Financial Industry Regulatory Authority (FINRA) has fined TradeUP Securities and US Tiger Securities, Inc.
US Tiger and TradeUP are affiliated firms owned by an offshore holding company. Both firms serviced foreign financial institution omnibus accounts that transacted in thinly traded low-priced securities.
Between November 2019 and March 2021 (US Tiger) and between April 2021 and June 2023 (TradeUP), the firms’ AML programs were not reasonably designed to detect and report potentially suspicious transactions given this business.
The firms also failed to conduct appropriate due diligence on correspondent accounts for foreign financial institutions.
Between January 2019 and November 2021, both firms also failed to retain and review communications on an electronic messaging platform provided by the firms’ parent.
For their AML violations (FINRA Rules 3310 and 2010) and their communications retention and supervision violations (Exchange Act Rule 17a-4 and FINRA Rules 3110, 4511, and 2010), US Tiger and TradeUP are fined a total of $950,000, and TradeUP has agreed to an undertaking.
TradeUP Securities, Inc. has been a FINRA member since November 1986.1 It has 45 registered representatives and two branch offices, including its headquarters in New York, New York. TradeUP is a self-clearing securities broker.
US Tiger Securities, Inc. has been a FINRA member since January 2006. It has 36 registered representatives and one branch office in New York, New York. Its principal business is underwriting.
