Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com) is monitoring FINRA’s recently announced censure and $650,000 fine against EFG Capital International, a Miami-based broker-dealer, for recurring anti-money laundering (AML) compliance breakdowns. While EFG resolved the matter without admitting or denying the findings, the action marks the second significant AML-related sanction against the firm in recent years and raises important questions for investors about risk oversight, supervisory controls, and potential avenues for recovery where investor harm can be shown.
Below is our investor-focused analysis, what it could mean for customers of EFG Capital, and practical steps you can take now.
Executive summary for investors
Table of Contents
- FINRA sanctioned EFG Capital for AML program failures during 2018–2022, a period when customers moved roughly $5.5 billion via wires, including transactions tied to jurisdictions the firm labeled high-risk.
- Issues included unmonitored wire activity due to data delays, a broken high-risk jurisdiction alert affecting large-dollar wires, lapses in periodic account reviews, and missed investigations when other institutions rejected client wires.
- EFG previously paid $800,000 in 2018 for AML deficiencies (2010–2015), signaling regulatory concerns about repeated control gaps.
- Investors should review their accounts and wire activity for anomalies, particularly if they engaged in alternative or higher-risk strategies, international transfers, or had accounts designated with elevated risk profiles.
- If you suffered losses tied to inadequate supervision or failed AML controls, FINRA arbitration may offer a path to recover damages.
Who is EFG Capital and why this matters
EFG Capital International is a full-service brokerage based in Miami. For investors, AML and supervisory systems are not just regulatory checkboxes—they are core defenses against account misuse, unsuitable fund flows, and fraud red flags. Repeated AML failings can correlate with weak escalation procedures, delayed detection of suspicious patterns, and potential downstream investor harm.
What FINRA found (investor-oriented breakdown)
According to FINRA’s report (arising from a cycle exam), EFG’s AML program fell short in four material areas between May 2018 and August 2022:
- Unmonitored wire transfers (approx. $305 million across ~900 wires)
- Cause: Delays in wire data arriving from bank affiliates caused EFG’s automated surveillance to run before transactions were ingested; inadequate validation that all wires fed into the system.
- Investor impact: Large transfers that are not screened on time can mask irregular activity, facilitate third-party misuse, or delay escalation and suspicious activity reporting (SAR) when warranted.
- Broken alert for high-risk jurisdictions ($100,000+ wires; coding error)
- Issue: Country codes for high-risk jurisdictions mistakenly defaulted to “United States,” suppressing alerts and affecting an estimated $30 million in wires.
- Investor impact: When a key alert malfunctions, exposure to high-risk corridors increases without the intended scrutiny, potentially heightening fraud, sanctions, or money-laundering risks.
- Lapsed periodic account reviews (2019–2021)
- Role of reviews: These checks are essential for updating client risk ratings and calibrating AML surveillance.
- Investor impact: If account profiles and risk ratings are stale, the firm’s monitoring thresholds may be misaligned—either too lax or misdirected—leading to missed warning signs of problematic activity.
- Missed follow-up on rejected wires by other institutions
- What should happen: Rejections for compliance reasons by counterparties are meaningful red flags that should prompt documented investigations.
- Investor impact: Failure to probe these events can allow suspicious patterns to persist and may indicate inadequate supervision of higher-risk accounts.
EFG reported that it remediated the data-lag issue in January 2022 and later corrected the high-risk jurisdiction coding error. The firm settled without admitting or denying FINRA’s findings and agreed to pay the $650,000 fine upon acceptance.
Why investors should care even if you didn’t send international wires
- Supervision overlaps with suitability: Weak AML controls can signal broader supervisory shortcomings—sometimes coinciding with unsuitable recommendations, liquidity traps, or concentrated strategies that heighten downside risk.
- Delayed detection = greater loss windows: If anomalies are not flagged promptly, losses from account misuse or fraudulent schemes may compound.
- Repeat enforcement is a risk indicator: A second major AML sanction in a relatively short timeframe can be relevant background in assessing whether controls were reasonably designed and implemented.
Are your funds at risk?
A FINRA fine by itself does not mean every client was harmed. However, if you experienced any of the following during the relevant period (2018–2022), closer review is warranted:
- Large or frequent wires, especially to/from higher-risk jurisdictions or unfamiliar third parties.
- Rejected or bounced wires for “compliance reasons” at other banks.
- Sudden changes in account risk profile, transaction patterns, or advisor instructions you did not clearly authorize.
- Investments in higher-risk or illiquid products where proceeds were moved in complex ways.
- Incomplete or confusing disclosures around wire instructions or recipient details.
If any of these resonate, preserve your statements and communications and consider a targeted forensic review.
What investors should do now
- Pull records: Download monthly statements, wire confirmations, advisor emails/texts, and any notices of wire rejections.
- Reconcile transfers: Build a simple ledger of outgoing/incoming wires (date, amount, counterparty, purpose) and match them to legitimate needs.
- Look for red flags: Unknown recipients, inconsistent memos, last-minute instructions changes, or wiring to “holding” accounts with unclear purposes.
- Document advisor communications: Note any verbal instructions, who initiated them, and whether you consented in writing.
- Act quickly: Regulatory and arbitration timelines matter.
Potential recovery through FINRA arbitration
Haselkorn & Thibaut prosecutes claims for investors nationwide through FINRA arbitration. Depending on your facts, claims may include:
- Failure to supervise and related control deficiencies
- Negligence and breach of fiduciary duty (where applicable)
- Misrepresentations or omissions tied to transfers or investment use of proceeds
- Unauthorized or improper transactions
- Aiding and abetting or conversion in egregious cases
Damages can include market losses tied to misconduct, out-of-pocket losses, lost opportunity costs, interest, fees, and costs. Many cases are handled on a contingency fee basis—no fee if no recovery.
Note: Each case is unique. A prior regulatory action does not automatically establish liability in an investor’s case, but it can be relevant context when assessing supervisory reasonableness.
Key timeline
- 2010–2015: Prior AML issues that led to EFG paying $800,000 (sanctioned in May 2018).
- 2018–2022: New deficiencies identified, including unmonitored wires and a broken high-risk alert.
- Jan 2022: EFG reports fixing data transmission delays.
- 2025: FINRA announces the $650,000 censure and fine.
FAQs
-
Does this mean my account was mishandled?
Not necessarily. But if you had significant wire activity or any anomalies, a review is prudent. -
If I never wired money internationally, does this affect me?
It can. AML and supervision systems are intertwined with broader risk oversight. Control failures in one area can be a signal to look closer elsewhere. -
How long do I have to pursue a claim?
FINRA arbitration generally imposes eligibility and limitation constraints. Deadlines can be nuanced. Speak with counsel promptly to preserve your rights. -
Will I need to litigate in court?
Most brokerage disputes proceed through FINRA arbitration, a private forum designed for customer–broker disputes.
Investor checklist
- Compile statements and wire records for 2018–2022 (and adjacent periods).
- Note any rejected wires or compliance flags by other institutions.
- Gather communications with your advisor or the firm regarding transfers.
- List any losses you believe are linked to questionable transfers or supervisory lapses.
- Contact experienced counsel to assess claims, damages, and strategy.
How Haselkorn & Thibaut can help
Haselkorn & Thibaut, P.A. focuses exclusively on helping investors recover losses from broker-dealers and investment advisors through FINRA arbitration and related forums. Our team includes former defense counsel and industry veterans who understand how firms design, implement, and test AML and supervisory systems—and how gaps can translate into investor harm.
- Case evaluation: We assess supervision, AML alerts, and escalation pathways relevant to your transfer history.
- Forensic approach: We trace wires, counterparties, and product flows to identify red flags and quantify damages.
- Strategy and resolution: We pursue efficient recovery via demand, mediation, or arbitration.
Learn more or request a confidential review at Haselkorn & Thibaut.
