Know your employee shortcomings generated a $1.2 million fine

Citi group got a 1.2 million used fine for inadequate screening of employees.

The Us financial regulatory authority FINRA defined that over a period of 7 years over 10400 employees were not properly screened leading to failure in the Know your employee process.

As per reported information this led to at least 3 individuals being hired regardless being disqualified for performing at brokerage firms.

The detection of the issue took 18 months.

It was defined that other 140 cases were not clear and the fore FINRA was unable to reach a conclusion.

Those individuals were not brokers themselves, but in any case subject to non eligibility rules.



Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.
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