Independent Canadian investment bank Canaccord Genuity Group Inc. has reached a settlement to pay over $80 million in fines for intentionally violating American banking laws. This agreement with three US financial regulators concludes nearly three years of investigations. It marks the largest fine ever levied against a broker-dealer for violations of the US Bank Secrecy Act.
FinCEN reported that Canaccord failed to disclose numerous securities fraud schemes that significantly harmed innocent investors. SEC highlighted that Canaccord’s anti-money-laundering surveillance program was flawed, relying on poorly designed exception reports to identify suspicious activity, while staff neglected to investigate flagged transactions and falsified documents to conceal their failures.
The total penalty of US$80 million, equivalent to approximately $109.4 million in Canadian currency, may be partially deferred pending the company’s adherence to the settlement terms, ultimately resulting in a financial burden of US$75 million, or about $102.6 million for Canaccord.
John Wood Group faces a hefty fine of nearly £13 million for consistently disseminating faulty financial statements. This FTSE-listed oil and engineering firm, set to be acquired by a Dubai competitor, has acknowledged that "cultural failings" resulted in withholding information from auditors.
The Financial Conduct Authority imposed a £12.9 million penalty for erroneous reporting covering the period from January 2023 to November 2024, following an investigation that commenced in June of the previous year. The FCA stated, "Wood Group’s accounting decisions were improperly swayed by the company's intent to uphold previously reported financial figures, particularly in response to poor project performances."
Furthermore, the regulatory body remarked that the firm lacked the necessary systems, controls, and procedures to avert such incidents. Although the potential fine was initially set at £18.5 million, a 30% reduction was applied after Wood Group accepted the findings.