A broker-dealer agreed to settle FINRA charges for failing to conduct an independent test of its anti-money laundering ("AML") compliance program, in violation rules.
FINRA Rule 3310(c) and Rule 2010 require independent testing of an AML program on an annual basis. According to the Letter of Acceptance, Waiver and Consent, Gelband & Co., Inc. ("Gelband") testing carried out for calendar years 2014, 2015, 2016 and 2017 was conducted by the firm's compliance officer or persons who reported to him. As a result, the testing was not "independent."
To settle the charges, Gelband agreed to pay a fine of $5,000.
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