The US Commodity Futures Trading Commission ordered UBS Financial Services Inc., a registered futures commission merchant, to pay a USD 8 million civil monetary penalty for failing to diligently supervise anti-money laundering transaction monitoring for foreign currency wire transfers through retail customer commodity accounts. From January 2019 through June 2023, more than 28,000 wires totaling at least USD 8.9 billion were insufficiently monitored or omitted from monitoring because of surveillance configuration and data governance deficiencies. UBS continued using a deficient manual reporting process after becoming aware of its vulnerabilities, then improperly configured the automated system introduced in 2021. The automated system received incomplete transaction data and, in some cases, lacked counterparty information. UBS must cease and desist from further violations and pay the penalty within 30 days. The CFTC recognized the firm’s remediation, including third-party testing, a lookback covering affected wires and an ongoing review of other transaction types.

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