Financial Services


SEC headquarters

News Brief

Delphia, Global Predictions fined by SEC in ‘AI washing’ cases

2024-03-18T19:48:00+00:00By

Delphia USA and Global Predictions agreed to pay a total of $400,000 to settle charges by the Securities and Exchange Commission the firms each engaged in artificial intelligence misrepresentations that misled clients about how they were using the technology.

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Chapter 1: Compliance v. complicity: The ‘underbelly’ of bank culture

2024-03-18T16:00:00+00:00By

Why were decisions made the way they were at the banks that serviced Jeffrey Epstein? Evidence points to a cultural tension: a tug-of-war between the allure of profit and the drag of compliance, with the former having all the pulling power.

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Case study: ‘The Banks Behind the Epstein Enterprise’

2024-03-18T15:50:00+00:00By

This Compliance Week case study offers a deep dive into the anti-money laundering compliance failures—and alleged complicity—of JPMorgan Chase and Deutsche Bank, the two banks that enabled the Jeffrey Epstein enterprise to flourish for decades.

ABN AMRO

News Brief

Departing ABN AMRO risk chief says climate, cyber among priorities

2024-03-15T19:27:00+00:00By

Tanja Cuppen, chief risk officer of ABN AMRO, shared her view on the Dutch bank’s biggest risk focus areas and the accomplishments of her tenure a month ahead of her planned departure.

EFG International

News Brief

EFG International settles Cuba, blocked persons U.S. sanctions case

2024-03-14T21:46:00+00:00By

Swiss-based global private banking group EFG International agreed to pay more than $3.7 million as part of a settlement with the Office of Foreign Assets Control addressing apparent violations of U.S. sanctions against Cuba and two blocked individuals.

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News Brief

JPMorgan fined $348M by OCC, Fed over trade surveillance lapses

2024-03-14T19:01:00+00:00By

JPMorgan Chase will pay $348.2 million in fines to settle allegations laid by two federal banking regulators that it failed to adequately monitor trading and order activity.

OCC sign

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U.S. banking regs mulling enhanced operational resiliency frameworks

2024-03-13T19:47:00+00:00By

Acting Comptroller of the Currency Michael Hsu said federal banking agencies are considering enhancements to their operational resiliency requirements for member banks.

DOJ building

News Brief

Argus to pay $37M in DOJ case over misused regulator data

2024-03-12T20:59:00+00:00By

Economic data and research firm Argus Information and Advisory Services agreed to pay $37 million to settle charges from the Department of Justice alleging misuse of data obtained through federal regulatory contracts.

Financial Conduct Authority

News Brief

FCA fines financial adviser $1.1M over British Steel advice, oversight lapses

2024-03-12T19:10:00+00:00By

The U.K. Financial Conduct Authority fined Inspirational Financial Management nearly £900,000 (U.S. $1.1 million) regarding alleged failures in advice and oversight provided to customers who were primarily members of the British Steel Pension Scheme.

Reserve Bank of New Zealand

News Brief

New Zealand banks to report material cyber incidents within 72 hours

2024-03-11T16:58:00+00:00By

The Reserve Bank of New Zealand added new reporting requirements for its member banks to follow if they suffer a material cyber incident and for all types of cyberattacks.

UniCredit

News Brief

​Italian DPA fines UniCredit $3M over data breach GDPR lapses

2024-03-11T15:54:00+00:00By

The Italian data protection authority announced a fine of €2.8 million (U.S. $3 million) against UniCredit for alleged violations of the General Data Protection Regulation regarding insufficient security measures the bank had in place during a cyberattack.

SECBooks

News Brief

SEC expands scope of order execution disclosure rule

2024-03-07T20:25:00+00:00By

Lost in the shuffle of the approval of its controversial climate-related disclosure rule, the Securities and Exchange Commission also adopted amendments to its rule for order executions in national market system stocks.

Ameriprise Financial

News Brief

​Ameriprise expecting $50M SEC fine over off-channel comms

2024-03-06T18:51:00+00:00By

Ameriprise Financial disclosed it recorded a $50 million accrual related to the resolution of a Securities and Exchange Commission probe into use of off-channel communications by its employees for conducting business.

U.K. money laundering

News Brief

​FCA warns CEOs over firm AML failings

2024-03-05T20:55:00+00:00By

The U.K. Financial Conduct Authority warned the chief executive officers of approximately 1,000 financial institutions it supervises regarding common failures in anti-money laundering procedures it observed during recent assessments.

Metropolitan Commercial Bank

News Brief

Metropolitan Commercial Bank adds risk chief, AML officer

2024-03-04T19:39:00+00:00By

Metropolitan Commercial Bank announced the appointments of a chief risk officer and Bank Secrecy Act/anti-money laundering officer to bolster its reporting lines following a $30 million enforcement action from federal and state authorities last year.

NYCB

News Brief

Struggling NYCB refreshes risk, audit leadership

2024-03-04T19:24:00+00:00By

New York Community Bancorp, a mid-sized bank struggling with precarious commercial loans and troubles with its acquisition of the failed Signature Bank last year, named a new chief risk officer and chief audit executive.

SEC office

News Brief

HG Vora fined $950K for beneficial ownership disclosure failures

2024-03-04T17:27:00+00:00By

New York-based investment adviser HG Vora Capital Management agreed to pay $950,000 to settle charges levied by the Securities and Exchange Commission alleging failure to report beneficial ownership regarding its stake at trucking transport company Ryder System.

Swedbank

News Brief

Swedbank says Estonia money laundering probe closed

2024-03-04T11:28:00+00:00By

The Estonian branch of Swedbank is no longer under investigation regarding suspected money laundering and other criminal activities.

Federal Reserve

News Brief

Green Dot estimates up to $50M in liabilities over proposed Fed order

2024-03-01T17:18:00+00:00By

Financial technology firm Green Dot Corp. estimated a pending consent order with the Federal Reserve Board will require a payment of between $20 million to $50 million.

gemini_web

News Brief

NYDFS fines Gemini $37M over compliance failures

2024-02-29T19:18:00+00:00By

The New York State Department of Financial Services fined cryptocurrency exchange Gemini Trust Company $37 million over alleged compliance failures related to lapses in safety and soundness.

United Kingdom

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FCA vows transparency, faster case outcomes in new enforcement strategy

2024-02-28T18:26:00+00:00By

The U.K. Financial Conduct Authority will rein in its enforcement focus and commit to providing more updates on its ongoing investigations as part of a revamped strategy designed to quicken the pace and increase the deterrent impact of its cases.

British pounds

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FCA calls attention to continued trade manipulation tactics

2024-02-28T13:17:00+00:00By

Financial firms continue to flout rules designed to protect investors from being misled about the true value of financial products, according to a recent bulletin from the U.K.’s Financial Conduct Authority.

Dark money

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FinCEN head touts compliance through enforcement approach

2024-02-27T19:01:00+00:00By

Andrea Gacki, head of the Financial Crimes Enforcement Network, said recent enforcement actions by the agency have addressed significant gaps in the U.S. anti-money laundering/countering the financing of terrorism regime and exposed specific risk factors, trends, and typologies.

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Webcast

CPE Webcast: Orchestrating operational resilience in financial services

2024-02-27T14:00:00+00:00Provided by and

Join us for an in-depth discussion on proven strategies, advanced technologies, and industry best practices that form the bedrock of operational resilience.

Frankfurt

News Brief

New European AML agency to be based in Germany

2024-02-27T12:43:00+00:00By

The European Union’s recently approved Anti-Money Laundering Authority will be based in Frankfurt, Germany, and begin operations in 2025.

CFPB logo

News Brief

CFPB exercises power to supervise installment lender World Acceptance

2024-02-26T21:01:00+00:00By

Installment lender World Acceptance Corp. was the subject of the Consumer Financial Protection Bureau’s first use of a dormant legal provision allowing it to establish supervisory authority over more nonbank financial companies.

Lloyds

News Brief

Lloyds discloses FCA probe into AML controls

2024-02-23T12:14:00+00:00By

Lloyds is the latest U.K. financial institution being probed by the Financial Conduct Authority regarding its anti-money laundering control framework.

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Resource

e-Book: Solving the off-channel communications conundrum

2024-02-22T01:15:00+00:00Provided by

Firms attempting to meet regulatory requirements for monitoring employee use of off-channel communications for business purposes face a bedeviling number of obstacles.

Barclays

News Brief

Barclays says FCA probe into AML controls closed

2024-02-21T18:49:00+00:00By

Barclays Bank disclosed an investigation by the U.K. Financial Conduct Authority into the bank’s anti-money laundering controls has closed without a penalty.

Wells Fargo

News Brief

Wells Fargo says DOJ, SEC diversity hiring probes closed

2024-02-21T17:52:00+00:00By

Wells Fargo disclosed investigations by the Department of Justice and Securities and Exchange Commission into the bank’s diversity hiring practices concluded without enforcement action.

Silicon Valley Bank

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Fed upping supervisory pressure as SVB collapse nears 1-year mark

2024-02-21T15:59:00+00:00By

Since the failure of Silicon Valley Bank nearly one year ago, the Federal Reserve Board has revamped its supervisory procedures to respond more quickly and forcefully once it identifies emerging risks at mid-sized and large banks, according to the agency’s vice chair for supervision.

JPMorgan Chase

News Brief

JPMorgan bracing for $350M in penalties over trade surveillance

2024-02-20T20:29:00+00:00By

JPMorgan Chase disclosed in a regulatory filing it expects to be penalized approximately $350 million by two unnamed U.S. regulators over lapses in its trading surveillance activities.

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News Brief

TIAA unit to pay $2.2M for Reg BI lapses

2024-02-19T16:00:00+00:00By

A subsidiary of the Teachers Insurance and Annuity Association of America agreed to pay more than $2.2 million as part of a settlement with the Securities and Exchange Commission for not acting in the best interest of its retail customers regarding their retirement accounts.

Van Eck

News Brief

VanEck fined $1.8M over influencer promo nondisclosure

2024-02-19T15:00:00+00:00By

Van Eck Associates agreed to pay $1.75 million as part of a settlement with the Securities and Exchange Commission regarding its alleged failure to properly disclose the planned involvement of a social media influencer in the launch of an exchange-traded fund.

Morgan Stanley

News Brief

Morgan Stanley fined $1.6M by FINRA over municipal securities closeouts

2024-02-16T19:21:00+00:00By

Morgan Stanley will pay a $1.6 million fine levied by the Financial Industry Regulatory Authority for failing to close out certain municipal securities transactions over a five-year period.

Sterling Bank

News Brief

Ex-Sterling Bank GC cited by OCC over BSA-related failures

2024-02-15T21:00:00+00:00By

The Office of the Comptroller of the Currency issued a cease-and-desist order against the former general counsel at Sterling Bank and Trust for not ensuring the institution’s Bank Secrecy Act compliance and failing to timely file suspicious activity reports.

Human trafficking

News Brief

FinCEN: BSA data shows spike in crypto-financed human trafficking

2024-02-14T21:32:00+00:00By

Bank Secrecy Act reporting data disclosed by the Financial Crimes Enforcement Network revealed a significant spike in the use of cryptocurrency to finance human trafficking.

Treasury Department

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FinCEN to propose applying BSA requirements to investment advisers

2024-02-13T21:15:00+00:00By

The Financial Crimes Enforcement Network will propose categorizing investment advisers as financial institutions that must comply with the Bank Secrecy Act, including having an anti-money laundering program.

Financial Conduct Authority

News Brief

FCA fines, bans ex-London Capital & Finance compliance head over promos

2024-02-13T19:17:00+00:00By

The U.K. Financial Conduct Authority issued a fine of £31,800 (U.S. $40,000) against a former compliance director at London Capital & Finance for allegedly approving misleading promotions that led to investor deception.

Whistle

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Experts: SCOTUS ruling shifts onus to employers in whistleblower cases

2024-02-12T21:35:00+00:00By

The Supreme Court’s unanimous decision to reaffirm whistleblower protections under the Sarbanes-Oxley Act in a case involving UBS has wide ramifications in many other industries beyond financial services, according to legal experts.

Gallagher

News Brief

Insurance broker Gallagher off hook in DOJ FCPA probe

2024-02-12T14:45:00+00:00By

Arthur J. Gallagher disclosed the Department of Justice ended an investigation into the insurance broker’s business in Ecuador for potential violations of the Foreign Corrupt Practices Act.

Supreme Court

News Brief

SCOTUS reaffirms whistleblower protections in ruling against UBS

2024-02-09T20:27:00+00:00By

The Supreme Court reaffirmed whistleblower protections guaranteed under the Sarbanes-Oxley Act in a unanimous decision expected to set a precedent that impacts all corporate internal reporting cases.

SEC building

News Brief

Latest SEC off-channel comms sweep nets $81M in fines against 16 firms

2024-02-09T17:05:00+00:00By

The ongoing off-channel communications sweep by the Securities and Exchange Commission netted 16 more broker-dealers and investment advisers, with the latest wave of fines totaling more than $81 million.

Bank of America

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Table: SEC, CFTC off-channel communications penalties

2024-02-09T17:00:00+00:00By

The Securities and Exchange Commission and Commodity Futures Trading Commission have combined to levy about $2.8 billion in penalties (so far) against firms and their affiliates in response to recordkeeping failures regarding employee use of off-channel communications for business purposes.

SEC

News Brief

SEC, CFTC adopt rule for enhanced large hedge fund disclosures

2024-02-09T14:06:00+00:00By

Large hedge fund advisers will be required to disclose more information on their investment strategies, investment exposure, operations, and more as part of a rule change jointly adopted by the Securities and Exchange Commission and Commodity Futures Trading Commission.

GoldmanSachs

News Brief

Goldman Sachs fined $513K by FINRA over faulty surveillance reports

2024-02-07T21:06:00+00:00By

The Financial Industry Regulatory Authority fined Goldman Sachs $512,500 for allegedly failing to properly surveil certain types of securities for potential manipulative trading activity for more than a decade.

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Webcast

CPE Webcast: Crafting policies for digital dialogue

2024-02-06T14:00:00+00:00Provided by

This webinar will shed light on the critical need for heightened awareness regarding business communications in the financial sector.

Westpac

News Brief

Westpac ordered to pay $1.2M in insider trading case

2024-02-05T22:15:00+00:00By

Westpac Banking Corp. was assessed a maximum fine of AUS$1.8 million (U.S. $1.2 million) to address charges levied by the Australian Securities and Investments Commission of insider trading related to an interest rate swap transaction.

Paytm

News Brief

Paytm denies money laundering claims amid regulatory scrutiny

2024-02-05T21:28:00+00:00By

The Reserve Bank of India ordered a halt to many banking activities of digital payments provider Paytm while the regulator investigates “persistent noncompliances and continued material supervisory concerns.”

Israel

News Brief

FinCEN alert flags Israeli extremists fomenting violence in West Bank

2024-02-02T18:27:00+00:00By

The Financial Crimes Enforcement Network issued an alert addressing the financing of Israeli extremist settler violence against Palestinians in the West Bank.