--- title: "The Importance of AML: Banorte-Ixe Fined by FINRA for Registration and AML Failures" description: "The Importance of AML: Banorte-Ixe Fined by FINRA for Registration and AML Failures" --- [![Jacko Law Group, PC - Securities Law](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/brand.png)](http://www.jackolg.com/) Call Today for a Consultation San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549 Menu [Contact](http://www.jackolg.com/Contact.shtml) - [Home](http://www.jackolg.com/) - [Firm Overview](http://www.jackolg.com/Firm-Overview/) - [Professionals](http://www.jackolg.com/Professionals/) - [Events](http://www.jackolg.com/Events.shtml) - [News](http://www.jackolg.com/News-Room/) - [Blog](http://www.jackolg.com/blog/) - [Videos](http://www.jackolg.com/Videos.shtml) - [Contact](http://www.jackolg.com/Contact.shtml) # Understand. Define. Achieve. 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View Our Practice Areas - [SEC/FINRA Regulatory Counsel](http://www.jackolg.com/Regulatory-Examinations-and-Inquiries-SEC-and-FINRA/) - [Private Equity & Hedge Fund Counsel](http://www.jackolg.com/Private-Equity-Counsel/) - [Investment Adviser Services](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/Investment-Adviser-Counsel.shtml) - [Breakaways And Transitions](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/) - [General Corporate Counsel](http://www.jackolg.com/Corporate-Counsel/) - [Broker- Dealer Counsel](http://www.jackolg.com/Broker-Dealer-Counsel/) #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) # Jacko Law Group Blog # The Importance of AML: Banorte-Ixe Fined by FINRA for Registration and AML Failures The importance of adequate and effective Anti-Money Laundering (“AML”) programs should never be underestimated in the current US regulatory environment, as the [Financial Industry Regulatory Agency’s (“FINRA’s”)](http://www.finra.org/) [January 28, 2014 announcement of penalties against the firm Banorte-Ixe](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) clearly illustrates. The FINRA news release details the penalties and oversights that led it to fine Banorte-Ixe Securities International, Ltd. $475,000 for AML and registration failures. Subsequently, the firm’s AML Officer and Chief Compliance Officer (“CCO”) Brian Anthony Simmons, was suspended for [30 days in a principal capacity](http://www.finra.org/Newsroom/NewsReleases/2014/P440108). While Banorte-Ixe – a New York firm working with Mexican clients who invest in US and other foreign securities – was found to have failed to register[“approximately 200 to 400 foreign finders”](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) (to learn more about “finders” please see JLG’s previous blog post [here](http://jackolg.wordpress.com/2011/08/05/considerations-for-structuring-finders-arrangements/)) who worked with the firm’s Mexican clients, their more egregious failure was within the realm of AML. According to the FINRA announcement, Banorte-Ixe’s AML policies were so flawed that the firm did not [“detect, investigate or report” the funneling of $28 million in and out](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) of an account opened for a corporate client with ties to a Mexican drug cartel. The AML system in place at Banorte-Ixe could not track [“suspicious transactions that involve at least $5,000 in funds or other assets”](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) that should be reported to [Financial Crimes Enforcement Network](http://www.fincen.gov/), under the [Bank Secrecy Act](http://www.fincen.gov/statutes_regs/bsa/). Additionally, Banorte-Ixe and Simmons failed to tailor AML policies to consider the [“unique risks posed by opening accounts, transferring funds and effecting securities transactions for customers located in Mexico,”](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) a country known for its [“high risk money laundering”](http://www.finra.org/Newsroom/NewsReleases/2014/P440108) environment. This case, exemplifies not only the repercussions of a lack of proper AML measures, but also the importance of AML policies that are adequately tailored to the particular needs and services of an investment firm. 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