Internal Controls


Credit Suisse sign

Credit Suisse unit fined $9M for conflict of interest, recordkeeping lapses

2022-01-21T17:21:00+00:00By

Credit Suisse Securities agreed to pay a $9 million fine levied by FINRA for failing to comply with securities laws and rules involving potential conflicts of interest and the safeguarding of customer securities.

COVID vaccine

Without OSHA vaccine policy, companies at risk of undercutting corporate culture

2022-01-20T19:46:00+00:00By

The Supreme Court’s decision to block President Joe Biden’s Covid-19 vaccine-or-test policy for large businesses leaves a patchwork quilt of state, local, and city requirements that companies will have to follow as best they can, according to experts.

Ransomware cover

CW case study to offer 360-degree view of ransomware attack

2022-01-19T13:00:00+00:00By

Learn through the eyes of the C-suite at Vulnerable Electric, a fictional private utility company impacted by a significant ransomware attack, as part of Compliance Week’s upcoming case study set to begin publishing Jan. 31.

EIC cover img

CW accepting nominations for 2022 ‘Excellence in Compliance Awards’

2022-01-18T13:00:00+00:00By

Nominations are open for Compliance Week’s third annual “Excellence in Compliance Awards,” to be presented at our 2022 National Conference from May 16-18 in Washington, D.C.

feb15

Feb. 15 | How award-winning compliance programs measure effectiveness

2022-01-17T17:01:00+00:00Provided by

Join Cargill and Pfizer, two award-winning programs, to hear their strategies for truly measuring compliance training effectiveness and how they use that data strategically to drive better outcomes.

Sojitz

Sojitz Hong Kong subsidiary fined $5.2M for violating Iran sanctions

2022-01-12T19:45:00+00:00By

Sojitz HK agreed to pay approximately $5.2 million for violations of U.S. sanctions against Iran that occurred when rogue employees deliberately misled company executives and compliance regarding the true origin of goods worth more than $75 million.

Carnival

Carnival to pay $1M for environmental probation violation

2022-01-10T19:55:00+00:00By

Cruise line operator Carnival Corp. has pleaded guilty and agreed to pay a $1 million penalty for violating a condition of its probation relating to its environmental compliance plan.

Deutsche Bank

Deutsche Bank fined $9.8M for Euribor control weaknesses

2021-12-30T17:05:00+00:00By

Germany’s market regulator BaFin imposed an administrative fine of 8.66 million euros (U.S. $9.8 million) on Deutsche Bank for breaches of the European Union’s Benchmarks Regulation.

Magnifying glass

S&T AG orders Deloitte audit of short seller allegations

2021-12-28T18:37:00+00:00By

Austrian technology company S&T AG has ordered a forensic audit of its corporate structure and several recent acquisitions in response to allegations made by short seller Viceroy Research.

SECBooks

Global Infrastructure Management fined $4.5M for compliance failures

2021-12-21T19:40:00+00:00By

Registered investment adviser Global Infrastructure Management has agreed to pay a $4.5 million civil penalty as part of a settlement reached with the SEC for fee offset and disclosure failures caused by deficiencies in its compliance program.

Nikola

Nikola to pay $125M to settle SEC fraud charges

2021-12-21T18:43:00+00:00By

Electric semitruck startup Nikola agreed to pay $125 million to settle charges brought by the SEC for defrauding investors by misleading them about its products, technical advancements, and commercial prospects.

Standard Chartered

Standard Chartered fined record $61.5M for liquidity reporting failures

2021-12-20T20:11:00+00:00By

The U.K. Prudential Regulation Authority imposed a record fine of £46.55 million (U.S. $61.5 million) against Standard Chartered Bank for repeatedly misreporting a key metric to determine liquidity risk.

HandsBuildingBlocks

Survey highlights need for better data integration between risk and compliance

2021-12-20T16:27:00+00:00By

A recent survey from Compliance Week and Riskonnect presents a compelling argument for companies to invest in bridging the gap between risk management and compliance data.

HSBC

HSBC hit with $84M penalty over AML failings

2021-12-17T19:44:00+00:00By

The U.K. Financial Conduct Authority fined HSBC Bank £63,946,800 (U.S. $84.3 million) for failings in its anti-money laundering processes over an eight-year period.

JPMorgan Chase

SEC, CFTC fine JPMorgan Chase $200M for recordkeeping violations

2021-12-17T17:01:00+00:00By

JPMorgan Chase will pay $200 million in fines to settle charges brought by two federal regulators regarding the bank’s failure to maintain records of communications on securities, commodities, and swaps business matters made on bank employees’ personal devices.

Money laundering

CommunityBank of Texas fined $8M over AML failures

2021-12-17T16:34:00+00:00By

CommunityBank of Texas has agreed to pay $8 million as part of a consent order reached with the Financial Crimes Enforcement Network regarding deficiencies in its anti-money laundering program linked to understaffing.

Nirvana Patel

CCO Q&A: How Prime Trust is managing compliance in evolving crypto space

2021-12-15T13:00:00+00:00By

Compliance Week discusses with Nirvana Patel, chief compliance officer and BSA officer at Prime Trust, the unique challenges of practicing compliance in the cryptocurrency industry and his thoughts on the regulatory landscape moving forward.

Fintech

Risk and compliance considerations for fintech startups and their bank relationships

2021-12-14T13:00:00+00:00By

Fintech startups are typically free to enjoy rapid growth without the burden of strict regulatory oversight. But as scrutiny over the industry grows, so does the urgency for fintechs to get their compliance house in order.

Credit Suisse

Credit Suisse sets executive board roles in line with new risk strategy

2021-12-13T17:17:00+00:00By

Credit Suisse reemphasized its corporate restructuring plan in the wake of this year’s Archegos and Greensill Capital meltdowns as part of a series of executive board appointments, including the return of Francesco De Ferrari to lead Wealth Management.

Societe Generale

Societe Generale CEO to assume oversight of risk and compliance

2021-12-13T16:34:00+00:00By

The CEO of Société Générale will assume direct supervision of the risk and compliance control functions at the French multinational investment bank following the completion of remediation programs in line with two U.S. deferred prosecution agreements.

ITM 2021 ESG pillars

Graphic: Ranking the pillars of ESG

2021-12-13T13:00:00+00:00By Compliance Week

Environmental, social, or governance—which does your company prioritize? Respondents to our Inside the Mind of the CCO survey were generally split, with trends emerging at industry level.

Federal Reserve

Fed reminds large banks of investment risks in Archegos postmortem

2021-12-10T20:15:00+00:00By

The Federal Reserve reminded large banks of its expectations regarding risk management practices in investment banking after the collapse of Archegos Capital Management earlier this year led to more than $10 billion in losses.

Wells Fargo sign

FINRA fines Wells Fargo subsidiaries $2.25M for recordkeeping violations

2021-12-09T20:52:00+00:00By

Two Wells Fargo broker-dealers agreed to jointly pay a $2.25 million fine to settle charges levied by FINRA regarding a failure to store approximately 13 million customer records in the proper format over a 17-year span.

Privacy data access

NYDFS guidance addresses common MFA problems—and how to fix them

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

The New York State Department of Financial Services outlined common vulnerabilities in multi-factor authentication and how to address them from a cybersecurity risk management standpoint.

Capital One

Five compliance triumphs from 2021

2021-12-08T13:00:00+00:00By

A key CCO appointment, a company committed to transparency, and a bank that spent big on improving its AML controls highlight CW’s annual list of laudable ethics and compliance moments.

Compliance_Fail_Main_Art

Top ethics and compliance failures of 2021

2021-12-07T13:00:00+00:00By

Systemic risk management lapses at a financial services firm, allegations of toxic culture at a video game giant, and more of the same baffling behavior from one of the world’s largest tech companies comprise CW’s list of the biggest ethics and compliance fails of 2021.

Dialysis machine

American Renal Associates to pay $2M in accounting fraud case

2021-12-06T22:26:00+00:00By

American Renal Associates Holdings has agreed to pay $2 million to settle Securities and Exchange Commission charges of accounting fraud allegedly perpetrated by three former financial executives at the dialysis provider.

Audit

What companies/auditors need to know for 2021 year-end audits

2021-12-06T13:00:00+00:00By

The continued effects of the pandemic, along with the implementation of new accounting standards, have companies and their auditors confronting substantial change in year-end audits.

London cityscape

U.K. Corporate Governance Code gaps remain despite reporting improvements

2021-11-29T19:59:00+00:00By

U.K. companies have improved corporate reporting—particularly on environmental and social issues—despite more instances of noncompliance with the Corporate Governance Code, according to the Financial Reporting Council’s latest review.

SECBooks

ProPetro avoids fine in executive perk case; ex-CEO to pay $195K

2021-11-23T21:28:00+00:00By

The former CEO of ProPetro Holding Corp. will pay $195,046 to settle SEC charges related to the company’s failure to disclose some of his executive perks and stock pledges to investors. ProPetro avoided a fine because of its remedial efforts.

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.

Shipping boat

How agile companies succeed in the throes of supply chain woes

2021-11-22T15:26:00+00:00By

In the midst of unimaginable global supply chain chaos, leading companies are adjusting their supply chains in a variety of ways, turning disruption into competitive advantage.

McKinsey

McKinsey affiliate to pay $18M for poor handling of nonpublic information

2021-11-19T18:33:00+00:00By

MIO Partners, a wholly owned subsidiary of management consulting firm McKinsey & Company, has agreed to pay an $18 million penalty for failing to maintain adequate policies and procedures to prevent the misuse of material nonpublic information.

CWE2021 Whistleblowing

CWE panel: EU Whistleblowing Directive a test for company procedures

2021-11-17T13:08:00+00:00By

Multiple weak points identified with the upcoming EU Whistleblowing Directive could put the burden on companies to determine how to best implement the law, experts discussed during CW’s virtual Europe event.

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.

Volkswagen

Volkswagen not resting on laurels post-monitorship

2021-11-12T16:56:00+00:00By

Volkswagen CCO Kurt Michels shared how the company has intensified business partner due diligence in the wake of completing its three-year U.S. monitorship during a fireside chat at CW’s virtual Europe event.

CWE_outsourcing

CWE panel: Risks, rewards of outsourcing compliance

2021-11-11T18:43:00+00:00By

As they look to manage third-party risks, compliance departments are increasing their reliance on outsourcing. Experts at Compliance Week’s virtual Europe event discuss the benefits and risks of enlisting external help.

proofpoint wp nov v2

White paper: E-Discovery Market Trends and Challenges

2021-11-11T02:26:00+00:00Provided by

Organizations are asking more of IT, legal and compliance teams than ever before. They need to manage more data, from more data sources and they’re required to comply with an increasing number of e-discovery requests

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.

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.

riskonnect 300x200

CPE Webcast: Cut the clutter: Streamline GRC for happier stakeholders

2021-11-04T14:00:00+00:00Provided by

Is your organization overwhelmed by complex GRC processes, siloed stakeholders, and the sheer volume of data points? If you are, you aren’t alone. But GRC doesn’t need to be complicated to be effective.

Cyber-security

Roisman: SEC should consider stricter cyber reporting for public companies, advisers

2021-11-02T20:38:00+00:00By

SEC Commissioner Elad Roisman says the agency should mull over whether to require public companies and investment advisers to perform the same kind of reporting, preparation, and planning for cyber incidents that FINRA requires of registered broker-dealers.

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.

Supply chain shipping

Five strategies for reducing tariff costs in the global supply chain

2021-10-27T20:38:00+01:00By

Recent events beyond the pandemic have global supply chains responding to a whole new compliance regulatory landscape. A panel of experts at a recent industry event explain where to look for potential cost savings.

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.”

Telephone

When academic studies and hoax hotline claims go ‘off the rails’

2021-10-18T17:26:00+01:00By

Imagine this: An anonymous hotline tip comes through that a senior executive has engaged in insider trading. This scenario happened this summer as part of academic research, effectively leaving hundreds of unwitting corporate subjects to foot the bill for unnecessary follow-up conducted.

United States cyber

How to respond to government’s renewed emphasis on cybersecurity

2021-10-15T20:30:00+01:00By

The Department of Justice’s new Civil Cyber-Fraud Initiative is the latest development to suggest companies’ cybersecurity defenses had better be up to snuff when doing business with the U.S. government or risk enforcement.

SEChq

SEC’s Gurbir Grewal stumps for proactive compliance in first speech

2021-10-08T17:49:00+01:00By

In his first publicized speech as director of the Securities and Exchange Commission’s Division of Enforcement, Gurbir Grewal spoke to the importance of “modeling excellence” in compliance efforts.

ask cco 3x2 pendergrass

Ask a CCO: How do you get leadership to support compliance?

2021-10-08T13:00:00+01:00By Compliance Week

Seven senior compliance practitioners impart how to get leadership to understand the value compliance offers the business and commit to supporting ethical initiatives.

ask cco 3x2 schwager

Ask a CCO: How to ensure right things done for right reasons

2021-10-07T13:00:00+01:00By Compliance Week

How do you encourage employees to do the right things for the right reasons? Seven senior compliance practitioners share what they and their respective companies do to best get results.