The market watchdog found that from 19 March 2009 to January 2012, ABN AMRO reported three incidents of under-segregated customer funds, which occured due to clerical errors and/or inadequate policies and procedures.
During CME Group routine audit, the firm was also found guilty for using a customer’s withdrawn warehouse receipts as collateral for margining purposes, and it failed to meet the minimum net capital requirements for a single month-end.
The bank failed to produce a complete and accurate margin report listing for a very limited number of certain types of accounts, when the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) Examination staff conducted an enquiry.
The CFTC has issued a cease and desist order, and asked ABN AMRO to retain an independent consultant to review and evaluate its existing internal controls and policies and adopt any recommendations for improvement made by the consultant.
