Scottrade fined $600,000 for AML violations

Scottrade was fined $600,000 for AML violaitons by FINRA for not having enough AML review policies in place to support the size of the business and volume of transactions. Scottrade didnt have sufficient procedures from 2003 to 2005 where there was no systematic system to monitor the sheer volume of transactions to report suspicious activties. Additionally, the AML compliance officer / director of risk management was the only person to investigate any findings. It was additionally found that employees did not have adequate training to review for AML violations. Scottrade implemented a proprietary system to monitor for suspicious transactions, but nothing to monitor for money movement.  To read more go to http://www.finra.org/Newsroom/NewsReleases/2009/P120268