Fidelity anti-money laundering unit probed?

A federal grand jury and the Securities and Exchange Commission have been investigating the anti-money laundering practices of Fidelity Investments, according to a report in the Boston Business Journal.

The publication said the investigation by the SEC was launched last summer after a former employee alleged in a wrongful termination lawsuit that Fidelity's anti-money laundering unit failed to act after discovering a client used a Fidelity account to move questionable amounts of money to Iran and other countries.

Asked by the Journal if Fidelity was being investigated by the SEC over irregularities in its anti-money laundering unit, Fidelity spokeswoman Anne Crowley said: "Fidelity operates in a highly regulated industry. The SEC often -- indeed many times -- is conducting inquiries and examinations of business practices. That is part and parcel of being in a business that is highly regulated."

Crowley added: "We have no enforcement actions whatsoever by the SEC ... regarding our anti-money laundering unit."

Crowley said she had no knowledge of any federal grand jury probe.

Contact Law


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More