Financial Regulatory Forum

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

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?

Under the terms of the order with NYDFS, London-based Standard Chartered has to suspend the processing of U.S.-dollar transactions for certain high-risk retail business clients in Hong Kong and the United Arab Emirates until its transaction monitoring program is enhanced. The settlement comes two years after the bank agreed to pay $667 million to a variety of U.S. regulators to resolve allegations of sanctions violations concerning transactions linked to Iran. (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…)

U.S. Justice Department targeting shop landlords in fight against medical marijuana industry

By Brett Wolf

NEW YORK, June 12 (Thomson Reuters Accelus) - A civil statute designed primarily to seize the assets of drug trafficking organizations is now being wielded by federal prosecutors in California in an unconventional and little-noticed attack on medical-marijuana shops in the state.

Prosecutors have brought more than a dozen lawsuits seeking the forfeiture of commercial properties that house marijuana shops. The actions pressure owners to either evict these controversial tenants or face costly legal battles or the loss of their buildings. (more…)

Cole’s FSA departure leaves a lasting legacy but no surprise, says industry

By Martin Coyle

LONDON/NEW YORK, Feb. 16 (Thomson Reuters Accelus) - City lawyers have praised Margaret Cole’s legacy following her decision to depart the Financial Services Authority and have said her successor faces a tough job continuing her good work as head of enforcement. Observers also noted that Cole’s failure to secure the top job at the new Financial Conduct Authority meant that her departure was inevitable. Cole, managing director and board member, announced her exit from the regulator yesterday after seven years. Cole, who joined the regulator as director of enforcement in 2005 from U.S. law firm White & Case, is widely credited with pushing forward the FSA’s recent tough approach to combating financial crime and market abuse. The importance of her departure was perhaps reflected as the news was briefly ‘trending’ on Twitter yesterday. (more…)

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