Anti-Corruption


Nailedit1200x800

Volkswagen completes monitorship; Deloitte family leave policy too good to be true?

2020-09-17T20:32:00+01:00By Compliance Week

Volkswagen gets a nod this week for successfully completing its 3-year compliance monitorship related to Dieselgate. Deloitte, on the other hand, lands on the wrong side of our list.

AML-Europe

FinCEN seeking comment on AML program overhaul

2020-09-17T18:44:00+01:00By

The Financial Crimes Enforcement Network has proposed a plan to issue AML guidance every two years to encourage financial institutions to align their Bank Secrecy Act compliance programs with the agency’s enforcement priorities.

woods

Assessing the fallout from coronavirus relief loan frauds

2020-09-16T17:52:00+01:00By

In both the U.S. and U.K., millions (perhaps billions) of dollars of coronavirus relief loans intended for small businesses is believed to have been misused. Legitimate businesses have been hurt as a result, writes Martin Woods.

EY

EY chairman: Auditors should work harder to find fraud

2020-09-15T20:31:00+01:00By

The chairman and chief executive of Big Four auditing firm EY says auditors should do more to uncover fraud while conducting external audits, a topic the industry has historically been reluctant to tackle.

AdobeStock_288709055_Editorial_Use_Only

Daimler, U.S. authorities reach $1.5B proposed emissions settlement

2020-09-15T19:54:00+01:00By

Daimler AG and subsidiary Mercedes-Benz USA have reached a proposed settlement with U.S. authorities totaling $1.5 billion in fines and other costs to resolve emissions-cheating allegations.

Elizabeth Holmes

Elizabeth Holmes might seek ‘mental disease’ defense at Theranos trial

2020-09-15T16:29:00+01:00By

Elizabeth Holmes, founder and CEO of now-defunct blood testing company Theranos, is exploring the idea of using “mental disease or defect” as part of her defense during her criminal fraud trial, which is set to begin in March.

Magic pipe

Chapter 3: Carnival’s history as serial polluter catches up to it

2020-09-15T13:00:00+01:00By

This installment looks back at Carnival’s history of environmental law convictions, plea agreements with the DOJ, criminal fines, and environmental compliance plans (yes, there is more than one).

StockManipulation

SEC charges chief compliance officer in stock fraud scheme

2020-09-11T18:00:00+01:00By

A New Jersey-based asset management firm and its president and chief compliance officer are facing SEC charges for “cherry-picking” profitable stocks for new and favored accounts that diminished returns for other clients.

woods

Gut instinct keeps humans ahead of AI in fight against financial crime

2020-09-11T17:44:00+01:00By

As artificial intelligence evolves and takes on new tasks, whether it can develop the instinct of an experienced compliance professional will be key to its prevalence in the AML world, writes Martin Woods.

Nailedit1200x800

Credit to JPMorgan Chase in this week’s banking-themed naughty/nice list

2020-09-10T21:14:00+01:00By Compliance Week

JPMorgan Chase, Danske Bank, Deutsche Bank, and Bank of America all either “Nailed It” or “Failed It” this week.

JusticeDepartment

DOJ: 50 individuals criminally charged for PPP fraud, with ‘more to come’

2020-09-10T17:37:00+01:00By

The DOJ, together with a coalition of law enforcement partners, announced criminal charges against 50 individuals who allegedly committed fraud in obtaining money from the Paycheck Protection Program.

FCPA-July

Pactiv Evergreen discloses FCPA probe ahead of IPO

2020-09-10T14:17:00+01:00By

In its IPO filing, foodservice packaging company Pactiv Evergreen (currently Reynolds Group Holdings Limited) announced it might have potentially violated the Foreign Corrupt Practices Act regarding gift cards given in China.

Bribe

Benefits of bribery: New study separates fact from fiction

2020-09-09T17:11:00+01:00By

While bribery can provide companies with major short-term gains, there is little evidence to support many other beliefs surrounding the “return on investment,” according to a new study.

AIG

AIG whistleblower claims in lawsuit he was fired for uncovering fraud

2020-09-08T16:32:00+01:00By

A former attorney for AIG has alleged in a federal whistleblower lawsuit that he was fired after he complained about fraudulent activity related to an attempt to spin off a separate legal services company.

woods

Forget the status quo: Proactive AML is the path forward

2020-09-04T16:05:00+01:00By

The AML community is guilty of tolerating the failing status quo, and very few have dared to confront, challenge, and disrupt the inefficient and ineffective practices. A proactive approach could be the solution, writes Martin Woods.

Nailedit1200x800

Credit social media giants for prepping for election chaos

2020-09-03T18:12:00+01:00By Compliance Week

Silicon Valley’s social media heavyweights deserve a nod for “war-gaming” potential misinformation scenarios in advance of November’s elections, while McDonald’s again finds itself on our “Not Lovin’ It” list.

woods

Best practices KYC: What to do when your client is in the headlines

2020-09-02T15:50:00+01:00By

How do we, as AML professionals, assess negative media alerts? It should start with a conversation with the client relationship manager, but it shouldn’t end there, writes Martin Woods.

Money laundering

FCA proposes expanding scope of financial crime reporting obligations

2020-09-01T19:44:00+01:00By

The U.K. Financial Conduct Authority seeks comment on a new proposal that would widen the scope of its annual financial crime reporting obligations to include firms whose regulated activities potentially pose a higher money laundering risk.

Samsung

Samsung heir indicted on market manipulation, accounting fraud charges

2020-09-01T15:36:00+01:00By

Lee Jae-yong, the heir and de facto leader at Samsung, was indicted by South Korean prosecutors on charges related to a 2015 merger of two subsidiaries and alleged irregularities in accounting practices at another subsidiary.

carreyroubrockmeyer_128979

Q&A with Kara Brockmeyer: How pandemic has impacted third-party risk

2020-08-31T15:18:00+01:00By

In advance of her keynote at Compliance Week’s upcoming TPRM virtual event (Sept. 17-18), former SEC official Kara Brockmeyer discussed with CW the heightened risk third parties have during a pandemic and what companies can do about it.

woods

What the Wirecard story tells us about red flags, healthy skepticism

2020-08-28T16:51:00+01:00By

How we came to learn about the fraud allegedly perpetrated by Wirecard offers important lessons in compliance and corporate governance, writes financial crime expert Martin Woods.

Herbalife

Herbalife finalizes $123M FCPA settlement with SEC, DOJ

2020-08-28T16:49:00+01:00By

Herbalife will pay $123 million to settle charges of violating the books-and-records and internal accounting controls provisions of the Foreign Corrupt Practices Act in China.

Nailedit1200x800

Credit to KPMG for shining a light on fraud at Wirecard

2020-08-27T15:08:00+01:00By Compliance Week

A scathing report on the extensive fraud at German payment giant Wirecard had a compliance silver lining: KPMG’s by-the-books, transparent approach to a special audit helped bring that fraud to light.

woods

We’re losing the war on AML, and big consultancies aren’t helping

2020-08-25T15:57:00+01:00By

Financial crimes expert Martin Woods writes that, in his experience, the big consultancy firms have made a substantial negative contribution to global AML endeavors.

Bankatrisk

Banking regs reemphasize rules for monitoring accounts of foreign officials

2020-08-24T18:06:00+01:00By

Five federal regulatory agencies issued a reminder to banks and financial institutions that they should continually monitor risks associated with the accounts of foreign officials.

Employee pressure

Survey: Weak leadership contributes to employee pressure to bend rules

2020-08-21T17:56:00+01:00By

A new global business ethics survey released by the Ethics & Compliance Initiative seeks to explain what factors contribute to employee pressure to compromise ethical policies or regulations and how to reduce that pressure.

John Carreyrou

John Carreyrou at TPRM: How to spot a wolf in Steve Jobs’ clothing

2020-08-21T14:22:00+01:00By

John Carreyrou, the Wall Street Journal reporter who exposed Theranos and its founder Elizabeth Holmes as frauds, will be the keynote speaker on Day 2 of Compliance Week’s TPRM virtual conference Sept. 18.

woods

‘I don’t know’ is among a compliance officer’s strongest statements

2020-08-20T15:49:00+01:00By

Martin Woods explains how saying “I don’t know” helped him to learn and elicit the truth during his time as a financial crime compliance officer.

JusticeDepartment

Analysis: What to make of the DOJ’s rare FCPA opinion

2020-08-18T21:12:00+01:00By

The Department of Justice last week issued its first FCPA opinion procedure in six years. Experts weigh in on the ruling, the gap between opinions, and more.

HSBC

Hat tip to HSBC for stopping money laundering, saving lives

2020-08-18T14:36:00+01:00By

If you’re in search of proof that what you do matters, look no further than the AML efforts of HSBC in preventing $500 million from reaching the bank accounts of criminals, writes Martin Woods.

Stocks

Report: Trading activity by German regs spiked ahead of Wirecard collapse

2020-08-17T18:45:00+01:00By

Staff members of Germany’s financial regulator, BaFin, were reportedly buying and selling Wirecard shares at a suspiciously higher rate leading up to the collapse of the FinTech firm.

Federal Reserve

Federal banking regs clarify BSA/AML compliance violation response

2020-08-14T18:00:00+01:00By

Two strikes and you’re out, say four federal agencies to repeat violators of Bank Secrecy Act/anti-money laundering compliance requirements.

Money laundering

Basel Committee issues final AML risk management guidance

2020-08-11T17:49:00+01:00By

The Basel Committee on Banking Supervision recently issued an updated version of its guidelines on sound management of risks related to anti-money laundering and combating the financing of terrorism.

columnist icons - kyle

NRA shot itself in foot with poor compliance commitment

2020-08-11T15:55:00+01:00By

The New York Attorney General’s lawsuit to dissolve the National Rifle Association might not play out as intended, but it nevertheless exposes a number of systemic compliance flaws at the organization that appear to still need to be addressed.

woods

Having difficult conversations is key to modern compliance

2020-08-11T15:44:00+01:00By

Now more than ever, difficult conversations are necessary and increasingly expected of compliance professionals. Financial crime expert Martin Woods has some ideas on how to make them less painful.

Investigate

Interactive Brokers to pay $38M for SAR, AML failures

2020-08-10T18:05:00+01:00By

Interactive Brokers has agreed to pay $38 million in settlements with three regulatory agencies related to anti-money laundering lapses, including repeated failures regarding the filing of suspicious activity reports.

KYC

Common sense KYC: Customers should supply the knowledge

2020-08-07T15:39:00+01:00By

No one knows a customer better than the customer. As such, financial crime expert Martin Woods believes the onus should be on the customer to provide the required data to keep KYC logs up to date.

New York Supreme Court

New York AG cites ‘culture of noncompliance’ in NRA fraud lawsuit

2020-08-06T20:48:00+01:00By

Central to the New York Attorney General’s lawsuit seeking to dissolve the National Rifle Association are allegations that the nonprofit’s “culture of noncompliance” allowed EVP Wayne LaPierre and three other NRA officers to steal $64 million from the organization over three years.

Bribe

World Acceptance Corp. to pay $21.7M to resolve SEC FCPA case

2020-08-06T15:58:00+01:00By

World Acceptance Corp., a small-loan consumer finance company, has agreed to pay $21.7 million to resolve Securities and Exchange Commission charges for violations of the Foreign Corrupt Practices Act.

Medical devices

Eight years later, Zimmer Biomet FCPA case ends

2020-08-06T14:39:00+01:00By

Zimmer Biomet Holdings disclosed in a regulatory filing it has reached the end of its monitorship, eight years after resolving parallel settlements with the DOJ and SEC for violations of the Foreign Corrupt Practices Act.

British pounds

SFO confiscates $7M from ex-Afren execs in fraud case

2020-08-05T17:41:00+01:00By

The U.K. Serious Fraud Office announced it has secured orders confiscating £5.45 million (U.S. $7 million) from two former executives of oil and gas exploration company Afren.

KYC

Firms must apply contact tracing rules to bank relationships

2020-08-04T15:28:00+01:00By

In order to prevent debacles like the one Deutsche Bank is embroiled in, there is a need to combine the processes of “know your employee” and “know your customer,” writes Martin Woods.

ICA, Mongolian Compliance Association launch bespoke qualification

2020-08-03T18:39:00+01:00By GRC Announcements

The International Compliance Association announced a partnership with the Mongolia Compliance Association to offer a bespoke e-learning program to 12 professional associations and their 10,000-plus members in compliance-related roles.

Nailedit1200x800

What do FIFA chief, ‘Florida man,’ and Trump have in common? All Failed It this week

2020-07-30T18:18:00+01:00By Compliance Week

The lesson in this week’s edition of “Nailed It or Failed It?” is the more things change, the more they stay the same.

Masks

While compliance is in vogue, let masks be a symbol of safety in all situations

2020-07-30T17:36:00+01:00By

Now is the time to market compliance practices to customers who wear masks within our premises but drop the masks—and their guards—when answering calls and emails from the privacy of their own homes, writes Martin Woods.

Airbus

SFO charges Airbus subsidiary for corrupt acts in Saudi Arabia

2020-07-30T16:00:00+01:00By

The U.K. Serious Fraud Office announced charges against GPT Special Project Management and three individuals concerning a criminal investigation that began eight years ago into allegations of misconduct in Saudi Arabia.

Money laundering

Och-Ziff investors reach $136M proposed settlement in FCPA case

2020-07-29T18:41:00+01:00By

Sculptor Capital Management (formerly Och-Ziff Capital Management) has “agreed in principle” to a $136 million settlement with former shareholders of Africo Resources and the DOJ for violations of the Foreign Corrupt Practices Act.

Paperwork overload

SARs overload slowing efforts to combat financial crime

2020-07-29T14:43:00+01:00By

For the global AML community, there is a need to recognize too much valuable time is spent filing too many low-value suspicious activity reports that will never become the subject of any law enforcement action, writes Martin Woods.

Johnson & Johnson

Johnson & Johnson discloses FCPA probe

2020-07-27T17:34:00+01:00By

Johnson & Johnson disclosed in a regulatory filing that it is fielding FCPA inquiries from the DOJ and SEC with regard to an investigation into potential bribery and anti-competitive practices in Brazil.

GoldmanSachs

Goldman Sachs reaches $4B 1MDB settlement with Malaysia

2020-07-24T15:30:00+01:00By

Goldman Sachs reached a nearly $4 billion agreement in principle with the Government of Malaysia to resolve all criminal and regulatory proceedings related to three 1MDB bond transactions.