meta_id 3372362

On August 3, 2026, the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) assessed a $125,000,000 civil money penalty against UBS Financial Services Inc. (UBSFS) for willful violations of the Bank Secrecy Act (BSA). This represents the largest penalty ever imposed against a broker-dealer for BSA violations. The enforcement action follows FinCEN's December 2018 Consent Order against UBSFS, which assessed a $14.5 million penalty for similar BSA failures. Despite assurances of remediation, UBSFS failed to adequately monitor over 50,000 foreign currency wires valued at more than $10 billion due to weaknesses in its automated monitoring system. The firm also failed to comply with customer due diligence (CDD) obligations, particularly regarding high-risk customers with ties to Russia and Latin America. UBSFS did not appropriately consider money laundering risks associated with customers' source of wealth or negative news reports linking customers to corruption, fraud, and money laundering. These deficiencies resulted in UBSFS failing to timely report hundreds of suspicious activity reports (SARs), depriving law enforcement of critical information. FinCEN Director Andrea Gacki said the action sends "a clear message that recidivist financial institutions will face severe repercussions." As part of its resolution, UBSFS must complete a third-party lookback to identify and report previously undetected suspicious transactions and undergo an independent review of its anti-money laundering (AML) program. The review will focus on priority illicit finance risks including the U.S. Southwest border and narcotics trafficking, Iran, Russia, and Venezuela. Upon satisfactory completion and implementation of recommendations, FinCEN will waive up to $15 million of the penalty for expenses incurred in connection with this undertaking. FinCEN coordinated this enforcement action with the Commodity Futures Trading Commission, U.S. Securities and Exchange Commission, and the Financial Industry Regulatory Authority.