Regulatory Enforcement


StandardCharteredFeature

Standard Chartered fined $24.9M for Ukraine sanctions breaches

2020-03-31T17:19:00+01:00By

The U.K. Office of Financial Sanctions Implementation hit Standard Chartered Bank for a record fine relating to loans the bank made to Russian financial institutions in violation of the EU’s sanction regime.

WiltedFlower

EPA scaling back enforcement amid coronavirus

2020-03-27T16:52:00+00:00By

The Environmental Protection Agency said it doesn’t expect to seek penalties for noncompliance with routine monitoring and reporting obligations during a temporary policy issued amid the coronavirus pandemic.

VenezuelaCocaineTrafficking

DOJ indicts Venezuela President Maduro, others in regime

2020-03-26T18:28:00+00:00By

The DOJ unsealed indictments against Venezuelan President Nicolás Maduro and several high-ranking former and current members of his regime for alleged drug trafficking and money laundering crimes, as well as violations of the FCPA.

DOJ

DOJ begins enforcement crackdown on coronavirus fraud

2020-03-24T14:42:00+00:00By

The Department of Justice has acted swiftly on its vow to crack down on fraud during the coronavirus pandemic, issuing its first related enforcement action against a Website acting as an alleged wire-fraud scheme.

Bribe

TRACE: Bribery enforcement down in 2019

2020-03-20T17:32:00+00:00By

Risks in the extractives and aerospace industries are still prevalent, but the number of overall global and U.S. enforcement cases involving bribery dropped in 2019, according to the latest report from TRACE International.

Swedbankcrop

Swedish regulator fines Swedbank record $390M for AML deficiencies

2020-03-20T15:07:00+00:00By

Swedbank AB has been issued a record 4 billion Swedish Krona (U.S. $390 million) administrative fine for what Sweden’s financial watchdog called “serious deficiencies in its management of the risk of money laundering in its Baltic operations.”

hitachi 300x200

Webcast: Can KYC compliance and customer experience coexist?

2020-03-19T14:10:00+00:00Provided by

Remaining competitive in the modern financial world requires staying ahead of increasingly sophisticated financial crimes and fluid regulations across multiple jurisdictions.

Google building

Swedish watchdog fines Google $7.6M for GDPR non-compliance

2020-03-12T19:02:00+00:00By

Google has received its second fine to date for violating Europe’s General Data Protection Regulation; Sweden’s Data Protection Authority fined the internet giant 75 million Swedish Kroner (U.S. $7.6 million).

proofpoint300x200

Webcast: Regulatory update for financial services

2020-03-12T15:47:00+00:00Provided by

FINRA’s Exam Priorities, Regulation BI, and the SEC’s Cybersecurity Guidance

Jonny Frank

10 tips to meet government expectations of remediation programs

2020-03-11T20:39:00+00:00By Jonny Frank, Compliance Week Guest Columnist

A DOJ-appointed independent compliance monitor has some important advice for companies in trouble that may mean not just remediation credit, but more importantly reputation restoration and the avoidance of larger problems down the line.

Fifth Third

CFPB lawsuit against Fifth Third mirrors Wells Fargo allegations

2020-03-10T19:24:00+00:00By

Fifth Third Bank, National Association could potentially be in as much legal and regulatory trouble as Wells Fargo if allegations of unauthorized account opening brought by the CFPB hold true.

Bank fail

Former U.S. Bank risk officer pays $450K for AML compliance failures

2020-03-04T19:44:00+00:00By

The former chief operational risk officer at U.S. Bank has agreed to pay a $450,000 penalty for his role in the bank failing to implement and maintain an effective anti-money laundering compliance program.

Alstom

Alstom exec's acquittal calls FCPA jurisdiction into question

2020-03-04T18:56:00+00:00By

A federal court in Connecticut acquitted a former Alstom employee on FCPA charges following a Second Circuit decision. But the story does not end there.

Cathay Pacific

U.K.’s ICO fines Cathay Pacific for pre-GDPR breach

2020-03-04T18:37:00+00:00By

The U.K. Information Commissioner’s Office has fined airline Cathay Pacific £500,000 (U.S. $643,000) for failing to protect the personal data of millions of customers.

Pharmaceuticals

DOJ intervenes in whistleblower suit against Mallinckrodt

2020-03-04T17:56:00+00:00By

The Department of Justice has intervened in a whistleblower lawsuit against Mallinckrodt over allegations the drug maker knowingly underpaid Medicaid rebates it owed due to significant price increases to its drug Acthar.

Accounting fraud

Newell Brands facing SEC subpoena over sales, accounting practices

2020-03-03T19:13:00+00:00By

Newell Brands disclosed in a regulatory filing it is facing a Securities and Exchange Commission subpoena over its sales and accounting practices, particularly related to the impairment of goodwill and other intangible assets.

Supreme Court

CFPB’s leadership structure, SEC’s authority on SCOTUS docket this week

2020-03-02T19:58:00+00:00By

The Supreme Court will hear arguments this week in cases that question whether the current structure of the CFPB is constitutional, and whether to curb the SEC’s power to return funds to fleeced investors.

Panama Papers

Accountant pleads guilty in DOJ Panama Papers probe

2020-03-02T19:11:00+00:00By

A U.S-based accountant who was charged alongside three others for their alleged roles in a decades-long criminal scheme perpetrated by Panama-headquartered law firm Mossack Fonseca and related entities has pleaded guilty.

Cardinal Health

Compliance lessons from Cardinal Health’s FCPA settlement

2020-03-02T18:54:00+00:00By

Cardinal Health reached an $8.8 million settlement with the SEC for violations of the FCPA concerning the operations of its former Chinese subsidiary. For prudent compliance officers, it’s a tale of how not to do business in China.

Mobile location

FCC proposes fines against T-Mobile, AT&T, Verizon, Sprint

2020-02-28T20:54:00+00:00By

The FCC proposed fines against the four largest wireless carriers in the United States for allegedly selling access to their customers’ location information without taking reasonable measures to protect against unauthorized access.

Good news Bad news

Six compliance lessons from Wells Fargo’s really bad week

2020-02-28T17:29:00+00:00By

Two more settlements reached by Wells Fargo with regulators in the span of a week impart yet more “what not to do” ethics and compliance lessons.

Wells Fargo

SEC rips Wells Fargo’s ETF compliance efforts in $35M settlement

2020-02-27T22:34:00+00:00By

Already reeling from last week’s $3 billion penalty related to its fake accounts scandal, Wells Fargo took another hit Thursday in the form of a $35 million SEC settlement related to poor supervision of investment recommendation practices.

SEC

SEC settles with RSM over improper conduct

2020-02-27T19:39:00+00:00By

The Securities and Exchange Commission has settled charges with RSM for “improper professional conduct” after the firm assigned unqualified staff to audit a series of private investment funds.

Seagal

Under Siege: Actor Steven Seagal dinged by SEC for touting ICO

2020-02-27T17:04:00+00:00By

Steven Seagal agreed to a settlement with the Securities and Exchange Commission for failing to disclose payments he received for promoting an initial coin offering in 2018 conducted by Bitcoiin2Gen.

Sanctions

SITA settles nearly 10K alleged OFAC sanctions violations for $7.8M

2020-02-26T21:31:00+00:00By

Société Internationale de Télécommunications has agreed to pay approximately $7.8 million to settle 9,256 apparent sanctions violations with the Treasury Department’s Office of Foreign Assets Control.

Mattel

SEC subpoenas Mattel in accounting probe

2020-02-26T20:35:00+00:00By

Mattel announced it has received a subpoena from the Securities and Exchange Commission seeking documents related to a previously disclosed investigation that had uncovered accounting errors.

regulatory events 2019

Regulatory events coming this spring

2020-02-25T20:31:00+00:00By DeAnn Orie

Check out information on upcoming events from such regulators as the SEC, FINRA, CFPB, and more.

aca 300x200

Webcast: CCPA state of the compliance industry and requirements

2020-02-25T14:28:00+00:00Provided by

The rules are still not entirely clear on CCPA. However, it’s currently law in California and enforcement begins on July 1, 2020.

WellsFargoCrosshairs

​What’s next for Wells Fargo? Bank, execs still in crosshairs

2020-02-24T20:16:00+00:00By

Wells Fargo will pay $3 billion to resolve civil and criminal penalties with the DOJ and SEC related to its long-running fake accounts scandal, but the embattled bank—and its former executives—are far from out of the woods.

Wells Fargo

Wells Fargo to pay $3B to resolve fake account scandal

2020-02-21T21:55:00+00:00By

The Department of Justice and Securities and Exchange Commission on Friday assessed total civil and criminal penalties of $3 billion against Wells Fargo & Co. and its subsidiary, Wells Fargo Bank, in the aftermath of its fake account scandal.

Money laundering

Compliance lessons from Julius Baer’s ‘serious AML failings’

2020-02-21T15:52:00+00:00By

Compliance officers can learn a lot from the anti-money laundering compliance shortcomings at Julius Baer Group, as well as from what the bank is now doing to enhance its risk management and AML compliance controls.

Alcohol

Diageo to pay $5M for disclosure failures

2020-02-21T15:30:00+00:00By

Alcohol producer Diageo has agreed to pay $5 million to resolve charges brought against it by the SEC for disclosure failures, due to weaknesses in its internal disclosure processes.

Alstom

Former Alstom, Marubeni execs face FCPA charges in bribery scheme

2020-02-19T19:25:00+00:00By

The Department of Justice unsealed an indictment against three more individuals for their role in a multi-year, multi-million-dollar foreign bribery scheme and related money-laundering scheme in Indonesia.

Oilfield

Treasury sanctions Rosneft subsidiary for Venezuelan ties

2020-02-19T19:07:00+00:00By

The Department of the Treasury’s Office of Foreign Assets Control has sanctioned a subsidiary of Russian state-run oil company Rosneft for operating in the oil sector of the Venezuelan economy.

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CCOs face SEC charges over conflicts of interest

2020-02-19T17:43:00+00:00By

Two chief compliance officers—one former, one current—are facing charges from the SEC as part of a lawsuit filed against a California-based investment advisory firm over failure to disclose financial conflicts of interest.

DOJ

Antitrust Division remarks on changes to model corporate plea agreement

2020-02-18T15:03:00+00:00By

The DOJ’s Antitrust Division last year quietly updated language contained in its “Model Annotated Corporate Plea Agreement,” as it applies to cooperation. Recent remarks provide more color around those changes.

tesla

Tesla: One SEC investigation ends; another begins

2020-02-14T18:18:00+00:00By

Electric car maker Tesla announced in a regulatory filing that the Securities and Exchange Commission has closed a previously announced investigation while also launching another, this time into Tesla’s financing arrangements.

Facebook Dating

Ireland raid over privacy concerns jilts Facebook Dating

2020-02-13T21:38:00+00:00By

Facebook wants to play Cupid in Europe, but the Irish Data Protection Commission got its arrow in the tech giant first.

Huawei

DOJ indictment alleges Huawei fraud, trade secrets theft

2020-02-13T21:12:00+00:00By

The Department of Justice unveiled a fresh round of allegations against Chinese tech giant Huawei, including racketeering, theft of trade secrets, and bank fraud.

google_0

Google begins argument to try to overturn $9B in EU fines

2020-02-12T21:51:00+00:00By

Attorneys for Google, seeking to overturn $9 billion in EU antitrust fines, argued in a European court Wednesday that the tech giant should not be forced to prop up its competitors in the course of promoting facets of its own business.

Airbus

Airbus contractors feeling ripple effect from record fine

2020-02-12T20:34:00+00:00By

Airbus is free to go about its business after paying a record fine to three anti-corruption agencies for widespread bribery, but the trouble is only beginning for some of its implicated contractors.

SEC names Chicago associate regional director

2020-02-12T17:56:00+00:00By Scuttlebutt

The Securities and Exchange Commission announced Paul Montoya has been named associate regional director for enforcement in the Chicago Regional Office.

FTC statue

FTC turns up antitrust heat on Big Tech

2020-02-11T20:02:00+00:00By

The FTC will require the top five U.S. technology firms—Alphabet Inc. (Google), Amazon, Apple, Facebook, and Microsoft—to provide information on acquisitions not previously reported to the agency dating back 10 years.

Trump

PCAOB, CFPB big losers in Trump’s proposed budget

2020-02-11T18:50:00+00:00By

President Trump’s proposed budget for fiscal year 2021 effectively calls for an end to the PCAOB beginning in 2022, while the CFPB would be subject to major funding cuts as soon as next year.

Cash

CFPB hands out $1 penalties in proposed settlement

2020-02-06T20:39:00+00:00By

The Consumer Financial Protection Bureau seeks to impose seven civil money penalties at $1 each as part of a proposed settlement with former payday lender Think Finance.

Google ads

Report: DOJ zeroes in on Google’s ad brokerage business

2020-02-05T21:45:00+00:00By

The DOJ’s scrutiny of Google’s online ad business reflects growing concerns over the tech giant’s potentially anticompetitive behavior, prompts the reclusion of an antitrust enforcement official from the probe, and points to closer coordination between federal and state authorities.

Health records

Practice Fusion to overhaul compliance after $145M kickback resolution

2020-02-05T16:37:00+00:00By

Practice Fusion will pay a total of $145 million to resolve criminal and civil investigations for its leading role in an opioid kickback scheme. Particularly notable are the new compliance obligations imposed upon it, which are as weighty and significant as the fine itself.

columnist icons - kyle

Trump’s efforts to weaken FCPA bad news for compliance

2020-02-04T16:10:00+00:00By

If President Trump gets his way and the FCPA loses its bite, compliance officers would lose a valuable instrument in their fight to keep businesses on the right side of an ever-blurring line between right and wrong.

Germany privacy

Germany’s dual approach to data regulation under the GDPR

2020-02-03T18:22:00+00:00By

Germany is staying ahead of the game with an advanced crackdown on data privacy and competition law violations.

Boeing

Boeing discloses SEC probe; toxic culture raises flags

2020-02-03T17:11:00+00:00By

Embattled aerospace giant Boeing is being investigated by the Securities and Exchange Commission, in addition to already facing scrutiny from the Department of Justice, following two plane crashes that happened less than five months apart.