Category: Compliance Regulation

A former Goldman Sachs banker was sentenced Thursday to 10 years in prison for his role in looting a Malaysian sovereign wealth fund of billions of dollars used to finance lavish parties, a superyacht, premium real estate and even the 2013 film “The Wolf of Wall Street.” Roger Ng was convicted last April by a U.S. District Court jury in Brooklyn, but he continues to deny charges that he conspired to launder money and violated two anti-bribery laws. Prosecutors said Ng and his co-conspirators helped the Malaysian fund, known as 1MDB, to raise $6.5 billion through bond sales — only to participate in a scheme that siphoned off more than two-thirds of the money, some of which went to pay bribes and kickbacks.

WASHINGTON (AP) — The United States on Thursday announced more sanctions against people and firms associated with Iran and with what it said was an illicit banking network used to conceal transactions.

The U.S. said it placed the penalties on 39 firms linked to a shadow banking system that helped to obfuscate financial activity between sanctioned Iranian firms and their foreign buyers, namely for petrochemicals produced in Iran.

The Treasury Department said the companies — from Hong Kong to the United Arab Emirates — made up a “significant ‘shadow banking’ network” that gave cover to sanctioned Iranian entities to disguise petrochemical sales with foreign customers.

The company attributed the decision to the latest round of Western sanctions against Russia, saying that transactions in dollars and euros will be unavailable to any individuals residing in Russia regardless of nationality.  

The exchange also banned users based in the EU from making transfers in Russian rubles via the platform, according to media reports. When trying to make a transaction in rubles, the platform prompts users to select a ‘local currency’ for P2P.

“In order to continue using Binance P2P, users can choose other available fiat currencies,” a representative of the exchange told Forbes Russia. 

House Speaker Kevin McCarthy and House Minority Leader Hakeem Jeffries also learned from the agency that the data is now being offered for sale on the dark web.   Leading lawmakers were informed of a “significant data breach” at the DC Health Link marketplace potentially affecting all members of the House and their families in a letter from the Chief Administrative Office of the House on Wednesday. CAO Catherine Szpindor promised a full list of the individuals affected but advised members to secure their finances “out of an abundance of caution” as their data may have been compromised.  

A cellist is accused of helping Vladimir Putin channel $50 million into Swiss accounts. 4 bankers are also accused of not having checked the real source of the money. Putin is believed by some to have accrued vast wealth during his time as Russian leader. Four bankers have been accused of helping Vladimir Putin’s cellist best friend channel millions of dollars through Swiss bank accounts for the Russian president. Sergey Roldugin, a concert cellist, is accused by prosecutors of making…

The United States government has requested and obtained a warrant to seize a Russian aircraft valued at $25m, according to a statement released on Wednesday.

The US-made plane, a Boeing 737-7JU, is accused of travelling from a foreign country to Russia, in violation of US law and sanctions implemented after Moscow’s 2022 invasion of Ukraine.

The plane was last in the US in 2014, according to the statement from the US Attorney’s Office for New York’s Eastern District. But the US alleges the plane has flown in and out of Russia “at least seven times, in violation of federal law”.

Lynda Bennett, 65, of Maggie Valley, North Carolina, was a primary candidate for North Carolina’s 11th Congressional District in 2020. In late December 2019, Bennett borrowed $25,000 from a family member, representing that she needed the money for personal expenses because she had to spend a large amount of her own money on her campaign. The day after depositing the loaned money into a personal account, Bennett then caused $80,000, including the $25,000 in loaned funds, to be transferred to the bank account of Lynda Bennett for Congress (LBC), her authorized federal campaign committee. Under the FECA, Bennett was required to report a loan from a third-party individual as a campaign contribution. Bennett knowingly and willfully violated the FECA by reporting through LBC that the full $80,000 was a loan to her campaign using her own personal funds, rather than disclosing that $25,000 of that amount was a loan from another individual.

The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license. 

The United States and California filed the suit alleging that HVI Cat Canyon, which previously owned and operated multiple oil and gas production facilities in Santa Barbara County, California, was liable for:

12 oil spills into waters of the United States in violation of the Clean Water Act;
17 oil spills into waters of the state in violation of state law;
Reimbursement of the federal and state governments’ costs of cleaning up the oil spills;
Natural resource damages under state law for harm to fish, plant, bird, or animal life and habitat; and
Numerous violations of federal Oil Pollution Prevention Regulations identified in 16 EPA inspections across 11 facilities.

The Biden administration has restricted sales of some US technology to 37 companies and organisations, saying that their activity threatened national security. Three-quarters of the companies included in the announcement, which was made on Thursday, are based in China. They include entities that the commerce department said had supported Beijing’s military modernisation or produced technology that risked being diverted for military purposes. The Biden administration has warned in recent weeks that China could be gearing up to provide military support…

It’s less radical than it sounds. The DOJ isn’t looking to REQUIRE such punishment. It proposes giving “discounts on fines for companies that seek to claw back compensation from corporate wrongdoers.” The punishment is likely to hurt about as much as being hit in the head by a balloon.

On March 2, 2023, the Department of Justice announced several new initiatives that prioritize the investigation and enforcement of economic sanctions evasion, export control violations, and similar economic crimes.  Deputy Attorney General Lisa Monaco announced a “surge of resources to address a troubling trend: the intersection of corporate crime and national security.” 

Telefonaktiebolaget LM Ericsson (Ericsson), a multinational telecommunications company headquartered in Stockholm, Sweden, has agreed to plead guilty and pay a criminal penalty of more than $206 million after breaching a 2019 Deferred Prosecution Agreement (DPA). 

TikTok said Wednesday that every account held by a user under the age of 18 will have a default 60-minute daily screen time limit in the coming weeks. The changes arrive during a period in which there are growing concerns among different governments about the app’s security. Families have struggled with limiting the amount of time their children spend on the Chinese-owned video sharing app. Cormac Keenan, head of trust and safety at TikTok said in a blog post Wednesday…

Two Kansas men were arrested today on charges related to a years-long scheme to circumvent U.S. export laws that included the illegal export of aviation-related technology to Russia after Russia’s unprovoked invasion of Ukraine on Feb. 24, 2022, and the imposition of stricter restrictions on exports to Russia.

Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Eastern District of Louisiana, the U.S. Department of Justice filed a complaint under Section 303 of the Clean Air Act against Denka Performance Elastomer LLC (Denka) to compel Denka to significantly reduce hazardous chloroprene emissions from its neoprene manufacturing facility in LaPlace, Louisiana.