Financial Regulatory Forum

No bank is ‘too big to jail,’ U.S. Attorney General Holder warns

By Stuart Gittleman, Compliance Complete

NEW YORK, May 20 (Thomson Reuters Accelus) - Corruption, cyber threats and transnational organized crime – and the money laundering that greases the wheels of illicit commerce – are high on the list of law enforcement priorities, U.S. Attorney General Eric Holder told the House Judiciary Committee on Wednesday. (more…)

U.S. consumer bureau’s first criminal referral is a warning for regulated banks

By Emmauel Olaoye, Compliance Complete

WASHINGTON, May 15 (Thomson Reuters Accelus) - Lenders who work closely with unregulated financial companies should conduct a thorough background check on the track record of such companies if they want to avoid being sanctioned by regulators.

The advice comes a few days after federal prosecutors charged debt settlement company Mission Settlement Agency and four individuals with mail and wire fraud. The charges were the result of allegations that the defendants ran a scheme that victimized more than 1,200 people across the United States. (more…)

Exclusive: Consultancies on second tier as Justice Department seeks HSBC compliance monitor

By Brett Wolf, Compliance Complete

May 14, (Thomson Reuters Accelus) - Although a federal judge in Brooklyn has not yet signed-off on a deal between HSBC and the Justice Department that would settle allegations that anti-money laundering failures at the bank allowed drug cartels to launder hundreds of millions of dollars, candidates for a lucrative job policing the bank’s compliance with the pact are scrambling to win the work. (more…)

EXCLUSIVE: Public face of controversial AML rule-making effort to leave U.S. Treasury Department

A top U.S. Treasury Department anti-laundering official who has played a key role in the development of a controversial proposal to require banks and broker-dealers to better know their customers is leaving the department. Friday will be his last day. (more…)

ACCELUS SUMMIT: FATCA compliance is a manageable challenge, but deadlines loom

By Stuart Gittleman, Compliance Complete

NEW YORK, May 2 (Thomson Reuters Accelus) – A U.S. law to improve tax compliance by U.S. taxpayers with foreign financial assets is creating confusion for foreign financial institutions that must cooperate with the Internal Revenue Service to help enforce the law.

The law, the Foreign Account Tax Compliance Act, or FATCA, requires U.S. taxpayers with certain foreign financial assets and offshore accounts to report the assets to the Internal Revenue Service.  (more…)

ACCELUS SUMMIT: Former U.S. SEC chief Pitt warns against imposing regulations abroad, urges industry engagement

Nick Paraskeva, for Compliance Complete

NEW YORK, May 2 (Thomson Reuters Accelus) – The United States should recognize it can no longer impose its regulatory solutions on the rest of the world, former U.S. Securities and Exchange Commission head Harvey Pitt said on Thursday.

“The time when the U.S. could be arrogant is long over, as is the time when it could believe it could hold on to financial services in this country,” Pitt told the Thomson Reuters Accelus annual Compliance & Risk Summit in New York.  (more…)

SEC’s Walter says she is open to alternatives to overseeing investment advisers

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Apr.19 (Thomson Reuters Accelus) - There are several ways to ensure adequate examinations investment advisers: by charging investment advisers user fees, getting a bigger budget from Congress or through a self-regulated organization that oversaw investment advisers, SEC Commissioner Elisse Walter said. The important thing is to get on with it.  (more…)

New regulations require cleaner data

By Mark Davies, contributing author for Compliance Complete

LONDON, Apr. 18 (Thomson Reuters Accelus) – Continuing efforts by financial regulators and by firms themselves to monitor and offset risk have affected almost all areas of firms’ operations, including the management and maintenance of data. The overhaul of global systems following the financial crisis has led to an audit of data, and specifically of the information which firms hold about themselves and their counterparties or clients, known as business entity reference data.

More regulation

This “data exploration” is being driven by the cumulative effect of several individual pieces of regulation, including the European Market Infrastructure Regulation (EMIR) and Solvency II in Europe and the Dodd-Frank Act and the Foreign Account Tax Compliance Act (FATCA) in the U.S., all of which are likely to have an impact globally. The primary goal of these proposals, with the exception of FATCA, is to improve risk management in the financial system.  (more…)

New Basel credit-exposure limits will force banks to think harder on concentration

By Bora Yagiz, Compliance Complete

NEW YORK, Apr. 9 (Thomson Reuters Accelus) - The Basel Committee’s March 26 plan on the supervisory framework for measuring and controlling large exposures is offering a new insight into how internationally active banks should determine their level of exposures to a single counterparty and a group of connected counterparties, and which factors they should weigh in making the necessary calculations.

The proposed framework recognizes for the first time that no form of concentration risk has been considered in the previous calculation of capital requirements. It, therefore, considers a large exposures framework to be complementing the Committee’s work on risk-based capital standards, which by themselves do not take into account the possibility of large losses due to concentration risk. (more…)

Ontario Securities Commission fines, bans “qualified person” in landmark enforcement over faked science

By Daniel Seleanu, Compliance Complete

TORONTO, April 5 (Thomson Reuters Accelus) – In a landmark settlement, the Ontario Securities Commission (OSC) has fined and permanently banned Bernard Boily for falsifying scientific research used in press releases by Bear Lake Gold Ltd., a mining exploration company listed on the TSX Venture Exchange in Toronto. When Bear Lake Gold announced that its research had been tampered with, it suffered a one-day market capitalisation loss of $42 million.

The Boily case is the first to come before the OSC that pertains to the conduct of a qualified person, a position defined as a gatekeeper of technical information under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (PDF) (NI 43-101). (more…)

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