The CFTC has proposed a rule that would codify informal registration exemptions that commodity pool operators and commodity trading advisors have been enjoying by virtue of a no-action letter issued in December.
Financial Services
Posted inRegulatory Enforcement
FCA warns firms to tighten non-financial misconduct compliance after Crispin Odey’s lifetime ban upheld
The U.K. financial regulator has warned firms that it won’t tolerate a “slapdash” approach to ethics and non-financial misconduct.
Posted inBest Practices
Preparing for prediction markets regulations is a safe bet
Prediction market contracts initially gained popularity as a way for people to engage in sports betting, but have evolved to mimic financial derivative products with little institutional oversight.
Posted inBest Practices
Why compliance, not technology, will decide the future of digital sovereign finance
A citizen in the Marshall Islands receives universal basic income directly to a mobile wallet via USDM1, a sovereign digital bond backed by U.S. Treasury bills. The pilot shows that digital public finance’s success hinges less on technology than on compliance.
Posted inArtificial Intelligence
FCA’s regulatory approach in the age of AI will work for now, but regular reviews are necessary, warn experts
The U.K.’s principles-based approach to financial services regulation should remain fit for purpose in an age of AI, say experts—so long as the regulatory framework is regularly reviewed. In July, the Financial Conduct Authority (FCA) published the “Mills Review” about how the regulator might need to adapt its approach as financial services firms adopt AI […]
Posted inSanctions
OFSI fines Citibank over Russian sanctions violations
Citibank has been handed a £4.7 million fine after its London branch violated the U.K.’s Russian sanctions regime by processing nearly £20 million in illegal payments to designated individuals and organizations.
Posted inFinancial Services
Financial institutions’ BSA filings linked to $17.5B in possible health fraud, FinCEN finds
Financial institutions’ reports to the U.S. Treasury Department’s Financial Crimes Enforcement Network revealed about $17.5 billion in suspicious financial activity related to health care, according to a FinCEN analysis.
Posted inRegulatory Enforcement
Two Payment processors face bans under FTC orders
Two credit card payment processors have been ordered to pay fines and to steer clear of high-risk merchants for allegedly processing more than $130 million in payments for bogus companies that scammed the public, the FTC announced.
Posted inFinancial Services
Statement by U.S. financial regulators clarifies confidentiality of suspicious activity filings
The federal Bank Secrecy Act does not prohibit financial institutions from speaking openly with customers who are the subjects of official SARs, according to a clarifying statement issued by U.S. financial regulators Wednesday.
Posted inBest Practices
Before the first crypto transaction, finance needs a seat at the compliance table
When an established company considers holding crypto, the compliance questions usually come first. Is the activity permissible? Is the exchange or custodian acceptable? Have the wallets been screened? Are AML and sanctions controls adequate? Those questions can all have satisfactory answers while the transaction still produces an outcome the institution did not intend. The reason […]