FXDD Compliance Officer Fined $75,000

DailyForex.com Team

National Futures Association (NFA) has issued a $75,000 fine against James E. Green, Chief Compliance Officer (CCO), a listed principal and an associated person of FX Direct Dealer LLC (FXDD). FXDD is a futures commission merchant, Forex dealer member and retail foreign exchange dealer in New York City.

The NFA decision is based on the complaints filed on June 29, 2012 and October 23, 2012, and a settlement offer submitted by Green. The NFA panel found that Green, acting as the firm's CCO and anti-money laundering (AML) Compliance Officer, was personally responsible for failing to supervise FXDD's operations including FXDD's AML program.

In the second complaint made against the firm, the NFA alleged that the firm had failed to conduct annual anti-money laundering training for all employees who worked in areas susceptible to money laundering.

In addition to the $75,000, Mr. Green agreed that he would not be employed or act as an AML Compliance Officer for any NFA Member or in a compliance capacity, unless he reports to or is supervised by another person within the Member's compliance department for a period of one year. Whilst Mr. Green did not admit or deny the allegations, he agreed to settle this matter in full with the NFA.

This is not the first time that FXDD finds itself under the regulator's microscope. Last July, the NFA issued a charge against FXDD for an alleged violation of rules pertaining to the way in which the company handled a series of accounts. FXDD paid out close to $3.3 million in fines and rectification into an escrow account last December in case the outcome of the accusation fell on the side of the regulator.

This latest NFA verdict is another in a series of crackdowns by worldwide regulatory authorities as they continue to focus on FX firms and their internal practices. The most harshly scrutinized aspects of these FX brokers are the methods exercised in the handling of client funds and that the procedures employed in ensuring that funds held at brokers for the purposes of funding trading accounts originate from genuine and legitimate sources.

DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

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