Image: Title: KronJan. 7—The $772 million bribery settlement between Alstom SA and U.S. regulators last month did not close the door on allegations plaguing the French industrial conglomerate. The company continues to face ongoing bribery probes in Poland and the United Kingdom, according to published reports, with former employees facing criminal charges and additional charges possible as the investigations evolve. In its defense, Alstom officials pointed to efforts in recent years to beef up compliance programs. “There were a number of problems in the past, and we deeply regret that,” CEO Patrick Kron said. More inside.
Roberta Holland
Posted inUncategorized
U.K. First in EU to Implement Tougher Transparency Rules for Extractives
Image: Jan. 8—The new year brought tougher transparency rules for listed European Union firms in the extractives and logging sectors, as the United Kingdom became the first to implement a new transparency directive ahead of the July deadline. Now oil, gas, and mining firms are required to prepare annually a public report listing government payments on a country-by-country basis. Martin Ewan, partner at law firm Pinsent Masons, said the new rules appear to “have teeth,” but whether they’ll be just another “box ticking” requirement remains to be seen. Details inside.
Posted inAnti-Bribery
New UK Anti-Corruption Plan Omits Hideaway Homes
Britain’s ambitious U.K. Anti-Corruption Plan addresses everything from emboldened enforcement agencies to sharper criminal liability, but critics have jumped on one weakness: the plan’s mandate for a public register of beneficial ownership omits the housing market. Given the multitude of luxury homes in London owned by overseas trusts, that’s problematic, they say. Government spokesmen say the government will consider expanding the register, and warn that the battle against corruption won’t be won “overnight.”
Posted inAnti-Bribery
EU Raises ‘Loophole Risk’ With New AML Regime
Transparency advocates are giving tempered praise to a new anti-money laundering regime proposed this month by representatives of the European Parliament and the Council of the European Union. The new rules would mandate that member states create centralised registers of beneficial ownership behind companies, but outsiders such as journalists or non-governmental groups would need to prove “legitimate interest” before seeing that data. More inside.
Posted inRisk Management
U.K. Stress Tests Show Few Capital Hiccups, Improved Resiliency
Image: Dec. 17—Three of eight major U.K. banks reviewed by regulators need to bolster their capital positions, but overall the banking system’s resiliency has improved, according to results of Bank of England stress tests meant to test banks’ ability to withstand a housing shock. “The results show that the core of the banking system is significantly more resilient, that it has the strength to continue to serve the real economy even in a severe stress, and that the growing confidence in the system is merited,” Bank of England Governor Mark Carney said. Details inside.
Posted inAnti-Bribery
Swiss ‘FIFA Law’ Turns Sports Execs Into Politically Exposed Persons
Image: Dec. 17—After years of grappling with corruption allegations against international sports federations based within their borders, Swiss lawmakers have passed a measure to criminalize corruption in sports and add sports federation heads to the definition of politically exposed persons facing enhanced scrutiny from banks. Swiss legislator Roland Büchel, who spearheaded the FIFA law, said, “It sends a clear message to the world that officials must accept responsibility.” More inside.
Posted inRegulatory Enforcement
Banking Union Moves Ahead With Bail-Out Fund Rules and Chairman Pick
Image: Dec. 10—The European Union has taken important steps in recent days regarding a bloc-wide banking union. The Council of the European Union has agreed to an eight-year phase-in plan to switch banks from national resolution funds contributions to the bloc-wide Single Resolution Fund. Meanwhile, the European Commission selected Germany’s Elke König to head the Single Resolution Board. “We need a return to basic ethical values, which seem to have gone out of fashion in certain corners of the financial sector during the economic boom,” König said. Details inside.
Posted inRegulatory Enforcement
U.K. Financial Regulator Sharpening Focus With New Structure
Image: Dec. 10—The Financial Conduct Authority, which took over financial regulation for the United Kingdom in 2013, is undertaking a complete restructuring to better deliver on its objectives, protect consumers and market integrity, and promote competition. The agency announced that certain divisions will be consolidated with new ones created for supervision, risk, and market oversight. “The financial industry continually evolves and, to regulate it effectively, we must evolve too,” FCA Chief Executive Martin Wheatley said. More inside.
Posted inAnti-Bribery
Denmark Comes Out on Top in TI’s Anti-Corruption Rankings
Image: Title: UgazDec. 3—Denmark took the top honor in the watchdog group Transparency International’s annual corruption perceptions index, ranking the cleanest of the 176 global economies reviewed. Denmark also tied for first place in last year’s index. Overall, more than two-thirds of the countries fell below a score of 50, which included Turkey, with one of the biggest drops this year. “Countries at the bottom need to adopt radical anti-corruption measures in favor of their people. Countries at the top should make sure they don’t export corrupt practices to underdeveloped countries,” TI Chair José Ugaz said. More inside.
Posted inAnti-Bribery
U.K. Fraud Office Gets Mixed Review Following Inspection
Image: Title: FullerDec. 4—The U.K.’s Serious Fraud Office has made some progress in fixing issues with staffing training, resource levels, and how it investigates complex cases, but more work needs to be done, according to a report from Her Majesty’s Crown Prosecution Service Inspectorate. “There has been genuine commitment from managers and staff alike to review and update processes and structures and to improve every aspect of case handling, from intelligence gathering and analysis to casework management and disclosure handling,” Chief Inspector Michael Fuller said. More inside.