Anti-Corruption


Federal Reserve

Fed cites AML weaknesses in denying Custodia Bank membership application

2023-01-27T20:57:00+00:00By

The Federal Reserve Board denied the application of Custodia Bank for membership in the Federal Reserve System, citing weaknesses in the digital-first bank’s anti-money laundering protocols as part of its decision.

UK_Gambling_Commission_Web

In Touch Games fined $7.6M for AML failures by U.K. Gambling Commission

2023-01-26T19:01:00+00:00By

U.K. online gaming company In Touch Games was fined £6.1 million (U.S. $7.6 million) by the country’s Gambling Commission for a series of anti-money laundering failures—its third such penalty since 2019.

Scott Hulsey

Q&A: Ex-DOJ official on policy changes, new CCO expectations

2023-01-26T17:01:00+00:00By

Scott Hulsey, partner at Barnes & Thornburg, former federal prosecutor, and a former chief compliance officer, discusses with Compliance Week how CCOs should respond to the Department of Justice’s recent policy changes regarding corporate crime.

processunity300x200

CPE Webcast: Best practices for ABAC compliance in 2023

2023-01-26T14:00:00+00:00Provided by

In today’s hyper-connected and media-driven world, corruption can be a serious challenge for organizations to manage.

Johnson & Johnson

J&J unit to pay $9.75M to settle kickback suit

2023-01-24T18:47:00+00:00By

A Johnson & Johnson medical device subsidiary admitted to providing thousands of dollars in equipment as kickbacks to an orthopedic surgeon as part of a $9.75 million settlement reached with the Department of Justice.

DOJ building

Banks fooled in DOJ Russian yacht sanctions evasion case

2023-01-23T20:08:00+00:00By

The Department of Justice’s charges against a U.K. businessman and his Russian partner for evading U.S. sanctions against a Russian oligarch provide insight into how the use of shell companies, third parties, and other methods can thwart the compliance efforts of financial institutions.

Forced labor hands

Good faith not good enough in navigating global supply chain laws

2023-01-23T19:24:00+00:00By

Differences in the level of duty of vigilance among supply chain legislation in countries including the United States, United Kingdom, and Germany mean best efforts to root out and stop slave labor and other worker exploitation are not enough, according to experts.

Deutsche Bank

Deutsche Bank refreshes compliance leadership with new group CCO

2023-01-18T22:18:00+00:00By

Deutsche Bank named Laura Padovani to be its next group chief compliance officer and head of compliance, effective April 1. She will replace Pascal Tagné, who will become the bank’s head of compliance for the Asia Pacific region.

Crypto

Crypto exchange Bitzlato shut down, labeled ‘money laundering concern’

2023-01-18T22:09:00+00:00By

The Financial Crimes Enforcement Network designated Bitzlato, a Hong Kong-registered cryptocurrency exchange, as a “primary money laundering concern” in the first use of a law that targets entities that facilitate illicit Russian financial transactions.

Danske Bank

Danske Bank CCO to depart in 2024

2023-01-18T20:50:00+00:00By

Satnam Lehal, chief compliance officer of Danske Bank, announced he will leave the bank in early 2024 after playing a pivotal role in helping steer it through the aftermath of one of the world’s largest money laundering scandals.

CW2022 Kenneth Polite 2

DOJ urges voluntary self-disclosure in corporate enforcement policy updates

2023-01-18T17:17:00+00:00By

The Department of Justice unveiled new incentives to encourage companies to voluntarily report violations of the Foreign Corrupt Practices Act, including steep discounts in monetary fines against businesses that self-disclose misconduct.

Investigation costs

FinCEN projects $22.7B for beneficial ownership reporting Year 1 costs

2023-01-17T21:48:00+00:00By

The Financial Crimes Enforcement Network estimated it will cost reporting companies a total of $22.7 billion to comply with the requirements of the agency’s beneficial ownership registry in its first year.

Financial Conduct Authority

FCA orders GT Bank to pay $9.4M for ‘reckless’ AML weaknesses

2023-01-12T15:34:00+00:00By

The U.K. Financial Conduct Authority fined Guaranty Trust Bank approximately £7.67 million (U.S. $9.4 million) for weaknesses in its anti-money laundering systems and controls that spanned a five-year period.

Al Rayan Bank

FCA fines Al Rayan Bank nearly $5M for AML failings

2023-01-11T21:45:00+00:00By

The U.K. Financial Conduct Authority fined Al Rayan Bank more than £4 million (U.S. $4.9 million) for its lack of adequate anti-money laundering controls.

FINRA New York

FINRA focuses on financial crime in annual exam report

2023-01-11T16:18:00+00:00By

The Financial Industry Regulatory Authority’s annual report on examinations and risk monitoring indicated a new emphasis for the regulator on combating financial crime, particularly cybercrime.

Bribe

U.S. bribery risk landscape in 2023: TRACE Matrix, Corruption Risk Forecast

2023-01-05T17:50:00+00:00By

Analyzing the results of two recent reports offers an understanding of the U.S. landscape around anti-bribery efforts entering 2023 and where elevated risks might lie.

Coinbase

Coinbase to pay $100M after NYDFS probe into compliance lapses

2023-01-04T19:46:00+00:00By

Cryptocurrency exchange Coinbase agreed to pay $100 million as part of a settlement with the New York State Department of Financial Services for compliance failures that opened the door for criminals to carry out illegal activity through the platform.

Brasseur_opinion

Ten things I’d like to see happen in 2023 (2022 in review)

2023-01-03T14:00:00+00:00By

Expect big developments for the compliance profession in 2022 to continue to take center stage in the year ahead, including CCO certifications, climate-related disclosures, and more.

Russia sanctions

FinCEN report identifies financial trends of Russian oligarchs

2022-12-29T19:12:00+00:00By

The Financial Crimes Enforcement Network published an analysis of financial trends involving Russian oligarchs and how U.S. financial institutions have aided in the identification of more than $30 billion worth of sanctioned Russians’ assets.

NatWest

Lessons in preventing AML failures

2022-12-29T14:51:00+00:00By Jake Plenderleith, International Compliance Association

Anybody working in financial services will know enormous effort is made to ensure their institution is on the right side of the law. Why, then, do such failures continue to exist? And crucially, what can be done to prevent their recurrence?

KYC

AML 2023 preview: Regs not backing down on beneficial ownership, tech needs

2022-12-28T14:52:00+00:00By

Keeping up with increasingly demanding anti-money laundering expectations in 2023 will likely mean doing more with less and figuring out where and when is the best place to use technology to aid compliance, experts say.

Safran

DOJ declines to prosecute Safran over alleged FCPA violations

2022-12-27T16:20:00+00:00By

The U.S. Department of Justice informed French aircraft equipment manufacturer Safran that the company would not face prosecution regarding alleged bribes paid by employees at two subsidiaries to a China-based consultant.

CFTC

CHS Hedging AML controls criticized in $6.5M CFTC action

2022-12-20T20:31:00+00:00By

CHS Hedging, a Minnesota-based futures commission merchant, was fined $6.5 million by the Commodities Futures Trading Commission for AML program gaps and other risk management and recordkeeping failures regarding a ranch owner customer committing fraud.

ESG

Joining the dots between ESG and corruption

2022-12-20T14:00:00+00:00By Ingrida Kerusauskaite and Rory Donaldson, for International Compliance Association

A report from Transparency International UK sets out the case for why business integrity and corruption should be considered as core issues in the context of impact environmental, social, and governance investing.

Honeywell

Honeywell to pay $203M over bribery claims in Brazil, Algeria

2022-12-19T20:58:00+00:00By

Honeywell International agreed to pay $202.7 million to settle charges it paid bribes to obtain contracts with government entities in Brazil and Algeria in violation of the Foreign Corrupt Practices Act.

Deutsche Bank

Deutsche Bank efforts to meet BaFin order reflective of EU’s AML struggles

2022-12-19T17:05:00+00:00By

Deutsche Bank said it is about “two-thirds” of the way toward meeting Germany’s financial regulator’s demands for tighter controls to combat money laundering and terrorist financing—an area of weakness many banks across the European Union are confronting.

FinCEN

FinCEN proposes restricted access to beneficial ownership registry

2022-12-16T15:24:00+00:00By

The Treasury Department’s Financial Crimes Enforcement Network released a notice of proposed rulemaking that outlines what agencies and entities should be allowed to access the beneficial ownership registry that is in the works.

Ericsson

DOJ, SEC extend Ericsson compliance monitorship one year

2022-12-15T14:55:00+00:00By

Swedish telecommunications company Ericsson agreed with U.S. authorities on a one-year extension of its independent compliance monitorship after a second breach of its obligations under a deferred prosecution agreement earlier this year.

SEC office

SEC accuses J.H. Darbie of violating AML rules

2022-12-14T17:10:00+00:00By

New York-based brokerage firm J.H. Darbie & Co. was charged with violations of anti-money laundering provisions of federal securities laws by the Securities and Exchange Commission for failing to report suspicious activity regarding penny stock transactions.

Sam Bankman-Fried

Bankman-Fried fraud charges detail FTX’s lack of internal controls, risk management protocols

2022-12-13T22:24:00+00:00By

A flurry of criminal and civil fraud charges laid against FTX founder Sam Bankman-Fried have pulled back the veil on the cryptocurrency exchange’s complete lack of internal controls and toothless risk management procedures.

Danske Bank

Compliance implications of Danske Bank’s $2B Estonia money laundering settlement

2022-12-13T19:09:00+00:00By

Danske Bank reached final resolutions with U.S. and Danish authorities to settle allegations regarding widespread anti-money laundering deficiencies at its former Estonia branch.

Business dilemma

Pressure on business or individual? CCOs torn on DOJ certifications

2022-12-12T13:00:00+00:00By

The Department of Justice’s new CCO certification requirement drew mixed reviews from respondents to our “Inside the Mind of the CCO” survey, with many questioning whether the policy might backfire on the compliance profession.

Santander

Santander UK fined $132M for poor AML controls

2022-12-09T20:39:00+00:00By

The U.K. arm of Santander was fined approximately £107.8 million (U.S. $132 million) by the Financial Conduct Authority for “serious and persistent” gaps in its anti-money laundering controls.

Rabobank

Rabobank probed by Dutch prosecutors over potential AML violations

2022-12-08T19:38:00+00:00By

Rabobank, the second largest bank in the Netherlands, is being investigated by the Dutch Public Prosecution Service for potential violations of the country’s anti-money laundering/countering the financing of terrorism law.

DOJSeal

Ex-Weber Shandwick CFO imprisoned 4-plus years for embezzlement

2022-12-08T00:07:00+00:00By

The former chief financial officer and chief operating officer of public relations firm Weber Shandwick was sentenced to more than four years in prison and ordered to pay more than $26 million for a nearly decade-long embezzling scheme.

ABB building

TPRM Summit: Experts discuss FCPA lessons learned from ABB settlement

2022-12-07T23:45:00+00:00By

A panel on regulatory trends at CW’s virtual TPRM and Oversight Summit discussed lessons for compliance departments seeking to learn how to guard themselves against bad actors within their own firms contained in ABB’s recent $327 million bribery settlement.

Glencore site

Glencore to pay $180M in DRC corruption case

2022-12-06T21:31:00+00:00By

Commodity trading and mining company Glencore agreed to pay $180 million to the government of the Democratic Republic of the Congo to settle claims arising from alleged corrupt practices that took place for more than a decade.

Compliance_Fails_2022 Main Art_index

Top ethics and compliance failures of 2022

2022-12-06T13:00:00+00:00By

Businesses not taking AML requirements seriously, years of noncompliant off-channel communications catching up to financial services titans, and a manufacturing firm that shared revenue with terrorists comprise CW’s list of the biggest ethics and compliance fails of 2022.

Sayari beneficial ownership thumbnail

e-Book: Effective beneficial ownership searches leverage technology

2022-12-06T05:39:00+00:00Provided by

Determining the ultimate beneficial owner of individuals and companies your firm does business with can be a tricky thing.

ABB

ABB avoids DOJ monitor, to pay $327M over South African bribes

2022-12-05T16:19:00+00:00By

ABB agreed to pay $327 million in penalties to settle coordinated charges it paid bribes to win South African energy contracts. The company entered into a three-year deferred prosecution agreement with the DOJ for violations of the Foreign Corrupt Practices Act.

DOJ

DOJ official hints at policy changes for off-channel communications, clawbacks

2022-12-02T21:00:00+00:00By

The Department of Justice is considering issuing new guidance regarding companies’ record-keeping obligations for employees’ use of personal cell phones to conduct corporate business, as well as executive compensation clawback policies.

Julius Baer

FCA fines Julius Baer subsidiary $21.5M for bribery scheme

2022-11-30T16:54:00+00:00By

Julius Baer International will pay more than £18 million (U.S. $21.5 million) to settle charges laid by the U.K. Financial Conduct Authority for paying bribes to generate business with a Russian oil company.

Jyske Bank

Danish financial regulator refers Jyske Bank to police for AML violations

2022-11-29T18:58:00+00:00By

The Danish Financial Supervisory Authority reported Jyske Bank to Danish police for allegedly violating the country’s anti-money laundering law regarding its customer due diligence measures.

CJEU

Experts: AML efforts dealt blow by CJEU beneficial ownership ruling

2022-11-29T18:17:00+00:00By

Determining the true owner of a company might become more difficult after Europe’s top court ruled automatic access to registers of beneficial ownership conflicted with the right to privacy.

BP

Ex-BP trader’s failed whistleblower claim to raise U.K. reporting bar?

2022-11-21T17:50:00+00:00By

A U.K. employment tribunal’s ruling that a former BP employee was not entitled to whistleblower protection has shone a spotlight on the legal issues workers must consider ahead of speaking up.

London dark

Regulatory independence vital in U.K.’s fight against fraud

2022-11-21T17:50:00+00:00By Rachel Adamson, International Compliance Association

To do their jobs properly, regulators must be able to act independently and without government intervention. Rather than seeking to tighten its grip on regulators, the U.K. government should be safeguarding their independence as a matter of urgent priority.

Elizabeth Holmes

Elizabeth Holmes sentenced to 11-plus years in prison

2022-11-18T22:40:00+00:00By

Theranos Founder Elizabeth Holmes was sentenced to more than 11 years in prison Friday after being convicted of fraud earlier this year for her actions as head of the defunct blood-testing company.

Code of conduct

How to build an effective code of conduct

2022-11-14T20:21:00+00:00By Paul Eccleson, for International Compliance Association

Literature and survey results regarding codes of conduct and ethics reveal the elements of strong (and weak) examples.

Glencore HQ

Glencore Energy’s $324M fine for bribery comes with warning to others

2022-11-09T12:54:00+00:00By

Glencore Energy UK was ordered to pay nearly £281 million (U.S. $314 million) in fines and costs after an investigation by the U.K.’s Serious Fraud Office (SFO) found it paid $29 million in bribes to gain preferential access to oil in Africa to boost profits.

Ecuador flag

Insurance broker Gallagher latest target of DOJ Ecuador probe

2022-11-07T20:56:00+00:00By

Insurance broker Arthur J. Gallagher is under investigation by the Department of Justice related to its business in Ecuador.