The Financial Industry Regulatory Authority (FINRA) May 16 issued JPMorgan Securities a censure and a $750,000 fine for having in place risk management controls and supervisory procedures that were not reasonably designed and, thus, failed to prevent five erroneous market orders, FINRA announced. According to FINRA’s order, “from January 2019 Read More
The Irish Data Protection Authority (DPA) hit Meta with an administrative fine of 1.2 billion euros ($1.3 billion) for violations of the EU’s General Data Protection Regulation (GDPR), making it the largest GDPR fine ever levied. According to the Irish DPA, Meta Ireland violated Article 46(1) of the GDPR when Read More
Office workers are using ChatGPT, or similar conversational AI models, for various tasks and purposes. Some of these uses can create risks of which compliance officers should be aware. Here are a few examples: 1) Virtual Assistants: ChatGPT can act as a virtual assistant, helping office workers manage their schedules, Read More
Artificial intelligence applications like ChatGPT are becoming common tools in the workplace to do everything from generating job descriptions, writing and editing reports, and to managing schedules (See related article, “How Employees Are Using ChatGPT on the Job“). But the apps aren’t perfect. In fact, they can be error prone Read More
Medical-device company Stryker disclosed in a regulatory filing that it is being investigated for potential violations of the Foreign Corrupt Practices Act (FCPA), making it the third time in a decade. “We are currently investigating whether certain business activities in a foreign country violated provisions of the Foreign Corrupt Practices Read More
Wells Fargo just keeps paying and paying for its compliance ineptitude. In the latest chapter of the saga, the big bank has agreed to a $1 billion settlement in a securities class-action lawsuit that accused the financial firm of lying about the progress of required compliance reforms. In 2018, Wells Read More
Amsterdam-based Koninklijke Philips will pay $62.2 million in a settlement with the Securities and Exchange Commission for alleged violations of the Foreign Corrupt Practices Act (FCPA) resulting from misconduct related to its sales of medical diagnostic equipment in China. According to the SEC’s order, between 2014 and 2019, employees, distributors, Read More
GUEST BLOG Effective due diligence is critical to establishing relationships with customers, suppliers, and other third-parties that drive strong revenue generation. How can businesses, including banks and finance companies, balance effective anti-money laundering (AML) efforts, know your customer (KYC) workflows, customer due diligence (CDD), and third-party risk rating workflows with Read More
The Securities and Exchange Commission has issued its largest-ever award, a staggering $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions, the regulatory agency said Friday in a statement. This is the highest award in the SEC’s whistleblower program’s history, Read More
The Department of Treasury on April 25 announced the release of its first ever “De-risking Strategy,” which broadly addresses financial institutions’ de-risking strategies and their impact on certain customers. The strategy further recommended several policy solutions. As described by Treasury, de-risking refers to financial institutions “terminating or restricting business relationships Read More
