Risk Management


FinTech

News Brief

Evolve Bank ordered by Fed to address AML, sanctions lapses

2024-06-14T20:37:00+01:00By

The Federal Reserve Board ordered an Arkansas bank that partnered with numerous financial technology companies to correct deficiencies in its anti-money laundering, sanctions, risk management, and consumer compliance programs.

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Webcast

CPE Webcast: Acting responsibly with generative AI: How to manage the risks and rewards in the workplace

2024-06-13T14:00:00+01:00Provided by

Generative artificial intelligence has gained immense popularity, but its adoption by businesses introduces ethical risks. Organizations must prioritize responsible use of generative AI by ensuring it is accurate, safe, honest, empowering, and sustainable.

Financial Crimes 2024 Axelrod

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BIS’s Axelrod makes plea to financial services: ‘We want to work with you’

2024-06-12T21:47:00+01:00By

Matthew Axelrod, assistant secretary for export enforcement at the Bureau of Industry and Security, addressed efforts to reach financial services firms, working with the Financial Crimes Enforcement Network, and more during his fireside chat at CW’s Financial Crimes Summit.

Financial Crimes 2024 Pham

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CFTC’s Pham critical of agency stances on CCO liability, self-disclosure credit

2024-06-12T21:18:00+01:00By

Caroline Pham, a commissioner at the Commodity Futures Trading Commission, said compliance officers have a lot to worry about if they or their firms are subject to CFTC enforcement during her fireside chat at CW’s Financial Crimes Summit.

ChinaCargoContainer

News Brief

Additions to UFLPA Entity List signal seafood supply chain risks

2024-06-12T18:23:00+01:00By

The U.S. Department of Homeland Security added three China-based entities across the seafood, aluminum, and footwear industries to the Uyghur Forced Labor Prevention Act Entity List.

Sanctions compliance TPRM

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Panelists break down robust sanctions landscape at TPRM Summit

2024-06-12T02:35:00+01:00By

Sanctions compliance officers face myriad challenges as complex geopolitical situations heighten risks worldwide, experts discussed during Compliance Week’s Third-Party Risk Management & Oversight Summit.

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Webcast

CPE Webcast: Compliance programs under scrutiny

2024-06-11T14:00:00+01:00Provided by

Explore government expectations for compliance programs and how companies facing regulatory scrutiny design and implement programs to position themselves for the best possible outcome.

Bank AML

News Brief

FinCEN BSA data: Fraud, money laundering top suspicious activities

2024-06-10T09:43:00+01:00By

The Financial Crimes Enforcement Network published its latest collection of Bank Secrecy Act data, including number and type of suspicious activity reports.

WIC_1

Premium

Experts: AI risk mitigation second nature for compliance professionals

2024-06-07T22:34:00+01:00By

Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.

Artificial intelligence

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OCC’s Hsu encourages banks to apply guardrails to AI use

2024-06-07T21:51:00+01:00By

Warning of an “eventual reckoning” on artificial intelligence use by financial institutions, the acting head of the Office of the Comptroller of the Currency said the industry should learn lessons on how similar disruptive technologies evolved from being helpful to dangerous.

SEC headquarters

News Brief

‘Why us?’ SEC lists reasons it conducts examinations of broker-dealers

2024-06-06T19:22:00+01:00By

A risk alert from the Securities and Exchange Commission listed top reasons why a registered broker-dealer might be the subject of an examination.

ESG

News Brief

EU agencies examine efforts to identify and monitor examples of greenwashing

2024-06-06T17:00:00+01:00By

The European Securities and Markets Authority, European Banking Authority, and European Insurance and Occupational Pensions Authority issued reports on greenwashing in the financial sector, describing how they plan to call out examples of false or misleading sustainability claims.

London Financial District

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Reignited calls to tighten up AML in London, crown dependencies

2024-06-06T13:52:00+01:00By

Despite repeated interventions, fines, and negative publicity, money laundering is rife in U.K. financial services firms, according to Deputy Foreign Secretary Andrew Mitchell.

Whistle question

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What to watch for as DOJ whistleblower program sprint ends

2024-06-05T19:14:00+01:00By

The Department of Justice’s 90-day sprint to developing and implementing a pilot whistleblower rewards program ended Wednesday, and many questions remain about what the program will entail.

Epoch Times

News Brief

Epoch Times CFO charged in $67M money laundering scheme

2024-06-04T18:40:00+01:00By

The chief financial officer of the Epoch Times was charged with laundering at least $67 million in illegally obtained funds to bolster the fortunes of the newspaper and himself.

Airbus

News Brief

Airbus U.S. unit dinged by BIS for antiboycott violations

2024-06-04T17:20:00+01:00By

Satellite communications company Airbus DS Government Solutions received a reduced penalty from the Bureau of Industry and Security for admitting self-disclosed violations of antiboycott regulations.

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Webcast

CPE Webcast: Operationalizing responsible AI: Developing a sustainable process to effectively manage risk

2024-06-04T14:00:00+01:00Provided by

With recent advancements in generative technologies, the integration of AI into business operations has accelerated and thus, the concept of responsible AI has gained critical importance.

Ericsson

News Brief

Ericsson completes DOJ-imposed compliance monitorship

2024-06-03T18:48:00+01:00By

Swedish telecommunications giant Ericsson announced the conclusion of the independent compliance monitorship imposed on the company following its 2019 settlement for violations of the Foreign Corrupt Practices Act.

Hester_Peirce

Podcast

Podcast: SEC Commissioner Hester Peirce on regulatory demands, CCO input

2024-06-03T13:41:00+01:00By

Compliance Week’s Aaron Nicodemus sat down for an exclusive chat with SEC Commissioner Hester Peirce covering the flood of new regulation emanating from the agency, stresses on compliance at smaller firms, CCO liability, and more.

DOJ

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Kanter says DOJ adapting antitrust enforcement for AI

2024-06-03T08:58:00+01:00By

The Department of Justice’s Antitrust Division is examining how its policies and enforcement mechanisms are suited to handle potential issues brought about by the proliferation of use of artificial intelligence.

Hyundai

News Brief

Hyundai Motor caught in DOL complaint over child labor

2024-05-31T18:41:00+01:00By

The Department of Labor sued three Alabama businesses, including a Hyundai Motor manufacturing plant, for employing a 13-year-old worker on an auto parts assembly line.

Gurbir Grewal SEC 3x2

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SEC’s Grewal shares views on ‘Five Principles of Effective Cooperation’

2024-05-30T16:13:00+01:00By

Gurbir Grewal, director of the Enforcement Division at the Securities and Exchange Commission, spelled out plainly his view on the best path to earning cooperation credit during settlement negotiations with the agency.

N26

News Brief

BaFin relaxes growth restrictions on N26 following AML improvements

2024-05-29T20:31:00+01:00By

German financial regulatory authority BaFin lifted growth restrictions on N26, after the digital bank made improvements to its anti-money laundering program.

DOJ building

News Brief

Lessons from Arthur Grand ‘whites only’ case

2024-05-29T20:06:00+01:00By

IT company Arthur Grand Technologies’ settlements with the Department of Justice and Department of Labor regarding a discriminatory “whites only” job posting offer key takeaways regarding company liability and reputation risks.

Bank BW

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OCC’s Hsu advocates requiring mid-sized banks create ‘robust’ recovery plans

2024-05-29T20:01:00+01:00By

Acting Comptroller of the Currency Michael Hsu said he favors requiring more mid-sized U.S. banks to conduct the same rigorous recovery planning as the largest banks, part of a lesson learned from the collapse of three mid-sized banks in 2023.

Albemarle 2000x1333

Event

Revamped compliance processes key Albemarle win as Compliance Program of the Year

2024-05-29T18:30:00+01:00By

For successfully navigating thorny compliance issues related to self-disclosed violations of the Foreign Corrupt Practices Act, Albemarle was named Compliance Program of the Year at the 2024 Excellence in Compliance Awards.

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Event

Gina Nese stays ahead of the curve as CCO of the Year

2024-05-29T00:45:00+01:00By

Gina Nese, head of compliance and privacy at Align Technology, jumps at the chance to share new ideas and ways to innovate, including regarding emerging technologies like AI. Her work earned her recognition as CCO of the Year at the 2024 Excellence in Compliance Awards.

TD Bank sign

News Brief

TD Bank risk chief laments ‘procedural weaknesses’ in U.S. AML program

2024-05-28T19:45:00+01:00By

TD Bank Chief Risk Officer Ajai Bambawale said “procedural weaknesses” in the institution’s U.S. anti-money laundering program allowed bad actors to exploit its network.

GHG emissions

News Brief

Treasury, other agencies issue voluntary carbon market principles

2024-05-28T19:20:00+01:00By

The Treasury Department and other U.S. agencies announced a coordinated federal policy concerning carbon credits and other voluntary incentives to encourage businesses and agriculture to cut their carbon footprints.

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Event

Lifetime Achievement: Compliance lessons from a ‘Flea’

2024-05-28T16:00:00+01:00By

Felecia “Flea” Bowers, honored for Lifetime Achievement at the 2024 Excellence in Compliance Awards, shares advice for compliance professionals at every stage of their careers.

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Event

Creative engagement approach drives Compliance Innovators Johnson, Sudo

2024-05-28T16:00:00+01:00By

Through clever rhymes and real-life examples, Sharon Johnson and Heather Sudo of MODE Global have made it their mission to think outside the box when it comes to compliance awareness. Their approach earned them Compliance Innovator(s) of the Year at the 2024 Excellence in Compliance Awards.

OCC

News Brief

Lemont National, Comerica Bank unit avoid penalties in separate OCC deals

2024-05-24T17:39:00+01:00By

The Office of the Comptroller of the Currency reached agreements with Lemont National Bank and Comerica Bank & Trust over concerns related to risk governance practices.

HSBC

News Brief

HSBC fined $8M by FCA for mishandling customers in default

2024-05-23T15:55:00+01:00By

The U.K. Financial Conduct Authority fined HSBC nearly £6.3 million (U.S. $8 million) for failing to properly consider the financial position of customers who missed payments.

Whistleblower vector

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​Debate: Experts discuss pros, cons of whistleblower process

2024-05-23T15:35:00+01:00By

Compliance Week Advisory Board members Eric Young and Ellen Hunt participate in a debate-style discussion regarding whistleblower-related topics including culture of compliance, monetary incentives, retaliation, and more.

DOJ

News Brief

MilliporeSigma’s ‘extraordinary cooperation’ earns it DOJ declination

2024-05-22T20:55:00+01:00By

The Department of Justice declined to prosecute Massachusetts-based biochemical company MilliporeSigma for its “extraordinary cooperation” in uncovering a “rogue” employee’s scheme to procure and ship discounted products to China using falsified export documents.

Intercontinental Exchange

News Brief

SEC orders Intercontinental Exchange to pay $10M over Reg SCI violations

2024-05-22T19:30:00+01:00By

Intercontinental Exchange and nine affiliates agreed to pay $10 million for allegedly failing to inform the Securities and Exchange Commission of a cyber intrusion as required by Regulation Systems Compliance and Integrity.

Citi building

News Brief

Citi unit fined $78.6M by U.K. regs for trading control failures

2024-05-22T18:30:00+01:00By

The Financial Conduct Authority and Prudential Regulation Authority combined to fine a London-based Citigroup subsidiary approximately £61.7 million (U.S. $78.6 million) for control failures related to its trading system.

Cybersecurity

News Brief

​SEC official clarifies material incident reporting under new cyber rule

2024-05-22T16:35:00+01:00By

Erik Gerding, director of the Securities and Exchange Commission’s Division of Corporation Finance, issued a statement addressing early inconsistencies observed under the agency’s new cybersecurity incident disclosure rule.

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Opinion

​Book review: How compliance can help build organizational trust at speed

2024-05-22T16:29:00+01:00By

Anne Morriss, co-author of “Move Fast and Fix Things,” advises compliance officers to tap into curiosity, communicativeness, and comfort with discomfort to build organizational trust, fast.

Water system

News Brief

EPA warns of increased cybersecurity scrutiny toward water systems

2024-05-21T19:27:00+01:00By

The Environmental Protection Agency is increasing its inspections of public drinking water systems after finding a majority of those reviewed were vulnerable to cyberattacks and related threats.

skycity_wb

News Brief

​SkyCity Entertainment bracing for nearly $50M in AML penalties

2024-05-21T16:59:00+01:00By

Australian gaming company SkyCity Entertainment Group faces nearly $50 million in penalties for admitted breaches of anti-money laundering and countering financing of terrorism obligations in Australia and New Zealand.

Messaging apps

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Survey: Social media remains vexing issue for financial firms

2024-05-21T12:45:00+01:00By

A recent survey by surveillance technology firm SteelEye found most financial institutions do not monitor their employees’ use of social media or factor in market risks exacerbated by social media posts.

Volkswagen

News Brief

Senate report cites VW, BMW, JLR for potential forced labor violations

2024-05-20T19:16:00+01:00By

A U.S. Senate report found three European automakers—Volkswagen, BMW, and Jaguar Land Rover—sold cars in the United States with parts sourced from a supplier suspected of using forced labor from China’s Xinjiang region.

Colorado capitol

News Brief

Colorado passes landmark AI discrimination law

2024-05-20T19:02:00+01:00By

Colorado passed the nation’s first comprehensive artificial intelligence protection law, aimed at curbing discrimination against the public that could result from the technology’s use while still allowing AI entrepreneurship to flourish.

Flex

News Brief

Flex says no action by OFAC into possible sanctions violations

2024-05-20T17:48:00+01:00By

Flex disclosed in a public filing the Office of Foreign Assets Control is taking no action into potential sanctions violations the global manufacturer voluntarily self-disclosed in 2019.

DXC Technology

News Brief

​DXC Technology says no penalties on self-disclosed Russian sanctions matter

2024-05-20T15:21:00+01:00By

IT services company DXC Technology disclosed it received word from the Office of Foreign Assets Control and Bureau of Industry and Security that it won’t be penalized regarding potential Russian sanctions/export control violations it voluntarily self-disclosed in 2022.

CCPAUpdate

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California privacy reg seeking more input on new rules

2024-05-20T15:11:00+01:00By

Businesses will receive additional time to weigh in on proposed regulations by the California Privacy Protection Agency regarding risk assessments, cybersecurity audits, automated decision-making, and data broker registration before they’re potentially finalized later this year.

ESG money

News Brief

ESMA guidelines tackle greenwashing via fund names

2024-05-17T17:27:00+01:00By

The European Securities and Markets Authority published its final report containing guidance for the use of environmental, social, and governance- and sustainability-related terminology in fund names.

White House

News Brief

White House unveils AI workplace principles; Senate group roadmaps AI policy

2024-05-16T20:29:00+01:00By

Microsoft and Indeed stepped up to adopt new artificial intelligence principles put forth by President Joe Biden, while leading senators took a step toward crafting AI legislation.

U.S. China flags

News Brief

UFLPA Entity List nearly doubles with textile industry sweep

2024-05-16T16:16:00+01:00By

The Department of Homeland Security announced its largest batch of additions to the list of companies blocked under the Uyghur Forced Labor Prevention Act in the form of a sweep of the Chinese textile industry.