Internal Controls


Avaya

Avaya discloses ICFR weaknesses linked to whistleblower logs

2022-12-02T18:23:00+00:00By

Avaya Holdings disclosed its assessment of internal control over financial reporting in its fiscal year 2021 annual report can’t be relied upon, along with acknowledging weaknesses in its ethics and compliance program.

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.

Citi

Regs order Citi to address unresolved data management woes

2022-11-28T18:58:00+00:00By

Citigroup has successfully resolved key compliance shortcomings identified as part of a 2020 enforcement action but still has work to do to address data management weaknesses, according to federal banking regulators.

Goldman Sachs Tower

Goldman Sachs unit fined $4M for ESG investment lapses

2022-11-23T14:02:00+00:00By

Goldman Sachs Asset Management agreed to pay $4 million to settle SEC charges it failed to follow its own policies and procedures regarding a trio of investment products marketed for their environmental, social, and governance considerations.

Unisys

Unisys: Probe identified ‘material weaknesses’ in disclosure controls

2022-11-22T20:47:00+00:00By

IT services company Unisys Corp. revealed the discovery of faults in its internal control over financial reporting, including involving its compliance functions, following an internal investigation it first disclosed earlier this month.

Nicodemus_opinion

FTX collapse should provide momentum to regulate crypto

2022-11-15T21:02:00+00:00By

The collapse and bankruptcy of digital asset exchange FTX offers stark lessons into why rules that apply to traditional investments—overseen by government regulation—ought to apply to digital investments as well.

SEC

S&P Global fined $2.5M over conflict of interest lapses

2022-11-15T18:51:00+00:00By

Credit rating agency S&P Global Ratings agreed to pay $2.5 million and improve its compliance practices to settle allegations by the SEC that its marketing team pressured the ratings team concerning the rating of a particular mortgage-backed security transaction.

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.

ESG vector

CW Europe panelists: ESG reporting still in ‘immature’ phase

2022-11-10T15:20:00+00:00By

Companies are continuing to fail in their efforts to improve environmental, social, and governance reporting, while compliance functions are finding it tough to keep up with demands for better assurance in the area, according to experts.

Culture

CW Europe: Rebuilding a culture of compliance post-pandemic

2022-11-08T22:11:00+00:00By

Remote and hybrid working caused by the pandemic has meant it can be more difficult for organizations to monitor compliance and detect incidences of rules being broken or procedures not being followed.

Corporate reporting

FRC’s corporate governance reporting review finds room for improvement

2022-11-07T20:03:00+00:00By

Companies continue to improve their reporting against the U.K.’s Corporate Governance Code, but the lack of detail about the outcomes and impacts of governance policies hampers proper understanding of how risks are being managed.

Credit Suisse

Credit Suisse names new CCO, plans strategic overhaul

2022-10-27T19:48:00+01:00By

Credit Suisse announced sweeping changes to its strategy that includes selling off parts of its investment banking portfolio and shrinking its global headcount—an attempt to pivot from risky investment ventures and back toward its historic specialty of wealth management.

Mattel

Mattel fined $3.5M over accounting misstatements; ex-PwC partner could face discipline

2022-10-24T18:50:00+01:00By

The Securities and Exchange Commission fined Mattel $3.5 million for allegedly overstating tax expenses and initiated litigation against a former PwC partner accused of failing to inform the toy company’s audit committee about its financial statement errors.

Bank of England

MS Amlin Underwriting fined $11M over risk, governance lapses

2022-10-20T19:07:00+01:00By

The U.K.’s Prudential Regulation Authority fined specialty insurer MS Amlin Underwriting nearly £9.7 million (U.S. $10.9 million) for risk management and governance failings over a five-year period.

Jaeger_opinion

SEC order against recidivist Oracle skirts the issue

2022-10-13T13:46:00+01:00By

The most notable and relevant details in settlement agreements concerning regulatory compliance violations are often what is not stated. The SEC’s cease-and-desist order against Oracle over violations of the Foreign Corrupt Practices Act is no exception.

London cityscape

FCA faults board oversight of compliance in fining Sigma Broking $589K

2022-10-07T19:05:00+01:00By

London-based brokerage firm Sigma Broking was fined £531,000 (U.S. $589,000) for failing to report certain transactions to the U.K. Financial Conduct Authority.

Tupperware Brands

Tupperware Brands fined $900K for accounting failures at Mexico unit

2022-09-30T16:44:00+01:00By

Tupperware Brands Corp. agreed to pay $900,000 to settle SEC charges of failing to maintain sufficient internal accounting controls and keep accurate books and records at its Mexico affiliate.

ADM

ADM unit fined $500K by CFTC for supervision failures

2022-09-30T15:08:00+01:00By

ADM Investor Services, a futures broker affiliate of food processing giant ADM, agreed to pay $500,000 to settle CFTC charges it failed to properly supervise its employees and agents in their handling of commodity interest accounts.

Barclays

Barclays to pay $361M to resolve sales of unregistered securities

2022-09-29T21:44:00+01:00By

Barclays PLC and Barclays Bank agreed to pay $361 million to resolve allegations from the SEC the bank failed to implement internal controls to track the sale of $17.7 billion worth of unregistered securities transactions.

Bank of America

Compliance deficiencies highlighted in $1.8B crackdown on messaging apps

2022-09-28T18:39:00+01:00By

Eleven banks, investment firms, and their affiliates will pay a total of more than $1.8 billion in fines for “widespread and longstanding failures” in monitoring, maintaining, and preserving electronic communications by employees.

Oracle

Oracle to pay $23M to settle FCPA violations in 3 countries

2022-09-27T18:06:00+01:00By

Oracle Corp. will pay more than $23 million to settle allegations laid by the Securities and Exchange Commission it violated the Foreign Corrupt Practices Act when its subsidiaries in India, Turkey, and the United Arab Emirates bribed foreign officials for business.

Accounting fraud

Friedman to pay $1.5M for missed red flags in 2 audits

2022-09-26T17:03:00+01:00By

Accounting firm Friedman will pay more than $1.5 million to settle charges it failed to comply with the standards of the Public Company Accounting Oversight Board while auditing two companies.

SECBooks

Waddell & Reed to pay $775K over wrap fee compliance failures

2022-09-20T20:10:00+01:00By

Investment adviser Waddell & Reed will pay about $775,000 as part of a settlement with the Securities and Exchange Commission for compliance failures and breaching its fiduciary duty.

Rite Aid

ESG Summit: How Rite Aid is preparing to comply with SEC’s climate disclosure rule

2022-09-19T21:01:00+01:00By

Amanda Patrick, Rite Aid’s director of ESG/corporate sustainability, shared the retail pharmacy chain’s sustainability journey so far and how it is readying to meet the SEC’s potential disclosure mandates during her keynote address at CW’s virtual ESG Summit.

Danske Bank

Danske Bank fined $1.8M over AML checks in Ireland

2022-09-15T17:03:00+01:00By

Danske Bank was fined €1.82 million (U.S. $1.82 million) by the Central Bank of Ireland for omitting customers from automated financial crime checks between 2010-19 and failing to notify the regulator.

Technology concept

Strategies for balancing risk/reward of investing in new technologies

2022-09-14T16:15:00+01:00By

Taking a step back before committing to a technology project to weigh the risks and rewards can prove beneficial in the long term. Consider the following best practices.

linedata wp cover img

White paper: Future-proofing your investment compliance

2022-09-12T21:39:00+01:00Provided by Linedata

Seismic change is afoot for asset managers’ investment compliance programs given the significant uplift in SEC proposed rules for investor protection combined with demands for greater transparency.

Natixis

Natixis agrees to $2.8M CFTC fine for oversight failures

2022-09-07T13:21:00+01:00By

Natixis, a Paris-based global bank and swap dealer, will pay a $2.8 million fine to the Commodity Futures Trading Commission to settle charges it failed to prevent rogue traders from submitting false and misleading entries on trades over five years.

SECBooks

CHS avoids fine in SEC accounting fraud case

2022-09-02T16:04:00+01:00By

Minnesota-based agricultural cooperative CHS settled charges levied by the Securities and Exchange Commission that the company violated federal securities laws when it filed materially false financial statements with the agency over five years.

Texting

Big bank messaging app crackdown exposes policy holes, monitoring struggles

2022-08-24T12:00:00+01:00By

U.S. regulators have signaled through an impending widespread enforcement sweep they are zeroing in on banker use of messaging apps to discuss business matters. The cases emphasize the need for financial services firms to enhance their monitoring and recordkeeping.

Twitter HQ

Twitter whistleblower says poor cybersecurity invites breaches, manipulation

2022-08-23T22:13:00+01:00By

Peiter Zatko, a former cybersecurity executive at Twitter, has blown the whistle on his observations of systemic data security lapses at the company, undercounting of fake accounts, and how the social media platform could be manipulated by foreign intelligence services.

Eagle Bank

EagleBank fined $23M over improper lending, disclosure practices

2022-08-17T15:27:00+01:00By

EagleBank agreed to pay nearly $23 million in penalties for improperly loaning approximately $90 million to family trusts controlled by its former CEO over three years, then misleading investors about the loans.

SOX_Web

Sarbanes-Oxley 20th anniversary: Time to revisit SOX programs

2022-08-12T12:00:00+01:00By

Twenty years ago, in the aftermath of the Enron and WorldCom financial reporting scandals, Congress acted and created the Sarbanes-Oxley Act of 2002. Such a milestone anniversary marks a good time for organizations to refresh, rethink, and modernize their SOX programs.

The Home Depot

DOJ-informed compliance guidance helps Home Depot prep for potential scrutiny

2022-08-10T12:00:00+01:00By

How can a company prove its compliance bona fides to a regulator, should one ever come knocking on its door? The Home Depot has prepared for such a scenario with detailed guidance pegged to the DOJ’s “Evaluation of Corporate Compliance Programs.”

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.

Brasseur_opinion

Historic EY fine latest by-product of KPMG cheating scandal

2022-06-29T13:44:00+01:00By

It is impossible to ignore the SEC’s $100 million fine against EY for employee exam cheating is double the amount the regulator penalized KPMG for its separate cheating scandal. Especially since the latter resolution appears to have served as a starting point for the SEC’s ruling on the former.

EY

EY fined record $100M for employee cheating scandal

2022-06-28T16:38:00+01:00By

Ernst & Young will pay $100 million after admitting to SEC charges addressing systematic cheating among its accounting professionals on CPA license exams over four years. The fine is the largest the agency has ever imposed against an audit firm.

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.

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.

Morningstar

Morningstar to pay $1.15M in SEC internal control failure case

2022-06-08T13:57:00+01:00By

Morningstar Credit Ratings agreed to pay a civil penalty of $1.15 million to resolve charges of disclosure violations and internal control failures levied by the Securities and Exchange Commission last year.

Accounting fraud

Synchronoss to pay $12.5M over alleged accounting misconduct by former execs

2022-06-07T21:19:00+01:00By

The Securities and Exchange Commission announced software company Synchronoss Technologies agreed to a $12.5 million settlement for “long-running accounting improprieties” caused, in part, by alleged misconduct from senior executives.

RecordsMgmt

The importance of maintenance and record-keeping

2022-05-31T16:32:00+01:00By Jon Prentice, International Compliance Association

Stringent maintenance and record-keeping measures are part of the foundations of an effective compliance and risk management framework, so their neglect is as puzzling as it is unwise.

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.

CW2022 Leadership Panel

Compliance leadership panel: Current state, future trends, more

2022-05-31T11:51:00+01:00By

Four senior compliance practitioners shared their insights on maintaining an ethical culture, embracing data analytics, determining compliance’s role in measuring ESG metrics, and more as part of a panel discussion at Compliance Week’s National Conference.

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.

Olympus

Lessons learned from Olympus compliance monitorship

2022-05-24T11:39:00+01:00By

Christine Gordon, chief compliance officer at Olympus Corporation of the Americas, spoke about her company’s experience working with a DOJ-selected independent monitor at Compliance Week’s National Conference.

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.

Onetrust300x200

CPE Webcast: Five critical mistakes to avoid when answering security questionnaires

2022-05-17T14:00:00+01:00Provided by

As the security landscape evolves and the quantity of incoming questionnaires increase, streamlining your answering process has become crucial in building client trust and saving your organization time and money.

FedEx containers

FedEx’s social mission: Diversity drives better business

2022-05-13T11:00:00+01:00By

FedEx’s DEI strides—including becoming a minority-majority employee company in the U.S. for the first time in its history in fiscal year 2018—are not by accident. The company’s long history of hiring a diverse workforce and promoting from within is among the keys to its success.

FedEx plane

​Growth vs. green: FedEx’s environmental balancing act

2022-05-12T11:00:00+01:00By

When FedEx published its first Global Citizenship Report in 2008, its greenhouse gas emissions were already top of mind. Yet, the company has struggled to strike a balance between achieving year-over-year decreases in total emissions while it has expanded in the last decade-plus.