Latin America remains a hot spot for investors from every industry and markets around the world. But corruption in this region continues to run rampant and creates greater compliance risk for multinationals doing business in Latin America. According to a recent report, the top seven compliance risks for companies operating in Latin America include, third-party screening, internal investigation and whistleblowing, said a recent report.
Aarti Maharaj
Posted inEurope
RBS and StanChart on BoE Stress Tests: Resiliency is key
The Bank of England (BoE) recently released the results of its latest round of stress tests, which involved seven of the biggest U.K. lenders. While some of the banks emerged from the tests relatively unscathed, Royal Bank of Scotland and Standard Chartered fell below the minimum capital requirements needed to weather another financial crisis. The BoE said that it did not require a revised capital plan from any of the banks tested. More inside.
Posted inEurope
Regulator Calls on ECB to Tighten Its Rules of Engagement
Image: The European Central Bank’s transparency woes continue as Ombudsman Emily O’Reilly is urging the central bank to build a robust rules of engagement practice by putting a stop to banker meetings ahead of setting policy. O’Reilly said ECB officials should not give investors any advantage over rivals prior to setting policy such as interest rates. Details inside.
Posted inEurope
Bankers Still Overpaid Despite Poor Performance
Deutsche Bank Chief Executive John Cryan said earlier this week that bonuses don’t necessarily make bankers work harder; instead some employees feel that they are entitled to an outsized incentive despite bad performance. Cryan’s message come weeks after a warning was issued at Deutsche Bank about rewarding staff with new-year bonuses in light of fines the bank incurred for misconduct. Details inside.
Posted inEurope
Tax Evasion Problems at VW “Not Small”
German investigators have launched a new criminal probe into Volkswagen (VW) in light of the automaker’s recent emissions scandal. Prosecutors are examining five suspects who might be involved in this investigation. An Irish Times report said that prosecutors in Braunschweig are now investigating tax evasion allegations at the scandal-ridden German automaker. The prosecution is looking […]
Posted inRegulatory Enforcement
U.K. FCA Scrutinizes Use of Big Data by Insurers
Image: The Financial Conduct Authority is requesting more information from general insurers about big data, which may lead into a market study or further policy or guidance. Big data has the “potential to transform practices and products across financial services,” Christopher Woolard, director of strategy and competition at the FCA, said in a statement. More inside.
Posted inTechnology
Is Social Media Considered ‘Real Monitoring’?
A recent survey by Compliance Solutions at Charles Schwab found that compliance officers spend 11 hours per week monitoring their employees’ personal brokerage accounts, while half are closely monitoring social media platforms. One of the main challenges that compliance officers face is chasing data, which are “owned” by other departments. Industry experts claim that compliance professionals should spend more time on “real monitoring” instead of simply collecting data.
Posted inRegulatory Enforcement
Barclays’ Cost of Conduct Woes Continue
Barclays is set to pay £65.7 million to settle allegations that it manipulated foreign exchange markets—adding to the $120 million the British bank already paid to the New York Department of Financial Services for its involvement in the Libor scandal. According to a report from the CPP Research Foundation, Barclays’ cost for conduct issues has increased to more than £12 billion, and more penalties are on the way. Details inside.
Posted inEurope
Banks May Get More Time to Prepare for Financial Market Regulation
The EU is considering delaying the release of a comprehensive regulation that will overhaul financial market rules. The delay comes amid mounting concerns that the legislation’s accompanying technologies may not be ready in time for the January 2017 start date. Due to the complexity of the rule, banks and other financial institutions may need extra time to put the appropriate systems in place. More inside.
Posted inEurope
U.K. SFO Drops Olympus Probe: Misleading Auditors Not a Crime
The U.K. Serious Fraud Office has dropped a two-year case against Japanese endoscope maker Olympus Corp., in the wake of a London court ruling that doctoring reports to auditors is not a criminal offence under English law. The move is a setback for SFO Director David Green, who has been putting the English law to test so more companies can be held accountable for their actions. Details inside.
