E*Trade Pays $1 Million to Settle SEC Claim

     WASHINGTON (CN) – E*Trade agreed to pay $1 million to settle the Securities and Exchange Commission’s claim that it failed to comply with an anti-money-laundering rule that requires broker-dealers to verify the identities of their customers and document the process.




     The SEC said E*Trade had shirked its duty to verify the identities of more than 65,000 customers, as required by the USA PATRIOT Act and SEC rules.
     E*Trade agreed to pay $1 million in penalties, but did not affirm or deny the charges.
     “E*Trade is one of the largest online brokerage firms in the world, and a compliance lapse of this type has the potential to undermine the nation’s antiterrorism and anti-money laundering efforts,” said Linda Chatman Thomsen, director of the SEC’s enforcement division.

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