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December 10, 2014
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NFA fines New York firm FXDirectDealer LLC $500,000 for inadequate anti-money laundering program and failure to supervise
December 10, Chicago — National Futures Association (NFA) has ordered FXDirectDealer LLC (FXDD), an NFA Member and previously registered CFTC retail foreign exchange dealer located in New York City, to pay a $500,000 fine and operate solely as an NFA Member introducing broker (IB).
The Decision, issued by NFA's Business Conduct Committee, is based on a Complaint and settlement offer submitted by FXDD. FXDD has been the subject of two prior NFA disciplinary actions resulting in fines totaling more than $1 million.
The Complaint alleged that FXDD's anti-money laundering (AML) program was inadequate for numerous reasons, including a failure to investigate potentially suspicious or questionable activity and a failure to follow its procedures for customers who reside in countries publicly identified by the Financial Action Task Force.
Additionally, the Complaint alleged that FXDD failed to adequately supervise the firm's operations and employees. The Complaint further alleged that NFA identified repeat deficiencies related to the firm's AML program and supervision, which evidenced an overall lack of internal controls and inadequate supervision of the firm's operations.
The complete text of the Complaint and Decision can be viewed on NFA's website.