RBC Capital Markets fined $275K by FINRA and ex‑BMO banker barred for $118K fraud

The U.S. Financial Industry Regulatory Authority (FINRA) settled with RBC Capital Markets, LLC, requiring the firm to pay a $275,000 fine after it failed to configure transaction‑monitoring rules properly between February 2016 and September 2023. The mis‑set thresholds prevented alerts for suspicious money movements, undermining the firm’s ability to detect potential money‑laundering activity.

In Canada, the Investment Industry Regulatory Organization of Canada (IIROC) imposed a $50,000 penalty and a permanent ban on former Bank of Montreal investment dealer Christina (Lorna) Cole. Cole misappropriated more than $118,000 from client accounts, including those of deceased individuals, by forging signatures, routing funds through internal suspense accounts, and withdrawing the money for personal use. The regulator described the conduct as intentional and egregious.