Dubai fines E-Trade for anti-laundering laxity
DUBAI, United Arab Emirates | A Dubai market regulator has fined a division of online discount broker E-Trade Financial at least $200,000 over what it described as deficiencies in its anti-money laundering system.
The Dubai Financial Services Authority said Sunday the Dubai branch of E-Trade Securities agreed to pay the fine. It faces another $100,000 in penalties if it fails to take steps to address the financial watchdog’s concerns.
The DFSA says a 2010 assessment found E-Trade failed to obtain sufficient documentation on the source of clients’ funds and did not have adequate procedures to address clients’ money laundering risk, among other concerns.
E-Trade said in an emailed statement it is cooperating fully and is “pleased to be working toward a resolution.”
Pass on new rules given to some companies
Treasury Secretary Timothy F. Geithner has decided to let companies continue to trade certain contracts used to guard against swings in currency values outside regulators’ view.
New rules require that many such trades occur more transparently, on exchanges where regulators can see them. But Mr. Geithner is exempting certain contracts used by companies to hedge currency rates.
The new financial overhaul law authorized Mr. Geithner to carve out such an exemption to stricter regulation.
Business groups argue that tighter oversight of such contracts would be costly and unnecessary. But critics, including some regulators, counter that the entire market for financial contracts called over-the-counter derivatives should face stricter supervision.
Philip Morris USA, others win favorable verdict
RICHMOND | Philip Morris USA and other major tobacco companies won a lawsuit Friday filed by 37 Missouri hospitals seeking more than $455 million for treating sick smokers.