The US Securities and Exchange Commission (SEC) has charged Pinnacle Capital Markets with failing to comply with an anti-money laundering rule.
The SEC also charged Pinnacle’s managing director Michael Paciorek with causing Pinnacle’s violations.
According to the SEC, Pinnacle established, documented and maintained a customer identification program (CIP) that specified it would identify and verify the identities of all of its customers. However, during a six-year period, Pinnacle failed to follow the identification and verification procedures set forth in its CIP.
Pinnacle and Paciorek agreed to settle the SEC’s enforcement action without admitting or denying the allegations, and Pinnacle will pay $25,000 in financial penalties.
In a parallel action, the Financial Crimes Enforcement Network assessed a penalty against Pinnacle for violating the Bank Secrecy Act.