Regulatory Enforcement


Citi

CFTC fines Citi $1M for swap data reporting failures

2021-09-27T20:18:00+01:00By

Citibank will pay a $1 million penalty to resolve allegations of not properly reporting swap data to the Commodity Futures Trading Commission and for violating the provisions of a 2017 order regarding those practices.

Grant Thornton

Grant Thornton UK fined $3.2M for Patisserie Valerie audit lapses

2021-09-27T19:30:00+01:00By

Grant Thornton UK has been fined £2.34 million (U.S. $3.2 million) by the Financial Reporting Council for failures in its audits of collapsed café chain Patisserie Valerie between 2015 and 2017.

SFO

Petrofac readies bribery guilty plea, touts compliance enhancements

2021-09-27T17:28:00+01:00By

Petrofac will plead guilty to seven counts of failing to prevent bribery, the potential endpoint in a long-running investigation into allegations company executives paid to win lucrative contracts in Iraq, Saudi Arabia, and the UAE.

SEC

Red flags ignored in WPP $19M FCPA settlement

2021-09-24T19:34:00+01:00By

Global advertising giant WPP reached a more than $19 million settlement with the SEC to resolve charges of violating the anti-bribery, books and records, and internal accounting controls provisions of the Foreign Corrupt Practices Act.

SEC

SEC brings first-ever actions enforcing 2016 municipal advisor rule

2021-09-24T16:33:00+01:00By

The Securities and Exchange Commission charged Choice Advisors and two of its principals in its first enforcement actions under a non-solicitor municipal advisors rule that took effect in 2016.

EY

PCAOB penalizes EY partners for Synchronoss audit deficiencies

2021-09-23T18:37:00+01:00By

The PCAOB fined two EY partners for “failing to perform adequate procedures and obtain sufficient evidence” in connection with the Big Four firm’s audit of New Jersey software company Synchronoss Technologies.

Wells Fargo

Fed Chair Powell: Wells Fargo asset cap will remain in place

2021-09-23T16:38:00+01:00By

Federal Reserve Chair Jerome Powell said Wells Fargo’s asset cap will remain in place until the bank has “comprehensively” fixed its governance and compliance deficiencies.

Green reporting

CMA’s Green Claims Code latest effort in greenwashing crackdown

2021-09-23T16:11:00+01:00By

Companies have until the end of the year to stop making misleading claims about the green credentials of their products and services or face regulatory action, the U.K. Competition and Markets Authority has warned.

Treasury Department

Treasury sanctions virtual currency exchange as part of ransomware response

2021-09-21T20:43:00+01:00By

The U.S. Department of the Treasury announced “robust actions” to counter ransomware, including blocking the assets of a Russian virtual currency exchange that has facilitated payments for at least eight ransomware variants.

Activision

Embattled Activision Blizzard confirms SEC subpoenas

2021-09-21T19:52:00+01:00By

Activision Blizzard confirmed the company and several of its current and former employees and executives received subpoenas from the SEC “regarding disclosures on employment matters and related issues.”

MUFG

OCC raps MUFG Union Bank for risk management deficiencies

2021-09-21T16:39:00+01:00By

MUFG Union Bank, which has entered into agreement to be acquired by U.S. Bank, received a cease-and-desist order from the OCC for “unsafe or unsound practices regarding technology and operational risk management.”

WhatsApp phone

WhatsApp GDPR fine fallout: EDPB actions shift enforcement landscape

2021-09-20T15:27:00+01:00By

Experts weigh in on the Irish Data Protection Commission’s €225 million (U.S. $267 million) GDPR fine against WhatsApp, which saw the European Data Protection Board rule to increase the fine total and compliance obligations.

Mylan

Ex-Mylan employee pleads guilty to insider trading

2021-09-17T20:30:00+01:00By

Dayakar Mallu, a former IT manager at Mylan, pleaded guilty to criminal charges for his role in an $8 million insider trading scheme aided by an unnamed executive at the pharmaceutical company.

GameStop sign

MassMutual $4M fine a lesson in trader conduct oversight

2021-09-17T15:24:00+01:00By

A subsidiary of Massachusetts Mutual Life Insurance agreed to pay $4 million after apparently missing nearly two years’ worth of red flags by one of its broker-dealers that turned out to be a driving force behind the GameStop stock trading craze.

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App Annie to pay $10M in landmark SEC action

2021-09-15T17:31:00+01:00By

The Securities and Exchange Commission charged App Annie with securities fraud—the agency’s first enforcement action against an alternative data provider.

KPMG

KPMG Australia fined $450K over training test cheating

2021-09-15T15:09:00+01:00By

The Public Company Accounting Oversight Board announced a $450,000 fine against KPMG’s Australian subsidiary to resolve allegations of widespread cheating on personnel training tests at the firm.

Rostin Behnam

Biden nominates 3 to CFTC, including Rostin Behnam as chair

2021-09-14T12:56:00+01:00By

President Joe Biden announced the nomination of three individuals to serve as commissioners at the Commodity Futures Trading Commission, including the naming of Rostin Behnam as the agency’s full-time chair.

National Labor Relations Board

NLRB to enhance enforcement of unfair labor practices

2021-09-13T20:20:00+01:00By

National Labor Relations Board General Counsel Jennifer Abruzzo issued a memo signaling the agency will broadly be expanding the remedies it seeks against companies that engage in unfair labor practices.

Wells Fargo bank

OCC fines Wells Fargo $250M for continued risk management failings

2021-09-10T16:38:00+01:00By

Wells Fargo Bank has been ordered to pay $250 million related to deficiencies in its home lending loss mitigation program in addition to violations of a 2018 consent order, the Office of the Comptroller of the Currency announced.

Iran flag

NewTek fined $189K over Iran sanctions violations

2021-09-10T14:51:00+01:00By

NewTek, a Texas-based company that develops 3D animation hardware and software, has agreed to pay $189,483 to settle OFAC allegations it knowingly violated U.S. sanctions against Iran.

Ericsson

Ex-Ericsson employee charged with FCPA bribery violations

2021-09-09T15:12:00+01:00By

A former account manager at Swedish telecommunications giant Ericsson faces charges of conspiracy to violate the Foreign Corrupt Practices Act regarding alleged bribes paid to government officials in the Republic of Djibouti.

Cavco Industries

Ex-Cavco Industries CCO charged with accounting control failures

2021-09-07T20:03:00+01:00By

The former CFO and chief compliance officer of Cavco Industries has been charged by the SEC with internal accounting control failures and for misleading the company’s auditor regarding an insider trading matter.

FDA

Compliance takeaways from FDA’s final ‘intended use’ rule

2021-09-07T19:08:00+01:00By

The U.S. Food and Drug Administration’s “intended use” final rule reaffirms the agency’s wide latitude of discretion in establishing an off-label use case against pharmaceutical and medical device companies.

Telecom satellite

SEC fines telecom Pareteum $500K for overstating revenue

2021-09-03T15:16:00+01:00By

New York City-based telecom Pareteum Corp. will pay $500,000 to settle SEC charges it committed fraud by overstating its revenue by approximately $42 million over six quarters and providing false information to auditors.

Kraft Heinz

Kraft Heinz fined $62M in SEC accounting probe

2021-09-03T15:03:00+01:00By

Kraft Heinz agreed to pay $62 million as part of a settlement with the SEC for improper accounting that led to the restatement of several years of financial reporting.

WhatsApp

Ireland shakes up GDPR enforcement with $267M fine against WhatsApp

2021-09-02T19:42:00+01:00By

Ireland’s Data Protection Commission announced a record-breaking €225 million (U.S. $267 million) fine against WhatsApp that is equally significant for the compliance lessons it imparts and inconsistency of the GDPR it exposes.

DOJ building

Hedge fund manager/CCO sentenced 4 years for ‘Ponzi-like’ scheme

2021-09-02T16:55:00+01:00By

Jason Rhodes, the co-founder and chief risk and compliance officer of a Connecticut-based investment fund, was sentenced to 48 months in prison and ordered to pay more than $25 million in restitution for his role in a “Ponzi-like” scheme.

SECcrop

SEC charges CCO for role in TMG fraud scheme

2021-09-01T17:26:00+01:00By

Steven Wolfe, the former chief compliance officer of investment adviser Tellone Management Group, has been charged by the SEC for his role in a fraudulent scheme to hide information from investors.

Cyber-security

​SEC sanctions 8 over email breaches

2021-08-31T16:42:00+01:00By

The Securities and Exchange Commission penalized eight firms across three separate actions for breaches of employee email accounts that exposed the personal information of thousands of customers in each case.

Global sanctions

Romanian bank penalized over Iran and Syria sanctions lapses

2021-08-30T16:53:00+01:00By

The Office of Foreign Assets Control fined Romania-based First Bank and its U.S. parent company JC Flowers & Co. $862,318 as part of a settlement for First Bank’s processing of transactions in apparent violation of Iran and Syria sanctions.

Binance crypto

Weathering the storm: Why FinTech compliance failures persist

2021-08-30T15:54:00+01:00By

Experts weigh in with their thoughts on why FinTechs and cryptocurrency firms continue to have a bad reputation in terms of compliance.

Sudan money

OFAC fines Bank of China $2.3M for Sudan sanctions violations

2021-08-27T15:27:00+01:00By

The Office of Foreign Assets Control announced Bank of China’s U.K. arm agreed to pay $2.3 million to settle its potential civil liability for processing transactions in apparent violation of now-repealed Sudan sanctions regulations.

EY

EY fined $3M in U.K. for Stagecoach audit failings

2021-08-25T18:32:00+01:00By

The U.K. Financial Reporting Council ordered EY to pay a reduced fine of £2.2 million (U.S. $3 million) related to its audits of international transport company Stagecoach Group for the 2017 financial year.

Money laundering

Pandemic not slowing rising AML fine totals, report says

2021-08-25T18:31:00+01:00By

Kroll’s latest annual enforcement review identified $2.2 billion in AML fines in 2020 compared to $444 million in 2019. The first six months of 2021 indicate a similar pace to last year.

SEC office

SEC fines Healthcare Services Group $6M over contingency reporting lapses

2021-08-24T20:55:00+01:00By

Healthcare Services Group agreed to pay $6 million as part of a settlement with the Securities and Exchange Commission for contingency reporting failures that led to accounting and disclosure violations.

ICO

​ICO’s first GDPR fine reduced on appeal

2021-08-24T16:28:00+01:00By

The U.K. Information Commissioner’s Office’s fine against pharmacy Doorstep Dispensaree for violations of the General Data Protection Regulation has been slashed approximately two-thirds on appeal to £92,000 (U.S. $126,000).

Treasury Department

Challenge to SEC’s Bank Secrecy Act authority backed by ex-FinCEN leadership

2021-08-24T15:21:00+01:00By

A brokerage firm petitioning the Supreme Court to review the power of the SEC to enforce the Bank Secrecy Act has received support from two former officials of the primary agency tasked with overseeing the AML law.

SEC

SEC appoints Sanjay Wadhwa as enforcement deputy director

2021-08-18T19:52:00+01:00By

The SEC named veteran attorney Sanjay Wadhwa deputy director of its Enforcement Division. Wadhwa most recently managed 150 personnel as co-head of enforcement at the agency’s New York office.

Pearson

Pearson fined $1M for misleading data breach disclosures

2021-08-17T20:21:00+01:00By

U.K.-based education company Pearson has agreed to pay $1 million as part of a settlement with the Securities and Exchange Commission for misleading investors regarding a 2018 data breach.

FINRA

FINRA notice outlines key areas for supervising third parties

2021-08-17T15:40:00+01:00By

The Financial Industry Regulatory Authority issued a notice on compliance deficiencies arising from firms’ relationships with vendors culled from examination findings.

Cryptocurrency wallet

Experts: Gary Gensler and the SEC are coming after cryptocurrencies

2021-08-16T20:40:00+01:00By

Many in the cryptocurrency space would prefer Gary Gensler and the SEC leave the sector to function without much regulation, but experts predict he’ll take a heavy-handed approach.

DOJSeal

David Last named permanent head of DOJ’s FCPA Unit

2021-08-13T17:16:00+01:00By

The Department of Justice has named David Last to be the permanent chief of its Foreign Corrupt Practices Act Unit, following his being appointed acting head in April.

Euros chained

Resource demand to enforce GDPR weighing heavy on EU authorities

2021-08-13T16:53:00+01:00By

A new report from the European Data Protection Board has found an overwhelming majority of data protection authorities believe they are under-resourced to deal with the demands of the General Data Protection Regulation.

Westpac

Westpac warned over continued AML failings

2021-08-11T17:42:00+01:00By

The Reserve Bank of New Zealand issued a formal warning to Westpac’s New Zealand branch for failing to report certain transactions as required under local anti-money laundering regulations.

BitMEX

Crypto platform BitMEX to pay $100M for registration, AML violations

2021-08-11T15:45:00+01:00By

Cryptocurrency platform BitMEX has agreed to pay $100 million as part of a settlement with the CFTC and FinCEN for multiple violations of the Bank Secrecy Act and other anti-money laundering laws.

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Pactiv Evergreen nearing clearance from SEC in FCPA probe

2021-08-10T16:59:00+01:00By

Pactiv Evergreen said it has received indication from the SEC it will not face enforcement following an internal investigation launched last year into potential violations of the Foreign Corrupt Practices Act.

Domino's Pizza

Ex-Domino’s accountant settles insider trading charges

2021-08-09T16:34:00+01:00By

A former accountant at pizza chain Domino’s has agreed to pay $68,360 to settle charges of insider trading brought by the Securities and Exchange Commission.

KPMG

KPMG fined $18M for ‘integrity and objectivity’ breaches in Silentnight sale

2021-08-05T18:14:00+01:00By

The Financial Reporting Council ordered KPMG to pay a £13 million (U.S. $18 million) fine for “breaches of the principles of integrity and objectivity” in its advisory role regarding the 2011 sale of mattress company Silentnight to U.S. private equity firm HIG Capital.

UBScrop

Hong Kong regulator fines UBS $1.5M for compliance failings

2021-08-04T17:22:00+01:00By

Hong Kong’s securities regulator fined Swiss bank UBS and a subsidiary a total of HK$11.55 million (U.S. $1.5 million) for various compliance failures.

Deliveroo

Italian DPA fines Deliveroo $3M for worker privacy violations

2021-08-04T15:38:00+01:00By

Italy’s data protection authority Garante fined U.K.-based food delivery company Deliveroo €2.5 million (U.S. $3 million) under the GDPR for violating the privacy rights of its Italian drivers.