By PAUL ODONOGHUE, Senior Correspondent
FINRA has fined Tigress Financial Partners $100,000 for anti-money laundering (AML) failures and other compliance breaches.
The New York-based broker-dealer also failed to inform buyers about price variances for certain securities relative to their “prevailing market value.”
Between January 2018 and March 2022, Tigress onboarded hundreds of customers from high-risk jurisdictions without proper vetting. It then neglected to conduct adequate due diligence, according to FINRA.
One foreign customer, whom Tigress failed to screen properly, used their account to carry out “numerous offsetting transactions.” These transactions aimed solely to convert Argentinian pesos into U.S. dollars.
Another customer opened an account with a $700,000 wire transfer from an offshore insurance company. They later sent $500,000 to an insurance firm in a jurisdiction known for financial secrecy. Over the next three months, they withdrew $80,000 in cash from ATMs in a third jurisdiction.
FINRA highlights Tigress Financial Partners breaches
“These [and other foreign] customers came to account for over two-thirds of the firm’s ‘retail 2’ business, and that retail business accounted for a majority of the firm’s overall revenue,” FINRA said. “The firm did not reasonably tailor its AML program to this higher-risk customer base and business model.”
Tigress Financial Partners employs approximately 30 registered representatives across three offices in and around Manhattan. The firm has not commented on the fine.
FINRA has issued 64 fines so far this year. Seven involved AML violations.
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