Regulatory Enforcement


SEC headquarters

News Brief

Delphia, Global Predictions fined by SEC in ‘AI washing’ cases

2024-03-18T19:48:00+00:00By

Delphia USA and Global Predictions agreed to pay a total of $400,000 to settle charges by the Securities and Exchange Commission the firms each engaged in artificial intelligence misrepresentations that misled clients about how they were using the technology.

EFG International

News Brief

EFG International settles Cuba, blocked persons U.S. sanctions case

2024-03-14T21:46:00+00:00By

Swiss-based global private banking group EFG International agreed to pay more than $3.7 million as part of a settlement with the Office of Foreign Assets Control addressing apparent violations of U.S. sanctions against Cuba and two blocked individuals.

Health data

News Brief

Change Healthcare facing HHS probe following crippling cyberattack

2024-03-14T19:45:00+00:00By

Change Healthcare, a health payment processor hit by a crippling cyberattack in February, is under investigation by the Department of Health and Human Services’ Office for Civil Rights.

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News Brief

JPMorgan fined $348M by OCC, Fed over trade surveillance lapses

2024-03-14T19:01:00+00:00By

JPMorgan Chase will pay $348.2 million in fines to settle allegations laid by two federal banking regulators that it failed to adequately monitor trading and order activity.

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.

Magnifying glass

News Brief

SFO launches probe into collapsed Carlauren Group

2024-03-13T15:47:00+00:00By

The U.K. Serious Fraud Office announced two raids and three arrests coinciding with the launch of an investigation into collapsed property developer Carlauren Group.

DOJ building

News Brief

Argus to pay $37M in DOJ case over misused regulator data

2024-03-12T20:59:00+00:00By

Economic data and research firm Argus Information and Advisory Services agreed to pay $37 million to settle charges from the Department of Justice alleging misuse of data obtained through federal regulatory contracts.

ford_web

News Brief

Ford to pay $365M in DOJ deal for evading customs tariffs

2024-03-12T19:33:00+00:00By

Ford Motor Co. agreed to pay $365 million to settle charges levied by the Department of Justice that the automaker purposefully dodged import duties for years by mislabeling and undervaluing hundreds of thousands of cargo vans it brought into the United States from Turkey.

Financial Conduct Authority

News Brief

FCA fines financial adviser $1.1M over British Steel advice, oversight lapses

2024-03-12T19:10:00+00:00By

The U.K. Financial Conduct Authority fined Inspirational Financial Management nearly £900,000 (U.S. $1.1 million) regarding alleged failures in advice and oversight provided to customers who were primarily members of the British Steel Pension Scheme.

Department of Labor

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DOL seeking more authority in crackdown on child labor violations

2024-03-12T16:56:00+00:00By

The Department of Labor has stepped up its enforcement of child labor law amid a concerning rise in child labor exploitation, yet the agency acknowledges its resources are not great enough to be a significant deterrent for such misconduct.

Child labor

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Child labor violations are on the rise in U.S. Are they in your supply chain?

2024-03-11T16:31:00+00:00By

The compliance community has not been spending time addressing a problem mistakenly thought to be a rarity: The proliferation of child labor violations occurring in the United States.

UniCredit

News Brief

​Italian DPA fines UniCredit $3M over data breach GDPR lapses

2024-03-11T15:54:00+00:00By

The Italian data protection authority announced a fine of €2.8 million (U.S. $3 million) against UniCredit for alleged violations of the General Data Protection Regulation regarding insufficient security measures the bank had in place during a cyberattack.

DOJ

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DOJ eyeing more FCPA cases with whistleblower program

2024-03-08T18:33:00+00:00By

The Department of Justice anticipates its upcoming whistleblower reward program will help the agency increase its pipeline of cases involving apparent violations of the Foreign Corrupt Practices Act, said Acting Assistant Attorney General Nicole Argentieri.

skechers_web

News Brief

Skechers fined $1.25M over related person disclosure failures

2024-03-08T17:23:00+00:00By

Footwear company Skechers agreed to pay $1.25 million to settle charges by the Securities and Exchange Commission of failing to disclose payments to executives’ family members.

Koenig_web

Article

CW National 2024 Q&A: JBS CECO on compliance post-settlement

2024-03-08T15:17:00+00:00By

Michael Koenig, global chief ethics and compliance officer at JBS Foods, previews his session on rebuilding the compliance department following settlements with the Department of Justice and Securities and Exchange Commission at CW’s National Conference in Washington, D.C.

Data sharing

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FTC ‘will not stand for’ misuse of browsing, location data

2024-03-07T22:33:00+00:00By

The Federal Trade Commission is amid a crackdown on businesses misusing browsing and location data that provide enough information to be used to identify nonconsenting consumers.

Whistle

News Brief

DOJ on sprint toward pilot whistleblower reward program

2024-03-07T21:07:00+00:00By

Deputy Attorney General Lisa Monaco said the Department of Justice will look to fill gaps in its whistleblower procedures with the launch of a 90-day sprint toward a DOJ-led pilot whistleblower reward program.

DOJ

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Monaco: ECCP update coming for management of AI risks

2024-03-07T19:11:00+00:00By

The Department of Justice is working on an update to its Evaluation of Corporate Compliance Programs guidance to spell out the responsibilities of compliance staff for managing artificial intelligence-related risks.

Ameriprise Financial

News Brief

​Ameriprise expecting $50M SEC fine over off-channel comms

2024-03-06T18:51:00+00:00By

Ameriprise Financial disclosed it recorded a $50 million accrual related to the resolution of a Securities and Exchange Commission probe into use of off-channel communications by its employees for conducting business.

UK compensation

Premium

Top brands shamed for U.K. minimum wage failings ahead of hike

2024-03-06T18:09:00+00:00By

The U.K.’s Department for Business and Trade named 524 businesses found to have failed to pay the national minimum wage, ahead of wage hikes for certain workers that will take effect April 1.

U.K. money laundering

News Brief

​FCA warns CEOs over firm AML failings

2024-03-05T20:55:00+00:00By

The U.K. Financial Conduct Authority warned the chief executive officers of approximately 1,000 financial institutions it supervises regarding common failures in anti-money laundering procedures it observed during recent assessments.

KPMG

News Brief

KPMG fined $1.9M by FRC over M&C Saatchi audit lapses

2024-03-05T20:05:00+00:00By

KPMG agreed to pay a reduced penalty of nearly £1.5 million (U.S. $1.9 million) assessed by the U.K. Financial Reporting Council addressing admitted failings in the Big Four audit firm’s financial year 2018 work at advertising services company M&C Saatchi.

Boeing 737

News Brief

Boeing fined $51M over export control violations

2024-03-04T18:21:00+00:00By

Aerospace giant Boeing will pay a $51 million civil penalty to the State Department to resolve alleged export control violations related to unauthorized transfers and retransfers of technical data to foreign-person employees and contractors.

SEC office

News Brief

HG Vora fined $950K for beneficial ownership disclosure failures

2024-03-04T17:27:00+00:00By

New York-based investment adviser HG Vora Capital Management agreed to pay $950,000 to settle charges levied by the Securities and Exchange Commission alleging failure to report beneficial ownership regarding its stake at trucking transport company Ryder System.

lordstown_web

News Brief

SEC charges Lordstown Motors with misleading EV investors

2024-03-04T17:01:00+00:00By

Bankrupt electric vehicle maker Lordstown Motors Corp. agreed to pay disgorgement of $25.5 million to settle charges from the Securities and Exchange Commission over alleged materially false and misleading statements regarding its flagship truck.

Andrew McBride

Podcast

CW National 2024 preview: Former Albemarle CCO on FCPA case lessons

2024-03-04T16:17:00+00:00By

Andrew McBride, former chief risk and compliance officer at chemical company Albemarle Corp., joins the Compliance Week podcast with Aaron Nicodemus to preview his session at CW’s National Conference in Washington, D.C.

Oil barrels

News Brief

Gunvor to pay $661M to settle FCPA violations in Ecuador

2024-03-04T16:12:00+00:00By

Swiss-based oil trader Gunvor will pay more than $661 million as part of a plea agreement with the Department of Justice to resolve violations of the Foreign Corrupt Practices Act involving a long-running scheme to bribe officials in Ecuador to secure oil contracts.

Swedbank

News Brief

Swedbank says Estonia money laundering probe closed

2024-03-04T11:28:00+00:00By

The Estonian branch of Swedbank is no longer under investigation regarding suspected money laundering and other criminal activities.

AI globe

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‘AI washing’: What is it and why regulators are on watch

2024-03-01T12:00:00+00:00By

Federal agencies, including the Securities and Exchange Commission, Department of Justice, and Federal Trade Commission, are taking every opportunity to warn firms that how they use—and represent their use of—artificial intelligence could result in violations.

gemini_web

News Brief

NYDFS fines Gemini $37M over compliance failures

2024-02-29T19:18:00+00:00By

The New York State Department of Financial Services fined cryptocurrency exchange Gemini Trust Company $37 million over alleged compliance failures related to lapses in safety and soundness.

Treasury

News Brief

​Treasury touts AI-enabled fraud recoveries totaling $375M

2024-02-29T16:46:00+00:00By

The Treasury Department announced its success using artificial intelligence to track down instances of check fraud—a potential preview of the results that might come if the agency applies AI in other enforcement-related circumstances.

United Kingdom

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FCA vows transparency, faster case outcomes in new enforcement strategy

2024-02-28T18:26:00+00:00By

The U.K. Financial Conduct Authority will rein in its enforcement focus and commit to providing more updates on its ongoing investigations as part of a revamped strategy designed to quicken the pace and increase the deterrent impact of its cases.

ESG

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Grewal: Investors care about ESG claims—so do SEC enforcers

2024-02-27T20:34:00+00:00By

Environmental, social, and governance issues are increasingly material to investors, and the Securities and Exchange Commission is checking to ensure businesses’ ESG statements are above board, according to the agency’s enforcement director.

Dark money

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FinCEN head touts compliance through enforcement approach

2024-02-27T19:01:00+00:00By

Andrea Gacki, head of the Financial Crimes Enforcement Network, said recent enforcement actions by the agency have addressed significant gaps in the U.S. anti-money laundering/countering the financing of terrorism regime and exposed specific risk factors, trends, and typologies.

CFPB logo

News Brief

CFPB exercises power to supervise installment lender World Acceptance

2024-02-26T21:01:00+00:00By

Installment lender World Acceptance Corp. was the subject of the Consumer Financial Protection Bureau’s first use of a dormant legal provision allowing it to establish supervisory authority over more nonbank financial companies.

mar28

Webcast

March 28 | Rapid expansion of global forced labor regulations

2024-02-26T17:21:00+00:00Provided by

Join us as we dive into the best practices for performing due diligence across your entire supply chain—from the sourcing of raw materials to the delivery of finished goods—to become (and stay) compliant with this ever-evolving landscape.

DOJ wall

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DOJ official: Expect more cybersecurity false claim enforcements

2024-02-23T14:05:00+00:00By

The announcement of a record year in several areas of False Claims Act enforcement at the Department of Justice was accompanied by a warning that more significant cases are coming, particularly regarding cybersecurity-related claims.

Employee relations

Premium

Experts: No easy fix for U.K. senior manager accountability shortcomings

2024-02-23T12:22:00+00:00By

Legal experts generally agree the U.K.’s record for prosecuting board-level executives for financial and economic crime could be better. But some believe there is a problem criticizing poor enforcement when the legislation in place has its own shortcomings.

Lloyds

News Brief

Lloyds discloses FCA probe into AML controls

2024-02-23T12:14:00+00:00By

Lloyds is the latest U.K. financial institution being probed by the Financial Conduct Authority regarding its anti-money laundering control framework.

Avast

News Brief

Avast to pay $16.5M in FTC case over deceptive data selling

2024-02-22T22:14:00+00:00By

The Federal Trade Commission proposed Avast pay $16.5 million and be prohibited from selling any browser data to settle charges the software provider sold consumer information to third parties after promising it would not.

Brasseur_opinion

Opinion

Ten things I’m excited for at CW National 2024

2024-02-22T13:00:00+00:00By

A new month and a new venue but a lot of the same you love about Compliance Week’s National Conference. CW Editor in Chief Kyle Brasseur shares what he’s looking forward to most at the 2024 edition of the annual event.

DoorDash

News Brief

DoorDash fined $375K in second public CCPA enforcement

2024-02-22T12:54:00+00:00By

Food delivery company DoorDash agreed to pay a $375,000 fine as part of a settlement announced by California Attorney General Rob Bonta addressing alleged violations of the California Consumer Privacy Act.

Barclays

News Brief

Barclays says FCA probe into AML controls closed

2024-02-21T18:49:00+00:00By

Barclays Bank disclosed an investigation by the U.K. Financial Conduct Authority into the bank’s anti-money laundering controls has closed without a penalty.

Wells Fargo

News Brief

Wells Fargo says DOJ, SEC diversity hiring probes closed

2024-02-21T17:52:00+00:00By

Wells Fargo disclosed investigations by the Department of Justice and Securities and Exchange Commission into the bank’s diversity hiring practices concluded without enforcement action.

Silicon Valley Bank

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Fed upping supervisory pressure as SVB collapse nears 1-year mark

2024-02-21T15:59:00+00:00By

Since the failure of Silicon Valley Bank nearly one year ago, the Federal Reserve Board has revamped its supervisory procedures to respond more quickly and forcefully once it identifies emerging risks at mid-sized and large banks, according to the agency’s vice chair for supervision.

London business district

News Brief

SFO raids kick off probe into collapsed Signature Group

2024-02-21T14:55:00+00:00By

The U.K. Serious Fraud Office carried out several residential raids as it announced the launch of a criminal investigation into collapsed property investment firm Signature Group.

JPMorgan Chase

News Brief

JPMorgan bracing for $350M in penalties over trade surveillance

2024-02-20T20:29:00+00:00By

JPMorgan Chase disclosed in a regulatory filing it expects to be penalized approximately $350 million by two unnamed U.S. regulators over lapses in its trading surveillance activities.

DOJ building

Premium

The path to DOJ cooperation credit: Analyzing recent FCPA cases

2024-02-20T14:55:00+00:00By

Recent enforcement actions offer guidance on what the Department of Justice considers to be an “imminent threat” of disclosure or government action, what it means by “prompt” disclosure, and how a company can earn credit for revealing all relevant facts.

caseiq 300x200

Event

Virtual Roundtable: What to make of new DOJ corporate enforcement priorities

2024-02-20T13:00:00+00:00Provided by

Compliance Week is hosting a virtual roundtable during which experts will break down recent policy changes at the Department of Justice and what they mean for corporate compliance programs.

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News Brief

TIAA unit to pay $2.2M for Reg BI lapses

2024-02-19T16:00:00+00:00By

A subsidiary of the Teachers Insurance and Annuity Association of America agreed to pay more than $2.2 million as part of a settlement with the Securities and Exchange Commission for not acting in the best interest of its retail customers regarding their retirement accounts.