Financial Regulatory Forum

IA brief: California broadens scope of private-adviser exemption

September 12, 2012

By Jason Wallace

NEW YORK, Sept. 12 (Thomson Reuters Accelus) – California has broadened registration exemptions for private-fund advisers in a final rule adopted by the state Department of Corporations that considers the manager and its fund-investor characteristics rather than “assets under management” (AUM) or the number of clients.

SEC whistleblower program stricter than IRS bounty which paid $104 million to felon, former official says

September 12, 2012

By Stuart Gittleman

NEW YORK, Sept. 12 (Thomson Reuters Accelus) – Rewards like the $104 million the Internal Revenue Service said Tuesday it would pay a convicted felon would not occur under a similar Securities and Exchange Commission program, a former official who helped develop the program told Compliance Complete. (more…)

Brokerages stumble on following in-house supervision rules – study

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

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

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

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

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

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

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

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.