Category: Compliance Regulation

Morgan Stanley and exec Pawan Passi avoid criminal misconduct prosecution for the price of $249 million

Morgan Stanley will pay $249 million to settle a criminal investigation, as well as a related Securities and Exchange Commission probe. The SEC said the bank generated more than $100 million in illicit profits as a result of misconduct by Pawan Passi, the bank’s former head of its US equity syndicate desk, and another employee.  Morgan Stanley has been under…

SEC ‘deeply regrets’ its ‘errors and lapses in judgment’ in crypto case

Attorneys for the Securities and Exchange Commission apologized to a judge on Thursday for misrepresenting facts used to secure a restraining order and asset freeze against a crypto firm. In a filing submitted to the U.S. District Court of Utah, in response to the judge’s order to show cause for its misstep, the SEC attorneys wrote that the commission “deeply…

Do Kwon’s Terraform Labs set for crypto trial in January

NEW YORK – Terraform Labs and the US Securities and Exchange Commission (SEC) will head to trial in January, with Jump Trading swept up in the mix, after a judge ruled that the SEC’s fraud case against Terraform must be tried by a jury. US District Judge Jed S. Rakoff ruled in favour of the regulator on Dec 28, agreeing…

Canada’s Cannabis Industry Struggles Under Weight of Onerous Taxation and Regulations

Five years since the legalization of cannabis in Canada, the industry finds itself grappling with significant challenges. Despite making economic contributions on par with the dairy sector and marking its presence on the global stage, primarily in the medical cannabis export market, this promising industry is hindered by financial strains, murky advocacy, and unyielding regulations. Excise Tax: A Thorn in…

Credit Suisse handed $3.9m penalty by MAS for relationship managers’ misconduct

SINGAPORE – The Monetary Authority of Singapore (MAS) has imposed a $3.9 million civil penalty on Credit Suisse for its failure to prevent or detect misconduct by relationship managers (RMs) in its Singapore branch. Credit Suisse paid the penalty to the regulator immediately after it was imposed, and as part of the settlement, also separately compensated its affected clients, said…

Trends in French White Collar Crime

France’s Sapin II Law was created in 2016 to address corporate corruption and implement antibribery measures. The legislation took effect in 2017, marking a significant shift in the country’s regulatory compliance landscape. The law, which tracks closely with similar laws in the US, UK, and other EU countries, requires large companies [1] to implement a robust compliance program, including anti-corruption…

Canadian privacy tech vendors release joint Quebec Law 25 compliance solution

Since the major data protection provisions of Quebec’s Law 25 went into effect in September, privacy professionals within the province and Canada at large now face the prospect of a more stringent enforcement regime under the provincial data protection authority, the Commission d’accès a l’information du Québec. To ease compliance burdens, Canada-based privacy tech vendors Data Sentinel and Denodo joined…

UK fines 123 offshore companies for transparency law breach

Britain has issued more than 120 financial penalties to offshore companies that have failed to comply with transparency legislation designed to uncover illicit wealth hidden in the UK property market. The Register of Overseas Entities was created after Russia’s invasion of Ukraine to help the UK government crack down on oligarchs and other kleptocrats. Individuals that own British property through…

Lapsed US chemical security programme leaves facilities at risk

There are continued warnings that the US has been without a chemical security programme since late July, leaving more than 3000 high-risk chemical facilities in the country vulnerable to terrorist, cyber- and physical attacks. The Chemical Facility Anti-Terrorism Standards (CFATS) programme, which was authorised 17 years ago and is managed by the Cybersecurity and Infrastructure Security Agency (CISA), is charged…

Mercer to pay $12 million penalty for misleading representations and fee disclosure failures

Mercer Financial Advice has been ordered by the Federal Court to pay a $12 million penalty for breaching fee disclosure obligations and for wrongly charging fees to customers, ASIC has reported. “This is a significant penalty for a financial advice provider,” said Sarah Court (pictured above), ASIC deputy chair. “Mercer failed in its obligation to provide fee disclosure statements to…

PayPal Granted Green Light For Crypto Services In The UK

In a recent development, PayPal has been registered by the Financial Conduct Authority (FCA) to offer crypto asset activities in Britain. This move comes as PayPal establishes a post-Brexit base in the UK, reflecting its commitment to serving the British market. According to a Reuters report, the crypto market in the UK awaits its first set of regulations; companies seeking…

Popular “AI Hub” Discord Taken Down Following Copyright Complaints

In just a few months, “AI Hub” became a massively popular Discord server with over half a million members. While copyright infringement was strictly forbidden, not all users stuck to the rules. This previously raised the attention of the RIAA, and now appears to have caused the server’s downfall after it was suddenly shut down. Artificial intelligence is booming. Dozens…

FCA calls on insurers to take action as it publishes latest fair value data

In letters sent to all insurance firms, the regulator reminded them of its expectations to make sure they’re checking their products are providing fair value to their customers. The FCA also identified further evidence that some Guaranteed Asset Protection (GAP) products may be failing to provide fair value to customers. This comes as the FCA publishes its latest insurance Value…

FCA sets out initial findings on bank account access and closures

The information supplied by banks, building societies and payment companies suggests that no firm closed an account between July 2022 and June 2023 primarily because of a customer’s political views. The Payment Accounts Regulations ban banks or building societies discriminating on this basis. The FCA will be doing further work with firms to verify the data and to better understand…

Disclosure of Pirates’ Identities “Compatible With EU Privacy Laws”

Following the creation of its Hadopi anti-piracy agency over 13 years ago, France monitored and stored data on millions of users suspected of infringing copyrights. The majority were BitTorrent users and the plan was to use evidence of their piracy activities as a basis for escalating actions including warnings, fines, and ultimately, internet disconnections. Operating the program for a decade…

US Homeland Security Reveals Guide to Enhance Cyber Incident Reporting

The US Department of Homeland Security (DHS) has introduced new recommendations to streamline the reporting of cyber incidents across the Department of Defense and 32 other federal agencies. The guide is expected to further protect the country’s vital infrastructure, reduce the burden on cybersecurity partners, and decrease the downtime of associated operations in each sector covered. The recommendations will also…