. Contact Lawrence L. Klayman, Esq. for a free, confidential consultation at 888-997-9956 or through our website, www.klaymantoskes.com.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com