Financial Regulatory Forum

Cybersecurity and the board of directors: avoiding personal liability – Part I of III

By Guest Contributor
July 25, 2013

By Steven L. Caponi, Contributing author for Compliance Complete

NEW YORK, July 25 (Thomson Reuters Accelus) - The likelihood of a cybersecurity breach hitting one’s company in the near future is as certain as will be the resulting drop in shareholder value, finger pointing, fines, regulatory headaches and civil litigation alleging the board was asleep at the wheel in the face of a known danger. In a letter to the Chairman of the Securities and Exchange Commission from five U.S. senators, including Commerce committee Chairman Jay Rockefeller, the Senators noted:

Cybersecurity in Canada: Finance industry, government seek ways to share data

By Guest Contributor
July 18, 2013

By Daniel Seleanu, Compliance Complete

TORONTO/NEW YORK, July 18 (Thomson Reuters Accelus) - More cooperation with government intelligence agencies would improve the Canadian financial industry’s cyber security capabilities, regulatory and industry experts told Thomson Reuters. Financial institutions have deployed defences, but face considerable threat from cyber-criminals intent on committing fraud, stealing sensitive information, and disrupting their networks.

U.S. regulators’ Basel III rules package signals intent to maintain momentum in big-bank reforms

By Guest Contributor
July 17, 2013

By Bora Yagiz

NEW YORK, July 17 (Thomson Reuters Accelus) - In a move considered to be the most complete overhaul of U.S. bank capital standards since Basel I in 1988, three U.S. banking regulators (the Federal Reserve Board, Office of Comptroller of the Currency, and Federal Deposit Insurance Corporation) have finalized the three Basel III-related notices of proposed rulemaking (NPRs) from 2012 on capital rules.

CORRECTED: Bank regulators globally add AML to safety and soundness issues

By Guest Contributor
July 8, 2013

By Nick Paraskeva, for Compliance Complete

NEW YORK, July 8 (Thomson Reuters Accelus) - Bank regulators around the globe are increasingly focusing on anti-money laundering (AML) and operational risks as part of their role in overseeing institutional safety and soundness. This follows huge enforcement fines imposed on systemically important banks by regulators and justice ministries. It also reflects a concern that any attendant hit on a bank’s reputation could affect its ability to obtain short-term funding or trade other than on a fully-secured basis.

COLUMN: When cheating lands brokers on the street

By Guest Contributor
July 5, 2013

By Suzanne Barlyn, Reuters

NEW YORK, July 5 (Thomson Reuters Accelus) - One would think that aspiring financial professionals would have learned not to cheat on tests long before setting their sights on Wall Street, but not everyone got that memo.

Compliance Insight: UK regulators gain more power over overseas firms and individuals

By Guest Contributor
July 3, 2013

By Jane Walshe, Compliance Complete

LONDON/NEW YORK, July 3 (Thomson Reuters Accelus) - The new regulatory structure that came in to being on April 1, 2013 introduced changes not just to the form of regulation, but also to its substance, including extensive new powers over unauthorised parent undertakings with operations on UK soil.  (more…)

Federal judge approves HSBC deferred prosecution agreement

By Guest Contributor
July 3, 2013

By Brett Wolf, Compliance Complete

NEW YORK, July 3 (Thomson Reuters Accelus) - A U.S. federal judge has approved the Deferred Prosecution Agreement in which British banking giant HSBC will pay $1.9 billion to regulators and the Justice Department for operating with anti-money laundering weaknesses that among other things allowed drug cartels to launder hundreds of millions of dollars. (more…)

Retraction of global correspondent banking networks challenges financial-crime risk management

By Guest Contributor
July 2, 2013

By Kim R. Manchester, Contributing author for Compliance Complete

NEW YORK, July 2 (Thomson Reuters Accelus) - Global correspondent banks have faced numerous challenges since the onset of the financial crisis in 2008, including heavy scrutiny by regulators on money-laundering and terrorism-financing defenses, shrinking transaction volumes, slashed profit margins and risk parameters that defy rational measurement. A Financial Times report on how global correspondent banks are clawing back the reach of their correspondent banking network operations and trimming respondent banks from their client lists comes as no surprise to the casual observer of international banking.

IA brief: Advertising compliance principles for adviser Web sites

By Guest Contributor
June 26, 2013

By Jason Wallace, Compliance Complete

NEW YORK, June 26 (Thomson Reuters Accelus) - During an inspection, an examiner will inevitably ask the chief compliance officer of an advisory firm if they advertise and all too often, the examiner will receive a quick “no.” Although this may be true in the traditional sense of advertising, most firms do advertise with the use of a firm website and often don’t know it.

SEC move toward admissions of guilt may have only limited impact

By Guest Contributor
June 24, 2013

By Nick Paraskeva, contributing author for Compliance Complete

NEW YORK, June 24 (Thomson Reuters Accelus) – A new enforcement policy to require admissions of guilt in serious civil cases will be a potent weapon for the Securities and Exchange Commission, (SEC), if the agency chooses to use it. The change will appease some of those who criticized the SEC for a tepid enforcement response to the crisis. However, without a transparent process, there will be little way of knowing in which cases the admission is being sought.