FinCEN and SEC Impose Penalties on Oppenheimer

On January 26, 2015, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) imposed a $20 million civil money penalty against Oppenheimer & Co., Inc. for violations of the Bank Secrecy Act (“BSA”) and regulations issued pursuant to the Act. The Securities and Exchange Commission issued an order instituting an administrative cease-and-desist order and imposed remedial sanctions against the company pursuant to Section 8A of the Securities Act of 1933 (“Exchange Act”). Oppenheimer agreed in the FinCEN matter to pay a civil penalty in the amount of $20 million, of which $10 million will be concurrent with the penalty, disgorgement, and prejudgment interest imposed by the SEC.  Hence, it must pay $10 to the U.S. Treasury and $10 million in satisfactory of the SEC penalty.