The steady rise in internal investigations stems from changes in corporate attitudes that view strong compliance processes as critical for the success of any business. As a result of the increased enforcement activities, particularly increased enforcement cooperation between foreign jurisdictions across Europe and around the world, European corporations are subjected to overlapping and often similar but not identical regulatory requirements. In our latest podcast, we talk to Tiffany Moseley, partner in Kaye Scholer’s Litigation Practice, about internal investigations and data privacy in Europe.
Aarti Maharaj
Posted inEurope
U.K. Banks on the Lookout for Civil Claims in Forex Scandal
The foreign markets manipulation debacle may drag on, with no end in sight. In the wake of a recent landmark legal settlement where top banks, including the Royal Bank of Scotland, UBS, and Barclays, agreed to a £1.28 billion settlement in the rate-rigging scandal, lawyers and analysts are warning it’s just a matter of time before corporations, fund managers, and others come forward with claims in London, the largest foreign exchange trading center in the world. More inside.
Posted inEurope
ECB Delays Review of Banks’ Risk Models
The European Central Bank has extended its review of banks’ internal risk models up to four years. The banking supervisor plans on conducting a thorough examination on how some of the Eurozone’s biggest banks are calculating its capital. Deutsche Bank, Santander, and Société Générale are some of the financial institutions that the ECB currently oversees. Details inside.
Posted inEurope
U.K. Financial Regulator Explains the New Accountability Rules
Image: The Financial Conduct Authority released “near final rules” which shows how it will apply the new accountability regimes that hold employees accountable for misconduct in U.K. branches of overseas banks. These rules further explain the FCA’s accountability reform announcement last month that zeroes in on top executives at U.K. banks. Details inside.
Posted inEurope
Standard Chartered Bolsters Its Financial Crime Unit Amid Regulatory Trouble
Standard Chartered is adding more staff to its financial crimes team, following a probe by U.S. regulators for an alleged breach in sanctions laws that resulted in a $400 million fine in 2012. In its first-half results announced last week, the bank said, “There is a range of potential penalties for sanctions compliance violations, which could ultimately include substantial monetary penalties, additional compliance and remediation requirements, and/or additional business restrictions.” More inside.
Posted inData Privacy
CCOs Playing a Stronger Role in Data Privacy Practices
Image: As data privacy laws proliferate, they are creating a web that traps how corporations use personal data in their operations. The challenge for compliance officers: how to play a more strategic role and ensure your business doesn’t get stuck. “The inclusion of the CCO function in defining controls related to things like cloud computing has yet to hit maturity,” says Marie Blake, chief compliance officer at BankUnited.
Posted inEurope
Report: U.K. Regulator’s Victory in the Libor Scandal
Image: Tom Hayes, once a “star trader” at UBS and Citigroup and the first to stand trial in the Libor scandal, has been charged with eight counts of conspiracy to manipulate Libor and will serve 14 years in prison. This case serves as a major turning point for the U.K. Serious Fraud Office as its reputation was at stake for the successful prosecution of Hayes. “The jury were sure that in his admitted manipulation of LIBOR, Hayes was indeed dishonest,” SFO Director David Green said. More inside.
Posted inRegulatory Enforcement
Nordea Bank Tackles AML Compliance Amid Hefty Fine
Nordea Bank AB, a major financial institution for the Nordic region, is re-establishing its anti-money laundering program to correct flaws in its processes that resulted in the company paying up to $5.9 million in fines. This is not the first time Nordea has been put in the spotlight for poor AML practices—in 2013, the company was fined for sanctions and money laundering violations. Details inside.
Posted inEurope
Banks Need to Manage Risks Better, U.K. Regulator Says
Image: A review by the U.K. Financial Conduct Authority found that banks need to take the risks associated with benchmark rates more seriously. FCA believes that financial institutions should learn from the recent scandals that rocked the industry and ensure that such misconduct does not happen again. The watchdog says that bank reforms and benchmarking activities are moving at a glacial pace, which is “disappointing,” said Tracey McDermott, director of supervision, FCA. Details inside.
Posted inEurope
Europe Faces Growing Criticism Over Sacked CEOs
The movement of executives at top financial institutions is back in the spotlight but this time the action is in Europe. Following the 2008-09 financial crisis banks were losing their chief executives faster than many expected. Now with post-meltdown regulatory reforms in full force, the turnover rate among executives has once again skyrocketed as banks continue to axe top bosses to speed up strategic change. More inside.
