Risk Management


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.

Employees

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U.K. labor shortage stakes up following tripled illegal worker fines

2024-02-21T15:11:00+00:00By

Fines for employing people who do not have a legal right to work in the United Kingdom have risen, meaning employers who fail to carry out the required checks or neglect to re-examine the status of those on temporary work visas could face substantial penalties.

JPMorgan Chase

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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

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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.

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Event

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

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

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.

James Levey 3x2

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Q&A: ManpowerGroup compliance director on CSRD prep efforts

2024-02-19T14:00:00+00:00By

James Levey, compliance director at global recruitment agency ManpowerGroup, discusses with Compliance Week his focus on preparing the group’s European operations to gather the data required for compliance with the EU’s Corporate Sustainability Reporting Directive.

Teamwork

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LRN survey: Compliance programs shifting focus from bribery, corruption

2024-02-16T22:35:00+00:00By

Many ethics and compliance programs have refocused their efforts away from bribery and corruption and onto data security and privacy, complex government regulations, artificial intelligence security, and other contemporary challenges, a survey from LRN found.

Sterling Bank

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Ex-Sterling Bank GC cited by OCC over BSA-related failures

2024-02-15T21:00:00+00:00By

The Office of the Comptroller of the Currency issued a cease-and-desist order against the former general counsel at Sterling Bank and Trust for not ensuring the institution’s Bank Secrecy Act compliance and failing to timely file suspicious activity reports.

Lisa Monaco

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DAG Monaco: AI to be top DOJ enforcement priority

2024-02-15T17:27:00+00:00By

The Department of Justice will seek stiffer penalties in cases where the threat of misconduct was greater because of misuse of artificial intelligence, according to Deputy Attorney General Lisa Monaco.

Climate

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Verifiable data key as companies begin TNFD-aligned disclosures

2024-02-15T14:47:00+00:00By

More than 320 organizations worldwide committed to disclosing their impact on nature following the recommendations of the Taskforce on Nature-Related Financial Disclosures.

Cloud Computing

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Toeing the ‘fine line’ of cloud security compliance

2024-02-14T22:26:00+00:00By

When organizations move their data or operations to the cloud, the compliance team has their work cut out and then some, experts discussed at CW’s Cyber Risk & Data Privacy Summit.

Human trafficking

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FinCEN: BSA data shows spike in crypto-financed human trafficking

2024-02-14T21:32:00+00:00By

Bank Secrecy Act reporting data disclosed by the Financial Crimes Enforcement Network revealed a significant spike in the use of cryptocurrency to finance human trafficking.

London dark

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New SFO director vows quicker cases, stumps for whistleblower payouts

2024-02-14T21:21:00+00:00By

“Under my leadership, the SFO will be bolder, more pragmatic, more proactive,” said Nick Ephgrave in his first public speech as head of the U.K. Serious Fraud Office.

Zoetis

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Zoetis says no action from OFAC in Iran sanctions matter

2024-02-14T15:53:00+00:00By

Zoetis, a developer and manufacturer of vaccines and medicines for animals, disclosed it was informed by the Office of Foreign Assets Control that it won’t face enforcement for potential violations of Iran sanctions uncovered during an acquisition integration.

Treasury Department

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FinCEN to propose applying BSA requirements to investment advisers

2024-02-13T21:15:00+00:00By

The Financial Crimes Enforcement Network will propose categorizing investment advisers as financial institutions that must comply with the Bank Secrecy Act, including having an anti-money laundering program.

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Webcast

CPE Webcast: Beyond the hype: How to use AI in GRC

2024-02-13T14:00:00+00:00Provided by

Learn more about how and when artificial intelligence tools can be used to increase value in your governance, risk, and compliance program.

Whistle

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Experts: SCOTUS ruling shifts onus to employers in whistleblower cases

2024-02-12T21:35:00+00:00By

The Supreme Court’s unanimous decision to reaffirm whistleblower protections under the Sarbanes-Oxley Act in a case involving UBS has wide ramifications in many other industries beyond financial services, according to legal experts.

Gallagher

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Insurance broker Gallagher off hook in DOJ FCPA probe

2024-02-12T14:45:00+00:00By

Arthur J. Gallagher disclosed the Department of Justice ended an investigation into the insurance broker’s business in Ecuador for potential violations of the Foreign Corrupt Practices Act.

Supreme Court

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SCOTUS reaffirms whistleblower protections in ruling against UBS

2024-02-09T20:27:00+00:00By

The Supreme Court reaffirmed whistleblower protections guaranteed under the Sarbanes-Oxley Act in a unanimous decision expected to set a precedent that impacts all corporate internal reporting cases.

Employee monitoring

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The blurred lines of employee monitoring under GDPR

2024-02-09T20:03:00+00:00By

The French data regulator’s fine against an Amazon warehouse manager for violating employees’ rights to privacy in the workplace once again raises questions about what constitutes an overzealous approach to employee monitoring and why companies fail to recognize the signs.

SEC building

News Brief

Latest SEC off-channel comms sweep nets $81M in fines against 16 firms

2024-02-09T17:05:00+00:00By

The ongoing off-channel communications sweep by the Securities and Exchange Commission netted 16 more broker-dealers and investment advisers, with the latest wave of fines totaling more than $81 million.

Bank of America

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Table: SEC, CFTC off-channel communications penalties

2024-02-09T17:00:00+00:00By Compliance Week

The Securities and Exchange Commission and Commodity Futures Trading Commission have combined to levy about $2.8 billion in penalties (so far) against firms and their affiliates in response to recordkeeping failures regarding employee use of off-channel communications for business purposes.

Treasury Department

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Anti-fraud groups praise FinCEN AML proposal for real estate transactions

2024-02-08T20:09:00+00:00By

The Financial Crimes Enforcement Network issued a notice of proposed rulemaking that would require the handlers of all-cash residential real estate transactions in all U.S. cities and counties to disclose the beneficial owners.

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Webcast

CPE Webcast: TPRM: Time to change how you approach vendor assessments

2024-02-08T14:00:00+00:00Provided by

Forward-thinking third-party risk management teams are changing the way they approach vendor assessments.

Health data

News Brief

Montefiore Medical Center to pay $4.8M over employee’s data theft

2024-02-07T21:51:00+00:00By

Montefiore Medical Center agreed to pay $4.75 million to settle allegations by the Department of Health and Human Services’ Office for Civil Rights that failures by the New York City nonprofit facility allowed an employee to steal and sell patient information for six months.

Amazon warehouse

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Examining precedent set by French DPA’s Amazon employee monitoring fine

2024-02-07T18:03:00+00:00By

The decision by France’s data regulator to fine an Amazon warehouse manager for breaches of the General Data Protection Regulation over the way it monitored employee productivity raises questions about the reach data protection authorities have over corporate conduct.

Google HQ

News Brief

Alphabet to pay shareholders $350M over Google+ privacy lapses

2024-02-07T18:00:00+00:00By

Alphabet, the parent company of technology giant Google, agreed to pay $350 million in a preliminary settlement with shareholders over alleged data privacy violations and materially false and misleading statements linked to now-defunct social media site Google+.

Data privacy

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Compliance with growing number of U.S. privacy laws ‘a matter of culture change’

2024-02-07T14:00:00+00:00By

Different deadlines associated with the 13 U.S. state privacy laws currently on the books, including grace periods and enforcement dates, have proven challenging for compliance, experts discussed at CW’s Cyber Risk & Data Privacy Summit.

Data breach

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Experts: Good data breach response grounded in preparation

2024-02-06T15:24:00+00:00By

Two chief compliance officers and an attorney discussed preparation for the “when, not if” threat of a data breach during a panel at CW’s Cyber Risk & Data Privacy Summit.

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Webcast

CPE Webcast: Crafting policies for digital dialogue

2024-02-06T14:00:00+00:00Provided by Smarsh

This webinar will shed light on the critical need for heightened awareness regarding business communications in the financial sector.

Clorox_web

News Brief

Clorox discloses $49M hit from cyberattack

2024-02-05T21:50:00+00:00By

Cleaning products company Clorox disclosed the major cybersecurity incident that led to a shutdown of its automated order processing late last year has cost it about $49 million.

AI climate

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Jury out on viability of AI in ESG reporting

2024-02-05T12:13:00+00:00By

Tech vendors believe ESG reporting is a ripe market for artificial intelligence to help companies sift through data and ensure compliance with both mandatory and voluntary reporting standards. Compliance officers appear less sure.

Blackbaud

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Blackbaud avoids fine in FTC deal requiring data deletion

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

Software company Blackbaud will be required to delete unnecessary data and boost cybersecurity as part of a proposed settlement with the Federal Trade Commission stemming from a 2020 data breach.

Israel

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FinCEN alert flags Israeli extremists fomenting violence in West Bank

2024-02-02T18:27:00+00:00By

The Financial Crimes Enforcement Network issued an alert addressing the financing of Israeli extremist settler violence against Palestinians in the West Bank.

cybercrime_web

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ACAMS survey: Budget cuts, criminal tech innovation top 2024 threats

2024-02-01T21:06:00+00:00By

Nearly 800 financial crime professionals said the biggest threats to the effectiveness of their anti-money laundering programs are budget cuts and their inability to keep pace with more aggressive and innovative uses of technology by criminals to commit fraud.

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.

DOJ

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Compliance officer BSA case a cautionary tale for small banks

2024-02-01T14:18:00+00:00By

A New York-based Bank Secrecy Act compliance officer facilitated more than $1 billion in high-risk international financial business through an “unsophisticated” institution, according to the Department of Justice and the Financial Crimes Enforcement Network.

Richard Brasher 3x2

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Q&A: LKQ sustainability VP on importance of environmental data

2024-02-01T14:01:00+00:00By

Richard Brasher, vice-president of sustainability at multinational automotive parts company LKQ Corp., discusses with Compliance Week his view on the added attention sustainability initiatives are receiving and where improvement remains.

Citi

News Brief

N.Y. sues Citi for lax data security, failing to reimburse fraud victims

2024-01-31T19:27:00+00:00By

Citibank faces a lawsuit from New York Attorney General Letitia James for allegedly failing to protect and reimburse customers who lost thousands of dollars in fraudulent wire transfers.

China scrutiny

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What future holds for PCAOB post China crackdowns

2024-01-31T13:32:00+00:00By

The Public Company Accounting Oversight Board’s first enforcement settlements with mainland China and Hong Kong firms won’t be the last, as the chair of the regulator says its “just getting started.” U.S. firms must be mindful of the specific ethical issues highlighted.

OCC

News Brief

OCC proposes stricter review process for bank mergers

2024-01-30T20:39:00+00:00By

The Office of the Comptroller of the Currency proposed eliminating expedited or streamlined reviews of mergers for national banks and federal savings associations.

Working with AI

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Deloitte survey: Companies unprepared for AI governance, risk challenges

2024-01-30T18:31:00+00:00By

Just 25 percent of corporate leaders felt their organizations were highly prepared to handle the governance and risk issues posed by generative artificial intelligence, a Deloitte survey found.

Cyber locks

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Consultation opens debate on proposed U.K. cyber governance code

2024-01-30T15:54:00+00:00By

Cybercrime is regularly cited as a leading concern for executives, yet board oversight of cyber risks is often inadequate and governance poorly understood, according to the authors of a proposed U.K. code of practice on cybersecurity governance.

AI finance

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The pros and cons of generative AI in AML compliance

2024-01-29T14:00:00+00:00By Mario Menz, CW guest columnist

Generative artificial intelligence providers often promote their technologies as revolutionary tools that can enhance anti-money laundering processes. But the issues and shortcomings associated with the technologies must also be acknowledged.

Slack

News Brief

DOJ, FTC re-emphasize requirement to retain business communications

2024-01-26T18:55:00+00:00By

The Department of Justice and Federal Trade Commission updated language contained in standard preservation letters regarding the maintaining of business communications made via collaboration tools and ephemeral messaging apps.

CFTC building

News Brief

CFTC seeking comment on applications of AI in compliance

2024-01-26T13:56:00+00:00By

The Commodity Futures Trading Commission would like to learn more about how regulated entities might be using artificial intelligence in their compliance efforts, along with other applications.

Fujitsu

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U.K. Post Office scandal sparks contractor accountability debate

2024-01-26T12:37:00+00:00By

The recent furor in the United Kingdom over the Post Office’s wrongful prosecutions of sub-postmasters for alleged fraud has put the government’s relationship with private contractors under the spotlight and raised questions about how companies could be held more accountable in future.

Credit Suisse sign

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FINMA eyeing more power over banks. Will it make a difference?

2024-01-26T11:52:00+00:00By

Bonus clawbacks, more fines, and a senior management regime that clearly identifies individual executives’ responsibilities for key governance areas are all options being considered by the Swiss Financial Market Supervisory Authority in response to the collapse of Credit Suisse.

ICO

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ICO seeking input on generative AI to inform guidance

2024-01-25T21:38:00+00:00By

The U.K. Information Commissioner’s Office is seeking input from developers, users, and those interested in generative artificial intelligence to help inform policy and guidance regarding the technology.

Philips

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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.