Category: Regulatory News

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.

BRUSSELS – Companies deploying generative artificial intelligence (AI) tools, such as ChatGPT, will have to disclose any copyrighted material used to develop their systems, according to an early European Union agreement that could pave the way for the world’s first comprehensive laws governing the technology.

The European Commission began drafting the AI Act nearly two years ago to regulate the emerging technology, which underwent a boom in investment and popularity following the release of OpenAI’s ChatGPT.

Members of the European Parliament agreed to push the draft through to the next stage, the trilogue, during which EU lawmakers and member states will thrash out the final details of the bill.

Under the proposals, AI tools will be classified according to their perceived risk level: From minimal through to limited, high, and unacceptable.

Pfizer Inc applied to be registered as an importer of controlled substance Pentobarbital

The wave of U.S. comprehensive state privacy legislation that few ever thought would materialize in a calendar year has revealed itself. Comprehensive bills in Montana and Tennessee cleared their respective state legislatures 21 April — the first same-day passage for two state privacy bills — to join Indiana and Iowa among states to reach the finish line this year.

Both bills, which now await enactment pending governor’s signature, carry likeness to existing state privacy laws with some originality.

Montana Senate Bill 384 aligns exclusively with the Connecticut Data Privacy Act after surprise amendments during the cross-chamber process. Tennessee’s bill brings the most unique provisions, including enforcement that hinges on adoption of the U.S. National Institute of Standards and Technology’s Privacy Framework.

The Supreme Court recently heard oral argument in the appeal of two False Claims Act (FCA) cases from the Seventh Circuit that called into question the level of intent, or scienter, required to establish corporate liability under the FCA for “knowingly” overbilling the government for goods or services.  The Court’s eventual decision may have widespread…… Continue Reading
The post Healthcare Companies and Companies Doing Business with the US Government – Supreme Court Appears Likely to Clarify False Claims Act (FCA) Knowledge Requirements appeared first on Global Investigations & Compliance Review.

There’s growing evidence that passing a comprehensive privacy law at the state level is a multiyear endeavor. There are anomalies among existing laws on the books, but most legislatures take two years or more to pass a bill.

Indiana is the latest example of how the process plays out, as it’s on the verge of adding to the pile of comprehensive state privacy laws. The Indiana House took a unanimous 98-0 vote to grant final passage to Senate Bill 5 on consumer data protection a year after the bill stalled in the same chamber.

The Indiana Senate, which already voted 49-0 to approve SB 5 on 9 Feb., will vote on concurrence, a perceived formality before the bill heads to Gov. Eric Holcomb, R-Ind., for a final signature. Holcomb has seven days upon transmission to act on the bill, with a definitive veto the only way it will not become a law.

Binance, one of the world’s largest cryptocurrency exchanges, is facing a lawsuit filed by the United States Commodities Futures Trading Commission (CFTC) for allegedly violating US law by allowing US clients to trade on its platform without complying with Know Your Customer (KYC) standards. In the lawsuit, the CFTC identified three trading firms – Jane Street Group, Tower Research Capital, and Radix Trading – as Binance’s VIP clients, who allegedly received preferential treatment from the exchange.

According to Bloomberg, which cited “people familiar with the matter,” Radix Trading was identified as “Trading Firm A” in the CFTC’s suit, while Jane Street was “Trading Firm B” and Tower Research was “Trading Firm C.” The firms on the CFTC’s list were examples of US clients allegedly able to access Binance, despite not complying with KYC standards.

Japan’s antitrust watchdog on Thursday ordered three major utilities to pay a total of 101 billion yen in fines for forming cartels over electricity sales, in a move that goes against the nation’s efforts to free up the electric power market. The amount of the penalty, to be collected from electricity companies based in central, western and southwestern regions, is the highest ever imposed by the Japan Fair Trade Commission for a violation of the antimonopoly law. Chugoku Electric Power…

There has been no shortage of news this month, so it is understandable that a major presidential proposal garnered relatively little attention at the time.  On March 2, the President proposed a sweeping pandemic anti-fraud initiative that is designed to give key oversight bodies additional tools to investigate and prosecute those who defraud the pandemic relief programs that collectively injected trillions into the then-teetering economy to support struggling families, workers, and businesses.

When these relief programs were initiated three major oversight bodies were created to combat pandemic relief-related fraud, a House Select Subcommittee on the Coronavirus Pandemic; a new Office of Inspector General, the Special Inspector General for Pandemic Recovery (or “SIGPR”); and the Pandemic Response Accountability Committee (or “PRAC”), a consortium of existing Offices of Inspectors General whose agencies took part in pandemic relief programs. To complement the work of these bodies, the Department of Justice created COVID-19 Fraud Strike Force Teams, a COVID-19 Fraud Enforcement Task Force, and a “Chief Pandemic Prosecutor” was named.

Credit Suisse Group AG and UBS Group AG are among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter.

The Swiss banks were included in a recent wave of subpoenas sent out by the US government, the people said. The information requests were sent before the crisis that engulfed Credit Suisse and resulted in UBS’s proposed takeover of its rival.

Subpoenas also went to employees of some major US banks, two people with knowledge of the inquiries, said.

The Justice Department inquiries are focused on identifying which bank employees dealt with sanctioned clients and how those clients were vetted over the past several years.

In a letter Wednesday, GOP House Judiciary Chair Jim Jordan of Ohio raised concerns that the Global Alliance for Responsible Media — created by trade association World Federation of Advertisers and backed by the World Economic Forum — was violating US antitrust laws. The group’s more than 100 members include advertisers such as Procter & Gamble Co. and Unilever Plc, alongside tech companies such as Meta Platforms Inc., Alphabet Inc.’s YouTube and ByteDance Ltd.’s TikTok.

A new lawsuit accuses Mark Zuckerberg and other Meta Platforms Inc executives and directors of failing to do enough to stop sex trafficking and child sexual exploitation on Facebook and Instagram. The complaint made public late Monday by several pension and investment funds that own Meta stock said Meta’s leadership and board have failed to protect the company’s and shareholders’ interests by turning a blind eye to “systemic evidence” of criminal activity.

Given the board’s failure to explain how it tries to root out the problem, “the only logical inference is that the board has consciously decided to permit Meta’s platforms to promote and facilitate sex/human trafficking,” the complaint said. Meta rejected the basis for the lawsuit, which was filed in Delaware Chancery Court.

Meta, based in Menlo Park, California, has long faced accusations that its platforms are a haven for sexual misconduct.

German and US authorities, supported by Europol, have targeted ChipMixer, a cryptocurrency mixer used to keep crypto transactions private. The investigation was also supported by Belgium, Poland and Switzerland. On 15 March, national authorities took down the infrastructure of the platform, seizing 4 servers, and also seizing about 1909 Bitcoins in 55 transactions (approx. EUR 44.2 million) and 7 TB of data.

The Japan Securities Dealers Association said Wednesday it has imposed a penalty of 300 million yen on SMBC Nikko Securities Inc for market manipulation, matching the highest fine previously issued by the organization.

According to the JSDA, SMBC Nikko illegally propped up the prices of 10 individual stock issues to stabilize them last year in “block offering” transactions.

The fine imposed on the brokerage by the JSDA is equal to that issued to Nomura Securities Inc. in connection with an insider trading scandal in 2012.

Silicon Valley Bank’s parent company and two senior executives are facing a class-action lawsuit in the United States, where shareholders have accused the financial institution of failing to disclose the risks that anticipated interest rate hikes would have on its business.

The lawsuit, filed in federal court in the Northern District of California on Monday, is seeking unspecified damages from SVB Financial Group and its Chief Financial Officer Daniel Beck, as well as the bank’s Chief Executive Officer Greg Becker.

The bank collapsed and its assets were seized by the US government late last week after a mass withdrawal of funds by customers.

The lawsuit, which accuses SVB of violating federal securities laws, noted that the Federal Reserve, the US central bank, had signaled as early as 2021 that it would increase interest rates to tame inflation.