COR Clearing LLC agreed to restrict its penny stock clearing business as well as pay a fine of US $800,000 to resolve charges by the Securities and Exchange Commission that it failed to file suspicious activity reports involving suspicious sales of penny stocks. Typically, in these transactions, said the SEC, a customer deposited a large block of low-priced stocks with it, sold the stocks into the market, and then withdrew the proceeds from the sales (so-called "DSW activity"). The alleged wrongful conduct occurred from January 2015 through June 2016. Although during this time COR engaged a consultant and was in the process of upgrading software to better detect and report DSW activity, it continued to experience difficulties with its AML software in identifying DSW activity for review. Under applicable law, broker-dealers are obligated to file with the Financial Crimes Enforcement Network of the US Department of Treasury reports of suspicious transactions involving or aggregating to at least US $5,000 which the BD knows, suspects, or has reason to believe might involve illegal activity or has no reasonable explanation.