Internal Controls


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.

Workiva logo 300x200

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

Basic Page

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.

processunity300x200

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.

pwc300x200

Webcast

Webcast: Application security and controls: Avoiding the resurgence of material weaknesses

2023-12-12T14:00:00+00:00Provided by

We’ll discuss real-life examples of companies who have implemented technologies and techniques to monitor internal controls, increase control testing accuracy, boost security role precision, reduce the cost of compliance, improve ERP operational effectiveness, or recover from a material weakness.

Screenshot 2023-12-07 115821

Resource

White paper: Maturity Matters: Is It Time to Advance Your Compliance Training Program?

2023-12-06T17:02:00+00:00Provided by

Maturity models abound throughout the discipline of business management. In this instance, we define “maturity” as the degree and sophistication in which compliance training is formalized, implemented, integrated with risk management, and measured.

Rio Tinto

News Brief

Rio Tinto to pay $28M in SEC fraud case

2023-11-21T21:13:00+00:00By

Rio Tinto consented to pay a $28 million fine to resolve charges levied by the Securities and Exchange Commission alleging the mining company and its executives committed fraud by inflating the value of coal assets.

AI business

Premium

Using AI? The SEC wants to know about it

2023-11-20T20:16:00+00:00By

The Securities and Exchange Commission has not yet implemented rules governing use of artificial intelligence but still expects regulated entities to adhere to commonly accepted practices, including disclosure, said an agency enforcement official.

Spectrum

News Brief

Charter Communications fined $25M over stock buyback violations

2023-11-15T18:46:00+00:00By

The Securities and Exchange Commission fined Charter Communications $25 million for violating internal accounting control requirements related to stock buybacks.

Royal Bank of Canada

News Brief

SEC, Canadian regs fine RBC $6M for accounting failures

2023-11-06T12:59:00+00:00By

Royal Bank of Canada will pay $6 million in total penalties to settle charges from the Securities and Exchange Commission and two Canadian regulators that it failed to properly record software development costs for more than a decade.

Satnam Lehal 3x2

Premium

Lessons from Danske Bank CCO: Four pillars to successful remediation

2023-10-05T14:59:00+01:00By

Outgoing Danske Bank CCO Satnam Lehal shares with Compliance Week lessons learned from addressing deficiencies in the bank’s compliance program while managing the expectations of regulators, the board, employees, customers, analysts, investors, and the public.

blackline 300x200

Webcast

CPE Webcast: Focusing on control and compliance

2023-10-05T14:00:00+01:00Provided by

Amid globalization, new business models, and a constantly evolving regulatory environment, finance and accounting professionals face increasing complexities and higher transaction volumes. These issues pose challenges in delivering accurate and timely compliance and controls.

Exelon

News Brief

Exelon, ComEd fined $46M by SEC over bribery scandal

2023-09-29T18:41:00+01:00By

Exelon and its subsidiary Commonwealth Edison agreed to pay $46.2 million as part of a settlement with the Securities and Exchange Commission related to their Illinois bribery and lobbying scandal that previously earned ComEd a deferred prosecution agreement.

Albemarle

News Brief

Albemarle to pay $218M in FCPA settlements with DOJ, SEC

2023-09-29T15:11:00+01:00By

Chemical company Albemarle was assessed penalties totaling more than $218 million as part of settlements with the Department of Justice and Securities and Exchange Commission addressing alleged violations of the Foreign Corrupt Practices Act across a handful of foreign countries.

Billboard

News Brief

Clear Channel Outdoor to pay $26M in FCPA case over China bribes

2023-09-28T20:59:00+01:00By

Clear Channel Outdoor Holdings agreed to pay more than $26 million as part of a settlement with the Securities and Exchange Commission alleging its former China-based subsidiary bribed government officials to obtain outdoor advertising contracts.

Hanes

Premium

Assessing the value of COSO sustainability reporting guidance

2023-09-26T13:27:00+01:00By

Companies that haven’t yet set up verifiable reporting in their sustainability programs have a ready reference available in the framework put out by the Committee of Sponsoring Organizations of the Treadway Commission, experts discussed at CW’s virtual ESG Summit.

SEC office

News Brief

GTT Communications spared fine in SEC disclosure failure case

2023-09-25T17:50:00+01:00By

GTT Communications, a provider of telecommunications and internet services, avoided a civil penalty in reaching a settlement with the Securities and Exchange Commission addressing alleged disclosure failures over more than a two-year period.

SEC office

News Brief

SEC fines former Marcum partner for causing control failures

2023-09-12T17:02:00+01:00By

An ex-partner at Marcum agreed to pay $75,000 to settle charges by the Securities and Exchange Commission he failed to remediate numerous quality control deficiencies magnified by the audit firm’s special purpose acquisition company client boom.

fluor_web

News Brief

SEC fines Fluor $14.5M over accounting lapses

2023-09-07T16:15:00+01:00By

Engineering and construction company Fluor Corp. agreed to pay $14.5 million to settle allegations by the Securities and Exchange Commission that accounting deficiencies led to restatements on nearly three years of financial statements.

News Brief

Plug Power settles with SEC over accounting woes; warned of added $5M fine

2023-08-31T18:46:00+01:00By

Plug Power was fined $1.25 million as part of a settlement with the Securities and Exchange Commission over alleged accounting failures that the company agreed to fully remediate within one year or face an additional penalty.

AuditInspectionFeature

Premium

SEC chief accountant urges auditors, management widen scope on risk

2023-08-30T13:43:00+01:00By

Concerned auditors are missing the big picture when assessing a company’s internal control over financial reporting, the chief accountant at the Securities and Exchange Commission called on the profession—and company managers—to take a holistic approach to assessing risks.

Lovesac

News Brief

Lovesac facing shareholder pressure over accounting errors

2023-08-17T19:34:00+01:00By

The Lovesac Company disclosed it expects to restate certain of its 2023 financial statements after an internal investigation uncovered accounting errors related to its recording of last mile freight expenses.

News Brief

SEC fines Malvern Bank, ex-CFO for material misstatements

2023-08-16T19:36:00+01:00By

Malvern Bancorp and its former chief financial officer agreed to pay a combined $390,000 to settle allegations levied by the Securities and Exchange Commission regarding antifraud, reporting, books and records, and internal accounting control violations.

SEC

News Brief

Ault Alliance fined $700K over disclosure lapses

2023-08-16T19:14:00+01:00By

Diversified holding company Ault Alliance agreed to pay $700,000 as part of a settlement with the Securities and Exchange Commission addressing allegations of misleading disclosures and reporting violations.

Dubai

News Brief

Dubai financial regulator fines Mirabaud unit $3M for weak AML controls

2023-08-03T19:23:00+01:00By

A Middle Eastern unit of international banking group Mirabaud was ordered to pay a $3 million fine for inadequate anti-money laundering controls by the Dubai Financial Services Authority.

BAT_web

Premium

Common sanctions compliance trip points from 2023 enforcement cases

2023-07-31T16:00:00+01:00By

Penalties against companies including British American Tobacco, Wells Fargo, and Microsoft demonstrate the multiple ways in which businesses can run afoul of U.S. sanctions—an area receiving increased scrutiny by regulators.

Deutsche Bank

News Brief

Fed fines Deutsche Bank $186M over historic sanctions, AML lapses

2023-07-19T20:45:00+01:00By

The Federal Reserve Board fined Deutsche Bank $186 million regarding violations of previous consent orders addressing alleged sanctions and anti-money laundering weaknesses and control failures relating to the bank’s relationship with Danske Estonia.