Risk Management


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.

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Chapter 1: Compliance v. complicity: The ‘underbelly’ of bank culture

2024-03-18T16:00:00+00:00By

Why were decisions made the way they were at the banks that serviced Jeffrey Epstein? Evidence points to a cultural tension: a tug-of-war between the allure of profit and the drag of compliance, with the former having all the pulling power.

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Case study: ‘The Banks Behind the Epstein Enterprise’

2024-03-18T15:50:00+00:00By

This Compliance Week case study offers a deep dive into the anti-money laundering compliance failures—and alleged complicity—of JPMorgan Chase and Deutsche Bank, the two banks that enabled the Jeffrey Epstein enterprise to flourish for decades.

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EU due diligence directive back on track, despite concession concerns

2024-03-18T14:57:00+00:00By

The future of the EU’s Corporate Sustainability Due Diligence Directive was thrown into doubt when the European Council failed to endorse proposals. The directive is back on track after being agreed upon, albeit in weaker form.

Supply chain

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Policy changes underscore need for enhanced child labor due diligence

2024-03-18T13:20:00+00:00By and

Rooting out potential child or forced labor violations in your company’s supply chain can have benefits beyond protecting reputation and being ethically sound. The process can also help your firm comply with pending child labor laws in other jurisdictions.

ABN AMRO

News Brief

Departing ABN AMRO risk chief says climate, cyber among priorities

2024-03-15T19:27:00+00:00By

Tanja Cuppen, chief risk officer of ABN AMRO, shared her view on the Dutch bank’s biggest risk focus areas and the accomplishments of her tenure a month ahead of her planned departure.

Privacy Shield

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Privacy by design a silver bullet for stemming AI risks?

2024-03-15T17:41:00+00:00By

The proliferation of artificial intelligence technologies—and their reliance on publicly available data—has reinforced the need for tech developers and the companies using their solutions to ensure privacy by design and by default is at the crux of any offering.

WhistleblowerEmployee

News Brief

CFTC awards $1.25M to compliance/audit whistleblower

2024-03-15T11:41:00+00:00By

The Commodity Futures Trading Commission announced a landmark whistleblower award of approximately $1.25 million to an individual in an internal compliance or audit function who came forward with information on misconduct occurring at his or her employer.

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.

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The auditor’s role in supply chain due diligence

2024-03-14T17:54:00+00:00By

Although compliance should be the company’s primary responsibility, auditors have become the last line of defense and are getting pressured and blamed for supply chain issues, including instances of child labor. Is this expected to become the normal for the profession?

Climate change ideas

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Study: Climate transition impact reporting still lacking

2024-03-14T14:15:00+00:00By

Large polluters are failing to account for climate change impact and adaptation, but policymakers need to harmonize disclosure requirements to drive coherent action.

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U.S. banking regs mulling enhanced operational resiliency frameworks

2024-03-13T19:47:00+00:00By

Acting Comptroller of the Currency Michael Hsu said federal banking agencies are considering enhancements to their operational resiliency requirements for member banks.

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.

Business collaboration

Article

Want to be an ethical supply chain influencer? It’s all about the ‘collab’

2024-03-13T12:10:00+00:00By Gwendolyn Hassan, CW guest columnist

Supply chain and ethics and compliance professionals could take a page out of the social media influencer playbook and look to collaborate with suppliers more to create their own win-win scenarios.

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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.

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.

Reserve Bank of New Zealand

News Brief

New Zealand banks to report material cyber incidents within 72 hours

2024-03-11T16:58:00+00:00By

The Reserve Bank of New Zealand added new reporting requirements for its member banks to follow if they suffer a material cyber incident and for all types of cyberattacks.

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.

Chemours

News Brief

Chemours says probe found accounting misconduct by execs

2024-03-08T16:09:00+00:00By

Chemours said an internal review into the actions of senior managers alleged to have engaged in accounting misconduct uncovered violations of the chemicals company’s code of ethics regarding the promotion of full, fair, accurate, timely, and understandable disclosure.

European Commission

News Brief

EU to ban sale of products made with forced labor

2024-03-08T15:20:00+00:00By

The European Union announced an agreement to ban products made with forced labor, a decision that will oblige organizations to track and declare more information about their supply chains for goods entering EU markets.

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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.

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.

SEC

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Concessions can’t save ‘cursed’ SEC climate disclosure rule from scrutiny

2024-03-07T00:02:00+00:00By

The Securities and Exchange Commission finally approved its ground-breaking climate-related disclosure rule, nearly two years since it was originally proposed. Though the agency significantly watered down aspects of its proposal, the rule is already facing the prospect of legal challenge.

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

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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.

GHG emissions

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Experts: What to expect ahead of SEC climate-related disclosure rule vote

2024-03-05T22:06:00+00:00By

Nearly two years after it was first proposed, the Securities and Exchange Commission is finally poised to approve its climate-related disclosure rule—albeit a watered-down version, by all indications.

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.

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Webcast

CPE Webcast: Applying traditional TPRM security and data privacy practices in the digital space

2024-03-05T14:00:00+00:00Provided by

This webinar explores the compliance challenges posed by evolving privacy regulations and the recent explosion of class-action litigation arising from third-party advertising technology on websites.

Metropolitan Commercial Bank

News Brief

Metropolitan Commercial Bank adds risk chief, AML officer

2024-03-04T19:39:00+00:00By

Metropolitan Commercial Bank announced the appointments of a chief risk officer and Bank Secrecy Act/anti-money laundering officer to bolster its reporting lines following a $30 million enforcement action from federal and state authorities last year.

NYCB

News Brief

Struggling NYCB refreshes risk, audit leadership

2024-03-04T19:24:00+00:00By

New York Community Bancorp, a mid-sized bank struggling with precarious commercial loans and troubles with its acquisition of the failed Signature Bank last year, named a new chief risk officer and chief audit executive.

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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.

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.

Chemours

News Brief

Chemours places senior execs on leave over accounting review

2024-03-04T11:23:00+00:00By

Chemours announced it placed its chief executive officer, chief financial officer, and principal accounting officer on leave pending completion of an internal review into potential material weaknesses in its internal control over financial reporting.

ADM office

News Brief

ADM delays annual report filing amid ICFR assessment

2024-03-04T11:17:00+00:00By

ADM disclosed it will be late in filing its annual report for 2023 as it continues to investigate potential accounting improprieties regarding its nutrition reporting segment.

Federal Reserve

News Brief

Green Dot estimates up to $50M in liabilities over proposed Fed order

2024-03-01T17:18:00+00:00By

Financial technology firm Green Dot Corp. estimated a pending consent order with the Federal Reserve Board will require a payment of between $20 million to $50 million.

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.

JBS

News Brief

NYAG lawsuit: JBS misleading public with sustainability claims

2024-02-29T20:54:00+00:00By

Two U.S. subsidiaries of Brazilian meat processing company JBS are the subject of a lawsuit filed by the New York attorney general accusing the businesses of using misleading statements and marketing regarding their environmental commitments.

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.

Business ethics

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Best practices for determining need for a human rights policy

2024-02-29T13:21:00+00:00By

Does your business need a human rights policy? An increasing number of organizations believe they do, according to research firm Gartner.

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.

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FCA calls attention to continued trade manipulation tactics

2024-02-28T13:17:00+00:00By

Financial firms continue to flout rules designed to protect investors from being misled about the true value of financial products, according to a recent bulletin from the U.K.’s Financial Conduct Authority.

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.

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Webcast

CPE Webcast: Orchestrating operational resilience in financial services

2024-02-27T14:00:00+00:00Provided by and

Join us for an in-depth discussion on proven strategies, advanced technologies, and industry best practices that form the bedrock of operational resilience.

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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.

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News Brief

FATF adds Kenya, Namibia to AML/CFT watchlist; UAE, Uganda removed

2024-02-26T20:14:00+00:00By

Kenya was one of two African countries included in the Financial Action Task Force’s latest update to its list of jurisdictions under increased monitoring for money laundering and terrorist financing, while the United Arab Emirates was among four countries removed.