Compliance & Ethics

The U.S. Securities and Exchange Commission (SEC) has raised concerns about weak anti-money laundering (AML) policies and staffing issues within broker-dealers, highlighting the critical importance of AML compliance for investor asset safety and financial market integrity. The Division of Examinations conducted examinations of broker-dealers in 2021, focusing on AML and countering the financing of terrorism (CFT) requirements. A Risk Alert was issued by the Division, addressing compliance issues related to suspicious activity monitoring and reporting components of AML programs, as well as other key AML requirements.

Martin's Point Health Care Inc., a healthcare provider based in Portland, Maine, has reached a settlement with the Department of Justice (DOJ) to pay $22.5 million to resolve allegations of violating the False Claims Act. The accusations were related to submitting inaccurate diagnosis codes for its Medicare Advantage Plan enrollees, leading to increased reimbursements from Medicare.

In a bid to combat illicit financial activities and strengthen its reputation as a global financial and business hub, the United Arab Emirates (UAE) has announced the establishment of judicial bodies dedicated to prosecuting money laundering and economic crimes. The move comes in response to increased scrutiny from international watchdogs, particularly the Paris-based Financial Action Task Force (FATF), which added the UAE to its "grey list" in March 2022 due to concerns over illicit finance.

The Competition and Markets Authority (CMA), Britain's antitrust regulator, has opened an inquiry into Microsoft's proposed $69 billion takeover of Activision Blizzard. The deal, which was previously blocked in April, is now under review again, with a final decision expected by August 29.

In a joint effort to enhance the strength and resilience of the banking system, federal bank regulatory agencies have issued a request for public comment on a proposed rule that aims to bolster capital requirements for large banks. The proposal seeks to modify capital requirements for these institutions, taking into account underlying risks and fostering consistency in risk measurement practices.

BNP Paribas (BNPP.PA), the largest bank in the eurozone, is on the verge of resolving a U.S. investigation into its employees' use of unapproved messaging platforms, according to its mid-year earnings report released on Thursday. The resolution may lead to the French bank facing a fine as part of the agreement.

The World Economic Forum (WEF) has released its inaugural Chief Risk Officers Outlook for July 2023, offering a comprehensive survey of global risks that have the potential to impact economic growth, destabilize global markets, and disrupt businesses in the coming six months. The report, based on responses from the WEF's community of chief risk officers, sheds light on key concerns that demand attention from risk practitioners and businesses worldwide.