Financial Services


Cryptocurrency wallet

Banking regulators pledge to examine crypto asset risks in 2022

2021-11-24T16:06:00+00:00By

Determining whether crypto assets are legal, safe, and provide consumers with adequate protection from fraud are three areas of concern federal banking regulators say they will examine in 2022.

Goldman Sachs

Fed ends 2016 enforcement against Goldman Sachs for supervisory data misuse

2021-11-23T20:42:00+00:00By

The Federal Reserve Board of Governors has terminated a 2016 enforcement action against Goldman Sachs Group ordering the bank to pay $36.3 million for the unauthorized use and disclosure of confidential supervisory information from banking regulators.

Deutsche Bank

Deutsche Bank names Olivier Vigneron group chief risk officer

2021-11-22T17:34:00+00:00By

Deutsche Bank announced the appointment of Olivier Vigneron as group chief risk officer. Following regulatory approvals, Vigneron will assume the role effective June 1, 2022.

Federal Reserve

Biden to nominate Jerome Powell for second term as Fed chair

2021-11-22T16:12:00+00:00By

President Joe Biden announced his intention to nominate Jerome Powell to serve a second term as chair of the Federal Reserve and Lael Brainard to serve as vice chair.

Deforestation

​FinCEN notice warns banks of environmental crime

2021-11-19T22:06:00+00:00By

The Financial Crimes Enforcement Network issued a notice to banks and other financial institutions calling attention to what it has identified as a rising trend in environmental crimes.

Cybersecurity offices

Rule requires banks report significant ‘computer-security incidents’ within 36 hours

2021-11-19T21:15:00+00:00By

Federal banking regulators issued a rule that requires financial institutions to notify their regulator within 36 hours of a “computer-security incident” that materially affects their operation, ability to deliver services, or the stability of the financial sector.

Saule Omarova

Senate grills Comptroller candidate Saule Omarova on writings, past

2021-11-19T12:53:00+00:00By

Saule Omarova faced extraordinary questioning from Republicans on her background and previously expressed views during her nomination hearing to be the next Comptroller of the Currency.

Rabobank

Dutch authorities warn Rabobank of pending action for AML failures

2021-11-16T20:39:00+00:00By

Rabobank announced the Dutch Central Bank ordered it to “remedy deficiencies in its compliance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act.”

JPMorgan Chase

Lawsuit: Ex-JPMorgan VP links firing to concerns raised about compliance program

2021-11-12T18:21:00+00:00By

A former compliance executive with JPMorgan Chase alleges she was fired after pointing out flaws in the bank’s compliance program and misrepresentations the bank made to regulators regarding a 2016 settlement of bribery allegations in the Asia Pacific region.

McKinsey

Ex-McKinsey partner charged with insider trading on Goldman Sachs deal

2021-11-10T21:19:00+00:00By

Former McKinsey Partner Puneet Dikshit was arrested and charged with using inside information to profit on the acquisition of a fintech company by his firm’s client, Goldman Sachs Group.

Sudan money

Ignoring compliance, Mashreqbank fined $100M for Sudan sanctions violations

2021-11-10T18:02:00+00:00By

The New York State Department of Financial Services fined United Arab Emirates-based Mashreqbank $100 million for violating now-repealed Sudanese sanctions regulations and for having in place an inadequate compliance program.

Robinhood

Robinhood data breach impacts 7 million customers

2021-11-09T16:39:00+00:00By

Robinhood announced a hacker obtained the email addresses or names of approximately seven million of its customers. Approximately 310 customers had their personal information exposed as part of the same breach.

Federal Reserve

Fed supervision head Randal Quarles to resign

2021-11-09T15:35:00+00:00By

Randal Quarles, vice chair for supervision at the Federal Reserve, submitted his resignation as a member of the board, effective at the end of December.

Climate change ideas

OCC acting head: 5 climate questions bank boards should be asking

2021-11-08T20:57:00+00:00By

Michael Hsu, acting head of the Office of the Comptroller of the Currency, explores the role of bank boards to promote improvements in climate risk management practices at their banks.

Supreme Court

Supreme Court declines challenge to SEC’s Bank Secrecy Act authority

2021-11-08T18:59:00+00:00By

The Supreme Court turned down a bid by brokerage firm Alpine Securities Corp. petitioning for review of the Securities and Exchange Commission’s power to enforce the Bank Secrecy Act.

Credit Suisse

Credit Suisse to overhaul strategy: ‘Risk management will be at the core of our actions’

2021-11-04T22:34:00+00:00By

Credit Suisse announced sweeping changes to its long-term growth strategy, reemphasizing risk management after missed red flags led to billions of dollars in losses related to the collapses of Archegos Capital Management and Greensill Capital.

NYC skyline

NYDFS first state banking regulator to establish Climate Risk Division

2021-11-03T21:41:00+00:00By

The New York State Department of Financial Services announced the creation of a new Climate Risk Division to oversee regulated entities’ efforts at managing the financial risks of climate change.

ESG bank

Survey: More financial institutions using scenario analysis to manage climate risk

2021-11-03T15:58:00+00:00By

Financial institutions are growing more sophisticated in the way they incorporate scenario analysis into their risk assessments and in quantifying their climate-related risks, a new survey from the Global Association of Risk Professionals finds.

Brasseur_opinion

Banks in crisis at CEO turning to chief risk officers

2021-11-02T18:32:00+00:00By

Two of the largest banks in Europe—Barclays and Danske Bank—have had to make abrupt pivots at the CEO position this year. Each has chosen to pass the baton to their former chief risk officer.

Barclays

Barclays CEO Jes Staley steps down over Jeffrey Epstein links

2021-11-01T19:37:00+00:00By

Barclays CEO Jes Staley stepped down after a probe by British financial regulators looks to have found evidence his friendship with disgraced sex offender Jeffrey Epstein was closer than he had originally made out.

SEC

FICC fined $8M for failing to monitor, vet liquidity of transactions

2021-10-29T16:10:00+01:00By

The Fixed Income Clearing Corporation, the clearing agency for all U.S. government securities, agreed to an $8 million settlement with the SEC for failing to adequately monitor its liquidity arrangements.

CFPB

Rohit Chopra-led CFPB cracking down early on data, automation

2021-10-28T19:40:00+01:00By

Rohit Chopra has led the Consumer Financial Protection Bureau for less than a month, but one area of examination and enforcement priority is already coming into focus: data.

OCC

OCC orders Cenlar to address risk management issues

2021-10-27T15:51:00+01:00By

The OCC has ordered the country’s largest mortgage subservicer, Cenlar FSB, to address chronic risk management deficiencies the agency alleges have led to “unsafe and unsound practices.”

Swedbank_Automat

Swedbank: Swedish enforcement agency closes market abuse probe

2021-10-27T15:16:00+01:00By

Swedbank said it has been notified by the Swedish Financial Supervisory Authority that an investigation by the regulator concerning suspected market abuse by the bank has been closed “with no remark.”

3x2 web graphic

Compliance Week National Conference is going back in person in May

2021-10-25T12:00:00+01:00By

Mark your calendars: Compliance Week’s National Conference in Washington, D.C. will be held in person for the first time in nearly three years from May 16-18, 2022.

Climate

FSOC report: Climate change ‘increasing threat’ to U.S. financial stability

2021-10-22T19:23:00+01:00By

In a report ordered by President Joe Biden, the Financial Stability Oversight Council urged market participants, public companies, and regulators to develop a common agenda to respond to climate change-related financial risk.

Danske Bank

Swedish regulator to Danske Bank: Fix AML failings faster

2021-10-21T20:19:00+01:00By

Sweden’s financial regulator says Danske Bank is not addressing deficiencies in its AML/CFT protocols quickly enough, issuing an injunction ordering the bank to take remedial action.

Hacker

FinCEN report: Ransomware SARs surge past 2020 totals

2021-10-18T20:45:00+01:00By

A Financial Crimes Enforcement Network report on financial trends in Bank Secrecy Act data found a greater number of SARs related to ransomware filed between January and June 2021 than during all of 2020.

Tether coin

CFTC fines stablecoin Tether $41M for misleading investors

2021-10-15T20:11:00+01:00By

Cryptocurrency firm Tether will pay $41 million to settle CFTC charges that it misled investors when it claimed its stablecoins were 100 percent backed by fiat currencies like the U.S. dollar and the euro.

UBS

CFTC fines UBS $500K for inadvertently deleting swap trade files

2021-10-14T18:16:00+01:00By

UBS AG has been fined $500,000 by the CFTC for prematurely but inadvertently deleting more than 1,000 hours of audio files related to pre-execution swaps trade information the regulator required be saved for one year.

Stocks on phone

SEC investor advocate: ‘Gamification’ exposes holes in Reg BI

2021-10-14T16:16:00+01:00By

SEC Investor Advocate Rick Fleming said online platforms designed to make stock trading more easily accessible and exciting “expose what may be a significant flaw in Reg BI” regarding unsolicited transactions.

FINRA

FINRA encourages proactive compliance with FinCEN AML/CFT priorities

2021-10-13T19:32:00+01:00By

The Financial Industry Regulatory Authority is encouraging member firms to start proactively incorporating new AML/CFT priorities mandated by Congress into their risk-based compliance programs.

Crypto

SEC commissioners clash on cryptocurrency securities debate

2021-10-13T17:56:00+01:00By

SEC Commissioners Caroline Crenshaw and Hester Peirce used recent speeches to stake opposite sides on the central debate of whether all cryptocurrencies are securities.

Pandora Papers

Pandora Papers exposed gaps in AML compliance. Is beneficial ownership registry the answer?

2021-10-12T19:40:00+01:00By

FinCEN’s upcoming ultimate beneficial ownership registry could help to combat some of the anti-money laundering deficiencies put on display by the Pandora Papers, but not until Congress gets serious about funding the initiative.

Climate stress

Fed recommends member banks perform climate change stress tests

2021-10-08T19:12:00+01:00By

The Federal Reserve will encourage financial institutions to assess the potential financial ramifications of climate change by conducting stress tests, similar to those performed following the 2007-09 financial crisis.

NatWest

NatWest pleads guilty in landmark U.K. money laundering case

2021-10-07T16:11:00+01:00By

National Westminster Bank pleaded guilty to landmark criminal charges brought by the U.K. Financial Conduct Authority for violations of the Money Laundering Regulations 2007.

Countdown clock

Fed increasing LIBOR scrutiny as finish line nears

2021-10-06T17:51:00+01:00By

Financial institutions’ transition efforts away from the London Interbank Offered Rate will be intensely scrutinized by the Federal Reserve as the expiration deadline of the benchmark interest rate looms.

Global money dealings

Pandora Papers: Takeaways for compliance

2021-10-04T20:16:00+01:00By

The “Pandora Papers” could open Pandora’s box for all businesses and organizations found to be entangled in its worldwide web of shell companies, offshore tax havens, and secret trusts.

WaFd Bank

WaFd Bank to pay $2.5M for AML/BSA deficiencies

2021-10-04T18:23:00+01:00By

Washington Federal Bank has agreed to pay $2.5 million in accordance with a consent order reached with the Office of the Comptroller of the Currency in February 2018.

LPL Financial

LPL Financial to pay $4.8M to settle claims of poor KYC procedures

2021-10-01T19:44:00+01:00By

The nation’s presumed top independent broker-dealer will pay more than $4.8 million to settle AML charges stemming from its alleged failure to reconcile inconsistencies of a new customer who would scam a Puerto Rican city out of millions of dollars.

Goldman Sachs stocks

SEC charges ex-Goldman compliance analyst with insider trading

2021-09-30T19:08:00+01:00By

The Securities and Exchange Commission charged a former senior compliance analyst at Goldman Sachs who abused his position of authority unbeknownst to the investment bank with insider trading.

N26

​Germany’s N26 fined $5M for AML lapses

2021-09-30T16:25:00+01:00By

Mobile bank N26 revealed it paid a €4.25 million (U.S. $5 million) fine ordered by Germany’s market regulator regarding deficiencies in its reporting of suspicious activities “in the area of anti-money laundering.”

Wells Fargo

Wells Fargo to pay $72.6M for foreign currency exchange fraud

2021-09-28T19:42:00+01:00By

Wells Fargo Bank agreed to pay a total of approximately $72.6 million to resolve allegations it fraudulently overcharged hundreds of commercial customers who used the bank’s foreign exchange services.

Compliance steps

New SEC marketing rule offers opportunities, compliance challenges

2021-09-28T17:36:00+01:00By

The SEC’s new marketing rule allows certain types of advertising, endorsements, and testimonials that were previously prohibited. Investment advisers are “excited” about the new possibilities—but compliance officers must warn them of the risks.

Citi

CFTC fines Citi $1M for swap data reporting failures

2021-09-27T20:18:00+01:00By

Citibank will pay a $1 million penalty to resolve allegations of not properly reporting swap data to the Commodity Futures Trading Commission and for violating the provisions of a 2017 order regarding those practices.

OCC

Biden’s pick to head OCC favors tighter regulation of FinTech

2021-09-24T20:02:00+01:00By

President Joe Biden’s nominee for Comptroller of the Currency, Cornell law professor Saule Omarova, continues a Democratic pattern of choosing potential regulators who believe in stricter control of the markets.

SEC

SEC brings first-ever actions enforcing 2016 municipal advisor rule

2021-09-24T16:33:00+01:00By

The Securities and Exchange Commission charged Choice Advisors and two of its principals in its first enforcement actions under a non-solicitor municipal advisors rule that took effect in 2016.

Wells Fargo

Fed Chair Powell: Wells Fargo asset cap will remain in place

2021-09-23T16:38:00+01:00By

Federal Reserve Chair Jerome Powell said Wells Fargo’s asset cap will remain in place until the bank has “comprehensively” fixed its governance and compliance deficiencies.

MUFG

OCC raps MUFG Union Bank for risk management deficiencies

2021-09-21T16:39:00+01:00By

MUFG Union Bank, which has entered into agreement to be acquired by U.S. Bank, received a cease-and-desist order from the OCC for “unsafe or unsound practices regarding technology and operational risk management.”

Swedbank

Swedbank CCO lauded for role in AML rebound to retire

2021-09-21T15:16:00+01:00By

Ingrid Harbo, Swedbank’s chief compliance officer during its ongoing recovery from a massive AML scandal, announced she will retire in March 2022.