Interactive Brokers to pay more $38 million in penalties for transactional violations

Startups • August 10, 2020, 12:06PM EDT
UPDATED: August 10, 2020, 12:39PM EDT
Mark Van Scyoc / Shutterstock.com

Broker-dealer Interactive Brokers LLC will need to pay tens of millions of dollars in penalties for anti-money laundering violations and failing to detect and report suspicious transactions, U.S. regulators announced today.

According to a Monday announcement, the Commodity Futures Trading Commission filed and settled charges against the broker-dealer, in addition to the U.S. Securities and Exchange Commission. The Financial Industry Regulatory Authority also settled with the company.

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"In parallel actions, the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC) today announced settlements with Interactive Brokers related to anti-money laundering failures in which the registered broker-dealer agreed to pay penalties of $15 million and $11.5 million, respectively, for a total of $38 million in penalties paid to the three agencies," the SEC said in a statement.

In addition to paying the penalty, the broker-dealer will be required to hire a third-party consultant to review and report the issues raised in the filings. 

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Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.

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