Efforts by the Trump administration to impose tariffs on countries that it deems do little to discourage or penalize companies that profit from forced labor have reignited the need for compliance teams to ask deeper questions about how their organizations attempt to uncover incidences of modern slavery in the workplace and supply chains.
Europe
Posted inFinancial Services
Convicted trader’s $16M case against Deutsche Bank hinges on compliance training, culture and leadership
A former Deutsche Bank trader convicted of wire fraud in the U.S. is suing the bank for $16.2 million for training him to break the rules. James Vorley, who worked in DB’s London office, claims senior managers at the bank instructed him to use a trading strategy that resulted in his prosecution.
Posted inAML
New AML investigation into Wise adds pressure on compliance in rapid growth fintechs and challenger banks
Belgian authorities are investigating money-transfer fintech Wise for its controls around suspicious transactions worth over $577 million across 30 European countries. The current investigation only concerns the fintech’s EU operations, but the company has a history of fines for weak financial controls in several regions, including the U.S. and the Middle East.
Posted inEurope
EU calls for transparency, governance as rising defense spending attracts fraudsters
Rapidly rising defense spending across EU states is creating new opportunities for
fraudsters. The director of the EU’s anti-fraud agency has warned that states that are
funding rearmament must increase their fraud protections. Companies and investors in the sector should therefore expect more fraud activity and more scrutiny.
Posted inESG/Social Responsibility
EU simplifies chemicals regulations, but legal and reputational pressures around hazardous chemicals are rising
The EU Parliament has agreed to simplify European chemicals regulations to boost
competitiveness, but compliance teams should note that the MEPs voted to retain
some rules to protect consumers and the environment.
Posted inSanctions
EU’s 20th Russian Sanctions Package extends compliance to third parties and anti-circumvention measures
The EU has intensified its focus on sanctions circumvention and the supply of Russian oil in a clear signal that the energy crisis caused by the closure of the Strait of Hormuz will not weaken its efforts to sever Russian cashflows.
Posted inArtificial Intelligence
Top tips to comply with EU AI Act’s transparency obligation
The EU’s recent decision to release an updated code of practice to help companies better understand the AI Act’s transparency requirements demonstrates the pitfalls that organizations face when trying to comply with rules that many expect to be strictly enforced.
Posted inRegulatory Policy
EU publishes major overhaul of M&A guidelines to encourage mega-mergers
The EU has published guidelines for the biggest overhaul of rules governing mergers since 2004. However, commentators are warning that loosening the M&A code may create new risks and still not deliver the “mega companies” that proponents seek. And EU officials appear divided. Where does this leave compliance teams?
Posted inData Privacy
Companies should brace for scrutiny, fines after EDPB’s latest GDPR investigation
The European Data Protection Board has made checking organizations’ compliance with the GDPR’s transparency requirements a key area of focus for the coming year under its Coordinated Enforcement Framework.
Posted inAML
Most FS firms expect to miss EU AML deadline amid data and due diligence challenges
Two-thirds of financial services firms will not be able to meet the requirements of the EU anti-money laundering package when it comes into force in July 2027.