CySEC released an announcement in which it is clear that the regulator has fined one X Global Markets Ltd with €50 000 due to lackluster anti-money laundering adjustments. The investigation that led to the fine was ongoing between April 2016 and July 2017.
There are no details released yet, but what we do know is that the broker violated the principles of the Money Laundering and Terrorist Financing Law (L. 188(Ι)/2007).
The disciplinary action also serves as a message by CySEC to all its regulated entities about the importance of AML policies. The agency also highlighted supervisory weaknesses where the handling of trading accounts by staff members is concerned.
Cited in CySEC’s order against X Global Markets one section reads that the firm did not comply with rules concerned with new customers’ due diligence, as well as deficiencies in business relationships monitoring. The just of the report reveals that the broker’s handling of the AML program was lackluster, and as a result, X Global Markets might have allowed certain risky clients to proceed unreported.
Following the predicament, CySEC has ordered X Global Markets to take the necessary measure to put everything in place. Meanwhile, X Global Markets has already paid the fine, and the issue are taken care of, seeing that these things tend to be announced half a year from the inspection.
