Financial Regulatory Forum

Brokerages stumble on following in-house supervision rules – study

By Guest Contributor
September 11, 2012

By Suzanne Barlyn

CORONADO, Calif., (Reuters) – Wall Street’s brokerages are falling short when it comes to policing their brokers, according to a nationwide series of examinations by state regulators.

Retaliation rate against U.S. company whistleblowers climbs, senior staff affected, survey finds

By Guest Contributor
September 6, 2012

By Julie DiMauro

NEW YORK, Sept. 6 (Thomson Reuters Accelus) - Retaliation against workplace whistleblowers is rising sharply, expanding into previously safe categories of employees such as senior-level managers and even in workplaces with notably strong ethical cultures, a study found.

Standard Chartered case may not set model for targeting other banks

By Guest Contributor
September 5, 2012

By Aruna Viswanatha and Brett Wolf

WASHINGTON/ST. LOUIS, Sept. 5 (Thomson Reuters Accelus) - Benjamin Lawsky’s surprise move against Standard Chartered in an Iran sanctions case may have stunned the banking world, but it is unlikely to expand the scope of a series of similar U.S. cases against European banks that are still in the pipeline.
Lawsky, the New York state bank regulator, stunned the British bank, its shareholders and other U.S. authorities when he moved ahead last month with his own case against Standard Chartered, accused of hiding transactions involving Iran, which is under U.S. trade and economic sanctions. (more…)

Post-Katrina moves helped banks weather the storm after Isaac, says state banking official

By Guest Contributor
September 5, 2012

By Ted Knutson

WASHINGTON, Sept. 5 (Thomson Reuters Accelus) - Post-Hurricane Katrina disaster preparations helped banks weather the storm after last week’s Hurricane Isaac, Louisiana Office of Financial Institutions (Bank) Division Chief Examiner Sid Seymour told Thomson Reuters Monday.

Weak U.S. legal oversight puts burden on compliance pros to protect their firms, author says

By Guest Contributor
September 4, 2012

By Stuart Gittleman

NEW YORK, Sept. 4 (Thomson Reuters Accelus) - An inadequate government and industry response to the financial crisis will require compliance professionals to do more to protect their firms, customers and colleagues, Jeff Connaughton, who said he saw firsthand how reform withered in Congress, has told Compliance Complete.

Sanctions and prosecutions against international banks creates dark market, increase risk

By Guest Contributor
September 4, 2012

By Kim R. Manchester, Thomson Reuters Accelus contributing author

TORONTO, Sept. 4 (Thomson Reuters Accelus) - The black market for Iranian oil will carry increasingly sophisticated money laundering risks for international banks engaged in correspondent banking, international trade finance and global payments. Sanctions evasion will remain the top priority for the Iranian government, state-owned enterprises and the bankers that enable firms around the globe who aim to profit from this black market.

U.S. Justice Department eyes compliance lapses in next era of money-laundering cases

By Guest Contributor
September 4, 2012

By Aruna Viswanatha and Brett Wolf

NEW YORK, Sept. 4 (Thomson Reuters Accelus) - The U.S. Department of Justice is shifting its sights to a new offensive in combating money laundering: bringing criminal charges against banks and other financial institutions for weak compliance systems that fail to catch illicit money flows.

INTERVIEW: Board members are accountable for compliance, SEC’s di Florio says

By Guest Contributor
August 31, 2012

By Emmanuel Olaoye

WASHINGTON, Aug. 31 (Thomson Reuters Accelus) – Directors who fail to take an interest in compliance risk the threat of enforcement action from the Securities and Exchange Commission, a top official from the agency said.

Regulators globally seek to curb supercomputer trading glitches

By Guest Contributor
August 31, 2012

By Christopher Elias

LONDON, Aug. 31, (Business Law Currents) - A series of stock market glitches has prompted regulators around the world to introduce new regulations to limit the impact of computer malfunctions on trading. Shielding markets from another Knight Capital disaster, the new rules seek to defend market participants from malicious machines and risky robots. (more…)

Standard Chartered’s big shareholders stay quiet on compliance, say focus is on governance

By Guest Contributor
August 31, 2012

By Martin Coyle

LONDON/HONG KONG, Aug. 31 (Thomson Reuters Accelus) – Standard Chartered Bank’s major shareholders are declining to openly criticise the firm’s compliance practices but some cited overall governance issues as their primary interest following its settlement over allegations it breached Iran-sanctions laws. One institutional investor said that it had discussed compliance issues with the bank before this month’s $340 million settlement was reached with New York’s Department of Financial Services (DFS) for breaches of sanctions with Iran. The UK fund manager, which declined to be named, said that it discussed the allegations in general as well as compliance issues.  (more…)