Financial Regulatory Forum

U.S. bank regulator promises better enforcement following scathing congressional report into HSBC AML failures

By Guest Contributor
July 18, 2012

By Brett Wolf

WASHINGTON, July 18 (Thomson Reuters Accelus) - After widespread anti-money laundering (AML) failures at HSBC that continued for years due to lax regulatory oversight, a U.S. bank regulator has vowed to take a broader view of institutions’ compliance programs during examinations.

Futures customer protections improved in U.S. and overseas after frauds

By Guest Contributor
July 17, 2012

By Nick Paraskeva

NEW YORK, July 17 (Thomson Reuters Accelus) - The CFTC approved tough customer protection rules for futures firms’ days after the Peregrine default led to over $200 million in missing client funds. Losses arising from a fraud by the owner of the futures broker come soon after a $1.6 billion hole in client funds from the collapse of MF Global. The new rules require daily calculations of client money to be reported, and for senior management to certify cash movements.

Learn the compliance lessons from an epic fail in correspondent banking and trade finance

By Guest Contributor
July 16, 2012

By Kim R. Manchester, Thomson Reuters Accelus contributing author

NEW YORK, July 16 (Thomson Reuters Accelus) - A Settlement Agreement was released in June 2012 by the United States Department of the Treasury regarding the voluntary self-disclosure to the Office of Foreign Assets Control (OFAC) by ING Bank, N.V. (ING Bank), a financial institution registered and organized in the Netherlands. The violations of numerous sanctions programs imposed by the United States against Cuba, Burma, the Sudan, Libya and Iran were determined by the Americans as “egregious.” (more…)

U.S. bank regulators warn on due diligence in using cloud computing services

By Guest Contributor
July 13, 2012

By Emmanuel Olaoye

WASHINGTON/NEW YORK, July 13 (Thomson Reuters Accelus) – Bank regulators this week raised their warnings to financial institutions on the dangers of using vendors that provide so-called “cloud computing” services.

U.S. brokerage regulator warns of ‘unpleasant surprises’ on ETNs

By Guest Contributor
July 11, 2012

By Stuart Gittleman

NEW YORK, July 11 (Thomson Reuters Accelus) – The Financial Industry Regulatory Authority, the U.S. brokerage regulator, warned investors Tuesday in an alert of the features and risks of exchange-traded notes.

Barclays scandal highlights value of monitoring and testing – governance experts

By Guest Contributor
July 10, 2012

By Emmanuel Olaoye

WASHINGTON/NEW YORK, July 10 (Thomson Reuters Accelus) - A major theme in the Barclays scandal over rate-rigging is the firm’s failure to conduct adequate monitoring and testing of its compliance program, governance experts have told Thomson Reuters Accelus.

First wave of U.S. living wills has limitations, but offers useful start

By Guest Contributor
July 9, 2012

By Bora Yagiz

NEW YORK, July 9 (Thomson Reuters Accelus) - The “living will” resolution plans submitted to U.S. regulators by nine big banks last week suffer from a number of limitations, including narrow scenarios of financial distress and an assumption that regulators will be coordinated in their approach. But there will be plenty of opportunity to perfect the blueprints.

Exclusive jurisdiction clauses fall in the face of FINRA proceedings

By Guest Contributor
July 5, 2012

By Christopher Elias (UK)

LONDON, July 5 (Business Law Currents) – The English courts recently decided that an exclusive jurisdiction clause between Citigroup’s English subsidiary and two corporate vehicles of family trusts belonging to a Saudi Arabian family did not prohibit the Saudi investors from bringing FINRA arbitration proceedings against Citigroup’s U.S. arm.

U.S. securities regulators focus rulemaking, exams on retirement products

By Guest Contributor
July 5, 2012

By Stuart Gittleman

NEW YORK, July 5 (Thomson Reuters Accelus) – The U.S. Securities and Exchange Commission will return its rulemaking and examination focus to retail sales of retirement products, a Division of Investment Management official told the Insured Retirement Institute, an industry group.

Barclays case gives U.S. futures regulator more clout on overseas derivatives, funding

By Guest Contributor
July 5, 2012

By Nick Paraskeva

NEW YORK, July 5 (Thomson Reuters Accelus) - The U.S. Commodity Futures Trading Commission’s $200 million settlement with Barclays for manipulation and false reporting of benchmark interest rates not only helped fuel a firestorm that consumed the bank’s top management. It also gives the futures regulator more clout to apply new Dodd-Frank swaps rules to activities abroad despite industry and political opposition, and to make a case against congressional Republicans for a strong enforcement budget.