U.S. Securities and Exchange Commission (SEC)
Official Release: https://www.sec.gov/files/litigation/admin/2026/34-106333.pdf
NEWS: The SEC found that Haywood USA, a Canada-based broker-dealer registered with the Commission since 1997, failed to identify or adequately investigate red flags and did not file certain SARs with the U.S. Treasury Department's Financial Crimes Enforcement Network. SARs are required for certain suspicious transactions involving at least $5,000, generally within 30 calendar days after the firm detects facts that may provide a basis for filing.
The order describes examples involving accounts tied to people with criminal or fraud-related concerns, suspicious low-priced-stock trading, and large share deposits followed by rapid sales and transfers of proceeds. In one cited case, a customer deposited shares representing more than 80% of a company's daily trading volume, sold them within days, and immediately wired out the proceeds. The SEC also said Haywood USA's compliance program missed required high-risk account monitoring and training. The firm revised its AML procedures, increased compliance staffing, hired a third-party consultant, and introduced new review protocols.
KEY POINTS:
- SEC order dated September 11, 2026; File No. 3-22715.
- The SEC found SAR filing failures spanning at least May 2021 through January 2026.
- The order cites missed investigations, high-risk account monitoring, and AML training requirements.
- Haywood USA was censured and ordered to pay a $750,000 civil penalty.
- The firm settled without admitting the findings and agreed to cease and desist.