Internal Controls


Morgan Stanley3

News Brief

SEC fines Morgan Stanley $15M to settle allegations of theft of client funds

2024-12-10T18:35:00+00:00By

A lack of supervision and internal controls at Morgan Stanley Smith Barney allowed four of its investment advisers to steal millions from customers before the behavior was detected, the SEC said in charging the firm.

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Webcast

CPE Webcast: Fostering a learning culture to drive innovation

2024-12-10T14:00:00+00:00Provided by

Discover the vital role company culture plays in not only embracing new technologies and processes but also driving continuous improvement through a commitment to learning and a growth mindset.

macquarie_bank_web

News Brief

FCA fines Macquarie Bank $16M for control failures that allowed fake trades

2024-11-26T19:59:00+00:00By

The U.K. Financial Conduct Authority fined the London branch of Australian-based Macquarie Bank Limited more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.

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Webcast

CPE Webcast: Compliance considerations for archive selection

2024-11-14T14:00:00+00:00Provided by

The archive a firm selects can make or break their compliance strategy yet selecting an archive that meets your firm’s needs can be daunting. It is nearly impossible to identify the differences between vendors at first glance.

Meta building

News Brief

Meta discloses potential CFPB lawsuit following probe into advertising, disclosure practices

2024-11-04T14:44:00+00:00By

Meta disclosed in a public filing that an investigation by the Consumer Financial Protection Bureau related to financial product advertising on platforms Instagram and WhatsApp may lead to a lawsuit.

AI_Compliance_15

Premium

Speakers at Compliance Week AI & Compliance Summit talk future rules around technology

2024-10-31T14:43:00+00:00By

While companies are exploring and building artificial intelligence technology, lawmakers and regulators are trying to identify what ground rules they need to set. These guardrails are what companies and governments alike believe are essential parts of ensuring safe and responsible use of the technology.

ChinaMilitary

News Brief

Treasury set to block investment flow on American AI, semiconductor tech to China

2024-10-30T14:17:00+00:00By

The U.S. Treasury Department has issued a final rule–and created a new division to oversee it–that will attempt to limit outbound investments to China related to sensitive technologies with military applications.

Bribery

News Brief

Poor internal controls led to FCPA violations in Moog’s $1.7M settlement with SEC

2024-10-15T17:05:00+01:00By

A company culture geared to “win business at any cost” encouraged employees of New York-based aerospace manufacturer Moog to pay bribes in India to win contracts, the Securities and Exchange Commission alleged.

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Webcast

Webcast: Compliance Training 2.0: The power of legal-HR collaboration

2024-10-03T14:00:00+01:00Provided by

This webinar explores the critical importance of cross-functional collaboration in developing and implementing effective compliance training programs within organizations.

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Webcast

CPE Webcast: IT controls: Navigating the path to a secure digital future

2024-10-01T14:00:00+01:00Provided by

A comprehensive IT controls program is crucial to safeguard your organization’s assets, ensure data integrity, and maintain regulatory compliance.

classified_web

Premium

How lax compliance led three defense companies to give military secrets to U.S. adversaries

2024-09-24T15:10:00+01:00By

There are dozens of ways foreign countries can get their hands on U.S. military secrets, including cyberhacking, espionage, theft, and more. But one increasingly concerning way has been through unintentional disclosures by trusted defense contractors, including Boeing, 3D Systems Corp., and RTX Corp., parent company of Raytheon.

SEC

News Brief

Circor avoids fine after self-reporting accounting control violations to SEC

2024-09-06T16:57:00+01:00By

Massachusetts-based technology company Circor International settled charges with the Securities and Exchange Commission regarding deficient internal accounting controls without paying a fine.

BCG_web

News Brief

BCG avoids criminal prosecution for FCPA violations related to bribes in Angola

2024-08-30T13:53:00+01:00By

The Department of Justice declined to prosecute Boston Consulting Group for allegedly bribing Angolan officials in violation of the Foreign Corrupt Practices Act, citing the firm’s prompt self-disclosure and timely remediation.

SEC building

News Brief

SEC fines Sound Point Capital $1.8M over policy failures

2024-08-27T17:06:00+01:00By

Investment adviser Sound Point Capital Management will pay a $1.8 million fine to the Securities and Exchange Commission for failing to have written compliance procedures on handling material nonpublic information.

TD Bank

News Brief

TD Bank discloses liabilities over AML probes in U.S. balloon to $2.6B

2024-08-26T18:17:00+01:00By

TD Bank has set aside $2.6 billion to settle allegations made by U.S. regulators that deficiencies in its anti-money laundering program allowed fentanyl traffickers to launder money on its platform.

SEC building

News Brief

Ideanomics, execs to pay $5M over allegedly misleading auditor

2024-08-12T20:19:00+01:00By

Ideanomics, two former execs, and its current chief executive agreed to pay about $5 million and hire an independent compliance professional to settle allegations made by the Securities and Exchange Commission (SEC) that the company misled the public about its performance.

British pounds

Premium

LexisNexis survey: Compliance costs soared for U.K. banks in 2023

2024-08-06T16:54:00+01:00By

Nearly all but a tiny minority of financial institutions saw their costs of financial crime compliance rise in 2023, a survey by LexisNexis and Oxford Economics found.

Wells Fargo NY

News Brief

Wells Fargo discloses AML, sanctions programs under investigation

2024-08-02T19:00:00+01:00By

Wells Fargo disclosed in a public filing its anti-money laundering and sanctions programs are under investigation, adding to the already long list of compliance issues plaguing the bank.

Coinbase

News Brief

FCA fines Coinbase subsidiary $4.5M over providing service to high-risk customers

2024-07-26T15:51:00+01:00By

The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.

Federal Reserve

News Brief

Green Dot fined $44M by Fed over compliance deficiencies, deceptive practices

2024-07-22T19:09:00+01:00By

The Federal Reserve Board of Governors fined financial technology and bank holding company Green Dot $44 million for numerous unfair and deceptive practices and a deficient consumer compliance risk management program.

FTX logo

News Brief

FTX reaches $4 billion settlement with CFTC in bankruptcy court lawsuit

2024-07-17T15:39:00+01:00By

FTX Trading and the Commodity Futures Trading Commission have agreed on a $4 billion settlement in bankruptcy court to settle the CFTC’s lawsuit against the failed crypto trading platform.

UBS

News Brief

FINRA fines UBS unit $850K for failing to properly monitor customer transactions

2024-07-11T19:04:00+01:00By

UBS Financial Services, a subsidiary of the Swiss banking giant UBS, has been fined $850,000 for failing to properly monitor transactions between its broker-dealers and third parties.

Citi

News Brief

OCC, Fed fine Citi $136M for repeated risk management, data governance failures

2024-07-11T15:13:00+01:00By

Citigroup will pay $135.6 million in fines levied by two banking regulators for repeated failures to remediate deficiencies in risk management, data governance, and internal controls.

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Webcast

CPE Webcast: Real-life reactions to current corporate reporting landscape

2024-06-27T14:00:00+01:00Provided by

In this session we will discuss the current state of financial and nonfinancial reporting and recent survey findings from Workiva about how attitudes on integrated reporting are evolving.

SEC building

News Brief

SEC orders Meta Materials to pay $1M over market manipulation, fraud

2024-06-26T13:54:00+01:00By

A Nevada energy and manufacturing company headquartered in Nova Scotia agreed to pay $1 million to settle charges levied by the Securities and Exchange Commission for alleged market manipulation and fraud, while the agency further investigates its former chief executives.

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Webcast

CPE Webcast: Digital Operational Resilience Act: Key provisions and best practices

2024-06-18T14:00:00+01:00Provided by

This presentation will provide an overview of the key provisions of DORA and their implications for Third-Party Risk Management (TPRM) teams, list best practices for DORA preparation and review key considerations for teams looking to implement the DORA framework.

AuditTransparency

News Brief

Broadway Financial discloses ICFR weaknesses due to training shortfalls

2024-05-24T16:27:00+01:00By

Los Angeles-based bank holding company Broadway Financial Corp. disclosed in a public filing weaknesses discovered in its internal control over financial reporting because of training shortfalls.

Audit

News Brief

PCAOB dings MaloneBailey $400K over ‘pervasive’ quality control violations

2024-05-23T16:35:00+01:00By

Audit firm MaloneBailey agreed to pay a $400,000 fine to settle allegations levied by the Public Company Accounting Oversight Board over “pervasive” quality control violations.

Citi building

News Brief

Citi unit fined $78.6M by U.K. regs for trading control failures

2024-05-22T18:30:00+01:00By

The Financial Conduct Authority and Prudential Regulation Authority combined to fine a London-based Citigroup subsidiary approximately £61.7 million (U.S. $78.6 million) for control failures related to its trading system.

DOJ

News Brief

DOJ orders Evoqua to pay $8.5M over admitted securities fraud

2024-05-16T18:52:00+01:00By

Evoqua Water Technologies agreed to pay $8.5 million as part of a nonprosecution agreement with the Department of Justice to settle admitted criminal charges related to fraudulent revenue recognition.

Nicodemus_opinion

Opinion

Binance CEO got 4 months in prison. FTX’s got 25 years. Was compliance the difference?

2024-05-15T20:00:00+01:00By

Why the wild disparity in the sentences of Binance’s Changpeng Zhao and FTX’s Sam Bankman-Fried? Aaron Nicodemus argues the performance of the compliance teams at the two cryptocurrency exchanges was as big a contrast as the penalties earned by their respective founders.

ADM sign

News Brief

ADM CFO to depart amid accounting probes

2024-04-24T18:42:00+01:00By

Food processing company ADM announced Chief Financial Officer Vikram Luthar, who was placed on administrative leave in January amid a probe into the company’s accounting practices, will resign.

CW2024 McBride

Premium

Ex-Albemarle CCO shares drivers behind data analytics success at CW2024

2024-04-04T00:41:00+01:00By

Former Albemarle CCO Andrew McBride explained at Compliance Week’s 2024 National Conference how he led the company’s compliance department to remediate the issues that led to apparent FCPA violations and how the team used data analytics to assess risks and implement compliance solutions.

PwC building

News Brief

PwC fined $2.75M by PCAOB for independence process breakdowns

2024-03-29T15:39:00+00:00By

Big Four audit firm PwC was assessed a $2.75 million penalty by the Public Company Accounting Oversight Board for failures in its auditor independence processes related to a 2018 engagement.

Chemours

News Brief

​Chemours: DOJ, SEC probing exec accounting misconduct

2024-03-28T14:22:00+00:00By

Chemours disclosed it received requests for information from the Department of Justice and Securities and Exchange Commission regarding findings from an internal review into alleged accounting misconduct by several of its top executives.

ESGReporting

Premium

Experts: Legal noise around SEC climate disclosure rule no excuse for standing still

2024-03-20T16:03:00+00:00By

Legal experts are advising their public company clients to move forward with plans to comply with the SEC’s climate-related disclosure rule, despite lawsuits and other challenges being brought against the controversial policy in the aftermath of its approval.

ADM

News Brief

DOJ joins SEC in probing ADM accounting practices

2024-03-13T18:01:00+00:00By

ADM disclosed the Department of Justice joined the Securities and Exchange Commission in probing the food processing company’s accounting practices.

Chemours

News Brief

Chemours says probe found accounting misconduct by execs

2024-03-08T16:09:00+00:00By

Chemours said an internal review into the actions of senior managers alleged to have engaged in accounting misconduct uncovered violations of the chemicals company’s code of ethics regarding the promotion of full, fair, accurate, timely, and understandable disclosure.

Chemours

News Brief

Chemours places senior execs on leave over accounting review

2024-03-04T11:23:00+00:00By

Chemours announced it placed its chief executive officer, chief financial officer, and principal accounting officer on leave pending completion of an internal review into potential material weaknesses in its internal control over financial reporting.

ADM office

News Brief

ADM delays annual report filing amid ICFR assessment

2024-03-04T11:17:00+00:00By

ADM disclosed it will be late in filing its annual report for 2023 as it continues to investigate potential accounting improprieties regarding its nutrition reporting segment.

Board table

Premium

U.K. governance code revisions: Boards lead on culture, audit supports

2024-02-13T22:12:00+00:00By

Corporate culture, internal controls, and assurance moved up the boardroom agenda with the publication of the U.K.’s revised corporate governance code and its supporting guidance.

Accounting investigation

News Brief

China-based Cloopen Group avoids fine in SEC accounting fraud case

2024-02-07T12:51:00+00:00By

China-based technology company Cloopen Group Holding won’t pay a fine in settling with the Securities and Exchange Commission over an alleged accounting fraud scheme perpetrated by two of its former senior managers.

citynationalbank_web

News Brief

City National Bank ordered to pay $65M over deficient risk, internal controls

2024-02-01T18:32:00+00:00By

The Office of the Comptroller of the Currency levied a $65 million civil penalty against Los Angeles-based City National Bank over alleged risk management and internal control failures.

Philips

Premium

FCPA violations in China: Lessons learned from 2023 cases

2024-01-25T18:01:00+00:00By

Enforcement actions regarding alleged violations of the Foreign Corrupt Practices Act at 3M, Albemarle, Clear Channel Outdoor, and Royal Philips each had China touchpoints. Experts assess third-party risk management lessons learned from each case.

London cityscape

News Brief

FRC ups board responsibilities in corporate governance code revisions

2024-01-23T12:56:00+00:00By

The Financial Reporting Council held back on the latest round of updates to the U.K.’s corporate governance code, as the country remains wary of pushing away businesses and investors.

London Stock Exchange

Premium

U.K. push for more listings to lower bar on governance?

2024-01-18T14:22:00+00:00By

Moves by the U.K.’s financial regulatory body to encourage companies to list in London might fail to deliver or send mixed messages about the value placed on corporate governance, according to experts.

Business data

Premium

Lessons from Albemarle, ABB: How data-driven compliance can help your firm

2024-01-12T20:32:00+00:00By

Andrew McBride, chief risk officer of Albemarle Corp., and Tapan Debnath, head of integrity, regulatory affairs and data privacy at ABB, discussed how and why their respective organizations use data analytics to conduct business as part of a recent webcast.