Regulatory Enforcement


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.

refinitiv sanctions 2022 img

e-Book: Avoiding pitfalls of working in high-risk regions

2022-06-30T07:07:00+01:00Provided by

The issues of working in high-risk regions have always been there, but recent dynamic events and circumstances have added unique challenges.

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.

Carnival Cruise

NYDFS penalizes Carnival $5M for cybersecurity failures

2022-06-27T16:18:00+01:00By

The New York State Department of Financial Services announced a $5 million penalty against Carnival Corp. for “significant” cybersecurity failures, including not implementing basic protocols to prevent four separate data breaches from 2019-21.

Brasseur_opinion

CCO skepticism toward DOJ compliance certifications justified

2022-06-27T15:36:00+01:00By

Chief compliance officer concerns regarding the Department of Justice’s new certification policy have not been alleviated by the agency’s inconsistent communication regarding the requirement.

Carnival

Carnival reaches $1.25M settlement over 2019 data breach

2022-06-23T19:33:00+01:00By

Carnival Cruise Line reached a $1.25 million settlement with 46 attorneys general stemming from its 2019 data breach that involved the personal information of 180,000 Carnival employees and customers nationwide.

GDPRgavel

GDPR blame game: Who’s at fault for spotty enforcement record?

2022-06-23T19:20:00+01:00By

Regulators and privacy experts speaking at the European Data Protection Supervisor’s conference homed in on the flaws of the General Data Protection Regulation and what improvements need to be made to ensure more consistent enforcement of the law.

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.

JLT UK

FCA fines JLT Specialty $9.7M for financial crime control lapses

2022-06-22T20:41:00+01:00By

The U.K. Financial Conduct Authority fined a unit of insurance broker Jardine Lloyd Thompson Group 7.9 million pounds (U.S. $9.7 million) for failing to control financial crime within its South and Central American subsidiaries.

Brinks

Brinks fined $400K over restrictive whistleblower language in contracts

2022-06-22T19:48:00+01:00By

The Brink’s Company, a provider of security-related services, has agreed to pay $400,000 and add wording in U.S. confidentiality agreements to comply with an SEC rule regarding corporate whistleblowers.

Rite Aid building

Former Rite Aid compliance exec fined $305K over insider trading case

2022-06-22T17:04:00+01:00By

A former Rite Aid compliance executive agreed to pay a civil penalty of $305,129 to resolve SEC insider trading charges regarding sale of company stock.

Liability

Law Commission proposals put heat on U.K. execs

2022-06-22T11:31:00+01:00By

The United Kingdom might make it easier for executives and senior managers to be held directly accountable for corporate crimes under reform proposals put forward by the body that reviews U.K. law.

Russia sanctions

DAG Monaco: Sanctions should be ‘at the forefront’ of compliance approach

2022-06-17T17:45:00+01:00By

Businesses with a multinational footprint or international suppliers should be prioritizing abiding by U.S. sanctions in their compliance efforts, Deputy Attorney General Lisa Monaco said at an industry event.

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.

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.

Google building

Google fine in Spain prompts revisit of GDPR effect on tech

2022-06-15T12:25:00+01:00By

Google’s latest fine for violations of the General Data Protection Regulation reignites the discussion around why Big Tech firms have not been more frequently penalized under the EU’s stringent privacy law.

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.

Ericsson

SEC probing Ericsson over Iraq corruption scandal

2022-06-10T17:16:00+01:00By

The Securities and Exchange Commission opened an investigation into Ericsson following the Swedish telecommunications company’s acknowledgement of evidence of “corruption-related misconduct” that occurred in its Iraq operations.

SECBooks

CohnReznick fined $1.9M for audit failures at Sequential Brands, Longfin

2022-06-09T13:57:00+01:00By

Audit firm CohnReznick agreed to pay $1.9 million as part of a settlement with the Securities and Exchange Commission for improper conduct at two of its clients the SEC previously charged with filing fraudulent financial statements.

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.

DOJ building

​DOJ recruits Hewlett Packard Enterprise CECO to lead Fraud Section

2022-06-08T13:52:00+01:00By

The Justice Department’s Criminal Division added another chief compliance officer to its ranks with the appointment of Glenn Leon to serve as chief of the Fraud Section.

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.

PwC building

PwC fined $6.2M over Galliford Try, Kier Group audit lapses

2022-06-07T15:16:00+01:00By

PwC will pay a total of nearly £5 million (U.S. $6.2 million) as part of a pair of enforcement actions announced by the U.K. Financial Reporting Council regarding deficiencies in the Big Four firm’s audits at construction companies Galliford Try and Kier Group.

Stellantis

Fiat Chrysler pleads guilty in $300M emissions fraud case

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

The U.S. arm of Fiat Chrysler Automobiles pleaded guilty to conspiracy to defraud the United States, wire fraud, and violating the Clean Air Act for “making false and misleading representations” regarding emissions control systems on more than 100,000 vehicles.

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.

Tenaris

Tenaris to pay $78M to settle FCPA charges over bribes in Brazil

2022-06-03T13:28:00+01:00By

Tenaris, a global manufacturer of steel pipe products, agreed to pay more than $78 million to the SEC to settle charges it violated the Foreign Corrupt Practices Act by paying more than $10 million in bribes to a Brazilian government official.

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.

London dark

Law firm Dechert, SFO criticized in ENRC case ruling

2022-06-01T15:31:00+01:00By

A High Court judge found the U.K. Serious Fraud Office induced a lawyer from Dechert acting for Eurasian Natural Resources Corp. to provide it with privileged and unauthorized information.

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.

Lafarge

Court rules Lafarge to face crimes against humanity charges

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

A French court ruled Lafarge should face charges of complicity in crimes against humanity after its subsidiary allegedly paid up to €13 million (U.S. $14 million) to armed groups—including the Islamic State—to keep its Syrian cement factory running between 2012-14.

Twitter HQ

Twitter agrees to $150M settlement with DOJ, FTC over data privacy lapses

2022-05-26T18:39:00+01:00By

Twitter agreed to a $150 million settlement with the Department of Justice and Federal Trade Commission for violating a 2011 administrative order by “misrepresenting” how it used nonpublic user information.

/web/img/field/image/sec_0.jpg

Compliance halts misconduct in SEC $5M RiverSource action

2022-05-26T13:36:00+01:00By

Minnesota-based broker-dealer RiverSource Distributors agreed to pay $5 million as part of a settlement with the Securities and Exchange Commission for improper switching of variable annuities carried out by certain of its employees.

Vodafone

GDPR enforcement roundup: Spain stays on Vodafone, record fine in Poland

2022-05-25T18:28:00+01:00By

Vodafone running up its fine total in Spain and a record-setting action against a marketing firm in Poland highlight a roundup of notable enforcements announced under the General Data Protection Regulation during the first five months of 2022.

GDPR gears

Four years of GDPR: New tech testing data privacy law’s longevity?

2022-05-25T15:52:00+01:00By

It has been four years since the European Union’s flagship data privacy legislation came into force, but concerns are already being raised about whether the General Data Protection Regulation is being outpaced by technological developments and their use of data.

Accountingbestpractices

PCAOB bars former BF Borgers director over repeated audit failures

2022-05-25T13:58:00+01:00By

The Public Company Accounting Oversight Board barred Bo-Shiang Lien, a former audit director and nonequity partner at BF Borgers, for at least two years for violations of PCAOB rules and standards as part of four audits across three public companies.

Glencore HQ

Glencore fined $1B, placed under 3-year monitorship for FCPA violations

2022-05-24T21:47:00+01:00By

Glencore International AG, one of the world’s largest commodity traders, will be placed under a three-year compliance monitorship and pay more than $1 billion to resolve multiple investigations into alleged bribes paid in several countries over more than a decade.

KPMG UK

KPMG fined $4.3M for undocumented red flags in Rolls-Royce corruption case

2022-05-24T19:06:00+01:00By

The U.K. Financial Reporting Council announced a reduced penalty of approximately £3.4 million (U.S. $4.3 million) against KPMG for failures in its 2010 audit of car maker Rolls-Royce.

SEChq

SEC names Best permanent exams division director

2022-05-24T17:46:00+01:00By

The Securities and Exchange Commission named Richard Best permanent director of the agency’s Division of Examinations, removing “acting” from the job title he has held since March.

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.

Clearview AI

ICO fines Clearview AI $9.4M over alleged data privacy lapses

2022-05-23T17:39:00+01:00By

The U.K. Information Commissioner’s Office fined Clearview AI more than £7.5 million (U.S. $9.4 million) for collecting people’s images from internet and social media sites without their knowledge or consent.

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.

Brasseur_opinion

Ten highlights from Compliance Week 2022

2022-05-23T11:30:00+01:00By

Editor In Chief Kyle Brasseur recaps the moments that stood out to him most from Compliance Week’s first in-person event since 2019.

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.

Google

Spanish DPA fines Google $10.6M for GDPR violations

2022-05-19T20:07:00+01:00By

Spain’s data protection authority has issued a record fine of €10 million (U.S. $10.6 million) against Google for two “serious infractions” of the EU’s General Data Protection Regulation regarding its sharing information with U.S. legal database Lumen.