Category: Crime

The Financial Conduct Authority has said it will change its approach to whistleblowers after a survey revealed widespread dissatisfaction among those who alert the regulator to wrongdoing.

The organisation acknowledged problems including whistleblowers not “feeling heard”; a lack of dialogue with them, which prompts doubts about the chances of a proper investigation; and frustration over a shortage of updates, sometimes interpreted as delay and inaction.

The majority of those who raised concerns with the regulator said they were “extremely or somewhat dissatisfied” with how they had been listened to and how issues had been explored, while most were dissatisfied with the outcome of their reports, an FCA study found.

When asked to rate overall satisfaction with the authority’s handling of their whistleblowing report, 15 of the 21 respondents said they were “extremely or somewhat dissatisfied”. Only two expressed any satisfaction.

The regulator said it was “disappointed” with the findings. “Whistleblowers are key in our efforts and we greatly value their contribution,” it said.

It pledged to make reforms, including improving the use of whistleblowers’ information, better communication over what has been done with their reports and engagement with the government over a review of whistleblowing legislation.

BERLIN (AP) — Police across Europe arrested dozens of people, raided homes and seized millions of euros in assets on Wednesday, in a coordinated crackdown on Italy’s ’ndrangheta organized crime syndicate, one of the world’s most powerful, extensive and wealthy drug-trafficking groups.

The operation, coordinated by European Union judicial cooperation agency Eurojust, aimed to dismantle a network that includes the n’drangheta, Colombian drug producers and paramilitary groups, and moves tons of cocaine to Europe and Australia each year.

The investigation uncovered how these networks used ports in Ecuador, Panama and Brazil to ship the Colombian drugs to northern European ports while also dealing in weapons. The drug proceeds were then laundered through restaurants, ice cream shops and car washes, and money sent back to Colombian drug producers via a Chinese wire transfer service, according to Italian officials and a Carabinieri press release.

In Huawei’s head office last month, staff gathered to celebrate the in-house development of software to replace a US system that, thanks to Washington’s export controls, the Chinese technology company was no longer able to purchase. “Three years ago, we were cut off from the old ERP [enterprise resource planning] system,” said Tao Jingwen, a Huawei board member and president…

LOUISVILLE, Ky. (AP) — Two 10-year-olds are among 300 children who worked at McDonald’s restaurants illegally, a Labor Department investigation of franchisees in Kentucky found.

Agency investigators found the 10-year-olds received little or no pay at a McDonald’s in Louisville, the Labor Department said. The franchisee for the Louisville store was among three McDonald’s franchisees fined $212,000 in total by the department.

Louisville’s Bauer Food LLC, which operates 10 McDonald’s locations, employed 24 minors under the age of 16 to work more hours than legally permitted, the agency said. Among those were two 10-year-old children. The agency said the children sometimes worked as late as 2 a.m., but were not paid.

“Below the minimum age for employment, they prepared and distributed food orders, cleaned the store, worked at the drive-thru window and operated a register,” the Labor Department said Tuesday, adding that one child also was allowed to operate a deep fryer, which is prohibited task for workers under 16.

The Fed had to choose between capitulation on inflation or letting the banking crisis mushroom. The twin crashes in the US’s commercial real estate and bond market have collided with $9 trillion uninsured deposits in its banking system, which can vanish in an afternoon in the cyber age.

The second and third biggest bank failures in US history have followed in quick succession. The Treasury and Federal Reserve would like us to believe that they are “idiosyncratic”. That is a dangerous evasion. Almost half of America’s 4,800 banks are already burning through their capital buffers. They may not have to mark all losses to market under US accounting rules but that does not make them solvent. Somebody will take those losses.

“It’s spooky. Thousands of banks are under water,” said Prof Amit Seru, a banking expert at Stanford University. “Let’s not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent.” The full shock of monetary tightening by the Fed has yet to hit. A great edifice of debt faces a refinancing cliff edge over the next six quarters.

Only then will we learn whether the US financial system can safely deflate the excess leverage induced by extreme monetary stimulus during the pandemic. A Hoover Institution report by Prof Seru and a group of experts calculates that more than 2,315 US banks are sitting on assets worth less than their liabilities. The market value of their loan portfolios is $2 trillion (£1.6 trillion) lower than book value.

These lenders include big beasts.

A report in the Wall Street Journal, published on the newspaper’s front page Monday morning, links important figures in the US business and political elite to financier and sex trafficker Jeffrey Epstein, who died in a federal prison in Manhattan in 2019 under circumstances that strongly suggest he was murdered to keep him quiet.

The Journal reporters wrote that they had gained access to Epstein’s private diary and other documents, “which include thousands of pages of emails and schedules from 2013 to 2017, [that] haven’t been previously reported.” The diary listed meetings with dozens of individuals, though it supplied little information about the content or subject of the meetings. The bulk of these engagements were at Epstein’s palatial townhouse in Manhattan.

Among those prominently mentioned in the Journal report were two high-level officials of Democratic administrations: William Burns, currently CIA director, formerly deputy secretary of state in the Obama administration; and Kathryn Ruemmler, currently general counsel for Goldman Sachs investment bank, who was White House counsel in the Obama administration.

The Chinese government has significantly increased the use of exit bans to stop people – Chinese and foreign nationals alike – from leaving the country since top leader Xi Jinping took power in 2012, according to a new report describing how a web of vague laws are being expanded for political reasons.

The report comes amid growing concern about the environment for foreign businesses in China, after the wide-ranging overhaul last week of the country’s espionage law and raids on corporate consultancies Mintz Group and Bain & Co.

A man widely seen as the godfather of artificial intelligence (AI) has quit his job, warning about the growing dangers from developments in the field.

Geoffrey Hinton, aged 75, announced his resignation from Google in a statement to the New York Times, saying he now regretted his work.

And in a BBC interview on Monday, he said: “I can now just speak freely about what I think the dangers might be.

A new law that seeks to give Canadian artists a leg up online has left many influencers and tech giants alike seeing red.

They took out subway ads, they posted TikToks, but in the end, the score was Silicon Valley-0, Ottawa-1.

After many twists and turns, and over two-and-a-half years of review, the Canadian government has passed a new law that makes tech giants like YouTube and TikTok support Canadian cultural content.

The law, dubbed Bill C-11, gives the Canadian Radio-television and Telecommunications Commission (CRTC) broad authority to regulate these platforms, much like they already do with radio and television.

The government says it is necessary to stop streaming giants from getting a free ride, and to promote local artists.

Although it’s still unclear what those final regulations will look like, the law has raised the ire of everyone from TikTokers to esteemed author Margaret Atwood.

NAIROBI – The bodies of several children exhumed in eastern Kenya showed signs of starvation and in some cases asphyxiation, a government pathologist said on Monday, as investigators began the first autopsies on over 100 people linked to a doomsday cult.

On Monday, investigators said they had completed 10 autopsies, comprising nine children aged between 18 months and 10 years, and one female adult, from the 101 bodies discovered last month in shallow graves in Shakahola Forest, Kilifi County.

Authorities say the dead were followers of the Good News International Church, lead by pastor Paul Mackenzie, whom they accuse of instructing worshippers to starve themselves to death in order to be the first to go to heaven before the end of the world.

E2EE is a widely used technology that protects everyone’s privacy and security by encoding the contents of digital communications and files so that they’re decipherable only by the sender and intended recipients. Not even the provider of the E2EE service can read or hear its users’ conversations. E2EE is built in by default to popular apps such as WhatsApp, iMessage, FaceTime, and Signal, thereby securing billions of people’s messages and calls for free. Default E2EE is also set to expand to Meta’s Messenger app and Instagram direct messages later this year. 

E2EE’s growing ubiquity seems like a clear win for personal privacy, security, and safety, as well as national security and the economy. And yet E2EE’s popularity has its critics – including, unfortunately, Sen. Durbin. Because it’s harder for providers and law enforcement to detect malicious activity in encrypted environments than unencrypted ones (albeit not impossible, as I’ll discuss), law enforcement officials and lawmakers often demonize E2EE. But E2EE is a vital protection against crime and abuse, because it helps to protect people (children included) from the harms that happen when their personal information and private conversations fall into the wrong hands: data breaches, hacking, cybercrime, snooping by hostile foreign governments, stalkers and domestic abusers, and so on.

That’s why it’s so important that national policy promote rather than dissuade the use of E2EE – and why it’s so disappointing that STOP CSAM has turned out to be just the opposite: yet another misguided effort by lawmakers in the name of online safety that would only make us all less safe. 

First, STOP CSAM’s new criminal and civil liability provisions could be used to hold E2EE services liable for CSAM and other child sex offenses that happen in encrypted environments. Second, the reporting requirements look like a sneaky attempt to tee up future legislation to ban E2EE outright.

Former Goldman Sachs Group banker Roger Ng won postponement of the start of his 10-year prison term for about three months until Aug 7, a federal judge ruled.

US District Judge Margo Brodie, who sentenced Ng in March for his role in the global 1MDB fraud, granted his request for a delay Monday without explanation.

Ng had been set to begin his prison term May 4. 

Defence lawyer Marc Agnifilo on Friday asked for the delay so Ng could spend more time with his wife and 10-year-old daughter, who had travelled to New York from Malaysia.

First Republic Bank, on the brink of collapse in the weeks after the Silicon Valley Bank crisis, has finally fallen over, but with a relatively quick resolution into its next chapter: today the FDIC announced that it was being closed by the the California Department of Financial Protection and Innovation, that the FDIC was appointed as receiver, and that the FDIC would be selling the assets to JPMorgan.

Its assets and deposits total just over $330 billion together.

Specifically, “to protect depositors, the FDIC is entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank,” it said.

The FDIC also confirmed deposits will continue to be insured by the FDIC at an estimated cost of about $13 billion to its insurance fund.

In February, Hong Kong proposed a set of welcoming rules to regulate crypto-related activities. Under the new legal regime, retail investors will be allowed to trade certain digital assets on licensed exchanges, replacing a 2018 framework that restricted trading to only accredited investors.

The city is also paving the way to legalize stablecoins. One startup, which is backed by popular exchange KuCoin and USDC issuer Circle, recently launched an offshore Chinese yuan (CNH)-pegged stablecoin, the first of its kind in Greater China.

To create a favorable environment for web3 businesses, the city is facilitating communication between banks and crypto startups, many of which are scrambling to find alternatives following Silvergate Bank’s meltdown.

These moves are contrasting with Beijing’s heavy-handed crackdown on the crypto industry; they also highlight the degree to which the former British colony enjoys policy exceptions in certain areas, such as finance.

The U.S. government has sounded the alarm about a critical software vulnerability found in genomics giant Illumina’s DNA sequencing devices, which hackers can exploit to modify or steal patients’ sensitive medical data.

In separate advisories released on Thursday, U.S. cybersecurity agency CISA and the U.S. Food and Drug Administration warned that the security flaw — tracked as CVE-2023-1968 with the maximum vulnerability severity rating of 10 out of 10 — allows hackers to remotely access an affected device over the internet without needing a password. If exploited, the bug could allow hackers to compromise devices to produce incorrect or altered results, or none at all.

A United States judge has ordered a South African executive to pay more than US$3.4 billion (S$4.5 billion) in restitution and fines for a fraud scheme involving Bitcoin – the highest-ever civil monetary penalty in any US Commodity Futures Trading Commission (CFTC) case.

Cornelius Johannes Steynberg, the founder and chief executive officer of Mirror Trading International Proprietary, committed fraud tied to retail foreign currency transactions, among other violations, the agency said in a statement that announced the order by US District Judge Lee Yeakel.