Financial Services


U.S. Bank

Senators demand answers from U.S. Bank on fake accounts scandal

2022-08-08T18:13:00+01:00By

Democratic senators are calling on U.S. Bank to answer questions before a Senate committee regarding an alleged fake accounts scandal the bank recently paid $37.5 million to settle.

Morgan Stanley

Morgan Stanley reaches $200M agreement over unauthorized electronic messages

2022-08-08T17:35:00+01:00By

Morgan Stanley has reached agreements in principle totaling $200 million with the SEC and CFTC to settle charges its employees used messaging platforms not approved by the financial services company.

Citi

Roundup: Goldman Sachs, Citi, Robinhood disclose regulatory investigations

2022-08-05T18:02:00+01:00By

Goldman Sachs Group, Citigroup, and Robinhood Markets each issued quarterly filings disclosing regulatory investigations they are respectively facing into varied business practices.

Wells Fargo

Wells Fargo confirms DOJ probe into diversity hiring practices

2022-08-03T20:44:00+01:00By

Wells Fargo disclosed in a regulatory filing the Department of Justice has opened an investigation into the bank’s “hiring practices related to diversity.”

Robinhood crypto

Robinhood Crypto fined $30M for AML, cybersecurity failures

2022-08-02T18:27:00+01:00By

Robinhood Crypto agreed to pay a $30 million fine to the New York State Department of Financial Services for “significant failures” in its Bank Secrecy Act/anti-money laundering and cybersecurity compliance programs.

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Judge: Ex-JPMorgan compliance exec’s retaliation claims credible for trial

2022-08-01T17:19:00+01:00By

A jury could conclude allegations made by a former JPMorgan Chase compliance executive who said she was fired for blowing the whistle have merit, a federal judge ruled.

U.S. Bank

U.S. Bank fined $37.5M over fake accounts scheme

2022-07-29T17:00:00+01:00By

U.S. Bank agreed to pay a $37.5 million fine and to return fees charged to customers related to the bank’s alleged opening of accounts and access of credit reports without their permission, the Consumer Financial Protection Bureau announced.

JPMorgan Chase

JPMorgan, UBS among 3 fined by SEC over ID theft programs

2022-07-28T18:39:00+01:00By

The Securities and Exchange Commission separately settled charges with three financial institutions that each allegedly failed to provide reasonable policies and procedures to identify relevant red flags of customer identity theft.

Whistle

Court: RBS whistleblower should not receive award

2022-07-25T20:31:00+01:00By

A federal appeals court has denied the whistleblower claims of a former Royal Bank of Scotland employee seeking compensation for a tip he said generated more than $10 billion worth of settlements.

MidFirst Bank

MidFirst Bank avoids penalty in OFAC resolution

2022-07-22T16:39:00+01:00By

MidFirst Bank will not pay a civil penalty after self-reporting to the Office of Foreign Assets Control apparent violations of weapons of mass destruction proliferator sanctions at the bank.

Bank of America

Bank of America reserves $200M for enforcement over banker personal device use

2022-07-19T17:50:00+01:00By

Bank of America has set aside $200 million in anticipation of an enforcement action related to unauthorized use of personal devices—an area in which U.S. regulators are cracking down.

Bank of America

Bank of America fined $225M for freezing unemployment benefits during pandemic

2022-07-15T16:45:00+01:00By

A pair of regulators slapped a total of $225 million in fines on Bank of America for failures related to unemployment benefit disbursements the bank made during the pandemic.

Federal Reserve

Michael Barr confirmed as Fed’s top banking regulator

2022-07-13T21:10:00+01:00By

Michael Barr, a professor and former top official at the Treasury Department, was confirmed by the Senate as vice chair for supervision at the Federal Reserve.

Citi

SEC questioned Citi for additional info on Russia exposure

2022-07-11T19:37:00+01:00By

The Securities and Exchange Commission recently posed a series of probing questions to Citigroup seeking to understand the impact of Russia’s invasion of Ukraine on the bank’s exposure in Russia.

Global business

Survey: Widening remit driving cost of compliance higher, retention lower

2022-07-07T18:34:00+01:00By

Compliance functionality is vital to the future of financial services firms, but many are “struggling to meet their commitments while maintaining an appropriate risk and compliance culture,” according to the “Cost of Compliance Report 2022” by Thomson Reuters.

BNP Paribas

CFTC fines BNP Paribas, JPMorgan for swap reporting violations

2022-07-06T20:26:00+01:00By

BNP Paribas and JPMorgan Chase agreed to pay penalties of $6 million and $850,000, respectively, in separate settlements with the Commodity Futures Trading Commission for swap reporting violations dating back years.

SEC building

SEC’s Peirce weighs CCO enforcement case against liability framework

2022-07-05T17:41:00+01:00By

What would it look like if the SEC adopted a chief compliance officer liability framework? Commissioner Hester Peirce offered a preview in a statement regarding an enforcement action against the CCO of a formerly registered investment adviser.

Credit Suisse

Credit Suisse money laundering verdict start of new era of Swiss enforcement?

2022-07-01T17:58:00+01:00By

Credit Suisse became the first major Swiss bank to be prosecuted for money laundering in the country after the Federal Criminal Court of Switzerland found the bank guilty of washing money connected to a Bulgarian drug smuggling syndicate.

Barclays

FINRA fines Barclays $2.8M over supervision, disclosure lapses

2022-07-01T16:36:00+01:00By

Barclays Capital agreed to pay $2.8 million as part of a settlement with the Financial Industry Regulatory Authority for “failure to comply with customer confirmation and related supervision rules” that led to disclosure lapses.

UBS

UBS to pay $25M over ‘inadequate’ training, oversight in SEC fraud case

2022-06-30T19:26:00+01:00By

UBS Financial Services agreed to pay approximately $25 million to settle fraud charges brought by the SEC that cited “inadequate” training and supervisory oversight of the firm’s financial advisers regarding a complex options trading strategy.

Russia sanctions

FinCEN/BIS alert flags Russia export control evasion indicators

2022-06-29T18:11:00+01:00By

The Financial Crimes Enforcement Network and Bureau of Industry and Security warned financial institutions to be on the lookout for new and novel ways individuals and entities in Russia and Belarus are attempting to evade export controls.

RisksAhead

OCC risk report: Russian sanctions, staffing churn increase compliance challenges

2022-06-24T18:19:00+01:00By

The Office of the Comptroller of the Currency warned banks and financial institutions about elevated operational risks caused by geopolitical tensions and a heightened compliance risk environment complicated by regulatory changes, policy initiatives, and difficulties in hiring qualified professionals.

African currency

FCA fines Ghana International Bank $7.1M for AML failings

2022-06-23T14:27:00+01:00By

The U.K. Financial Conduct Authority fined Ghana International Bank £5.8 million (U.S. $7.1 million) for deficiencies in its anti-money laundering controls over its correspondent banking activities.

SEC

Compliance deficiencies faulted in Western International Securities Reg BI case

2022-06-16T21:15:00+01:00By

Western International Securities and five of its brokers have been charged by the Securities and Exchange Commission with violating Regulation Best Interest when they sold high-risk debt securities to investors who weren’t aware of the risks.

Jaeger_opinion

USAA whistleblowers want to be heard—and now

2022-06-16T17:13:00+01:00By

Jaclyn Jaeger reflects on feedback received from former and current USAA employees following her three-part series detailing alleged violations of law and mismanaged compliance culture at the financial services giant.

SEC building

Weiss Asset Management lauded for cooperation in $6.9M settlement

2022-06-15T19:54:00+01:00By

Weiss Asset Management reached a $6.9 million settlement with the Securities and Exchange Commission after it self-reported alleged short selling violations.

Charles Schwab

SEC to Schwab: Return $187M for robo-adviser misstatements

2022-06-14T17:20:00+01:00By

Three Charles Schwab subsidiaries have agreed to pay $187 million to settle SEC charges the units were allocating investors’ cash holdings in a way that was less profitable under most market conditions and misled investors about the strategies involved.

SEC

SEC charges investment adviser, CCO with selling fraudulent securities

2022-06-13T16:25:00+01:00By

A.G. Morgan Financial Advisors, its owner, and its former chief compliance officer were charged by the SEC with securities laws violations for unlawfully offering and selling more than $500,000 worth of unregistered, fraudulent securities.

Cryptocurrency wallet

Lummis-Gillibrand bill would regulate crypto for first time

2022-06-08T17:49:00+01:00By

The Responsible Financial Innovation Act, introduced by Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.), seeks to regulate digital assets, blockchain technology, and cryptocurrencies in the United States for the first time.

FinCEN

FinCEN launches rulemaking on no-action letter process

2022-06-06T16:55:00+01:00By

The Financial Crimes Enforcement Network launched rulemaking for a no-action letter process, which the agency said might help spur innovation in financial services for anti-money laundering/countering the financing of terrorism and compliance functions.

Western District of New York

Indictment: Ex-CCO charged with wire fraud over misappropriated funds

2022-06-03T13:56:00+01:00By

Jennifer Campbell, a former chief compliance officer at an unnamed investment adviser in Buffalo, N.Y., faces criminal and civil charges for allegedly misappropriating approximately $500,000 in funds from client accounts.

SEC

Investment advisers fret over SEC’s proposed ESG disclosure rule

2022-06-02T22:29:00+01:00By

Investment advisers and companies worry a recently proposed rule by the SEC that would require enhanced disclosures about funds that claim ESG strategies drive investment choices would have “substantial impact” without providing useful information to investors.

philippe

Former Danske Bank CCO Philippe Vollot resigns

2022-06-02T17:42:00+01:00By

Danske Bank Chief Administrative Officer Philippe Vollot, who was promoted to the position from chief compliance officer in November, has resigned, the Danish bank announced.

Deutsche Bank

Deutsche Bank asset management head resigns amid greenwashing probe

2022-06-01T18:10:00+01:00By

Asoka Woehrmann, chief executive of DWS Group, has resigned amid an investigation by German officials into allegations of greenwashing within the asset management unit’s investment portfolio.

Treasury

Banco Popular to pay $255K for violating Venezuela sanctions

2022-05-31T18:23:00+01:00By

Banco Popular de Puerto Rico has agreed to pay more than $255,000 as part of a settlement with the Office of Foreign Assets Control to resolve its civil liability for 337 transactions processed in violation of U.S. sanctions.

Westpac

Report: Westpac New Zealand progressing on risk culture improvements

2022-05-31T14:27:00+01:00By

An independent report ordered by the Reserve Bank of New Zealand into Westpac New Zealand has found the bank is “moving in the right direction” in addressing risk culture deficiencies.

SEC building

SEC rule proposal would order investment firms to back up ESG claims

2022-05-25T22:52:00+01:00By

The Securities and Exchange Commission proposed a new rule that would require registered investment advisers, investment companies, and business development companies to submit enhanced disclosures about funds that claim ESG strategies drive their investment choices.

Global business

Best practices, common pitfalls in working in high-risk countries

2022-05-25T13:50:00+01:00By

A panel of compliance professionals discussed the increasingly relevant topic of working in high-risk countries, sharing their experiences and lessons learned at Compliance Week’s National Conference in Washington, D.C.

BNY Mellon

BNY Mellon fined $1.5M by SEC for misstatements on ESG mutual funds

2022-05-23T17:30:00+01:00By

BNY Mellon Investment Adviser has agreed to pay a $1.5 million fine to the Securities and Exchange Commission for making “misstatements and omissions” on environmental, social, and governance mutual funds it managed over three years.

Wells Fargo bank

Wells Fargo unit fined $7M for AML transaction monitoring failures

2022-05-20T18:26:00+01:00By

For the second time in five years, a subsidiary of Wells Fargo has been charged by the Securities and Exchange Commission with failing to file suspicious activity reports in a timely manner due to deficiencies in the system it used to flag transactions.

CW2022 Matthew Friedman

Expert: Combating modern slavery starts with understanding the issue

2022-05-18T15:13:00+01:00By

Matthew Friedman, an expert on international human trafficking with more than 30 years of experience, discussed the importance of companies addressing modern slavery in their supply chains as part of a virtual fireside chat on the human factor of ESG at Compliance Week’s National Conference.

Allianz

Allianz unit pleads guilty in $6B fraud settlement

2022-05-17T23:39:00+01:00By

Allianz Global Investors U.S. and three former portfolio managers were charged with lying to investors about a complex options trading strategy, as well as forging documents to cover up the scheme, leading to multibillion dollar losses.

Citi

Citi names Tom Anderson as new chief compliance officer

2022-05-12T19:35:00+01:00By

Tom Anderson will be the next chief compliance officer at Citi, effective June 1. His appointment comes two months after Mary McNiff stepped down from the role.

Londoncrop

FCA fines, bans director over unauthorized compliance duties

2022-05-10T16:34:00+01:00By

Thomas Ward, a former head of compliance at an investment management firm who once worked as a compliance inspector for a U.K. regulator, was fined 416,558 pounds (U.S. $513,000) and banned from working in the financial services sector following a tribunal ruling.

Treasury Department

New sanctions add ban on U.S. accounting, management consulting work in Russia

2022-05-09T19:02:00+01:00By

The Treasury Department unveiled a host of new sanctions against Russian and Belarusian individuals and banks, in addition to a ban on U.S.-based accounting, management consulting, and trust and corporate formation services to any person located in the Russian Federation.

USAA

Whistleblower to OCC: USAA had 400,000 undisclosed Military Lending Act violations

2022-05-06T15:00:00+01:00By

USAA Bank engaged in an estimated 400,000 violations of the Military Lending Act, a former director of compliance within the bank reported to the Office of the Comptroller of the Currency in documents seen by Compliance Week.

USAA building

A look inside USAA’s ‘catastrophically mismanaged’ compliance culture

2022-05-06T15:00:00+01:00By

In exclusive interviews with Compliance Week, former USAA insiders describe a risk and compliance culture in which numerous individuals either were given the axe or quit because the problems were so endemic.

USAA Bank

​Whistleblower: USAA ‘actively lying to regulators for years’ regarding violations of law

2022-05-06T15:00:00+01:00By

Senior executives at USAA ignored warnings from compliance staff and consultants for years regarding violations of U.S. federal banking laws and hid from regulators the scope of the company’s illegal practices, a former USAA director of compliance turned whistleblower told Compliance Week.

Wells Fargo sign

Wells Fargo in resolution negotiations regarding potential OFAC violations

2022-05-05T17:45:00+01:00By

Wells Fargo disclosed in a regulatory filing it has entered resolution discussions with a U.S. authority or authorities regarding potential sanctions violations it voluntarily self-disclosed to the Treasury Department’s Office of Foreign Assets Control.

Bank of America

CFPB fines Bank of America $10M over deficient garnishment protocols

2022-05-04T20:12:00+01:00By

The Consumer Financial Protection Bureau fined Bank of America $10 million for processing “unlawful” garnishments of customer accounts dating back to 2011.