E*Trade Financial Corp has announced that it will settle SEC allegations that two of its brokerage firms, E*Trade Clearing LLC and E*Trade Securities LLC, were involved in money laundering.
The SEC alleged that from October 2003 to June 2005 the firms failed to properly document and verify the identities of more than 65,000 customers as required by several rules, including the U.S. Bank Secrecy Act. Further, the secondary holders in joint accounts were not identified, as required by the regulations.
