Financial Regulatory Forum

Safeguard customers’ personal information; regulators are watching

By Guest Contributor
September 19, 2014

By Julie DiMauro, Compliance Complete

NEW YORK, Sept. 19, 2014 (Thomson Reuters Accelus) - In a sanction that can serve as a wake-up to the financial industry, Verizon Communications last week agreed to pay $7.4 million to end an investigation that found it failed to tell two million new customers about their privacy rights before using their information for marketing purposes, the Federal Communications Commission said.

Authorities seek more AML scrutiny of L.A. fashion district as raid nets cartel-linked targets

By Guest Contributor
September 17, 2014

By Brett Wolf, Compliance Complete

LOS ANGELES/NEW YORK, Sept. 17, 2014 (Thomson Reuters Accelus) - Roughly 1,000 law enforcement agents poured into the Fashion District in downtown Los Angeles Wednesday morning to raid shops and arrest nine people suspected of using businesses to launder large sums of cash generated by drug trafficking and other illicit activity, the U.S. Justice Department said. The money laundering problem in the area has prompted authorities to request a formal designation subjecting it to greater enforcement scrutiny. (more…)

Standard Chartered’s AML lapses provide crucial lessons on internal controls

By Guest Contributor
September 9, 2014

By Julie DiMauro, Compliance Complete

NEW YORK, Sept. 9 (Thomson Reuters Accelus) - Standard Chartered Bank’s $300 million penalty from the New York Department of Financial Services (NYDFS) for compliance failings last month highlights the importance of having effective transaction monitoring procedures to meet regulatory requirements, particularly those pertaining to high-risk clients. But what are these transaction monitoring requirements, and who is a high-risk client?

Bank of America’s mortgage-fraud deal yields quick impact; message may not be what enforcers wanted

By Guest Contributor
August 26, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Aug. 26, 2014 (Thomson Reuters Accelus) - It took just one day for U.S. Attorney General Eric Holder’s announcement Thursday that Bank of America would pay $16.65 billion over charges of fraudulent mortgage origination, securitization and servicing to have an impact.

U.S. regulators ease credit risk rules on guarantees for banks using advanced approach

By Guest Contributor
August 15, 2014

By Bora Yagiz, Compliance Complete

NEW YORK, Aug. 15, 2014 (Thomson Reuters Accelus) - Three major U.S. regulatory agencies have eased requirements under the advanced approach risk-based capital rules by removing a key requirement concerning guarantees provided by counterparties eligible for recognition as credit risk mitigants.

Effective training a weak link in many compliance programs – survey

By Guest Contributor
August 13, 2014

By Emmanuel Olaoye and Stuart Gittleman, Compliance Complete

NEW YORK, Aug. 13, 2014 (Thomson Reuters Accelus) - Firms, especially those in the financial services sector, have improved their compliance and ethics training programs but are still being challenged in measuring their programs’ effectiveness, two researchers told Thomson Reuters Compliance Complete on Wednesday.

EXCLUSIVE: Private sector struggles to comply with new, sector-focused U.S. sanctions on Russia

By Guest Contributor
July 31, 2014

By Brett Wolf, Compliance Complete

ST.LOUIS/NEW YORK, July 31, 2014 (Thomson Reuters Accelus) - New and more narrowly targeted U.S. financial sanctions against Russia have created headaches for Wall Street as banks and securities firms struggle to comply, industry sources said. The European Union is weighing similar measures.

Internal Audit & the Four Cs: Culture, Conduct, Corporate Governance and Customer Outcomes

By Guest Contributor
July 30, 2014

By Michael Cowan, Regulatory Intelligence Analyst, Thomson Reuters

NEW YORK, July 30, 2014 - Corporate governance and culture have moved into the mainstream as a result of the financial crisis, and as the global recovery takes hold, governments and regulators are keen to ensure lessons are learned. It is clear, however, that despite the increasing profile of corporate governance with regulators, shareholders and customers, and the effect it has on the health and reputation of firms, it is still an area in which many internal auditors lack a high level of involvement. (more…)

New York state proposes regulatory framework for virtual currencies

By Guest Contributor
July 23, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, July 23, 2014 (Thomson Reuters Accelus) - The New York State Department of Financial Services (DFS) is seeking public comment on a proposed “BitLicense” regulatory framework for New York virtual currency businesses, DFS Superintendent Benjamin M. Lawsky said Thursday.

Canadian banking outlook downgraded over ‘bail-in’ move, adding to recent financial stability concerns

By Guest Contributor
July 17, 2014

By Daniel Seleanu, Compliance Complete

TORONTO, July 17, 2014 (Thomson Reuters Accelus) -  In yet another worrying sign for Canada’s financial sector, Moody’s Investors Service has lowered its outlook for the Canadian banking system from “stable” to “negative” over uncertainty about government willingness to bail out banks during a crisis. It follows a pair of recent warnings issued by the Bank of Canada (BOC) and the Bank for International Settlements (BIS), both of which highlighted the growing risk of stress posed by runaway consumer debt and property prices.