Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

In the ninth episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Brett Wolf for an insightful discussion on the TD Bank unprecedented fine related to the banks numerous AML failures.

Brett Wolf, is an award winning journalist and our resident expert on AML, financial crime, and sanctions for Thomson Reuters Regulatory Intelligence.

In this episode, Brett and Todd discuss what occurred at TD Bank leading, multiple U.S. banking regulators and law enforcement agencies to cumulatively fine the bank and its subsidiaries more than $3 billion after finding that the bank engaged in systemic and willful AML failures.

Additionally, regulators and the Department of Justice have imposed very restrictive and harsh remediation demands on the bank which could impact it for years to come.

For more information on the podcast and additional resources, see the links below.

Links:
Todd Ehret LinkedIn: https://www.linkedin.com/in/todd-ehret-91827264/

Brett Wolf LinkedIn: https://www.linkedin.com/in/amlwolf/

Link to recent articles by Brett Wolf:

DOJ statement that includes links to the court documents: https://www.justice.gov/opa/pr/td-bank-pleads-guilty-bank-secrecy-act-and-money-laundering-conspiracy-violations-18b

Article about TD Bank plea:

https://www.linkedin.com/posts/amlwolf_us-action-against-td-bank-activity-7250564774063714304-xkEV?utm_source=share&utm_medium=member_ios

Article on TD AML employee who allegedly stole customer information and shared it on Telegram to fuel check fraud scheme:

https://www.linkedin.com/posts/amlwolf_td-aml-staffer-allegedly-stole-customer-data-activity-7260710359504683008-Acvs?utm_source=share&utm_medium=member_ios

FinCEN Consent Order with TD Bank

https://www.fincen.gov/sites/default/files/enforcement_action/2024-10-10/FinCEN-TD-Bank-Consent-Order-508FINAL.pdf

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

It has been more than 15 months since the UK Financial Conduct Authority (FCA) introduced the Consumer Duty for current products and over three months since its introduction for closed products. During that time, the FCA has gone from helping firms prepare for the duty's impact to scrutinising how they have implemented it.

The FCA's approach to supporting firms prior to implementation won praise from many quarters. With "dipstick" progress surveys to reviews that explored good and bad practices, the FCA issued extensive documentation to help firms prepare, understand and implement its expectations.

But as Sheldon Mills, executive director for consumers and competition at the FCA, said in a speech on the deadline date for duty implementation for closed products in July 2024, "this is not the beginning of the end…but the end of the beginning."

In that speech, Mills highlighted FCA planning, including thematic work across sectors and targeting specific sectors, products or services and a focus on pricing and value outcomes.

In this episode, Alex Robson, managing editor at Regulatory Intelligence, talks to Mike Cowan, senior regulatory intelligence expert, about the progress being made to embed the Consumer Duty in financial services firms, what recent enforcement activity means as the FCA looks to assess how firms are implementing the duty and what firms can do in future.

Links

COLUMN: TSB fine for mistreating financially distressed customers cites value of relationships over procedure: http://go-ri.tr.com/xte3nf

IMPACT ANALYSIS: Volkswagen's FCA fine in drives a lesson in customer outcomes: http://go-ri.tr.com/jLXAR7

IMPACT ANALYSIS: FCA fines PwC over not reporting London Capital & Finance suspicions: http://go-ri.tr.com/yKHVnC

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The FCA's recent victory (http://go-ri.tr.com/Ee9lhf) in the Court of Appeal against BlueCrest Capital Management presented an interesting reversal of a tribunal decision last year (http://go-ri.tr.com/0olu4N) which sided with BlueCrest.

Whether the case now goes to a full hearing at the tribunal or an appeal to the Supreme Court on these preliminary issues remains to be seen.

Whatever the outcome, it could have serious implications for both regulated firms and the regulator.

In this week's podcast, senior regulatory intelligence expert Helen Parry discusses the case and its ramifications in conversation with Trond Vagen, senior editor, UK & Europe.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

Links:
http://go-ri.tr.com/Ee9lhf
http://go-ri.tr.com/0olu4N
http://go-ri.tr.com/fWunnj
http://go-ri.tr.com/hGFF7r
http://go-ri.tr.com/6vyBxe

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

It can't have escaped anyone's notice that there is a presidential election in the United States on Tuesday, November 5. The polls are too tight to call and the fight for the White House between former President Donald Trump and Vice-President Kamala Harris is going right down to the wire.

In this episode of Compliance Clarified, Alexander Robson, managing editor, Regulatory Intelligence, in London chats with Henry Engler, senior editor, and Todd Ehret, senior regulatory intelligence expert in New York, about the possible outcomes, the polls and betting markets, and, specifically, what a decisive result for either candidate would mean for financial regulation. They discuss the possible impact on banking and crypto regulation and how House/Senate races beyond the presidential election might shape the outcome.

Will Fed Chair Jay Powell survive under Trump? What is the future of Fed vice chair for supervision Michael Barr under Trump given Wall Street's hostility towards his Basel endgame plans? What would a Harris administration focus on? Henry and Todd discuss these questions and more.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

Links
Kalshi Markets: https://kalshi.com/markets

Polymarket: https://polymarket.com/event/presidential-election-winner-2024

Predictit: https://www.predictit.org/markets/detail/7456/Who-will-win-the-2024-US-presidential-election

U.S. appeals court clears Kalshi to restart elections betting (paywall): http://go-ri.tr.com/aOPu3s

INSIGHT: U.S. CFTC proposes rule to clarify ban on listed derivative bets on elections and other events (paywall): http://go-ri.tr.com/yIZWLm

How could Trump overhaul US financial regulators if he wins on Nov. 5?: https://www.reuters.com/markets/us/how-trump-could-overhaul-us-financial-regulators-if-he-wins-nov-5-2024-10-10/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Helen Chan, regulatory intelligence expert and Rachel Wolcott, senior editor discuss financial crime compliance risks in luxury hospitality and the luxury goods
sectors. They run through recent developments and sanctions compliance in high-risk geographies and what that means for multinational luxury groups.

Rachel shares an overview of regulatory requirements implemented in the U.S. and anticipated reforms applicable to businesses in the luxury sector in Europe and the United Kingdom. Rachel and Helen highlight compliance takeaways for financial institutions, luxury groups and dealers of high value assets such as art and real estate.

Links:
Displays of wealth on social media draw scrutiny:
https://regintel-content.thomsonreuters.com/document/ICBBF93E0701C11EFB351F8E4C03DB09C/COMMENTARY:-Displays-of-wealth-on-social-media-draw-regulatory-scrutiny--11-09-
2024

Kim Jong Un drives Putin during state visit to North Korea (Korea Central Television)
https://www.youtube.com/watch?v=DNHHtFVibK8

Factsheet: FinCEN issues final rule to increase transparency in residential real estate
transfers: https://www.fincen.gov/sites/default/files/shared/RREFactSheet.pdf

Lafarge pleads guilty to conspiring to provide material support for terrorist organizations: https://www.justice.gov/opa/pr/lafarge-pleads-guilty-conspiring-provide-material-support-
foreign-terrorist-organizations

Contact us:
Helen.chan@thomsonreuers.com
Rachel.wolcott@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the fourth episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Henry Engler for an insightful discussion on the Basel III endgame.

Basel III was originally developed in response to the financial crisis of 2008- 2009. The Basel Committee for Banking Supervision finalization of Basel III, known as Basel III endgame, introduces extensive changes, especially in the calculation of risk-weighted assets (RWA). These changes will significantly impact business models, compelling banks to reconsider their capital allocation strategies.

On July 27th, 2023, the US Federal Reserve and FDIC published their Notice for Proposed rulemaking for Basel III endgame. After months of criticism and discussion, on September 10, the Federal Reserve announced a re-proposal of the much discussed and awaited Basel III Endgame.

Henry Engler is a Senior Editor for North America for Thomson Reuters Regulatory Intelligence based in New York. Henry joined Thomson Reuters after a decade in the financial industry in which he has served in roles as an executive or managing consultant overseeing compliance-related and other projects. Henry is also a trained economist and has served as a financial journalist and business strategy executive at Reuters. Henry has edited books on the European Monetary Union and the future of banking and is also the author of "Remaking Culture on Wall Street: A Behavioral Science Approach for Building Trust from the Bottom Up."

For more information on the podcast and additional resources, see the links below.

Links:
Todd Ehret LinkedIn: https://www.linkedin.com/in/todd-ehret-91827264/

Henry Engler LinkedIn: https://www.linkedin.com/in/henry-engler-29133/

Link to recent article by Henry Engler:
U.S. Basel Endgame enters uncertain phase as regulators jostle behind the scenes: https://www.linkedin.com/feed/update/urn:li:activity:7246539010406252546/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the third episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Brett Wolf for an insightful discussion on his takeaways from the recent ACAMS conference in Las Vegas.

Brett Wolf is an award-winning journalist and our resident expert on AML, financial crime, and sanctions for Thomson Reuters Regulatory Intelligence.

Brett shares his insight on various discussions at ACAMS and FinCEN’s recently proposed rule that would amend financial institutions’ AML program requirements. He also offered his take on the latest developments with AI and the industry efforts surrounding the nascent technology and the Corporate Transparency Act and beneficial ownership reporting as FinCEN continues its push to implement the statute.

For more information on the podcast and additional resources, see the links below.

Links:

Todd Ehret LinkedIn: www.linkedin.com/in/todd-ehret-91827264/

Brett Wolf LinkedIn: www.linkedin.com/in/amlwolf/

Link to recent article by Brett Wolf
U.S. FinCEN reviews comments on proposed changes to AML program rule, bank regulators still accepting feedback: www.linkedin.com/posts/amlwolf_fincen-rulemaking-activity-7245212104629051392-Nu36?utm_source=share&utm_medium=member_desktop

Thomson Reuters Regulatory Intelligence content https://regintel-content.thomsonreuters.com/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson and Rachel Wolcott, senior editors in London discuss the growing risk – both reputational and regulatory for financial firms invested or lending to methane-intensive corporates.

Methane has 28 times the warming effect of CO2. The two main sources of man-made methane are agriculture and fossil fuels, and increasingly lawmakers are pushing responsibility for reigning in emissions onto the financial services firms.

Lindsey and Rachel discuss the various regulations that are in place or in train to ensure banks and investment firms are collecting data on the methane intensity of their loan books and portfolios. These include the Sustainable Financial Disclosure Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD), the EU Methane Regulation and the EU Deforestation Regulation.

They go on to discuss the growing public interest in who is funding agribusiness and the fossil fuel industry. And how the satellites coming online to monitor methane leaks will increase the scrutiny on banks.

And Rachel can't resist a cow joke or two.

Links:

Planet Tracker Hot Money report: https://planet-tracker.org/wp-content/uploads/2023/01/Hot-Money.pdf
Banking on Climate Chaos report from Rainforest Alliance: https://www.bankingonclimatechaos.org/wp-content/uploads/2024/05/BOCC_2024_vF1.pdf
Environmental Defense Fund Missing Methane: A European Perspective Report: https://business.edf.org/insights/missing-methane-a-european-perspective/
Article on satellite monitoring: https://www.thomsonreuters.com/en-us/posts/esg/deforestation-carbon-reduction-technology/
The GreenShed project: https://www.sruc.ac.uk/connect/about-sruc/major-projects/greenshed/
Article on academic research on bark absorbing methane: https://theconversation.com/weve-discovered-the-worlds-trees-absorb-methane-so-forests-are-even-more-important-in-the-climate-fight-than-we-thought-235233
Article on feeding seaweed to cows: https://caes.ucdavis.edu/news/feeding-cattle-seaweed-reduces-their-greenhouse-gas-emissions-82-percent#:~:text=New%20Long-Term%20Study%20Could,the%20University%20of%20California%2C%20Davis.
EU deforestation regulation (supply chain); https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
UK deforestation rules (supply chain): https://www.legislation.gov.uk/ukpga/2021/30/schedule/17

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Lindsey Rogerson and Rachel Wolcott, senior editors for Regulatory Intelligence in EMEA discuss the UK Financial Conduct Authority’s (FCA) approach to Freedom of Information Act (FOIA) compliance.
In the UK, most public bodies are subject to FOIA. That means members of the public can request information held by public authorities or by persons providing services to them. That includes the FCA, the Prudential Regulation Authority and the Bank of England.

Lindsey and Rachel discuss the importance of using FOIA in their work to uncover information that helps readers and listeners better understand how the regulators work. They talk through several examples of information they’ve been able to request, including about whistleblowing, enforcement statistics, as well as bullying and harassment allegations made by FCA employees.

Recently, however, many of their FOIA requests have been met with resistance from the regulator. Lindsey and Rachel talk about how they appealed the FCA’s use of FOIA exemptions —and won. The process brought valuable insights into how the regulator manages FOIA compliance.

LINKS
FCA response to FOI on guidance for supervisors investigation allegations made by whistleblowers after ICO intervention June 2024: https://www.whatdotheyknow.com/request/protocol_for_supervisors_when_in/response/2684994/attach/4/FOI10712%20Amended%20Response%2020240619.pdf?cookie_passthrough=1

Redacted FCA document: Supervision: Whistleblowing ‘How to Guide’ for SPC & Authorisation Divisions: https://www.whatdotheyknow.com/request/protocol_for_supervisors_when_in/response/2684994/attach/5/Annex%20A.pdf?cookie_passthrough=1

Article: FCA report shows "host" ACD compliance has not improved in a decade, s 166s imposed: https://word-edit.officeapps.live.com/we/FCA%20report%20shows%20%22host%22%20ACD%20compliance%20has%20not%20improved%20in%20a%20decade,%20s%20166s%20imposed

Article on: UK FCA is still assessing more than 1,100 whistleblower reports from 2023/24: https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fgo-ri.tr.com%2FO3tB1r&data=05%7C02%7Crachel.wolcott%40thomsonreuters.com%7Cba01669a1154474d690a08dcd2715851%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C638616631473549097%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=DODZq3z11tZ%2FDZsQvMvYSJWDHOs4gJi7eVZRLslaqGA%3D&reserved=0

H2O decision notice: https://www.fca.org.uk/publication/final-notices/h2o-am-llp-2024.pdf

FCA warning notice on Woodford Investment Management Ltd and Neil Woodford: https://www.fca.org.uk/publication/warning-notices/warning-notice-statement-24-3.pdf

First Tier Tribunal decision in Paul Carlier v ICO: https://www.bailii.org/uk/cases/UKFTT/GRC/2024/257.html

Article on FOIA request about MiFID II recordkeeping investigations: https://www.linkedin.com/posts/rachelwolcott_mifid-enforcement-action-activity-7199352605670555649-BLwt/?utm_source=share&utm_medium=member_desktop

Article: FCA to merge FOIA, personal data disclosure unit into comms team: https://www.linkedin.com/posts/rachelwolcott_fca-to-merge-idt-fully-with-communications-activity-7163815206140239873-HFex/?utm_source=share&utm_medium=member_desktop

UK FCA's FoIA request reputational risk assessments, guidelines for journalists' requests are inappropriate –expert (paywall): http://go-ri.tr.com/xqNUHX

Meta FOIAs
FOI6522, FOI9427, FOI9980 (scroll to the bottom for links. For two of them you may need to request access from the FCA)
FCA’s response to Lindsey and Rachel’s questions:
Is the FCA's approach to FOIA and DPA in line with its stated values of acting with integrity and delivering in the public interest? "Yes"

Does the FCA still circulate FOI responses to large number of staff in the CEO's office and the COO for comments and sign off? "As we mentioned in our last response to you in March, our approach is in line with ICO guidance and the law."

What are the latest IDT performance statistics? "Over the last 12 months from September 2023 to August 2024 (inclusive), we responded to 92% of FOIA requests and 98% of DSARs within the statutory deadline."

Has the ICO asked the FCA to perform any remedial work on IDT? Has ICO advised/queried the FCA about safeguards for FOIA and DPA in the new combined IDT/press office arrangements? "No. When we answered your questions in March, we explained that it had been our intention that the information disclosure team would move to a different department within the communications directorate as part of a planned restructure later this year. That move has now happened."

Has the FCA stopped internal circulation of lists of new FOIA requests with names of requestors? If not why not?
"We continue to circulate the details of new requests, which generally include the names of the requesters, to a limited number of internal stakeholders. We are satisfied that our internal processes are appropriate and lawful, including that our processes are compliant with FOIA and data protection legislation."

What further steps has the FCA taken to train IDT/comms staff about using FOIA exemptions?
"All IDT staff and internal reviewers have received formal training on the application of the FOI Act and many members of the team are qualified FOIA practitioners. In addition, IDT works closely with our legal division, which provides expert guidance in the interpretation of the most complex aspects of the Act."

Has the FCA reviewed its approach to labelling FOIA requests as vexatious following the First-Tier Tribunal case Paul Carlier v Information Commissioner and the FCA? If yes, how? "The FCA continues to consider each request on a case by case basis, in line with the requirements of relevant legislation, ICO guidance and case law. In this case, the ICO agreed with our view the requests were vexatious. The Tribunal, however, decided 'by a narrow margin' they were not, a conclusion it reached 'with some hesitation.' We have therefore been happy to reconsider the requests."

From the evidence we have reviewed the FCA’s approach to FOIAs and DPAs seemed to be top-down with many senior executives signing off requests and even correcting grammar errors. We are also aware from our own FOIs that there is often months-long delays in responding to requests and appeals. Given this, what is the FCA doing to ensure a more efficient process in line with the legislation?

"We have improved our performance on the statutory deadlines for FOIAs and DSARs over the last year. We recognise that we need to do more to improve our performance in processing FOIA Internal Reviews and DSAR complaints. We are currently considering how the existing process can be streamlined to improve its efficiency. Our internal processes are focused on ensuring a clear and quality response, not preventing disclosure which is determined by the law."

FOI6522: https://www.whatdotheyknow.com/request/foi6522_request_for_further_info#incoming-2714347
FOI9427: https://www.whatdotheyknow.com/request/foi9427_request_for_information#incoming-2713882
FOI9980: https://www.whatdotheyknow.com/request/foi_9980_request_for_information#incoming-2711477


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this last episode of series 11, Helen Parry, senior regulatory expert and Rachel Wolcott, senior editor, discuss the gambling scandal that enveloped the UK general election and cross over themes for compliance.

Cheating is an offence under section 42 of the Gambling Act and betting firms are supposed to do enhanced due diligence on politically exposed persons (PEPs).

Helen explains how recent enforcement actions against UK gambling firms around their failure to conduct enhanced due diligence on PEPs led to better controls that meant UK politicians using inside information to place bets on the general election date were detected quickly.

Helen and Rachel discuss the UK Financial Conduct Authority's guidance for risk managing PEPs as well as other inside information examples around political polling and other sensitive information.

Links

COLUMN: Stop the bets – the law and regulation of political gambling and politically exposed persons (pay wall - go-ri.tr.com/Cdfrka)

(FG 17/6 - https://www.fca.org.uk/publication/finalised-guidance/fg17-06.pdf) UK FCA guidance on the treatment of politically exposed persons for anti-money laundering purposes

William Hill Group businesses to pay record £19.2m for failures (UK gambling commission press release - https://www.gamblingcommission.gov.uk/news/article/william-hill-group-businesses-to-pay-record-gbp19-2m-for-failures)

Entain to pay £17 million for regulatory failures (UK gambling commission press release - https://www.gamblingcommission.gov.uk/news/article/entain-to-pay-gbp17-million-for-regulatory-failures#:~:text=A%20gambling%20business%20is%20to,.uk%20and%20foxybingo.com.)

Contact us

Helen.parry@thomsonreuters.com
Rachel.wolcott@thomsonreuters.com

It’s been quite a month for elections in Europe, but in this episode, Regulatory Intelligence’s Lindsey Rogerson, Mike Cowan, and Rachel Wolcott pick out what financial services should be aware of after the Labour party’s win in the UK election on July 5.
The financial services sector certainly will play a part in Labour’s growth plans. The party’s financial services plan, published in January said: “We will unashamedly champion our financial services sector as one of the UK’s greatest assets.”
Rachel Reeves, the new Chancellor of the Exchequer and the first woman to hold the post in 800 years, has been warmly received by women working in Britain’s finance sector. Her appointment as well as the increase in diversity in members of parliament across all parties was called a break-through moment at this week’s Women in Finance summit held in London. Tulip Siddiq was appointed as City Minister as the podcast was going to press. She had been Labour’s shadow City Minister since 2021.
On July 8 Reeves told an audience of financial services and green industry leaders that economic growth is a national mission. She also announced Labour will go ahead with a national wealth fund with a remit to invest in and catalyse private sector investment in new and growing industries.
This discussion was recorded on 8th July, things will change when the government gets going with its first King’s Speech setting out its legislative agenda and announces its budget in the fall. There will be a wait to hear whether the new government prioritizes crypto and pushes forward with that regulatory workstream, where it lands on economic crime and how it will push forward the green finance agenda as well as changes to the car insurance market—to name but a few items in its bulging inbox.
Perhaps the biggest question now, however, is whether the government will do something for financial services when it comes to doing business with the European Union.
Links
Labour’s financing growth plan: https://labour.org.uk/updates/stories/financing-growth-labours-plan-for-financial-services/
UK Finance publishes financial services manifesto: https://www.ukfinance.org.uk/news-and-insight/press-release/uk-finance-publishes-financial-services-manifesto
Contact us:
Rachel.Wolcott@thomsonreuters.com, Lindsey.Rogerson@thomsonreuters.com, mike.cowan@thomsonreuters.com.

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Helen Chan, regulatory intelligence expert in Hong Kong is joined by Lindsey Rogerson and Rachel Wolcott, senior editors in the UK, to examine use cases for artificial intelligence (AI) powered regtech in culture and conduct risk management. They discuss the potential pitfalls of employee surveillance, endowment bias and instances where AI goes awry. Lindsey and Rachel highlight emerging enforcement risk from the United States' Securities and Exchange Commission (SEC) over AI-washing and the importance of tracking data lineage in the incorporation of generative AI tools for financial institutions.

Links:

The European Insurance and Occupational Pensions Authority - Report on the digitalisation of the European insurance sector: www.eiopa.europa.eu/publications/eiopas-report-digitalisation-european-insurance-sector_en

Regulators in Asia lay down foundation for regulation of AI ethics (paywall): http://go-ri.tr.com/aWnKkV

Conduct tech may fail to deliver insights, while increasing data privacy risk, ethical issues: http://go-ri.tr.com/PN8Rvm

SEC Charges Two Investment Advisers with Making False and Misleading Statements About Their Use of Artificial Intelligence: www.sec.gov/newsroom/press-releases/2024-36

SEC Charges Founder of AI Hiring Startup Joonko with Fraud: www.sec.gov/newsroom/press-releases/2024-70#:~:text=The%20Securities%20and%20Exchange%20Commission,Joonko's%20customers%2C%20the%20number%20of

Finos' AI Readiness: www.finos.org/press/finos-launches-ai-readiness

Contact us:
Helen.Chan@thomsonreuters.com; Lindsey.Rogerson@thomsonreuters.com; Rachel.Wolcott@thomsonreuters.com

For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or click here: legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Lindsey Rogerson, senior editor and Mike Cowan senior regulatory intelligence expert discuss the UK Finance Conduct Authority’s actions in the first year of its flagship Consumer Duty initiative.

The FCA has hit the ground running with the Consumer Duty since its launch on July 31, 2023. No sector has been left untouched as the regulator has run its rule over how firms are delivering the Duty’s requirement for firms to evidence and deliver fair outcomes
to their customers.

The conversation is split into two parts, a review of the first 11 months of the duty applying to open book products followed by a discussion as to how firms should be preparing for the arrival of the duty to closed product books from July 31.

Links:

FCA research into trading apps: https://www.fca.org.uk/publication/research-notes/research-note-digital-engagement-practices-trading-apps-experiment.pdf

Consumer Duty: spotting and handling financial abuse of vulnerable customers: http://go-ri.tr.com/zv2gGf

Customer vulnerability: an extra layer to the UK FCA Customer Duty: http://go-ri.tr.com/zAurSH

UK FCA’s motor finance complaints pause hands: http://go-ri.tr.com/WlImYg

ANALYSIS: Motor finance: UK firms face months of uncertainty, say experts: http://go-ri.tr.com/wLpB5I

INSIGHT: FCA finds deficiencies in insurance claims handling when valuing written-off or stolen vehicles: http://go-ri.tr.com/RHfs7h

OPINION: FCA fines HSBC £6.2 million for arrears handling failures: http://go-ri.tr.com/2WEPxu

OPINION: 10 things UK compliance officers must consider when dealing with customer's deposit accounts: http://go-ri.tr.com/9Bf43I

OPINION: FCA to review firms' approach to dealing with vulnerable customers in 2024: http://go-ri.tr.com/1aAjZQ

UK FCA allows four firms to resume selling GAP insurance: http://go-ri.tr.com/ZYv1yL


For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or check the show notes for a link
https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Rachel Wolcott senior editor in the UK speaks to Natalia Kubesch, a lawyer for Redress.org a non-governmental organization in London. This episode is about the victims of war crimes and crimes against humanity and why the current approach to sanctions and asset confiscation does not do enough to help them.

Natalia specializes in using Magnitsky Sanctions to provide accountability for serious human rights violations. Redress represents victims of torture and helps them seek accountability and justice. Part of Natalia’s work is advocating for the use of sanctions and asset confiscation to respond to serious human rights abuses and corruption.

Natalia talks about work to confiscate assets related to Bashar al-Assad’s uncle, the former Syrian vice president Rifaat al-Assad to be used to support the Syrian people. The Swiss Federal Prosecutor’s office filed charges (https://www.srf.ch/news/schweiz/graeueltaten-in-syrien-bundesanwaltschaft-klagt-gegen-onkel-von-baschar-al-assad) against Rifaat al-Assad in March this year. He is accused of crimes against humanity and war crimes. The UK has frozen an estimated £161 million in assets related to the Assad regime since 2011 when the Syrian civil war began. These assets could be used to help victims of the al-Assad regime, Natalia says.

Redress is also working with civil society groups in Myanmar to expose the use of shell companies domiciled in UK overseas territories to avoid sanctions and provide funding for its military junta. Redress and its partners have reported these possible sanctions breaches by to UK law enforcement.

Lastly, Natalia calls on the UK government to improve its approach to sanctions implementation and enforcement as well as to break the two-year impasse with Roman Abramovich, the former owner of Chelsea Football Club. He pledged £2.5 billion from Chelsea FC’s sale to help Ukrainians, but that help has not materialized. Natalia explains why.

Links:
UK should legislate to confiscate Russian state assets, accelerate financial crime enforcement, MPs hear (paywall) go-ri.tr.com/s2pP2a
New U.S. sanctions target Russian financial system, blacklist its operations in China and India and bolster 'secondary sanctions' risk (free) https://regintel-content.thomsonreuters.com/document/IC3FF985028EE11EFA4C58DA52BBFD8DA/New-U.S.-sanctions-target-Russian-financial-system,-blacklist-its-operations-in-China-and-India-and-bolster-'secondary-sanctions'-risk-13-06-2024
FATF standards used by authoritarian regimes to justify suppression -RUSI report (free) https://regintel-content.thomsonreuters.com/document/I5D740E40271811EFA4C58DA52BBFD8DA/FATF-standards-used-by-authoritarian-regimes-to-justify-suppression--RUSI-report-11-06-2024
Redress.org’s evidence to the UK parliament’s Treasury Committee https://committees.parliament.uk/writtenevidence/129074/html/
Charities criticize delay to release £2.5 billion Chelsea FCA sale funds https://www.civilsociety.co.uk/news/charities-criticise-delay-to-release-2-5bn-chelsea-fc-sale-funds-two-years-since-pledge.html


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode of Compliance Clarified Helen Chan, regulatory intelligence expert in Hong Kong speaks to Rachel Wolcott, a senior editor in the UK about the current state of stablecoin regulation and financial crime trends in stablecoins and crypto. They unpick attempts at putting a dollar value on illicit crypto flows, and try to pin down the global approach to stablecoin regulation.

Helen and Rachel discuss stablecoins use in superapps like South East Asia’s Grab and the use of tether in Telegram. Will these use cases run into the same financial crime
issues as traditional finance has with open banking? They also highlight the risks and concerns stablecoins paired with weak know-your-customer and financial crime systems and controls pose to tradfi.

Links:

Steno Research on tether: https://stenoresearch.com/crypto-moves/the-european-unions-mica-removes-tether-from-the-market/

Alison Jimenez on challenges assessing the scale of illicit crypto flows: https://docs.house.gov/meetings/BA/BA21/20231115/116579/HHRG-118-BA21-Wstate-JimenezA-20231115.pdf

UK Financial Conduct Authority’s stablecoin discussion paper: https://www.fca.org.uk/publications/discussion-papers/dp23-4-regulating-cryptoassets-phase-1-stablecoins

UK snap election leaves crypto regulation in limbo (paywall): https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522PimebR%252522%25257D%2522%257D&bhcp=1

United States of America vs Enhua Fang (pre-trial detention motion): https://www.linkedin.com/feed/update/urn:li:activity:7188558094350589952/

Tether partners with Telegram press release: https://tether.io/news/tether-collaborates-with-ton-foundation-and-oobit-to-create-seamless-crypto-payment-solution/

Clarity for Payment Stablecoins Act of 2023 (U.S. Bill): https://www.congress.gov/bill/118th-congress/house-bill/4766

Contact us:
Helen.Chan@thomsonreuters.com & Rachel.Wolcott@thomsonreuters.com

For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or check the show notes for a link legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson and Rachel Wolcott, senior editors in London talk through the UK Financial Conduct Authority's (FCA) changing approach to enforcement. They look at the number of enforcement cases closed since April 2023 when the former head of enforcement left. In all 155 cases have been closed with only 28 resulting in an enforcement action—about 18%. That discussion leads to a broader consideration of the FCA's publication of enforcement data, its resistance to some Freedom of Information Act requests for more information and a look at some of the detail it recently revealed in letters to UK lawmakers.

Lindsey and Rachel assess the FCA's proposals to announce some enforcement investigations. This plan was first announced in February and has since been rebranded as "naming and shaming" by those opposed to the measures. Lindsey and Rachel question whether this description is justified, run through the ways investigations are sometimes announced, and make a case for the more frequent publication of richer, more descriptive enforcement data.

Links:
2017 report about the HK SFC closing cases (paywall)
https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522BRKGDI%252522%25257D%2522%257D&bhcp=1


UK FCA seeks speedy closure for cases with "no future (paywall)
https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522skxHi9%252522%25257D%2522%257D&bhcp=1


UK FCA is still assessing more than 1,100 whistleblower reports from 2023/24 (paywall)
https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522O3tB1r%252522%25257D%2522%257D&bhcp=1


Season 10, Episode 6: Insider dealing lists: lessons from a conviction
https://podcasts.apple.com/gb/podcast/season-10-episode-6-insider-dealing-lists-lessons-from/id1548510826?i=1000647506230


Season 9, Episode 4: The FCA and its difficulties dealing with whistleblowing
https://open.spotify.com/episode/1l3pvrXW1J6LcJv2LOunRo

FCA Board Minutes April 2023
https://www.fca.org.uk/publication/minutes/fca-board-minutes-27-april-2023.pdf


FCA letter to House of Lords Financial Services Regulation Committee
https://www.fca.org.uk/publication/correspondence/fca-response-lfsrc-april-24.pdf


FCA letter to Treasury Committee
https://committees.parliament.uk/publications/44666/documents/221907/default/

FOIA request about recording keeping and messaging apps
https://www.whatdotheyknow.com/request/refined_request_foi10578_recordi#incoming-2645944


UK FCA opened no investigations into communications retention; opened first Mifid II transaction reporting investigation (article)
https://www.linkedin.com/feed/update/urn:li:activity:7199352605670555649/

FOIA request for updated enforcement data to show closed investigations
https://www.whatdotheyknow.com/request/enforcement_data_update_of_foi10#incoming-2661174


CP 24/2 Our enforcement guide and publicizing enforcement investigations—a new approach (the naming and shaming one ;-))
https://www.fca.org.uk/publication/consultation/cp24-2.pdf

UK Finance response to CP24/2
https://www.ukfinance.org.uk/system/files/2024-04/UK%20Finance%20%20response%20to%20FCA%20enforcement%20guidance%20CP24-2.pdf

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Today we’re joined by Klaus Moosmayer, Chief Ethics, Risk and Compliance Officer for Novartis, the Swiss pharmaceutical giant.

Klaus has had a distinguished career. He joined Novartis in 2018 after serving 18 years at Siemens where he was Chief Compliance Officer. He began his career as a lawyer in Germany, specializing in white collar crime, business law and litigation.

His views on compliance, ethics and risk are widely sought after and we first got to know him years ago when Klaus took part in a Regulatory Intelligence conference. The focus at the time was on how the financial industry might learn how other industries deal with issues of misconduct and culture.

We're here today to discuss a new article by Klaus, entitled ETHICS AND INTEGRATED ASSURANCE: THE CHALLENGE OF BUILDING ‘TRUST’. The article argues for a new organizational model for compliance.

Here is a link to the article: https://riskandcompliancemagazine.com/ethics-and-integrated-assurance-the-challenge-of-building-trust-apr24-open

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the second episode of Season 11 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Jacob Denman for a wide-ranging discussion on the growing trend of elder financial exploitation.

Jacob Denman is with Thomson Reuters Risk and Fraud Solutions and Partnerships and Alliances. Prior to joining Thomson Reuters, Jacob worked in law enforcement and then for several large banks in their financial crimes and special investigations departments. Jacob is on the Board of Directors of the Minneapolis St. Paul chapter of the Association of Certified Fraud Examiners (ACFE). He is also a Certified Anti-Money Laundering Specialist with ACAMS.

In the past few weeks, the Financial Industry Regulatory Authority (FINRA), the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), and the non-profit organization AARP (formerly known as the American Association of Retired Persons) have all issued crucial warnings and guidance on the pressing issue of elder financial crime.

Denman sheds light on the alarming surge in scams and frauds targeting the elderly. He attributes this rise to two key factors: the rapid advancements in technology and the isolation experienced by the elderly during the Coronavirus pandemic, which led to a shift in their financial management from in-person to technology-based methods.

For more information on the podcast and additional resources, see the links below.

Links:

FINRA Threat Guidance: www.finra.org/rules-guidance/key-topics/senior-investors/tip-protecting-vulnerable-adult-senior-investors

FinCEN Elder Financial Exploitation Alert: www.fincen.gov/news/news-releases/fincen-issues-analysis-elder-financial-exploitation

Thomson Reuters Special Report on the soaring number of SARs filings: www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2023/06/Suspicious-Activity-Reports-2023.pdf

AARP Report: https://press.aarp.org/2024-05-08-AARP-Report-Elevated-Risks-of-Fraud-Are-Pervasive-in-America

Todd Ehret LinkedIn: linkedin.com/in/todd-ehret-91827264/
Jacob Denman LinkedIn: linkedin.com/in/jacob-denman/

Thomson Reuters Regulatory Intelligence content: regintel-content.thomsonreuters.com/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the first episode of Season 11, Lindsey Rogerson, senior editor, is joined by Rachel Wolcott, senior editor in London and Todd Ehret, senior regulatory expert in
New York to discuss the growing impact of finfluencers – financial influencers – on the public’s investment decision-making.

According to research from the CFA Institute, some found that 37% of Gen-Z investors in the United States and 38% in the United Kingdom cited social media influencers
as a major factor in their decisions to invest.

But who are these people?

They are not just celebrities like Kim Kardashian or Tom Brady, but also bloggers sitting in their bedrooms.

The discussion moves on to discuss how regulators are attempting to clamp down. And the limitations on what regulators can be expected to achieve.

Links:
FCA finfluencer infographic: https://www.fca.org.uk/multimedia/fca-and-asa-team-warn-finfluencers-risks-promoting-illegal-get-rich-quick-schemes

European Securities and Markets Authority finfluencer research: https://www.esma.europa.eu/sites/default/files/2024-02/ESMA74-1103241886-912_Warnings_on_Social_Media_and_Investment_Recommendations.pdf

FINRA M1 Finance fine:
https://www.finra.org/media-center/newsreleases/2024/finra-fines-m1-finance-850000-violations-regarding-use-social-media

CFA Institute research:
https://rpc.cfainstitute.org/en/research/reports/2024/finfluencer-appeal

Off message: EU and UK approaches to social media promotions and finfluencers
Paywall: http://go-ri.tr.com/jSgT5b
Openweb: https://regintel-content.thomsonreuters.com/document/I12480010110211EF9891F1C9B4067FAC/Off-message:-EU-and-UK-approaches-to-social-media-promotions-and-finfluencers-15-05-2024

UK-registered cryptos still advertise with non-compliant UK affiliate marketer; FCA has not issued new warnings: https://regintel-content.thomsonreuters.com/document/IBF8E49A00D5111EF8367C78DC6A8BA08/UK-registered-cryptos-still-advertise-with-non-compliant-UK-affiliate-marketer-FCA-has-not-issued-new-warnings-09-05-2024

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson, senior editor, is joined by Trond Vagen, senior editor for European Financial Markets Regulation, to discuss the mounting sustainability-related workload for bank and investment compliance officers.

Trond discusses the European Central Bank’s (ECB) expectations for banks to accurately assess the climate and environmental risks on their balance sheets. With just nine months remaining before the deadline and the possibility of daily fines, increased capital requirements and a fit and proper assessment for institutions that get it wrong, time is running out.

Lindsey runs through the additions to sustainability legislation made in the last few weeks. The EU parliament’s five-year term is drawing to an end and there has been a wave of regulations and directives in the sustainability space that will impact the work of compliance officers for years to come.

There has also been some tinkering with regulations that have already passed as politicians seeking re-election strive to appease some of their more vocal voters.


Links:
Frank Elderson speech: https://www.bankingsupervision.europa.eu/press/speeches/speaker/vice-chair/html/index.en.html

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Rachel Wolcott, senior editor, welcomes special guest Justine Walker to the podcast. Justine is the Association of Certified Anti-Money Laundering Specialists' (ACAMS) global head–sanctions, compliance, and risk and its vice-president for thought leadership. She is an expert on sanctions, counterterrorism, and financial crime she has held specialist positions within the UK's Financial Conduct Authority, HM Treasury, the United Nations Office on Drugs and Crime and UK Finance.

Russia's invasion of Ukraine in 2022 ushered in a new set of unprecedented sanctions, including the imposition of a novel oil price cap, meant to stop Russia selling oil above $60 a barrel. But Russia seems to be able to get everything it needs to keep the war going. Justine expects enforcement action to unfold as the year progresses.

"We're entering into a much more aggressive phase regarding the price cap, we've got new price capacitation requirements, we've had a flurry of new guidance. We're probably going to see this play out in terms of more enforcement, and I think this year is going to be pretty informative in terms of how the oil price cap will end up being in terms of a longer-term tool," Justine told Compliance Clarified.

Justine emphasized the importance of Executive Order 14114, signed last year by President Biden, which ratchets up secondary sanction risk for non-U.S. financial institutions which give direct support to Russia's military-industrial base but also for indirect assistance, such as facilitating customers' dealings or providing services to customer transactions related to Russia's military-industrial base.

Justine explained the convergence of export controls with anti-money laundering (AML) and sanctions compliance. She emphasized the need for financial institutions to be proactive in identifying sensitive technologies and strategic trade, which are increasingly becoming a focus for the Group of Seven governments.

"One of the big challenges is this merger between export control requirements, AML and sanctions. There's been more of a nexus between AML and sanctions, but the nexus with export controls has not been there to what we're now seeing is being asked. We're seeing much greater expectations from governments, that financial institutions will become more proactive in their thinking around their role in sensitive technology, strategic trade, export control, and that is a whole area of speciality in itself" Justine said.

Links:
ACAMS's Global Threat Report: https://www.acamstoday.org/global-afc-threats-report/

INSIGHT: Latest U.S. warnings to foreign banks doing significant Russia business may herald sanctions
enforcement action
Inside Paywall: http://go-ri.tr.com/3ZIw6B
Outside Paywall: https://regintel-content.thomsonreuters.com/document/I899083B0DCA811EE925AD4411E508A2D/INSIGHT:-Latest-U.S.-warnings-to-foreign-banks-doing-significant-Russia-business-may-herald-sanctions-enforcement-action-07-03-2024

U.S. targets Russian "malign activities" linked to Wagner Group in Central African Republic: https://regintel-content.thomsonreuters.com/document/I87D16B80DD8D11EE985CDDFFB3F5522A/U.S.-targets-Russian-'malign-activities'-linked-to-Wagner-Group-in-Central-African-Republic-11-03-2024

EU sanctions: new rules to crack down on violations | News | European Parliament: https://www.europarl.europa.eu/news/en/press-room/20240308IPR19002/eu-sanctions-new-rules-to-crack-down-on-violations

Previous episodes:
Season 10, Episode 5: How Mekong region organized crime built a global cryptocurrency money laundering network: https://podcasts.apple.com/gb/podcast/season-10-episode-5-how-mekong-region-organized-crime/id1548510826?i=1000646371712
Season 9, Episode 8: Hamas, terrorist financing and the U.S. response to the 7 October attack: https://podcasts.apple.com/gb/podcast/season-9-episode-8-hamas-terrorist-financing-and-the-u/id1548510826?i=1000635015943
Series 9, Episode 3: North Korea, Russia, crypto and changing attitudes to sanctions in Asia: https://podcasts.apple.com/gb/podcast/series-9-episode-3-north-korea-russia-crypto-and/id1548510826?i=1000631061413

Contact us:
Rachel.wolcott@thomsonreuters.com

More information about Thomson Reuters Regulatory Intelligence: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Welcome to Compliance Clarified's 100th episode!

This week Rachel Wolcott, senior editor and Lindsey Rogerson, senior editor in London speak to a special
guest Ann Francke Chief Executive of the Chartered Management Institute in London, a professional body for management and leadership. This International Women's Day podcast looks at the backlash that's hit efforts to get women into the workplace and on an equal footing. We focus on financial services, but this is an issue that reverberates throughout society. In financial services, there has been a backlash against environment, social and governance (ESG) initiatives and despite a lot of talk about diversity and inclusion, such efforts have stalled. Fear of ESG and D&I has been conflated into an anti-woke and in some places, anti-woman agenda and with some politicians and pundits describing measures to tackle climate change and inequality as a societal risk. Equality initiatives are also some of the first to get cut when things get tough.
The Chartered Management Institute, for example, found that one in three male managers (31%) think that too much effort is going into ensuring workplace gender balance. So, how do companies, financial services firms and regulators who want to take D&I or ESG forward stand up to the political and societal backlash?

More on Ann:
She started her career at Procter & Gamble and has held senior executive positions at Mars, Boots, Yell and BSI. In 2020, Ann was awarded an OBE for services to workplace equality. Ann is an expert on gender balance in the workplace and speaks frequently in the media and conferences on this and other management topics. Her book (https://amzn.eu/d/bCRewdP) on gender balance - Create a Gender-balanced Workplace, published in September 2019.

Links to previous International Women's Day podcasts:
2023 Season 7, Episode 7: International Women’s Day special: How to ensure diversity and inclusion initiatives deliver meaningful outcomes - https://podcasts.apple.com/gb/podcast/season-7-episode-7-international-womens-day-special/id1548510826?i=1000603262524
2022 Season 4, Episode 6: Celebrating International Women's Day -https://podcasts.apple.com/gb/podcast/season-4-episode-6-celebrating-international-womens-day/id1548510826?i=1000553278776

Contact us
rachel.wolcott@thomsonreuters.com
lindsey.rogerson@thomsonreuters.com

More information about Thomson Reuters Regulatory Intelligence: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In Episode 6 of Season 10, Helen Parry, senior Regulatory Intelligence Expert speaks to Rachel Wolcott, senior editor about the UK Financial Conduct Authority's (FCA) recent success in securing an insider dealing conviction. The FCA's enforcement co-heads—Therese Chambers and Steve Smart --have used this conviction to reassert the regulator's intention to get tough on insider dealing. A previous enforcement head said the same thing in 2015. Rachel asks Helen what is different this time.

Helen explains some of the issues the recent conviction raises about insider dealing list management
and the loopholes those convicted of market abuse or insider dealing think they are taking advantage of
when trading illegally. For example, Mohammed Zina, whom the FCA convicted this month, argued he
was not insider dealing, because he was not on an insider list. That argument did not stand up in court
and Helen offers listeners examples of other similar failed defence arguments. Helen and Rachel talk
through two recent FCA Market Watch newsletters related to market abuse and insider dealing and
touch on some updates to the UK's criminal insider dealing regime.

Links
Helen on the Zina/Goldman case: COLUMN: Ex-Goldman Sachs conflicts resolution group analyst
convicted of insider dealing http://go-ri.tr.com/b4UU6K

Helen on Insider dealing and organised crime:
COLUMN: More connections emerge between criminal insider dealing cases in courts in the UK, US and
France ( January 2020) http://go-ri.tr.com/Oc83Bs

COLUMN: Insider dealing appeal throws more light on international networks of convicted day trader
http://go-ri.tr.com/Q3Sjuh

Rex vs Mohammed Zina sentencing remarks: https://www.judiciary.uk/wp-content/uploads/2024/02/R-
v-Zina.pdf

EXPLANATORY MEMORANDUM TO THE INSIDER DEALING (SECURITIES AND REGULATED MARKETS)
ORDER 2023 https://www.legislation.gov.uk/uksi/2023/582/pdfs/uksiem_20230582_en_001.pdf

Market Watch 76, flying and printing https://www.fca.org.uk/publications/newsletters/market-watch-76

Market Watch 77, insider dealing by organized criminal groups: https://www.fca.org.uk/publications/newsletters/market-watch-77

Compliance Clarified Series 9, Episode 1: UK Financial Conduct Authority's enforcement arm: "all bases
covered"or "highly unsatisfactory"?: https://podcasts.apple.com/gb/podcast/series-9-episode-1-uk-financial-conduct-authoritys/id1548510826?i=1000629486982

Contact us
Rachel.Wolcot@Thomsonreuters.com
Helen.Parry@thomsonreuters.com

More information about Thomson Reuters Regulatory Intelligence https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Industrial scale money laundering originating in Southeast Asia's Mekong region has gone global. It's the infrastructure that handles the proceeds of pig butchering scams, child pornography, trade in human body parts, illegal gambling, drug trafficking and people trafficking. Cross-border crime networks fueled by cryptocurrency is linking the world's most dangerous criminals and allowing them to scale up and automate money laundering. This activity is increasingly linked to terrorist financing as well as sanctions evasion.
In this episode Helen Chan, Regulatory Intelligence expert joins Rachel Wolcott, senior editor to discuss the scale and scope of crypto money-laundering-as-a-service and its origins in Southeast Asia's gambling industry. Helen and Rachel talk listeners through how crypto exchanges may be using regulatory arbitrage to get licensed, which in turn can open the door to organized crime groups. To date China and the U.S. have mounted the strongest regulatory and enforcement response, while other jurisdictions like the UK and the European Union seem to be operating on an outdated assumption that crypto money laundering is low risk.

Links:
UN Office on Drugs and Crime report: Casinos, Money Laundering, Underground Banking and Transnational Organized Crime in East and Southeast Asia: A hidden and accelerating threat: https://www.unodc.org/roseap/uploads/documents/Publications/2024/Casino_Underground_Banking_Report_2024.pdf

ANALYSIS: Highspeed wash: how organized crime's global crypto, gambling networks automated money laundering
Inside paywall: http://go-ri.tr.com/09c1Ja
Outside paywall https://regintel-content.thomsonreuters.com/document/I7F1F59A0CF4811EE95DBBC91F36F90D4

KYC: Firms marketing super-fast customer onboarding vulnerable to account-opening, mule attacks: https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/kyc-update-customer-on-boarding/

IMPACT ANALYSIS: Fake regulators and VATPs surface on new fraud front in Hong Kong: http://go-ri.tr.com/VYGpP2

COLUMN: China’s crackdown on "pig butchering" invites domestic crypto scrutiny: http://go-ri.tr.com/kRawN7

Reuters report on Alvin Chau, Macao gambling tycoon: https://www.reuters.com/world/china/macau-court-sentences-junket-mogul-18-years-jail-tvb-2023-01-18/

Connecting Chinese and American Scam Victims: https://www.chainargos.com/wp-content/uploads/2024/01/Connecting-Chinese-and-American-Scam-Victims-9-January-2024.pdf

Crypto exchange HTX's Seychelles strike off complicates asset recovery efforts, increases compliance risk for partner firms: http://go-ri.tr.com/htRT2h https://www.linkedin.com/feed/update/urn:li:activity:7118129918885961729/

Contact us:
Helen.Chan@thomsonreuters.com
Rachel.wolcott@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Bribery and corruption are set to head the agenda for law enforcers and corporate compliance departments in 2024, with a raft of new statutes and orders making for a particularly demanding environment. The UK's Economic Crime and Corporate Transparency Act, passed in October 2023, is the most important British legal reform on economic crime, fraud, bribery and corruption in more than a century.

In the United States, the Treasury Department in December 2023 outlined plans to target corruption in 2024. To mark International Anti-Corruption Day, Treasury published a fact sheet detailing its plans to tighten the U.S. anti-money-laundering regime. It will also continue providing guidance to help financial institutions detect and report corruption-linked activity.

In this episode, Brett Wolf, U.S. anti-money-laundering reporter for Regulatory Intelligence, and Nick Kochan, a freelance journalist, join Alexander Robson, managing editor, to discuss the legislative agenda and its implications for anti-corruption professionals. They also address the likely direction of the Serious Fraud Office under its new director, as well as upcoming elections in the UK and United States.

Regulatory Intelligence published outlook pieces throughout January, including one on bribery and corruption.

Links
Economic Crime and Corporate Transparency Act: www.legislation.gov.uk/ukpga/2023/56/enacted

H.R.4737 - Foreign Extortion Prevention Act: https://www.congress.gov/bill/117th-congress/house-bill/4737?s=1&r=29

Behind the Regulatory Intelligence paywall
OUTLOOK 2024-Bribery and corruption high on law enforcement agenda in UK, U.S.: http://go-ri.tr.com/VpZMGs

FACT SHEET: U.S. DEPARTMENT OF THE TREASURY ACTIONS TO PREVENT AND DISRUPT CORRUPTION: http://go-ri.tr.com/vPjf5O

Contact us:
alexander.robson@thomsonreuters.com
brett.wolf@thomsonreuters.com
author@kochan.co.uk

https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

When it comes to crypto regulation the United States is a global outlier because the Securities and Exchange Commission (SEC) and Gary Gensler its chief executive, steadfastly believe crypto assets are securities as defined by current legislation. Where the SEC sees issues, it pursues crypto businesses through the courts and in turn, sometimes companies sue the regulator.

Litigation, not regulation, is how spot bitcoin (BTC) exchange-traded funds (ETF) came to launch in mid-January despite SEC objections. Grayscale Investments sued the SEC last year after it refused its application to convert its Bitcoin trust into an ETF. The SEC declined to appeal and ultimately approved 11 ETF applications at the same time.

In this episode, Todd Ehret, senior regulatory expert in the U.S. and Rachel Wolcott senior editor in London discuss spot BTC ETFs' launch, the SEC's Twitter fail, ETF fee wars, custody and what firms selling these products should be aware of in terms of customer suitability.

Regulatory Intelligence published outlook pieces throughout January, including for crypto. Please see the link below for our rundown of crypto regulatory developments in the U.S., UK, Europe, Singapore, and Hong Kong.

Links
INSIGHT: Compliance considerations for broker-dealers and investment advisers surrounding Bitcoin ETFs: www.regintel-content.thomsonreuters.com/document/IA098EF20BA3E11EEAE81D84738F78F00

OUTLOOK 2024-Litigation vs regulation; divide opens between U.S. and rest of the world on approach to crypto: http://go-ri.tr.com/kiapX5

Compliance Clarified Season 9, Episode 10: Cross-border crypto fraud enforcement and the globalization of money laundering as a service: podcasts.apple.com/gb/podcast/season-9-episode-10-cross-border-crypto-fraud-enforcement/id1548510826?i=1000637022734

Tether and pig butchering: chainargos.com/wp-content/uploads/2024/01/Connecting-Chinese-and-American-Scam-Victims-9-January-2024.pdf

Casinos and cryptocurrency: Major drivers of money laundering, underground banking, and cyberfraud in East and Southeast Asia: unodc.org/roseap/en/2024/casinos-casinos-cryptocurrency-underground-banking/story.html


Contact us:
Todd.ehret@thomsonreuters.com
Rachel.wolcott@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Lindsey Rogerson, senior editor at Regulatory Intelligence is joined by Henry Engler, senior editor, to discuss what is happening with climate reporting for U.S. financial firms.

Uncertainty looms large over sustainability regulation at the Federal level. The possible return to the U.S. presidency of Donald Trump and two cases before the U.S. Supreme Court and their likely effect on climate rules in the financial sector are discussed.

At the State level it is a different picture. California lawmakers passing California SB-253 Climate Corporate Data Accountability Act (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB253) and SB-261 Greenhouse gases: climate-related financial risk Act (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB261) mean there is a lot for compliance, legal and risk professionals to be getting on with.
Henry sets out what firms need to be doing now to ensure they are ready for the new rules by 2026.



Links
Recording of Henry Stern speaking on a panel at COP28: www.youtube.com/live/lGTasIEUmzA?feature=share

ESG: Navigating past the noise by Henry Engler, Lindsey Rogerson and Yixiang Zeng can be downloaded here: www.thomsonreuters.com/en-us/posts/esg/esg-navigating-past-the-noise/

Green House Gas Protocol: https://ghgprotocol.org/scope-3-calculation-guidance-2

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Trond Vagen, European correspondent at Regulatory Intelligence, is joined by Mike Cowan, senior regulatory intelligence expert, to discuss the challenges that face compliance officers in 2024.

2023 was a mix of geopolitical unrest and economic instability. The conflicts in Ukraine and the Middle East continued to influence world economies. The year started with a mini banking crisis as Silicon Valley Bank, First Republic, Signature Bank and Credit Suisse all failed resulting in changes to regulations to prevent future failures.

Emerging risks added new dimensions to a compliance officer’s workload. The development of cryptoassets continued with the headline event being the collapse of crypto exchange FTX and the prosecution of its owner Sam Bankman Fried. Regulators pursued the achievement of environmental targets and preparations for operational resilience regulations within firms progressed at pace.

The rapid development of artificial intelligence solutions acted as a “double-edged sword” for compliance officers. On the one hand, the regulatory environment developed at different speeds in different jurisdictions and on the other, the use of AI solutions to streamline compliance tasks cannot be ignored by compliance officers, at a time when investment in the compliance function may be limited.

All this set against changes to the more traditional compliance areas of culture and conduct, product development and financial promotions, financial crime prevention, trading and selling regulations and post-sale customer-focused operational processes.

These issues remain regulatory risks in the new year with the outcome of regulatory developments due in 2024.

Links:
OPINION: 10 things compliance officers must consider in 2024 – EU and UK: https://regintel.thomsonreuters.com/#accelus/ri/%7B%22location%22%3A%22%23ri%2Fdocument%2FI38B04440AEDF11EE869FF1A8839232E7%2Fview%22%7D

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The United Nations Conference of the Parties on Climate Change (COP28) is underway in Dubai. Past COPs have led to governmental initiatives that have real consequences for financial services businesses in their day-to-day operations. Transition plans and internationally agreed sustainable reporting standards are two examples of this.

In this episode of Compliance Clarified, Alexander Robson, managing editor of Thomson Reuters Regulatory Intelligence, is joined from Dubai by Lindsey Rogerson, senior editor for Thomson Reuters Regulatory Intelligence, to discuss the key initiatives emerging from COP28 and what they will likely mean for financial market participants.

The discussion includes the methane pledge and what that will mean for asset managers and banks' lending books, and the significance of the International Organization of Securities Commissions (IOSCOs) consultation of 21 good practices for integrity in carbon markets. It also considers some of the emerging winners in terms of asset managers winning multi-billion-dollar investment mandates.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

The podcast is available on Google, Apple & Spotify

Additional resources:
Navigating Past the Noise Report from Thomson Reuters: www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2023/12/ESG_Navigating-Past-the-Noise.pdf

Asset managers with proven green credentials to benefit from wall of money: http://go-ri.tr.com/qEbXTI

Central banks announce task force on adaptation finance: http://go-ri.tr.com/tZIsYM

Net Zero Banking Alliance unveils transition finance metrics to help banks better report on decarbonisation efforts: http://go-ri.tr.com/J9bIfx

CFTC consults on voluntary carbon derivatives, as voluntary framework reached on environmental offset standards: http://go-ri.tr.com/WWCVNt

IOSCO consults on good practices to promote integrity in voluntary carbon markets: http://go-ri.tr.com/2qPwFg

IFRS launches sustainable knowledge hub at COP28: http://go-ri.tr.com/gEoJIo

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Former crypto chief executive Sam Bankman-Fried's guilty verdict stemming from the FTX fraud and collapse already seems like old news in a period of serious enforcement action related to crypto scams and industry misconduct.

This tenth episode of season nine brings together Helen Chan, regulatory intelligence expert in Hong Kong and Rachel Wolcott, senior editor in the UK to unpack themes emerging from recent initiatives from Chinese law enforcement, Europol, and U.S. regulators as well as the Department of Justice and the Financial Crimes Enforcement Network (FinCen).

There has been that $4 billion Binance mega enforcement in the U.S. which saw the chief executive forced to step down, pay a $50 million fine, and potentially face jail time. The U.S. Securities and Exchange Commission last week brought charges against Kraken, adding to the number of crypto exchanges facing U.S. enforcement action.

Not to be left out, Europol recently issued a big report on money laundering that focused in part on crypto. It too has been busy working with EU member states as well as the U.S. to take out crypto mixers and deal with crypto-related money laundering and fraud.

Helen and Rachel also discuss the proliferation of money laundering as a service amongst organized crime gangs and their use of crypto. The episode starts with a look at Chinese law enforcement's efforts to take down pig butchering gangs and ends with Helen's advice to compliance officers navigating this increasingly complex landscape.

Links
China's crackdown on "pig butchering" invites domestic crypto scrutiny: www.linkedin.com/posts/helenhchan_chinas-crackdown-on-pig-butchering-activity-7135118841197576193-K62M?utm_source=share&utm_medium=member_desktop

Hong Kong's SFC silent on HTX legal troubles as banished exchange operates freely in the city: www.linkedin.com/posts/helenhchan_htx-operations-hong-kong-activity-7123519728999927808-0FJI?utm_source=share&utm_medium=member_desktop

UK FCA signed off registered crypto's change-in-control to e-money firm fined for sanctions breaches, linked to Ukrainian PEPs and fraud: www.linkedin.com/feed/update/urn:li:activity:7120708996084195328/

Crypto exchange HTX's Seychelles strike-off complicates asset recovery efforts, increases compliance risk for partner firms: www.linkedin.com/feed/update/urn:li:activity:7118129918885961729/

SPECIAL REPORT-How "pig butchering" scams have emerged as a billion-dollar crypto industry: https://regintel-content.thomsonreuters.com/document/I0E082C3089FA11EE8156BA093D3C55E7

The other side of the coin: Europol analysis of financial and economic crime: www.europol.europa.eu/cms/sites/default/files/documents/The%20Other%20Side%20of%20the%20Coin%20-%20Analysis%20of%20Financial%20and%20Economic%20Crime%20%28EN%29.pdf

SEC charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency: /www.sec.gov/news/press-release/2023-237


Contact us:
Helen.Chan@thomsonreuters.com
Rachel.Wolcott@Thomsonreuters.com

For more information about Regulatory Intelligence, click here: legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode features a special guest Michelle Giddings, head of anti-money laundering at the Institute for Chartered Accountants in England and Wales (ICAEW). Giddings joins Rachel Wolcott, senior editor at Thomson Reuters Regulatory Intelligence in London.

TRRI usually covers anti-money laundering (AML) strictly from a financial services viewpoint. However, with the focus on accountants' and law firms' role in preventing financial crime like money laundering and sanctions evasion since the advent of the Ukraine war and now the war in Gaza, it is instructive to look at how these professionals are supervised in the UK.

Five years ago, the Office for Professional Body Anti-Money Laundering Supervisors (OPBAS) was established to supervise the 25 professional body supervisors in the legal and accountancy sector of which the ICAEW is one. OPBAS is part of the Financial Conduct Authority (FCA).

The OPBAS approach has been criticised from lawmakers as not being robust enough to manage AML risks arising from accounting and law firms. The most recent OPBAS report in April, however found improvements but said many professional body supervisors were falling short of expectations.

The UK government is considering changing its approach to supervising professional services firms like accountants and lawyers for anti-money laundering purposes. One of the options on the table is eliminating OPBAS and moving to a single regulator or a consolidated professional body supervisor—which could see one regulator supervising 100,000 firms.

Giddings talks Compliance Clarified through the ICAEW's response to the government's consultation on professional body supervisory reform, criticism of professional body supervisors' performance, ICAEW thematic review of money laundering reporting officers (MLRO) as well as its annual review of AML supervision.



LINKS:

ICAEW Consultation response: Supervisory Reform consultation response (icaew.com)

Role of the Money Laundering Reporting officer: www.icaew.com/regulation/aml-supervision/aml-thematic-reviews/the-role-of-the-money-laundering-reporting-officer

2022/23 anti-money laundering supervision report: www.icaew.com/regulation/aml-supervision/anti-money-laundering-supervision-report

UK Government consultation: Reforming anti-money laundering and counter-terrorism financing supervision: www.gov.uk/government/consultations/reforming-anti-money-laundering-and-counter-terrorism-financing-supervision



AML: UK professional body supervisors focused on boosting SARs quality, information sharing http://go-ri.tr.com/nRE5uK

Contact us!

Rachel.wolcott@thomsonreuters.com

For more information about Regulatory Intelligence, click here: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.

Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode of Compliance Clarified brings together Rachel Wolcott, senior editor in London and Brett Wolf, senior anti-money laundering editor for the Americas to discuss Hamas, terrorist financing and the U.S. response to the 7 October attack.

It has been a little over a month since Hamas fighters launched a brutal attack on Israel, unleashing a war, and leaving thousands of civilians dead. The attack took Israel and the world by surprise and raised questions about whether enough attention is being paid to terrorist financing in the Middle East and beyond.

In this episode, Brett and Rachel talk through actions various U.S. agencies have taken in response to Hamas' attack to address and describe their financing activities to financial institutions and others who unwittingly or willingly are enabling funds to flow to Hamas.

Topics covered include:
Hamas’ current funding
New U.S. sanctions and policy responses
Hamas money flows red flags
Disputed role of crypto in financing
This episode was recorded before the UK imposed new sanctions on Hamas on 14 November.

Links:
Outside paywall
U.S. Treasury issues additional Hamas sanctions alongside UK, meets with the private sector:
https://regintel-content.thomsonreuters.com/document/IDC26C880832211EE918ACE7D4282A8B3

U.S. Treasury, Commerce Departments urge financial institutions to police export control evasion worldwide:
https://regintel-content.thomsonreuters.com/document/IFD79AB107CDD11EE918ACE7D4282A8B3

Inside paywall
U.S. Treasury Department issues alert on Hamas money flows, shares 'red flags': http://go-ri.tr.com/XhT6BP

U.S. Treasury official lays out a three-pronged approach to combat Hamas financing, including financial institutions' role: http://go-ri.tr.com/wA1rvN

U.S. Treasury targets Hamas 'secret investment portfolio' in response to attack on Israel: http://go-ri.tr.com/PmPeXZ

U.S. Treasury moves to designate crypto mixers a 'primary' laundering concern under PATRIOT Act authority: http://go-ri.tr.com/ST0DV1

Contact us!
Rachel.wolcott@thomsonreuters.com
Brett.Wolf@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Singaporean police conducted a nationwide raid (http://go-ri.tr.com/7Nm3aO) and arrested 10 ethnic-Chinese businessmen on Aug. 15. The police seized more than S$2.8 billion, making it one of the world's biggest money laundering cases (https://www.reuters.com/world/asia-pacific/assets-seized-singapore-money-laundering-case-now-2-bln-minister-2023-10-03/). In this episode, Nathan Lynch, Asia managing editor, and Yixiang Zeng, reporter in Singapore, discuss how the case began back in 2021 when the authorities were alerted by banks via suspicious transaction reports (http://go-ri.tr.com/0Aeefi) and then the police started investigating these alerts.

This case is also part of a broader campaign by Asian governments to counter a huge surge in money laundering linked to organised crime. Against this backdrop, the Singaporean government is setting up an inter-ministerial committee (http://go-ri.tr.com/K6Q9E8), which will help revamp the country's financial system and strengthen its anti-money laundering regime.

The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.

Programme notes

Singapore says $2 billion in assets seized in money laundering case (Reuters): https://www.reuters.com/world/asia-pacific/assets-seized-singapore-money-laundering-case-now-2-bln-minister-2023-10-03/#:~:text=Simultaneous%20raids%20in%20mid%2DAugust,jewellery%20worth%20S%241%20billion.

Suspects back in court over Singapore's swoop on major money laundering ring (Reuters): https://www.reuters.com/world/asia-pacific/suspects-back-court-over-singapores-swoop-major-money-laundering-ring-2023-08-30/

Bungalows, cars seized in Singapore's billion-dollar swoop on money laundering (Reuters): https://www.reuters.com/world/asia-pacific/bungalows-cars-seized-singapores-billion-dollar-swoop-money-laundering-2023-08-17/

MAS will not tolerate the abuse of our financial system for illicit activities (MAS press release): https://www.mas.gov.sg/news/media-releases/2023/mas-will-not-tolerate-the-abuse-of-our-financial-system-for-illicit-activities

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Whistleblower cases have re-emerged in a growing share of enforcement actions brought by the U.S. Securities and Exchange Commission (SEC). SEC Chair Gary Gensler and Enforcement Director Gurbir Grewal have emphasized the need to protect individuals who report misconduct.

Last week, Grewal said, "The SEC's whistleblower program is a critical part of our enforcement efforts. Each year we receive thousands of whistleblower tips, and throughout the history of the program, those tips have resulted in billions in monetary recovery."

In this episode of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert for Thomson Reuters Regulatory Intelligence, is joined by Richard Satran, senior correspondent for Thomson Reuters Regulatory Intelligence, where they discuss the current round of whistleblower enforcement actions from the SEC.

Since the implementation of the SEC's whistleblower program under Section 922 (http://go-ri.tr.com/iEXjLU) of the Dodd-Frank Act in 2011, the SEC has awarded more than $1 billion to whistleblowers who have submitted tips regarding securities violations that have resulted in numerous enforcement actions.

Securities Exchange Act Rule 21F-17(a) (http://go-ri.tr.com/N6wOnr) states, "No person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement with respect to such communications."

The SEC Office of Examinations (http://go-ri.tr.com/Q8XtDG), in a 2016 alert, warned that, at minimum, in any examinations, it will review for whistleblower rule violations in compliance manuals, codes of ethics, employment agreements, and severance agreements.

Many of the enforcement actions involve the language used in separation and non-disclosure agreements. In a 2016 enforcement action involving Anheuser-Busch InBev, the company allegedly included very broad non-disclosure language in its separation agreements, asking employees to "keep in strict secrecy and confidence any and all unique, confidential and/or proprietary information" belonging to the company. Even though this agreement did not prohibit whistleblower communications with the SEC expressly, the lack of a carve-out citing whistleblower protections was still enough for the SEC to flag it as a Rule 21F-17(a) violation.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

The podcast is available on Google, Apple, and Spotify.

Additional Resources:
Loophole in FCA whistle-blowing rules leaves regulator "disconnected," says lawmaker: http://go-ri.tr.com/2OkJvj
SEC targets separation and severance agreements that impede whistleblowers: https://regintel-content.thomsonreuters.com/document/IB012302073DE11EEB0FFC2B000B13E50
For more information about Thomson Reuters Regulatory Intelligence head to: https://regintel-content.thomsonreuters.com/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Australian financial institutions and their senior executives are preparing for a new Financial Accountability Regime, which will bring in a UK-style framework for senior management accountability.

Under the Financial Accountability Regime (FAR), institutions will need to establish an accountability map for their directors and senior executives along with an array of conduct and compliance obligations.

The object of the FAR is to impose a tougher accountability framework for the banking, insurance and superannuation industries and their directors and most senior and influential executives. Financial institutions will need to understand the requirements of the legislation and executive need to understand how they may be held accountable for their decisions and compliance failures.

But will the laws be effective? Do they lack teeth? And will they genuinely improve conduct across the financial sector, in line with the recommendations of the Financial Services Royal Commission.

In this episode of Compliance Clarified we have Nathan Lynch, Asia-Pacific manager for Thomson Reuters Regulatory Intelligence (TRRI), in discussion with Niall Coburn, a TRRI regulatory expert based in Brisbane, Australia.

Related Reading:
IMPACT ANALYSIS: Financial Accountability Regime looming for Australian firms and their senior executives: http://go-ri.tr.com/HxMybv

IMPACT ANALYSIS: Australia regulators preparing for Financial Accountability Regime — firms on notice: http://go-ri.tr.com/He0KT6

Regulators to continue focus on holding individuals to account, despite mixed results of previous years: http://go-ri.tr.com/s65YX4

PERSONAL ACCOUNTABILITY: Poking the BEAR - Australia striving for executive accountability: http://go-ri.tr.com/Vzqeza

Developments in individual accountability: UK, Australia and Hong Kong: http://go-ri.tr.com/bDgqX1

OPINION: Senior manager regimes: reasonableness the flaw to accountability: http://go-ri.tr.com/UH1x7U

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The Financial Conduct Authority mistakenly told a whistleblower they were "no longer entitled to the protections offered under the Public Interest Disclosure Act 1998," (https://www.legislation.gov.uk/ukpga/1998/23/contents) after it gave permission for their name to be disclosed to their former employer. The mistake went uncorrected for six months and was overlooked by the Complaints Commissioner in August.

In this episode, Alexander Robson and Lindsey Rogerson discuss the regulator's apology and the FCA's apparent lack of enforcement action against firms which have acknowledged failures in their whistle-blowing procedures, as well as how the regulator could be more transparent in the quarterly data set it produces on individuals who have made protected disclosures.

They close out the podcast with an assessment of the likelihood of an update to the UK's 25-year-old employment protections for whistleblowers.

The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.

Programme notes
FCA apologises to whistleblower admits PIDA mistake article: http://go-ri.tr.com/rz6ot5
Protect's draft bill: https://trten-my.sharepoint.com/personal/lindsey_rogerson_thomsonreuters_com/Documents/Draft-WB-Bill-v16-June-2021.pdf%20(amazonaws.com)
The APPG for whistle-blowing's draft bill: https://trten-my.sharepoint.com/personal/lindsey_rogerson_thomsonreuters_com/Documents/4d9b72_4490728b5bc747e28770ed8efbe475e3.pdf%20(appgwhistleblowing.co.uk)
Wells Fargo employment tribunal article on Regulatory Intelligence: http://go-ri.tr.com/2OkJvj
2019 article on FCA probing Royal Bank of Canada over employment tribunal article: http://go-ri.tr.com/1YInqd
Regulatory Intelligence special report on whistle-blowing July 2023: http://go-ri.tr.com/1YInqd



Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode of Compliance Clarified brings together Helen Chan, Regulatory Intelligence's regulatory expert in Hong Kong and Rachel Wolcott, senior editor in London to discuss what closer ties between North Korea and Russia mean for sanctions and compliance officials.

Helen and Rachel delve into the growing entanglement between secondary sanctions risk and cryptocurrencies. Crypto exchanges and services—Tornado Cash, Bitzlato-- have been sanctioned or closed for helping sanctioned entities launder assets. North Korean cybercriminals use the crypto universe to generate income, hide it and then cash it out with impunity. All those assets are going into the DPRK's weapons of mass destruction (WMD) programme.

It is not just crypto though. North Korea is adept at using shell companies and exploiting corrupt officials to access the international financial system to supply the country with what it needs to further its WMD ambitions. Helen talks through British American Tobacco's recent settlement with the U.S. Department of Justice for North Korean sanctions violations and other cases that demonstrate what is at stake for companies and financial
institutions.

At the same time, Asian countries like Singapore and Japan are implementing their own unilateral regimes. Japan for example has implemented trade and economic sanctions against Russia which it intends to enforce robustly. That is a departure from the status quo that compliance officers need to consider carefully.

Links
Closer Russia/North Korea ties merges two sanctions worlds, creates refuge for stolen cryptoassets: https://regintel-content.thomsonreuters.com/document/I3A612A40620C11EEA33AE89A432BD9D5

COLUMN: Unilateral sanctions regimes take off in Japan, Singapore: https://regintel-content.thomsonreuters.com/document/IFB452A40681511EE80EAED51AC57F6AF

OFAC Sanctions: https://ofac.treasury.gov/recent-actions/20230831

UN Panel of Experts North Korea reports
https://www.securitycouncilreport.org/un_documents_type/sanctions-committee-documents/?ctype=DPRK%20%28North%20Korea%29&cbtype=dprk-north-korea

DPRK Reports Database (free to use!)
https://dprk-reports.org/

Contact us!
Rachel.wolcott@thomsonreuters.com
Helen.Chan@thomsonreuters.com

For more information about Regulatory Intelligence, click here: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Compliance Clarified's second episode of season 9 brings together Rachel Wolcott, senior editor and Brett Wolf, senior anti-money laundering editor for the Americas to discuss the state of the Financial Crimes Enforcement Network's (FINCEN) beneficial ownership register.

The register has been years in the making as the United States has slowly come around to implementing the Financial Action Taskforce's (FATF) recommendations 24 and 25. Those address transparency and beneficial ownership of legal persons and legal arrangements. That includes ensuring that accurate and up-to-date basic and beneficial ownership information is available to competent authorities in a timely fashion.

The U.S., like other countries, has resisted complying with these requirements. Lawmakers and special interest groups have lobbied against the register, but reporting beneficial ownership will become a requirement as 1 January, 2024. Companies formed in 2024 will have a little extra time.

There are still questions to be answered in terms of how compliance will be achieved and what kind of access FINCEN will provide to the register.

Links

U.S. Treasury 'going all out' to inform firms about beneficial ownership reporting requirement -official

Outside paywall: https://regintel-content.thomsonreuters.com/document/IFA40F5D0622411EEA33AE89A432BD9D5

U.S. Treasury proposes extended beneficial ownership reporting deadline for companies formed in 2024: http://go-ri.tr.com/6crkwf

Outside paywall:
https://regintel-content.thomsonreuters.com/document/I432105405D6D11EEA33AE89A432BD9D5

U.S. Treasury bureau releases beneficial ownership reporting guide, industry displeased: http://go-ri.tr.com/RVuobm

U.S. Treasury's 'beneficial ownership' rulemaking harshly criticized during House hearing: http://go-ri.tr.com/GgTKOq

Contact us!
Brett.Wolf@thomsonreuters.com
Rachel.Wolcott@thomsonreuters.com

For more information about Regulatory Intelligence head to: https://legal.thomsonreuters.com/en/products/regulatory-intelligence



Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Compliance Clarified's first episode of season 9 brings together Alexander Robson, managing editor, Helen Parry, senior regulatory expert and Rachel Wolcott, senior editor to discuss the state of UK Financial Conduct Authority's (FCA) enforcement and markets oversight division.

Does it have "all bases covered" as Therese Chambers, its new co-executive director for enforcement said in a speech? Or is its approach and execution of enforcement cases, to use the words of an Upper Tribunal judge, "highly unsatisfactory"?

Chambers and Steve Smart, the other co-executive director, have their work cut out for them. The 621-strong department is currently running 577 cases and 200 odd investigations. Cases are taking years to complete and a few recent Upper Tribunal judgments have gone against it and highlighted the department's errors and issues. Will the FCA close cases and focus, or open even more investigations?

For more information about Regulatory Intelligence please see: www.legal.thomsonreuters.com/en/products/regulatory-intelligence

Links:
Julius Baer story: http://go-ri.tr.com/qQc7wA

BlueCrest stories
http://go-ri.tr.com/qQc7wA
http://go-ri.tr.com/0olu4N
http://go-ri.tr.com/fWunnj
http://go-ri.tr.com/hGFF7r

Gopee judgment: https://www.bailii.org/ew/cases/EWCA/Civ/2023/881.html

Outside the paywall:
UK FCA closed 37 enforcement cases in Q1; new leadership faces big challenges https://regintel-content.thomsonreuters.com/document/I838002305C6911EEA33AE89A432BD9D5

Contact us!
Alexander.Robson@thomsonreuters.com
Helen.Parry@thomsonreuters.com
Rachel.Wolcott@thomsonreuters.com


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In episode 10 of season 8 of Compliance Clarified, Helen Chan, Regulatory Intelligence's Hong Kong-based expert and Rachel Wolcott, senior editor in London discuss artificial intelligence in compliance. To say there has been a lot of hype around AI and generative AI is an understatement. ChatGPT, in particular, has captured the public's imagination. It is simultaneously hailed as transformational technology and a weapon of mass destruction. So what's in it for compliance officers?

Helen and Rachel take listeners through some of the trends and use cases they are seeing in financial services and compliance for both deterministic and generative AI. They sketch out how regulators globally have responded to AI. Finally, they set ChatGPT for some simple compliance tasks to see how it performs. Spoiler: Chatbots are not going to take over compliance departments anytime soon.

This is the last episode of season 8. We'll be back in September!

Links:
Impact Analysis: Regulators in Asia lay down the foundation for regulation of AI ethics: http://go-ri.tr.com/aWnKkV


Insight: China, EU and U.S. regulators ponder generative AI regulations, offer compliance considerations for businesses: http://go-ri.tr.com/JDlPO1


Generative AI: Five use cases for compliance: http://go-ri.tr.com/aeOBkB


Expert AI is needed to deliver the accuracy required to automate compliance tasks; ChatGPT applications are limited

Outside paywall: https://regintel-content.thomsonreuters.com/document/I563E94301B4111EEBE2AEF7C693C2154

Ten things new AI apps such as ChatGPT can do to 'augment' compliance -FINRA conference
http://go-ri.tr.com/Z0fFDU


Contact us:
Helen Chan (HK):
helen.chan@thomsonreuters.com
Rachel Wolcott (UK):
rachel.wolcott@thomsonreuters.com

For more information about Regulatory Intelligence
https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The Financial Conduct Authority's much-trumpeted Consumer Duty comes into effect on July 31. An amendment to the Financial Services Act in 2021 in the House of Lords gave the regulator a year to bring in rules concerning the level of care firms provide to consumers. This turned into the Consumer Duty and last July the FCA set out its rules. The FCA has issued an unprecedented set of guidance on the duty.

In this episode of Compliance Clarified, managing editor Alex Robson talks to senior editor Lindsey Rogerson and Mike Cowan, senior regulatory intelligence expert, about what the duty is, what it means for firms and whether the industry is ready and what is next. The critical question is whether the lives of consumers will be improved and how quickly will the regulator move to enforcement where it finds failings.

The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.

Programme notes
From behind Regulatory Intelligence paywall:

Open banking tech helping financial firms with Consumer Duty compliance -vendors: http://go-ri.tr.com/g6jPrP

Decades' high interest rates, Consumer Duty put focus on vulnerability assessments: http://go-ri.tr.com/g1vU0D

FCA publishes 10 key questions for firms to test Consumer Duty readiness: http://go-ri.tr.com/k3RqIi

No paywall
One month to go for the Consumer Duty: https://www.fca.org.uk/news/news-stories/one-month-go-consumer-duty


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The Australian arm of consulting firm PwC is embroiled in an unprecedented political scandal following revelations that senior staff sold confidential information on government tax reforms to its multinational clients. PwC is defending allegations that it engaged in a deliberate multi-year strategy to cover up a breach of confidentiality in the tax leak scandal. The form stands accused of "monetising" confidential information that it obtained as a consultant to the government on laws to target multinational tax avoidance.

The scandal has led to investigations from the Australian Federal Police (AFP) and the prospect of a referral to the new National Anti-Corruption Commission (NACC). PwC is also navigating a probe from the national accounting body, numerous Senate inquiries, and three internal reviews within PwC, including one led by its global leadership.

The case has also cast a cloud over the firm's 900 partners in Australia and 10,000 staff, leaving the organisation in damage control mode. Peter Collins, PwC Australia's head of international tax, has been banned by the Tax Practitioners' Board (TPB) for his involvement in the scheme.

In a bid to stem the losses, PwC now plans to sell off its government consulting business, which generates A$600 million in annual revenue, for A$1 to private equity group Allegro. It is estimated that 130 partners and 2,000 staff will leave to join the new entity.

In this episode of Compliance Clarified, Nathan Lynch discusses this unfolding corporate disaster with Niall Coburn, a lawyer and regulatory risk expert with Thomson Reuters Regulatory Intelligence in Australia.

IMPACT ANALYSIS: Consulting firms warn staff about ethics as PwC misconduct is referred to police: http://go-ri.tr.com/WAlKdr

COLUMN: Australian Senate hands down PwC report, as firm sells government consulting arm for A$1: http://go-ri.tr.com/UKcnL3

OPINION: Culture crisis at PwC Australia offers uncomfortable reminders of past accounting scandals: http://go-ri.tr.com/jUlpM6

COLUMN: Australian regulatory body investigates PwC over unethical conduct involving U.S. tech giants: http://go-ri.tr.com/7a6Kop

COLUMN: Evidence reveals PwC's Australian partners and staff profited from unscrupulous tax leak: http://go-ri.tr.com/27gXDz

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

U.S. banking regulators are homing in on more effective stress testing after admitting they were behind the curve in their supervision of Silicon Valley Bank.

The bank collapsed in March, alongside Signature Bank, and was later joined by First Republic. Further problems are expected for smaller, regional banks, but regulators have to date seen off fears about a 2008-style financial crisis.

In this episode of Compliance Clarified, Alex Robson, managing editor in London, is joined by Henry Engler, senior editor in New York. They discuss recent comments by Michael Barr, vice chair of supervision at the Federal Reserve, about the steps that regulators are taking.

The U.S. central bank is at the beginning of exploring how it can move more swiftly when its supervisors spot problems at banks outside crisis periods, he said.

"We're not an institution that moves quickly on supervisory issues," Barr told a recent panel in New York.

The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.

NY Fed official argues for tougher supervision after SVB collapse; bank executives need 'devil advocates' to challenge decisions (behind a paywall):
http://go-ri.tr.com/D1HKvq
https://www.newyorkfed.org/newsevents/speeches/2023/ost230617

Federal Reserve’s review of Silicon Valley Bank failure (free to access):
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm
https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf

Fed’s Jerome Powell on higher capital costs (free to access): https://www.reuters.com/business/finance/powell-strong-capital-is-central-importance-banks-2023-06-21/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Financial institutions in the United States are filing an exceptionally high volume of suspicious activity reports (SARs), with more than 3.6 million SARs submitted in 2022, a 57% increase over pre-pandemic (2019) levels. Additionally, suspicious activity reporting is on pace to set another annual record in 2023.

A special report published recently by Thomson Reuters takes a deeper dive into the data offering valuable insight into critical areas of financial crime.

A link to the report is available here:
www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/special-report-suspicious-activity-reports/

In this episode of Compliance Clarified, Todd Ehret, Senior Regulatory Intelligence Expert at Thomson Reuters is joined by Brett Wolf, Senior AML Correspondent for Thomson Reuters. As co-authors of the report, Todd and Brett discuss some of the high-level findings of the report and probe critical issues such as financial crime, elder fraud, human exploitation, Covid-19 pandemic-related fraud, and terror financing.

While SAR filings soared across virtually all categories of criminal activity, data shows significant spikes in check fraud, elder financial abuse, human exploitation, and government-related benefit scams. Vulnerable populations have grown in both size and susceptibility during the pandemic, especially migrants and the elderly.

Although some observers attribute the SAR filing surge to advancements in detection technology and vigorous regulatory communication, data from the Federal Bureau of Investigation (FBI) corroborates sharp, real-world increases in fraud across many categories.

The report relies on data from January 2014 through the end of the first quarter of 2023, and was obtained from the FinCEN SARs database. The data is a helpful benchmark for financial institutions' risk, compliance, and anti-fraud leaders. It can be used to contrast internal data against broader market-affecting industry peers.

The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial services firms and aims to help compliance professionals make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The UK Financial Conduct Authority (FCA) says it views whistleblowers as a valuable source of intelligence. But whistleblowers feel far from valued by the FCA, according to the findings of the regulator's own survey.

In 2019, the FCA board commissioned a review of its whistle-blowing offering, which was delayed by the pandemic and published in May this year.

The self-assessment found whistleblowers were dissatisfied with the FCA's offering. In response it has set out some changes it is going to make to improve whistleblowers' experience.

In this episode of Compliance Clarified Alexander Robson is joined by Lindsey Rogerson and Rachel Wolcott to discuss their special report on the regulator's approach to whistle-blowing and whistleblowers.

The discussion covers the UK regulator's Principle 11 rethink over when firms are required to notify it of claims involving mistreatment of whistleblowers at the Employment Tribunal and the lack of enforcement cases taken under SYSC18.


Programme notes:
Link to special report outside the paywall: https://regintel-content.thomsonreuters.com/document/I83AB3640FFB611EDBEBCFA0963B51F96

Link to special report for Regulatory Intelligence subscribers: http://go-ri.tr.com/OjIOEz

Link to article on FCA backlog in assessing whistle-blowing reports from May 2022, http://go-ri.tr.com/5NBLVp

Link to article setting out FCA’s previous stance on notification of Employment Tribunals, http://go-ri.tr.com/2OkJvj

Link to article confirming RBC was under investigation in relation to treatment of John Banerjee http://go-ri.tr.com/1YInqd

Link to article on Government review of whistle-blowing, http://go-ri.tr.com/0YKmSO

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.

Listen to discussions on all things compliance for financial services firms. We cover the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk — anything and everything affecting the compliance function is up for discussion.

Contact us:
Alexander Robson: alexander.robson@thomsonreuters.com
Lindsey Rogerson: lindsey.rogerson@thomsonreuters.com, or on Signal (07787270363)
Rachel Wolcott: rachel.wolcott@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Firms need to re-engineer their anti-money laundering (AML) systems and controls to refocus on know-your-customer (KYC) processes to prevent the inevitable pile-up of transaction monitoring alerts. Firms' pivot to digital onboarding has prioritised speed over collecting enough information to determine whether transactions are suspicious. It has created an inefficient, expensive process where AML analysts are sifting through thousands of alerts looking for the proverbial needle in a haystack. The problems raise important questions about the ways that banks conduct AML controls today.

Some banks, in an aim to onboard customers digitally in less than 24 hours, rely on tools that verify identity-based on existing information. These verification tools use customer addresses, credit bureau information, previous bank account details to risk score applicants. Some banks do not ask for photo identification, like a driver's licence or a passport, for customers deemed to be low risk.

In this episode, Alex Robson, managing editor, Regulatory Intelligence, talks to Rachel Wolcott, senior editor in London, about KYC processes and how they should be done. Also under discussion is Russia, Iran, the UK Financial Conduct Authority's latest sanctions compliance work, together with that of the Association of Certified Anti-Money Laundering Specialists.

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help compliance officers make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

Programme notes

Outside Regulatory Intelligence paywall

Firms should invest in KYC, model "good" customer transactions to reduce transaction monitoring alerts pile-up: https://regintel-content.thomsonreuters.com/document/I42A1B9D0F8A911EDBEBCFA0963B51F96

UK FCA finds gaps in firms' sanctions testing; ACAMS highlights complex evasion and Wagner Group risks: https://regintel-content.thomsonreuters.com/document/I26903170FB2111EDBEBCFA0963B51F96

U.S. imposes counter-terrorism sanctions on Iranian operatives over alleged overseas assassination plots: https://regintel-content.thomsonreuters.com/document/IDFB1330000A511EE8F64E998879AFF30

Inside Regulatory Intelligence paywall

U.S. imposes counter-terrorism sanctions on Iranian operatives over alleged overseas assassination plots: http://go-ri.tr.com/aR6rOI

U.S. government issues broad new Russia sanctions, shares new export control evasion 'red flags': http://go-ri.tr.com/REz0nu

UK FCA finds gaps in firms' sanctions testing; ACAMS highlights complex evasion and Wagner Group risks: http://go-ri.tr.com/8svY1k

UK FCA using home-grown tool to check sanctions compliance: http://go-ri.tr.com/3khGhR

Government intelligence sharing vital to help banks spot Russian sanctions evasion -U.S.,UK officials: http://go-ri.tr.com/Q9urHj


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Financial services firms in the Asia-Pacific region have been shocked out of their complacency in the past year, with scams, frauds and other cyber-related crimes increasing exponentially. In Australia alone, consumers reported a record A$3 billion in losses last year — up from A$850m just two years earlier.

The rapid pivot to digital financial services and non-face-to-face business during the pandemic has been cited as a major driver for this trend. The economic turmoil in developing economies has also played a role, with vulnerable people being more likely to be recruited into cybercrime or online fraud syndicates.

In this episode of Compliance Clarified, we discuss this complex area with Helen Chan, a lawyer and regulatory risk expert with Thomson Reuters Regulatory Intelligence in Hong Kong.

IMPACT ANALYSIS: Compliance response from banks needed as human trafficking fuels proliferation of online scam syndicates: http://go-ri.tr.com/bEUean

COLUMN: SFC interest in market manipulation could cast scrutiny on influencer social media content: http://go-ri.tr.com/4YOqiq

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Compliance officers are operating with limited sets of resources while simultaneously managing a diverse and expanding range of subject areas where the volume of regulatory change is expected to increase. The 14th annual Cost of Compliance, published by Thomson Reuters Regulatory Intelligence, found costs are expected to increase with difficulties recruiting appropriately skilled staff also reported.

In this episode of Compliance Clarified, managing editor, Alex Robson, is joined by Mike Cowan, senior regulatory intelligence expert, on the findings of the report. The research was carried out before the latest developments in generative AI, which they also discuss.

In 2022, the number of regulatory events monitored by TRRI was 61,228, the third-highest annual total since 2008. This figure covered 1,374 regulators in 190 countries, equivalent to an average 234 daily alerts. And in the coming year 73% of respondents said they expected an increase in regulatory activity.

This increase in regulatory activity was also seen as a compliance challenge for both corporate boards and compliance officers were keeping up with the volume and implementation of regulatory change and managing growing regulatory expectations featured prominently in many respondents' responses.

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms and aims to help compliance officers make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

Programme notes:

Visit the Thomson Reuters Institute to download a free copy of the report: www.thomsonreuters.com/en/institute.html

Subscribers to Regulatory Intelligence can find a copy on the home page.

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Anti-money laundering (AML) control failings at Santander Bank UK opened the door to a financial intermediary with links to Colombian drug cartels operating in Britain. Beltcastle, a payments service provider, is "Customer A" featured in the Financial Conduct Authority's (FCA) final notice in December 2022 to illustrate the failures behind Santander's £107 million fine.

Beltcastle, which was authorised by the UK regulator for eight years, put about £1.3 billion in cash through the UK Post Office. The firm had accounts at Barclays, NatWest, and Ghana International Bank. The Post Office was used in the suspected laundering scheme, passing thousands of pounds regularly from Beltcastle through its cash collection and processing service.

The case has raised serious issues about adverse media searches and information sharing, as Rachel Wolcott, senior editor in London, tells Alexander Robson, managing editor, in this episode to kick off the new series.

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help compliance officers make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

Programme notes

SPECIAL REPORT: Santander AML failures opened door to intermediary linked to Colombian drug cartels; UK Post Office, banks used to move £1.3 billion: https://www.reuters.com/article/bc-finreg-santander-aml-failures-drug-ca/special-report-santander-aml-failures-opened-door-to-intermediary-linked-to-colombian-drug-cartels-uk-post-office-banks-used-to-move-1-3-billion-idUSKBN2WO1W8

From behind Regulatory Intelligence paywall

UK Companies House reports few operational incidents, employs no dedicated risk managers: https://regintel-content.thomsonreuters.com/document/I118F6F40EB2A11ED9DA6D001824C624B

Companies House's new identity verification measures fall short of minimum standards, MPs hear: http://go-ri.tr.com/I2JILV

UK admits hundreds of millions laundered through Post Office annually, FCA sets out "current expectations" to address risk: http://go-ri.tr.com/RcNc1q

For further information, contact rachel.wolcott@thomsonreuters.com or alexander.robson@thomsonreuters.com

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The triggering of a complete write-down of the nominal value of all Credit Suisse AT1 debt has come as a shock to some investors. Regulators took what some saw as an irregular move to write down 16 billion Swiss francs of Credit Suisse bonds, known as Additional Tier 1 or AT1 debt, to zero, during UBS's rescue of Credit Suisse on the weekend of March 18/19.

In this episode of Compliance Clarified, Alexander Robson, managing editor of Regulatory Intelligence in London, is joined by Helen Parry, senior regulatory intelligence expert in London to discuss contingent convertibles, otherwise known as CoCo bonds, and the reasons why regulators acted the way that they did.

Under the deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in terms of who gets paid when a bank or company collapses, will receive $3.23 billion. The news hurt AT1 bonds issued by other European banks and they came under fresh selling pressure.

If AT1s are converted into equity, this supports a bank's balance sheet. They also pave the way for a "bail-in", or a way for banks to transfer risks to investors and away from taxpayers if they get into trouble, according to rules that policymakers passed after the 2008 financial crisis.

In Switzerland, the terms of the bonds stipulate that in a restructuring, the regulator is not obliged to stick to the traditional capital structure, which has spelt bad news for Credit Suisse bondholders. It has also raised eyebrows among other regulators elsewhere.



PROGRAMME NOTES

FINMA approves merger of UBS and Credit Suisse: www.finma.ch/en/news/2023/03/20230319-mm-cs-ubs/

Factbox: Credit Suisse's troubles - spies, money laundering and takeover: www.reuters.com/business/finance/credit-suisses-troubles-spies-money-laundering-central-bank-cash-2023-03-16/

How Credit Suisse has evolved over 167 years: www.reuters.com/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-18/



(From behind the Regulatory Intelligence paywall)

UBS faces huge cultural challenge in integrating Credit Suisse, say consultants: http://go-ri.tr.com/YI8NM3

OPINION: Scale of U.S. banks' unrealized losses, distressed borrowing and central bank actions point to wider problems: http://go-ri.tr.com/oyHrxD


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The collapse of Silicon Valley Bank sent shockwaves through the venture capital and technology industries. It has had uncomfortable echoes of the 2008 financial crisis with regulators and other policymakers working through the weekend to engineer solutions to avoid further contagion and possible systemic risk. And that was the weekend of 11/12 March; this weekend just gone, regulators and policymakers were busy with the shotgun wedding of UBS and Credit Suisse.

In the UK, HSBC has bought SVB and its liabilities to the tech sector for £1, but the situation is different in the United States where the Federal Deposit Insurance Corporation has stepped in to protect all deposit holders, even though most of them (mainly venture capital firms and tech companies) have way more in their accounts than the insured amount of $250,000.

The collapse of the specialist lender has raised plenty of questions about risk management and the role played by regulators.

Most of SVB's balance sheet was in longer dated bonds and the value of these fell as rates rose, which caused the subsequent run on the bank. Few seem to have questioned why no one at the bank appeared to hedge their risk.

Events are still unfolding but with different results on either side of the Atlantic. There are many unknowns directly related to possible compliance and risk management concerns. As more facts surface, regulators and lawmakers are sure to investigate any failures in these areas. Such inquiries often lead to new regulations or regulatory change in the future.

In this episode of Compliance Clarified, Alexander Robson, managing editor of Regulatory Intelligence in London, talks to Henry Engler, senior editor in New York and Mike Cowan, senior Regulatory Intelligence expert in London.

Program notes:

Silicon Valley Bank collapse: What you need to know now: https://www.reuters.com/business/finance/silicon-valley-bank-collapse-what-you-need-know-2023-03-13/

SVB Financial files for bankruptcy protection after swift implosion: https://www.reuters.com/business/finance/how-svb-financial-group-imploded-two-days-2023-03-14/

SVB is largest bank failure since 2008 financial crisis: https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/

Behind the Regulatory Intelligence paywall

INSIGHT: Five important regulatory aspects of the Silicon Valley Bank collapse: http://go-ri.tr.com/S5LTLf

OPINION: Scale of U.S. banks' unrealized losses, distressed borrowing and central bank actions point to wider problems: http://go-ri.tr.com/oyHrxD

U.S. lawmakers to hold first hearing on SVB, Signature Bank collapse: http://go-ri.tr.com/7AcwNS

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The world's largest primary bullion producer, Australia's Perth Mint, has found itself at the centre of one of the country's biggest risk and compliance failures following a six-month investigation led by Thomson Reuters Regulatory Intelligence. The government-owned entity has found itself defending regulatory spot fires on a range of fronts. These include a major money laundering audit, answering parliamentary questions about sub-standard gold deliveries to Shanghai, defending a failure to register as a remitter in breach of criminal laws, and explaining a 25-year failure to comply with U.S. commodities laws.

The internationally renowned mint has also come under scrutiny from the world's largest gold market, following allegations that the Perth Mint failed to prevent money laundering and terrorism financing through its precious metals supply chain. The London Bullion Market Association's review into Perth Mint will look at a range of "responsible sourcing" concerns, including compliance with international anti-money laundering, terrorism financing and sanctions laws.

The state-owned Perth Mint has exposed taxpayers to a potential billion-dollar penalty for systemic anti-money laundering compliance breaches of federal law on thousands of occasions. This includes at least 5,000 strict liability cross-border funds transfer reporting offences. The penalty for the international funds transfer instruction (otherwise known as IFTI) reporting breaches carries a theoretical A$105 billion upper limit if AUSTRAC, the Australian Transaction Reports and Analysis Centre, chooses to litigate. AUSTRAC has ordered an independent expert to examine a raft of other breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

The case has now become a major political issue, with Opposition politicians and media commentators calling for an urgent royal commission into the mint's governance failures.

From Regulatory Intelligence (behind paywall):

Perth Mint in breach of U.S. commodities laws for 25 years, says internal report: http://go-ri.tr.com/kUtsCp

Perth Mint's woes deepen as London Bullion Market Association investigates supply chains, laundering: http://go-ri.tr.com/BrpH9e

OUTLOOK 2023-Australian regulators begin year with huge enforcement case load: http://go-ri.tr.com/sJ1aR3

EXCLUSIVE: Perth Mint knew about AML problems in March 2021 -internal documents: http://go-ri.tr.com/gRjcOD

Perth Mint in AUSTRAC's crosshairs over suspected money laundering breaches: http://go-ri.tr.com/gqGstx

ANALYSIS: How a government became embroiled in a billion-dollar criminal gold laundromat: http://go-ri.tr.com/CPkOrZ

Perth Mint may have exploited registration loophole in AML/CTF Act, says WA government: http://go-ri.tr.com/W4Kw6J

Premier speaks out on WA government's gold laundering scandal: http://go-ri.tr.com/sLwEEX

Government taking gold laundromat allegations "very seriously", says WA Premier: http://go-ri.tr.com/sLwEEX

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This special episode of Compliance Clarified was recorded for International Women’s Day. Rachel Wolcott and Lindsey Rogerson, both senior editors at Regulatory Intelligence in London, are joined by Dr Louise Ashley of Queen Mary University’s London School of Business and Management and Centre for Research on Equality and Diversity.

Louise has spent a decade researching social inclusion in the City of London. Her book Highly Discriminating: Why the City Isn't Fair and Diversity Doesn't Work is based on interviews with more than 400 city leaders and workers was published last year.

She was a working group member of the City of London Corporation Taskforce on Socioeconomic Diversity and
led research for the government's Social Mobility Commission.

City firms have been trumpeting their diversity and inclusion programmes, but in this episode, we look at what is actually happening. What Dr Ashley illustrates in her work, is a complex situation where D&I programmes have achieved some incremental change, but at a cost to individuals. To "make it" women and individuals from ethnic minority and lower socio-economic backgrounds must assimilate to the prevailing financial services culture, which is white, middle-class, and male. D&I programmes have been sanitised politically and co-opted to serve City firms' reputational and marketing needs. Regulators should take another look at these programmes with a more critical eye, she argues.

Programme notes:

Louise Ashley's article for The Conversation can be found here: https://theconversation.com/class-and-the-city-of-london-my-decade-of-research-shows-why-elitism-is-endemic-and-top-firms-dont-really-care-199474

Link to Highly Discriminating: Why the City Isn't Fair and Diversity Doesn't Work, by Louise Ashley
https://bristoluniversitypress.co.uk/highly-discriminating

Lindsey’s article
Employment tribunal orders BNP Paribas to carry out equal pay audit, after £2 million judgment
http://go-ri.tr.com/K30qUZ

Rachel & Lindsey’s article
UK regulators plan pilot diversity
data collection, regular reporting to follow
http://go-ri.tr.com/sRJpVd

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

"Do as I say, not as I do," is an adage that will echo through the ages. But rarely do we hear it uttered within the hallowed halls of financial regulators.

In Australia, this month, the adage is ringing loudly and clearly at the financial conduct regulator.

A misconduct investigation involving the most senior staff at the Australian Securities and Investments Commission (ASIC) has highlighted the challenges of building and maintaining a strong organisational culture — even for the regulator itself. A Senate hearing in Canberra has unearthed a complaint about allegations that a deputy commissioner behaved in a manner that was "disrespectful and contemptuous" towards other staff.

The case has underscored the importance of culture, including at the nation's financial conduct regulator, said Deborah O'Neill, a Labor senator.

"I think that this indicates some cultural challenges that are being faced by ASIC. We know that culture matters," she said.

In this episode of Compliance Clarified, Nathan Lynch speaks with Niall Coburn, Thomson Reuters' senior regulatory expert for the Asia-Pacific region.

Follow the links below for more coverage from Regulatory Intelligence on the importance of regulatory culture.

Bad blood between ASIC commissioners highlights challenge of culture: http://go-ri.tr.com/abwqdn

ASIC 'narrowly' avoided misleading parliament over Chester investigation, says Liberal senator : http://go-ri.tr.com/TQmSxc

Opinion: ASIC in government's crosshairs as chair apologises for outburst, Senate wants change: http://go-ri.tr.com/sEqYZd

Regulatory Insight: Top ten risks for the Asia-Pacific region in 2014: http://go-ri.tr.com/OLUaA3

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode of Compliance Clarified looks at the UK enforcement outlook for 2023 and, notably, the work of the Financial Conduct Authority (FCA). Change is in the air with the arrival of Ashley Alder as chairman from Hong Kong's Securities and Futures Commission and the upcoming departure this spring of Mark Steward, the FCA's long-serving enforcement director.

In this episode, Alexander Robson, managing editor, is joined by Rachel Wolcott and Lindsey Rogerson, senior editors in London, to consider the likely impact of the FCA's work on compliance professionals this year.

The regulator has had a busy start to 2023, completing historic enforcement actions and imposing big fines for infractions of anti-money laundering rules, as well as filing criminal charges in an alleged insider dealing and money laundering case. Steward would surely like to complete as many cases as possible before he goes, particularly the ones started under his watch.

Programme notes:

OUTLOOK 2023 - Financial Services and Markets Bill to set stage for post-Brexit financial regulation, new FCA chair and enforcement head arrive (paywall): https://regintel.thomsonreuters.com/#ri/resolve/shorturl/%7B%22shortUrl%22%3A%22Krs7La%22%7D

First statutory notice Campbell and Associates Independent Financial Advice Limited: www.fca.org.uk/publication/supervisory-notices/first-supervisory-notice-campbell-associates-independent-financial-advice-limited-2023.pdf

Details of the ClientEarth judicial review of the Financial Conduct Authority: www.reuters.com/business/energy/uk-watchdog-faces-lawsuit-climate-group-over-energy-company-prospectus-2023-02-16/

Saranac (Tom Kalaris) decision notice: www.fca.org.uk/publication/decision-notices/saranac-partners-limited-2022.pdf

OPINION: Money laundering fines for Guaranty and Al Rayan: examples of warnings going unheeded (paywall): http://go-ri.tr.com/Jf43y4

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and it aims to help compliance officers make sense of the often-challenging regulatory environment.

Compliance Clarified covers the big challenges of the day and offers practical ideas for emerging good practice.

The U.S. SEC’s annual list of examination priorities is a key document setting the agenda for financial services compliance professionals on Wall Street and Main Street.

This year the regulator signals it will be examining investment advisers and broker-dealers in light of the “tumult and change” caused by geopolitical and economic events, as well as by rule changes it has imposed in recent years.

In this episode, Randall Mikkelsen, managing editor for North America for Regulatory Intelligence, is joined by Jason Wallace, senior editor, to review the latest priorities list issued in February, and talk about how compliance professionals can best prepare.

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

Follow these links for more coverage by Thomson Reuters Regulatory Intelligence of the exam priorities and related compliance issues.

Marketing, private-fund advisers lead list of SEC exam priorities for advisers: https://regintel-content.thomsonreuters.com/document/I89B0B8C0A80011EDB628EC1DFA8C5BED

SEC 2023 exam priorities shaped by 'tumult and change' of recent years: https://regintel-content.thomsonreuters.com/document/I58648520A74811EDB628EC1DFA8C5BED

To learn more about Regulatory Intelligence: https://legal.thomsonreuters.com/en/forms/contact-sales-regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

If there is one certainty for compliance professionals in the year ahead, it's that they need to be ready for the unexpected. This episode looks at the top regulatory trends for financial services firms in the Asia-Pacific region in 2023. Discussion topics include cyber risk, the war in Ukraine, the post-pandemic economic recovery, and emerging market economic crises, which all set the stage for a volatile and challenging year ahead.

Geopolitical tensions have risen to a level not seen since the Cold War. This is affecting the Asia-Pacific economy amid the escalation of sanctions and other tools of economic warfare.

In this episode of Compliance Clarified, Nathan Lynch speaks with Niall Coburn, Thomson Reuters senior regulatory expert for the Asia-Pacific region.

Follow the link below for more coverage by Niall Coburn Coburn, of Regulatory Intelligence, on the outlook for 2023: http://go-ri.tr.com/OLUaA3

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode looks at top concerns for U.S. financial services compliance professionals this year. Among the biggest emerging issues: Regulatory scrutiny over Wall Street’s involvement in the crypto sector, a proposed revamp of the securities market structure, increased scrutiny of private equity and accounting, and new regulatory exam priorities.

In this episode of Compliance Clarified, Randall Mikkelsen, managing editor for North America, is joined by Todd Ehret, senior regulatory intelligence expert, to consider how these issues can impact the work of compliance professionals this year.

Follow these links for more coverage by Regulatory Intelligence of the regulatory outlook for 2023:

Cyber danger tops risk agenda, AI and cyber-enabled financial crime pose complex threat: https://tmsnrt.rs/3wGozbd

Beneficial ownership registers; improvement is glacial despite sanctions spotlight, EU seeks privacy solution: https://trten-my.sharepoint.com/personal/randall_mikkelsen_thomsonreuters_com/Documents/bit.ly/3wJKgXM

Top concerns for U.S. compliance professionals (paywall): http://go-ri.tr.com/VugNZK

U.S enforcement targets fraud hidden in emerging, unregulated finance (paywall): http://go-ri.tr.com/1CTQU9

For more information about Thomson Reuters Regulatory Intelligence, please visit https://legal.thomsonreuters.com/en/products/regulatory-intelligence
 

The Compliance Clarified podcast series covers the wide range of topics which affect compliance at financial services firms, and it aims to help compliance officers make sense of the often challenging regulatory environment.
Compliance Clarified covers the big challenges of the day and offers practical ideas for emerging good practice.

In the first episode of the new series of Compliance Clarified we discuss 10 things UK and EU Compliance officers need to consider in 2023.

In 2022, the financial services sector was influenced by many different factors. On a global level geopolitical, climate and economic risks dominated government’s agendas. Financial services firms were having to find new and innovative ways to address these challenges and the regulatory landscape flexed with more regulations in diversified areas to address the emerging risks.

For compliance officers, the increase in regulatory activity, meant an increased workload to be dealt with, at times, by stagnant or reduced budgets.

And 2023 show no sign of “let up” with some significant regulatory initiatives being developed to implementation.

In this episode, Lindsey Rogerson, Senior Editor Regulatory Intelligence, is joined by Mike Cowan, senior regulatory intelligence expert in London, to discuss the challenges that face compliance officers in 2023.

The Compliance Clarified podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

This episode of Compliance Clarified explores the obligations of U.S. investment advisers under a new regulation that gives giving them more opportunities to advertise.

The marketing rule adopted by the U.S. Securities and Exchange Commission took full effect in November. It is designed to let advisers use many methods long practiced in other industries, including testimonials, endorsements, performance reporting and third-party ratings.

It also establishes new compliance obligations, and the SEC has made clear that it will scrutinize advises closely for adherence to the rules.

In the episode, Randall Mikkelsen, managing editor for North America for Regulatory Intelligence, is joined by Jason Wallace, senior editor, to review the new marketing rule and how investment advisers can comply. We also take a quick look at how an adviser might answer a client who wants to invest in cryptos.

Follow these links for more coverage by Thomson Reuters Regulatory Intelligence of the FTX failure and digital-asset regulation:

IA BRIEF: Commitment to new U.S. adviser marketing rule is essential as exams start - http://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522UH7XVn%252522%25257D%2522%257D

IA BRIEF: As SEC ad rule takes effect for advisers, 'objective and testable' compliance is vital - https://regintel.thomsonreuters.com/#ri/resolve/shorturl/%7B%22shortUrl%22%3A%22SeeEmT%22%7D

SEC Marketing Rule - https://www.govinfo.gov/content/pkg/FR-2021-03-05/pdf/2020-28868.pdf

To learn more about Regulatory Intelligence, please click here - https://legal.thomsonreuters.com/en/forms/contact-sales-regulatory-intelligence?cid=9065363&chl=gem&sfdccampaignid=7014O0000016qiiQAA


The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help compliance officers make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

The first significant post-Brexit changes to UK financial services regulation were announced on December 9 by Jeremy Hunt, Chancellor of the Exchequer. The so-called 'Edinburgh Reforms' represent an attempt to honour government election manifesto promises and include possible changes to the Senior Mangers Regime, short selling, Solvency II and research rules under MiFID 2, among others.

In this episode of Compliance Clarified, Lindsey Rogerson and Rachel Wolcott, senior editors in London, join Alexander Robson, editor-in-chief in London, to discuss the reforms and their potential impact.

Wholesale markets review

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1057897/Wholesale_Markets_Review_Consultation_Response.pdf

Securitisation review
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1040038/Securitisation_Regulation_Review.pdf

Hill Review

https://www.gov.uk/government/publications/uk-listings-review

Short selling

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1122840/SSR_CfE_-_Official_Publication.pdf

National AI strategy

https://www.gov.uk/government/publications/national-ai-strategy-ai-action-plan/national-ai-strategy-ai-action-plan

FCA board minutes mentioning Regulatory Decisions Committee annual report (section 6)

https://www.fca.org.uk/publication/minutes/fca-board-minutes-28-october-2022.pdf


Available only to subscribers of Regulatory Intelligence (behind a paywall)

ANALYSIS: Edinburgh Reforms leave much for finance firms to engage with in Hunt's post-Brexit rules overhaul

http://go-ri.tr.com/tAS9ij

Senior managers regime sets accountability bar high, few are rejected or punished

http://go-ri.tr.com/46kAH4

The Regulatory Intelligence podcast series "Compliance Clarified" covers the range of topics that affect compliance officers in financial services firms.

The podcasts have been designed to help compliance officers make sense of the often-challenging world of financial services regulation which is now overlaid with expectations that are not in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges faced, and aims to offer up practical ideas for emerging good practice.

This episode of Compliance Clarified considers the regulatory future of digital assets following the collapse of cryptocurrency exchange FTX. The failure has turned as many as 1 million customers from account holders into bankruptcy creditors, and cost its backers hundreds of millions of dollars. Regulators around the world are investigating what FTX’s new CEO called a “complete failure of corporate control.” Policy makers are calling with increasing urgency for new rules, but others say there is no point saving a sector of questionable purpose.

In the episode, Randall Mikkelsen, managing editor for North America for Regulatory Intelligence, is joined by Todd Ehret, senior regulatory intelligence expert, and Richard Satran, senior correspondent, to consider the outlook for a new regulatory framework, or whether it is time to “Let Crypto Burn.”

Follow these links for more coverage by Thomson Reuters Regulatory Intelligence of the FTX failure and digital-asset regulation:

https://regintel-content.thomsonreuters.com/all-news-and-analysis-articles

https://ri-int.thomsonreuters.com/current/#ri/document/ID0E642306A8111ED962BC132E7932FFA/view/%7B%22searchId%22%3A%22i0ad69f0500000184ed2801ee90bd9e38%22%2C%22resultId%22%3A%22i0ad6066700000184ed27f3ddabaecf52%22%2C%22contentType%22%3A%22News%20And%20Analysis%22%2C%22contentTypeSearchId%22%3A%22i0ad69f0500000184ed27f38c90bd9e26%22%2C%22returnText%22%3A%22backToSearch%22%2C%22returnTo%22%3A%22ri%2Fsearch%2Fi0ad69f0500000184ed2801ee90bd9e38%2Fpaginated%22%2C%22resultsToInclude%22%3A%22SUBSCRIBED%22%2C%22originType%22%3A%22Search%22%2C%22originId%22%3A%22i0ad69f0500000184ed2801ee90bd9e38%22%2C%22highlightTerms%22%3A%22ftx%22%2C%22page%22%3A2%2C%22pageSize%22%3A20%2C%22order%22%3A%22DATE%22%2C%22originPosition%22%3A37%7D

https://ri-int.thomsonreuters.com/current/#ri/document/I5EE367706A9B11EDBEEDAED0E2772415/view/%7B%22searchId%22%3A%22i0ad69f0500000184ed2801ee90bd9e38%22%2C%22resultId%22%3A%22i0ad6066700000184ed27f3ddabaecf52%22%2C%22contentType%22%3A%22News%20And%20Analysis%22%2C%22contentTypeSearchId%22%3A%22i0ad69f0500000184ed27f38c90bd9e26%22%2C%22returnText%22%3A%22backToSearch%22%2C%22returnTo%22%3A%22ri%2Fsearch%2Fi0ad69f0500000184ed2801ee90bd9e38%2Fpaginated%22%2C%22resultsToInclude%22%3A%22SUBSCRIBED%22%2C%22originType%22%3A%22Search%22%2C%22originId%22%3A%22i0ad69f0500000184ed2801ee90bd9e38%22%2C%22highlightTerms%22%3A%22ftx%22%2C%22page%22%3A2%2C%22pageSize%22%3A20%2C%22order%22%3A%22DATE%22%2C%22originPosition%22%3A39%7D

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help compliance officers make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.

The EU Digital Operational Resilience Act (DORA) aims to ensure that all participants in the financial system have the necessary safeguards in place to mitigate cyber-attacks and other risks. The legislation will require firms to ensure that they can withstand all types of ICT-related disruptions and threats. It complements existing laws such as the Network and Information Security Directive (NISD) and the General Data Protection Regulation (GDPR).

In this episode, Alexander Robson, managing editor, Regulatory Intelligence, is joined by Trond Vagen, senior editor in Oslo, and Mike Cowan, senior regulatory intelligence expert in London, to discuss DORA, the impact of the legislation on financial services firms and ways for them to prepare.


Programme notes

DORA Regulation full text

https://data.consilium.europa.eu/doc/document/PE-41-2022-INIT/en/pdf

EU Council press release 28/11/22

https://www.consilium.europa.eu/en/press/press-releases/2022/11/28/digital-finance-council-adopts-digital-operational-resilience-act/

For subscribers to Regulatory Intelligence (behind paywall)

EU plan for digital operational resilience could lead to conflicting compliance requirements, says ECB

http://go-ri.tr.com/pYUZdv

Outages focus UK regulators on market infrastructure operational resilience

http://go-ri.tr.com/4YUKUQ

Operational risk regulation needed urgently due to geopolitical uncertainty, warn EU supervisors

http://go-ri.tr.com/CVyQFA

OUTLOOK 2022-Digital operational resilience work lines up European regulators, cloud providers for supervisory showdown

http://go-ri.tr.com/TeOsCs

The Compliance Clarified podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

Australian gambling giant Star Entertainment Group was last month fined A$100 million for failing to stop money laundering at its Sydney casino. The group's licence to operate the casino has also been suspended.

Casino operators in Australia have been under great pressure to reform their gambling operations following reports of widespread criminal activity. The record penalties were announced in response to a damning inquiry in New South Wales (NSW) earlier this year.

The Star is not alone. There has been misconduct at various casinos around Australia in recent years, including at those owned by the country's largest gaming and entertainment group - Crown Resorts. It was fined A$80 million by Victorian gambling authorities earlier this year for its failures to stop criminal activity. It is also in litigation with the country's feared AML/CTF agency, AUSTRAC, which is known for handing down billion-dollar penalties.

In this episode Alexander Robson, managing editor, Regulatory Intelligence, is joined by Nathan Lynch, APAC managing editor in Perth, and Niall Coburn, senior regulatory intelligence expert in Brisbane, to discuss the failures at the casinos, what needs to happen next and they offer lessons well beyond Australia.

Articles on Regulatory Intelligence (subscription needed)


COLUMN: Star casino report highlights gaps in Australia's criminal intelligence

http://go-ri.tr.com/PeqrM3

COLUMN: Queensland Star casino inquiry will consider compliance problems exposed in other states

http://go-ri.tr.com/4BKu4c

IMPACT ANALYSIS: Australian casinos – no consequences for directors despite widespread corporate governance failings

http://go-ri.tr.com/Y8hCKO

Star inquiry slates casino's Chinese payment card AML workaround

http://go-ri.tr.com/B44iIm

AUSTRAC defends billion-dollar penalties as crucial deterrent against corporate apathy

http://go-ri.tr.com/VOkA5B


No paywall

Australia casino operator Star found unfit for Queensland licence

https://www.reuters.com/business/australia-casino-operator-star-found-unfit-queensland-licence-2022-10-06/

Money laundering through the gambling industry

https://baselgovernance.org/sites/default/files/2022-09/QG28%20gambling.pdf

Junket tour operations in Australia

https://www.austrac.gov.au/sites/default/files/2020-12/JTO_2020_FINAL.pdf

The Compliance Clarified podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

This episode examines two consultations published by securities regulators at the COP27 climate conference designed to foster fair and efficient carbon markets. One deals with voluntary carbon credits and the other deals with so-called CCMs (compliance carbon markets) and aims to assist with the establishment and supervision of national/governmental schemes.

In this episode, Alexander Robson, managing editor, Regulatory Intelligence, is joined by Lindsey Rogerson, senior editor, EMEA wholesale financial markets regulation in London, and Henry Engler, senior editor in New York. Lindsey assesses the implications of the consultations for investment banks, asset managers and exchanges. Henry discusses the recent mid-term elections in the United States and their likely effect on the legislative agenda, and the Securities and Exchange Commission's ESG disclosure rules.

Show notes:

Link to IOSCO consultation on Compliance Carbon Markets https://www.iosco.org/library/pubdocs/pdf/IOSCOPD719.pdf and Voluntary Carbon Markets

https://www.iosco.org/library/pubdocs/pdf/IOSCOPD718.pdf

Link to International Capital Markets Association Climate Resilient Debt Clauses term sheet https://www.icmagroup.org/assets/CRDCs-November-2022.pdf

Link to Financial Conduct Authority https://www.fca.org.uk/publication/consultation/cp22-20.pdf

Link to HM Treasury Transformation Disclosure Framework https://transitiontaskforce.net/get-involved/

Link to U.N. High Level Expert Group recommendations https://www.un.org/sites/un2.un.org/files/high-level_expert_group_n7b.pdf

The Compliance Clarified podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

Financial crime teams are being urged to pay greater attention to illicit transactions linked to money laundering, illegal betting and corruption. The problem is particularly endemic in the Asia-Pacific region, where gambling is a major way of life.

Banks, casinos and other reporting entities are largely oblivious to the extent that organised crime groups have infiltrated the sector, according to sports integrity officials. Some estimates suggest that around a quarter of professional sports has been linked to organised crime.

In this episode of Compliance Clarified, Nathan Lynch, Asia managing editor, joins Alexander Robson, editor-in-chief in London, to discuss the problem.

Programme notes:

UNODC Global Report on Corruption in Sport

https://www.unodc.org/unodc/en/safeguardingsport/grcs/index.html

A log in needed for non-RI subscribers

Bad sports: Global financial crime teams must target industry's illegal betting, laundering

http://go-ri.tr.com/dfjIxt

Sports betting in Australian regulator's crosshairs as AML crackdown continues

http://go-ri.tr.com/yDvMwj

The Regulatory Intelligence podcast series "Compliance Clarified" covers the range of topics that affect compliance officers in financial services firms.

The podcasts have been designed to help compliance officers make sense of the often-challenging world of financial services regulation which is now overlaid with expectations that are not in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become true polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges faced, and aims to offer up practical ideas for emerging good practice.

This episode examines the impact of Hurricane Ian and, more broadly, climate change, on the insurance industry. The September storm killed at least 119 people and caused at least $50 billion in damage in Florida alone. It may be the state’s costliest storm ever but is only the latest in a series of increasingly severe storms, droughts and wildfires that scientists say are consistent with predicted effects of climate change. Such natural disasters have taxed the insurance industry, and one industry lawyer called Hurricane Ian a “death knell” for property and business interruption insurance in Florida.

In this episode of Compliance Clarified, Randall Mikkelsen, managing editor for North America, is joined by Antonita Madonna, insurance correspondent for Regulatory Intelligence, explore the challenges new-style risks including natural disasters are posing for the insurance industry and U.S. insurance regulators.

Follow these links for more coverage by Regulatory Intelligence of the insurance aftermath of Hurricane Ian:

https://www.reuters.com/article/bc-finreg-low-flood-insurance-florida-hu/low-flood-insurance-uptake-in-florida-poses-tough-challenge-after-hurricane-ian-idUSKBN2RS1G2

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the big challenges of the day and offers practical ideas for emerging good practice.

This episode examines the UK Economic Crime and Corporate Transparency Bill, now before the House of Commons. The legislation is the second part of the government's economic crime plan, announced under the then Cameron government, and which was given fresh impetus by Russia's invasion of Ukraine and a determination to crack down on dirty and kleptocratic money in London.

In this episode of Compliance Clarified, Alexander Robson, global managing editor, Regulatory Intelligence, is joined by Helen Parry, senior regulatory intelligence expert, and Rachel Wolcott, senior reporter. They assess the implications of the bill for anti-money laundering professionals, the powers of the National Crime Agency, the Serious Fraud Office, and the crucial role of Companies House, the UK corporate registry, in identify verification.

Links to content referenced in the discussion:

Timetable: https://bills.parliament.uk/bills/3339

Committee information https://committees.parliament.uk/committee/618/economic-crime-and-corporate-transparency-bill-programming-sub-committee/

https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-bill-2022-factsheets

https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-bill-2022-impact-assessments?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=94c70d27-d4bd-43b9-847d-949d0a95fc18&utm_content=immediately

Parliament TV for October 25. Committee https://www.parliamentlive.tv/Event/Index/c77273cd-ad46-44e9-b51c-acd0220411b6

Regulatory Intelligence links (subscription needed)

COLUMN: Money laundering, enhanced due diligence and high-risk countries — increasingly demanding compliance requirements

http://go-ri.tr.com/TGQm4w

COLUMN: Economic Crime and Corporate Transparency Bill – a new fishing licence for the National Crime Agency?

http://go-ri.tr.com/0gjw3S

COLUMN: Economic Crime and Corporate Transparency Bill – thresholds, ring fencing and defence against money laundering SARs

http://go-ri.tr.com/VZsc3b

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

This episode examines a crackdown by U.S. regulators against “off-channel” communications on Wall Street. In September 11 major firms including Goldman Sachs, Morgan Stanley and Bank of America were fined a total of $1.8 billion for regulatory violations involving the use of unauthorized communications including texts and WhatsApp instant messages. The violations involved tens of thousands of messages sent or received by senior trading desk managers and their staff, raising the prospect that they could be used to evade protections against misconduct such as insider trading.

In this episode of Compliance Clarified, Randall Mikkelsen, managing editor for North America, is joined by Henry Engler, senior regulatory intelligence expert for Regulatory Intelligence, to examine the roots of the problem and the challenges compliance professionals face in combating it.

The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance officers in financial services firms.

The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.

Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.

In the tenth and final episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Helen Chan and Lindsey Rogerson to take another look at personal liability and accountability in financial services.
Many jurisdictions have introduced personal accountability regimes in order to drive better risk aware behaviours by senior managers. The practical impact of which was highlighted in our recently published cost of compliance report for 2022 in which nearly half (45%) expected the personal liability of compliance professionals would increase in the coming year. In another stat 56% of respondents thought that the regulatory focus on culture and conduct risk would increase the personal liability of senior managers.

Links to content referenced in the discussion:

Cost of Compliance 2022 report can be downloaded from

https://legal.thomsonreuters.com/en/insights/reports/cost-of-compliance-2022-competing-priorities

Governance scrutiny, pandemic risks heighten personal liability stakes for senior managers in Hong Kong

https://www.linkedin.com/posts/helenhchan_senior-liability-enforcement-in-hong-kong-activity-6953537396344860673-jl_i?utm_source=linkedin_share&utm_medium=member_desktop_web

Report on introduction of Irish Individual Accountability Framework by Joint Committee on Finance, Public Expenditure and Reform and Taoiseach, April 2022

https://data.oireachtas.ie/ie/oireachtas/committee/dail/33/joint_committee_on_finance_public_expenditure_and_reform_and_taoiseach/reports/2022/2022-04-05_report-on-pre-legislative-scrutiny-of-the-general-scheme-of-the-central-bank-individual-accountability-framework-bill-2021_en.pdf

European Central Bank report on climate stress test results July 2022

https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.climate_stress_test_report.20220708~2e3cc0999f.en.pdf

Article on UK SMCR's lack of enforcement

https://www.jdsupra.com/legalnews/senior-managers-regime-sets-6886025/

The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link

https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the ninth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by her co-author of the Cost of Compliance report Mike Cowan to take a look at the key findings from the 2022 report.

The 2022 cost of compliance report is 13th annual survey report focusing on the challenges expected to be faced by risk and compliance functions at financial services firms around the world. This year’s survey had almost 500 responses from practitioners from banks, insurers, asset and wealth managers, regulators, broker dealers and payment services providers.

Links to content referenced in the discussion:

Cost of Compliance 2022 report can be downloaded from

https://legal.thomsonreuters.com/en/insights/reports/cost-of-compliance-2022-competing-priorities

Link to TV slot with Susannah Hammond discussing the Cost of Compliance report A look at the findings of the 2022 cost of compliance report (kaltura.com)

https://cdnapisec.kaltura.com/html5/html5lib/v2.96/mwEmbedFrame.php/p/2363721/uiconf_id/46526623/entry_id/1_83kge8uc?wid=_2363721&iframeembed=true&playerId=kaltura_player_1598883065&entry_id=1_83kge8uc&flashvars%5bstreamerType%5d=auto

The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link

https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the eighth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson, Todd Ehret and David Bickley (from Thomson Reuters Practical Law) to take a look at the future of financial services and the sheer breadth of the regulatory change agenda.

Compliance officers will be all too familiar with regulatory change – it is the gift that keeps on giving and regulatory change management is a core competency for all risk and compliance functions.

So what are the hotspot areas likely to need compliance attention in the coming months and years? Well as a short but dense list there is ESG, sanctions, the shift of the regulatory perimeter to capture more crypto marketplace activity, the focus on increasingly vulnerable customers as the cost of living crisis bites as well as shifting regulatory expectations when it comes to all aspects of operational resilience. And that is before considering the how of financial services regulation and the spectre of personal liability.

Links to content referenced in the discussion:

UK Treasury: Financial Services Future Regulatory Framework Review: Proposals for Reform

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1032075/FRF_Review_Consultation_2021_-_Final_.pdf

Queen's Speech 2022: background briefing notes

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1074113/Lobby_Pack_10_May_2022.pdf

European Parliament's economic and Monetary Affairs Committee's work in progress list

https://www.europarl.europa.eu/cmsdata/250180/ITER0002_EN_20220623.pdf

Brexit Opportunities Catalogue

https://public.tableau.com/app/profile/governmentreporting/viz/UKGovernment-RetainedEULawDashboard/Guidance
Regulatory Initiatives Grid https://www.fca.org.uk/publication/corporate/regulatory-intitiatives-grid-may-2022.pdf

Dear CEO letter to 3,500 lenders on improving customer outcomes

https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-rising-cost-of-living-acting-now-support-consumers.pdf

PRA Consultation Paper The Strong and Simple Framework: a definition of a Simpler-regime Firm (CP5/22)

https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/publication/2022/cp522.pdf

Bufferati - speech by Sam Woods

https://www.bankofengland.co.uk/speech/2022/april/sam-woods-speaking-at-city-week-2022-developments-in-prudential-regulation-in-the-uk

SEC Spring 2022 Regulatory Agenda

https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST&currentPub=true&agencyCode=&showStage=active&agencyCd=3235&csrf_token=ABBAA84824C29E01B566B0472A6E99E59C730916821A14613C79DE7F48AC8EAEF4CA3A7C929E9B10E667F119BAA4958D5293

The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link

https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the seventh episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Mike Cowan to look at the compliance challenges posed by data governance.

In a digital age more than ever, firms need to embrace the fact that data is a vital strategic asset and from there build a business-wide approach to data aggregation, management, storage, security, retrieval, and destruction — in other words, build a business-specific approach to data governance. The successful governance of data will have multiple benefits one of which will be a direct improvement in the compliance function’s capacity to have line of sight to the regulatory risks being run by the business.

Links to content referenced in the discussion:

UK FCA portfolio letter warning on reporting

https://www.fca.org.uk/publication/correspondence/portfolio-letter-data-reporting-services-providers.pdf

BIS Paper No 124 - The design of a data governance system

https://www.bis.org/publ/bppdf/bispap124.pdf

UK Department of Culture Media & Sport - Data: a new direction - government response to consultation

https://www.gov.uk/government/consultations/data-a-new-direction/outcome/data-a-new-direction-government-response-to-consultation#ch1

The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link

https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fifth episode of season 6 of the Compliance Clarified podcast, Susannah Hammond is joined by Rachel Wolcott and Brett Wolf to look at the compliance challenges posed by financial crime in general and sanctions in particular.

Links to content referenced in the discussion:

European Banking Authority new guidelines for MLROs which come into effect on December 1 2022

https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-05%20GLs%20on%20AML%20compliance%20officers/1035126/Guidelines%20on%20AMLCFT%20compliance%20officers.pdf

MEPs present plans to crack down on financial crime with new Anti-Money Laundering Authority

https://www.europarl.europa.eu/news/en/press-room/20220613IPR32836/meps-present-plans-for-new-anti-money-laundering-authority

ACAMS Ukraine crisis hub

https://www.acams.org/en/ukraine-crisis-rapid-response-resources#rapid-response-briefs-6c1b6814

https://www.moneylaundering.com/news/hunt-for-russian-wealth-exposes-eus-sanctions-shortcomings/

'Reputation launderers,' disinformation campaigns hinder sanctions and financial crime compliance efforts

https://www.jdsupra.com/legalnews/reputation-launderers-disinformation-8673225/

Amendments to the Money Laundering, Terrorist Financing and Transfer of funds (information on the payer) regulations 2018 statutory instrument 2022, response to the consultation

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1082704/MLRs_SI_2022_-_Consultation_Response.pdf

New Office of Financial Sanctions Implementation (OFSI) penalty guidance

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1081195/OFSI_Enforcement_guidance_June_2022.pdf

Putin's People by Catherine Belton

https://www.theatlantic.com/magazine/archive/2020/09/catherine-belton-putins-people/614212/

Lazarus Heist: North Korean hacks

https://www.bbc.co.uk/programmes/w13xtvg9/episodes/downloads

Superyachts:

https://news.sky.com/story/pr-stunt-captain-of-38m-superyacht-seized-in-london-says-govt-has-got-the-wrong-guy-12634728

U.S. Treasury defines ‘new investments’

https://www.linkedin.com/posts/amlwolf_treasury-defines-new-investment-activity-6942883691002019840-Alqm?utm_source=linkedin_share&utm_medium=ios_app

The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link

https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fifth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Rachel Wolcott Engler to look at the compliance challenges posed by increasingly vulnerable customers.
Compliance officers are used to the concept of vulnerable customers and the need to take additional care to ensure consistently good customer outcomes but with a cost-of-living crisis, digital transformation and a new UK consumer duty the challenges are growing.

Links to content referenced in the discussion:

UK Finance vulnerability academy https://www.ukfinance.org.uk/events-training/vulnerability-academy-october-2021

Article on giving FCA a "have regard to" financial inclusion https://www.jdsupra.com/legalnews/call-for-fca-to-be-required-to-have-6787510/

Firms & individuals getting it wrong in past:

Lloyds mortgage customers 2017 https://www.fca.org.uk/news/press-releases/lloyds-banking-group-redress-scheme-mortgage-arrears-customers

Moneybarn fine https://www.fca.org.uk/news/press-releases/fca-fines-moneybarn-277m-unfair-treatment-customers-arrears

Steven Martin of Quick Purchase https://www.fca.org.uk/publication/final-notices/final-notice-steve-martin-quick-purchase.pdf

Wonga redress notice https://www.fca.org.uk/news/press-releases/wonga-pay-redress-unfair-debt-collection-practices#:~:text=Wonga%2C%20the%20UK's%20biggest%20payday,and%20misleading%20debt%20collection%20practices.

Useful FCA guidance:

Guidance on fair treatment of vulnerable customers https://www.fca.org.uk/publications/finalised-guidance/guidance-firms-fair-treatment-vulnerable-customers

Persistent credit card debt https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

Arrears, payment shortfalls and repossession chapter of Handbook https://www.handbook.fca.org.uk/handbook/MCOB/13.pdf

FCA speeches

https://www.fca.org.uk/news/speeches/keeping-pace-rising-costs-improving-financial-inclusion-consumers

https://www.fca.org.uk/news/speeches/supporting-consumers-challenging-times

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fourth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined
by Lindsey Rogerson and Henry Engler to look again at ESG – that is environmental, social and
corporate governance and the strain the good intentions are coming under from an uneven global
approach, the war in Ukraine and increasing economic challenges.

Links to content referenced in the discussion:

Article on ISSB standards and how they link to EU and US proposals http://go-ri.tr.com/SZiOMZ

Link to ISSB consultation IFRS - Open for comment

Link to EU sustainability reporting standards consultation
Public consultation on the first set of Draft ESRS - EFRAG

Link to EU Commission Q&A on SFDR
https://www.esma.europa.eu/sites/default/files/library/c_2022_3051_f1_annex_en_v3_p1_1930070.pdf

Link to SEC enforcement action against BNY Mellon Investment Adviser on ESG considerations
https://www.sec.gov/news/press-release/2022-86

Link to SEC proposed rule on company climate disclosures
https://www.sec.gov/rules/proposed/2022/33-11061.pdf

Gary Gensler, chair of SEC, video explainer on climate-related disclosure proposal
https://www.youtube.com/watch?v=MacoRZSLzTc

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the third episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Helen Chan and Mike Cowan to consider the evolving supervisory approach to conduct risk which is a feature of a principles-based approach to financial services regulation and is seeking to ensure that firms put, and are seen to put, the customer first.
Firms need to be aware that many regulators around the world are trying to stamp out a tick-box and overly legalistic approach to compliance together with the issues that come from complying with only the letter (rather than the spirit) of the rulebook.

Links to content referenced in the discussion:

UK Financial Conduct Authority (FCA) new consumer duty to drive ‘fundamental shift’ in mindset
https://www.fca.org.uk/news/press-releases/fca-introduce-new-consumer-duty-drive-fundamental-shift-industry-mindset

FCA five conduct risk questions for firms https://www.fca.org.uk/firms/5-conduct-questions-programme

Impact Analysis: https://www.linkedin.com/posts/helenhchan_sfc-complaints-handling-compliance-deficiencies-activity-6935401566321418240-M-5R?utm_source=linkedin_share&utm_medium=member_desktop_web

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the second episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Rachel Wolcott and Mike Cowan looking again at operational risk with, in particular, a focus on the impact of cyber on operational risk and resilience.

Links to content referenced in the discussion:

Operational resilience: next steps on the PRA’s supervisory roadmap − speech by David Bailey, UK Prudential Regulation Authority

https://www.bankofengland.co.uk/speech/2022/april/david-bailey-speaker-at-uk-finance-event-operational-resilience-beyond-2022

SS2/21 Outsourcing and third party risk management:

https://www.bankofengland.co.uk/prudential-regulation/publication/2021/march/outsourcing-and-third-party-risk-management-ss

SEC Charges Five Russians in $80 Million Hacking and Trading Scheme

https://www.sec.gov/news/press-release/2021-265

SEC Announces Three Actions Charging Deficient Cybersecurity Procedures

https://www.sec.gov/news/press-release/2021-169

EU NIS 2 Directive
https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2985

The European Banking Authority's (EBA) Report on Convergence of Supervisory Practices in 2021

https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Reports/2022/1032485/Report%20on%20convergence%20of%20supervisory%20practices%20in%202021.pdf

Further information on Thomson Reuters Regulatory Intelligence can be found at:

https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the first episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Todd Ehret and Joe Raczynski to discuss the latest Thomson Reuters special report on all things crypto and the complex regulatory future which is beginning to emerge.

Links to content referenced in the discussion:

A digital version of the special report ‘Cryptos on Rise 2022’ can be found here https://www.thomsonreuters.com/en/reports/cryptos-on-the-rise-2022.html

The takedown of Hydra

https://www.linkedin.com/posts/todd-ehret-91827264_takedown-of-darknet-market-hydra-rise-of-activity-6930176733211979776-mfyq?utm_source=linkedin_share&utm_medium=member_desktop_web

The increasing U.S. political awareness around cryptos

https://www.linkedin.com/posts/todd-ehret-91827264_cryptos-enter-politics-the-emergence-of-activity-6930181643701764096-ucCE?utm_source=linkedin_share&utm_medium=member_desktop_web

Further background and articles by Joe Raczynski can be found below

https://www.thomsonreuters.com/en/profiles/joseph-raczynski.html
https://joetechnologist.com/
https://www.josephraczynski.com/

Mind-shifting into blockchain, cryptocurrency, and the future of asset ownership in the metaverse

https://www.thomsonreuters.com/en/careers/careers-blog/mind-shifting-into-blockchain-cryptocurrency-and-future-of-asset-ownership-in-metaverse.html

Bye-bye, banks! Hello DeFi… Our bankless society has officially begun

https://www.thomsonreuters.com/en-us/posts/legal/defi-bankless-society/

Non-fungible Tokens: Asset ownership via blockchain rockets into legal

https://www.thomsonreuters.com/en-us/posts/legal/non-fungible-tokens-legal/

TV interview with Susannah chatting about the cryptos special report:

https://cdnapisec.kaltura.com/p/2363721/embedPlaykitJs/uiconf_id/49993563?iframeembed=true&entry_id=1_vy1ibvbm

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the tenth, and last, episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Rachel Wolcott and Brett Wolf to take a look at the current state of play with sanctions and the intended and unintended consequences emerging from the response to the conflict in Ukraine.

Links to content referenced in the discussion:

Imposition of sanctions deemed to be symbolic https://www.linkedin.com/posts/amlwolf_putin-sanctioned-activity-6904888722626871296-9Swn?utm_source=linkedin_share&utm_medium=ios_app

Banks with cryptos exposure need to act to mitigate sanctions invasion risk https://www.linkedin.com/posts/amlwolf_managing-russia-sanctions-evasion-tied-to-activity-6907361899344994304-yumm?utm_source=linkedin_share&utm_medium=ios_app

UK FCA statement https://www.fca.org.uk/news/statements/new-financial-sanctions-measures-relation-russia#revisions

Operational resilience impact https://www.fca.org.uk/firms/operational-resilience/russian-invasion-ukraine

Use of side pockets for asset managers https://www.fca.org.uk/news/statements/fca-consult-use-side-pockets-retail-funds-exposure-sanctioned-and-suspended-russian-assets

UK Treasury report on sanctions https://publications.parliament.uk/pa/cm5802/cmselect/cmtreasy/1186/summary.html

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the ninth episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson to take a look at look at all things Islamic finance. Not every financial services firm is going to choose to consider Islamic finance as a strategic opportunity, but it is an area with substantial global potential both in terms of growth and in its ‘green’ credentials. It is also one in which risk and compliance functions would be required to play a critical role.

Links to content referenced in the discussion:

Link to TRRI Islamic finance quarterly roundup: Q4 2021 https://www.linkedin.com/posts/susannahhammond_islamic-finance-quarterly-update-q4-2021-activity-6912316840622891008-ByB-?utm_source=linkedin_share&utm_medium=member_desktop_web

Link to UK Islamic Finance Council and UN Development Programmes joint paper on Innovation in Islamic Finance: green sukuk for SDGs https://www.ukifc.com/wp-content/uploads/2021/09/UKIFC21_Green_Sukuk_v1-2_20210927.pdf

Link to House of Commons briefing paper on Islamic alternative to student loans https://commonslibrary.parliament.uk/sharia-compliant-alternative-student-finance/

Link to Fitch article on Garuda Airlines sukuk default https://www.fitchratings.com/research/corporate-finance/garuda-airlines-sukuk-default-resolution-could-set-precedent-in-indonesia-06-07-2021

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the eighth episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Helen Chan to take a look at look at the challenges for risk and compliance functions posed by corporate investigations particularly with a backdrop of geopolitical tensions and with examples from, in the most part, Asia.

Links to content referenced in the discussion:

Impact of China’s ‘unreliable entity’ list https://www.linkedin.com/posts/helenhchan_unreliable-entity-list-overview-activity-6907901406703943680-pzit

Compliance risks for overseas listed Chinese companies https://www.linkedin.com/posts/helenhchan_compliance-risks-for-overseas-listed-chinese-activity-6876078181410058240-BmHK

New draft measures from the Cyberspace Administration of China on security assessments for cross-border data transfers is expected to impact business https://www.linkedin.com/posts/helenhchan_cac-draft-measures-activity-6869223709106946048-C-j5

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the seventh episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Michael Cowan to take a look at the challenges and indeed threat posed by Big Tech to mainstream financial services.

The perceived benefits of allowing tech firms to operate with a banking licence are seen to be ‘compelling but require scrutiny’. Unburdened by legacy infrastructure, tech firms often offer superior technology and user-friendly apps that may allow them to reach more consumers and perform various aspects of the banking business (onboarding, deposit-taking, lending, payments) more efficiently than incumbents.

Links to content referenced in the discussion:

Financial Stability Institute ‘Gatekeeping the gatekeepers’ paper (link is: https://www.bis.org/fsi/publ/insights39.pdf )

Kelly report on Co-op Bank (link is: https://assets.ctfassets.net/5ywmq66472jr/3LpckmtCnuWiuuuEM2qAsw/9bc99b1cd941261bca5d674724873deb/kelly-review.pdf )
Link to Department of Culture, Media and Sport statement on adding paid-for advertising to Online Safety Bill https://www.gov.uk/government/news/major-law-changes-to-protect-people-from-scam-adverts-online
Link to article on joint Parliamentary committee draft report on the Online Safety Bill https://www.linkedin.com/feed/update/urn:li:activity:6907301343145693184/

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the sixth episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Hedwige Nuyens who is, among other things, the chair of European Women on Boards to celebrate International Womens Day.

“Any workplace that fails to harness the energy and creativity of its women is at a huge disadvantage in the modern world."



Links to content referenced in the discussion:

World Economic Forum Global Gender Gap report https://www.internationalwomensday.com/Missions/14537/World-Economic-Forum-Global-Gender-Gap-Report-showed-equality-99-years-away

LeanIn and McKinsey & Co Women in the Workplace report reveals over 1 in 4 women may downshift or leave their careers https://www.internationalwomensday.com/Missions/15573/LeanIn-and-McKinsey-Co-Women-in-the-Workplace-report-reveals-over-1-in-4-women-may-downshift-or-leave-their-careers

Ursula von der Leyen, President of the European Commission, the Gender Diversity Index report for 2021 and other useful presentations https://europeanwomenonboards.eu/portfolio/2021-gender-diversity-index/

Link to my article on Menopause in the Workplace report https://www.jdsupra.com/legalnews/banks-need-menopause-policies-to-retain-4772441/#:~:text=October%2018%2C%202021-,Banks%20need%20menopause%20policies%20to%20retain%20pipeline%20of%20talent,senior%20ranks%2C%20Standard%20Chartered%20says&text=Financial%20services%20firms%20are%20losing,a%20study%20published%20October%2018

Link to FCA pilot diversity data https://www.onlinesurveys.fca.org.uk/CP/File.php?F=F_6A9kXyooLnFWJ7g

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fifth episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Rachel Wolcott, to discuss where we are now with Brexit. In one sense Brexit seems a pre-pandemic age ago – Brexit day was 31st January 2020 before COVID became headline news and before the world went into lockdown. So, a couple of years on from Brexit while there hasn’t been the ‘bonfire of the regulations’ what we have seen is incremental granular creeping change.

Links to content referenced in the discussion:

AFME letter to ECOFIN https://www.afme.eu/Events/Detail?eventId=c198d973-a37a-ec11-8d21-00224843337e#event-agenda
FCA Regulatory Initiatives Grid, November 2021 https://www.fca.org.uk/publication/corporate/regulatory-intitiatives-grid-november-2021.pdf

EFAMA paper on MiFIR reform https://www.efama.org/newsroom/news/efama-position-mifir-review-buy-side-view-consolidated-and-market-structure-reforms

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fourth episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Stacey English, director of market intelligence at Theta Lake, to discuss all things hybrid working – what we were all bounced into at the start of the pandemic has, in some shape or form, become the new normal with many, if not all, financial services firms adopting some sort of flexible working going forward.

Links to content referenced in the discussion:

10 compliance risks of using Zoom, Microsoft Team and other collaboration platforms: https://www.linkedin.com/posts/stenglish_compliance-risks-of-using-zoom-teams-webex-activity-6895341224052801536-Ogzk

Compliance and security for modern communications like Zoom, Microsoft Teams and Webex: https://thetalake.com/

Theta Lake 2021 Modern Communications Survey Report: The Security And Compliance Risks Of Collaboration Tool Usage In Financial Services: https://pages.thetalake.com/2021-modern-communications-survey-report

European Commission declaration on digital rights: file:///C:/Users/u6067039/Downloads/Commission_puts_forward_declaration_on_digital_rights_and_principles_for_everyone_in_the_EU.pdf

UK Information Commissioner's Office feedback statement on employment practices and data protection: https://ico.org.uk/media/about-the-ico/consultation-responses/4019364/employment-call-for-views-summary-report-v1_0.pdf

UK FCA risk management checklist for remote or hybrid working https://www.fca.org.uk/firms/remote-hybrid-working-expectations

The Thomson Reuters 2022 cost of compliance survey is open – to take part please click here https://reuters.az1.qualtrics.com/jfe/form/SV_4SmwDAc25WrncsC

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the third episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Alex Robson, Rachel Wolcott and Brett Wolf to take a fresh look at how the implications of tackling financial crime are beginning to shape up. There is a wide swathe of financial crime challenges for 2022 with both the European Union and the UK seeking to breathe life into their anti-money laundering regimes which are perceived to be ‘weak’. On the other side of the pond the U.S. there are warnings of swift economic penalties and sanctions should Russia intervene in Ukraine. And of course, if imposed, they would need to be applied suddenly in the middle of a crisis, thus creating even sharper challenges for compliance, risk, and legal departments.

In January 2022, the UK FCA published ‘Heads of compliance and MLRO applicant competency and capability’ https://www.fca.org.uk/firms/approved-persons/heads-compliance-mlro-applicant-competency-capability.

INTERVIEW-Ransomware a top crypto AML risk in 2022; NFTs a potential fraud threat - https://reut.rs/3uxwhUT

Banks, money transmitters, must prepare as FinCEN plans new anti-laundering, risk assessment rules - https://www.linkedin.com/posts/amlwolf_fincen-regulatory-planning-prompts-industry-activity-6895483060864065537-pd3G

U.S. Treasury Department works to help human trafficking victims access banks, Yellen says - https://www.linkedin.com/posts/amlwolf_bank-access-for-human-trafficking-victims-activity-6892168193054781442-PeHt

UK's inadequate economic crime response has allowed fraud, money laundering to flourish, MPs say - https://www.jdsupra.com/legalnews/uk-s-inadequate-economic-crime-response-1760888/

The 2022 cost of compliance survey is open – to take part please click here https://reuters.az1.qualtrics.com/jfe/form/SV_4SmwDAc25WrncsC

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the second episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Mike Cowan to discuss the five key risks for senior managers in financial services firms in 2022. Now at the start of 2022, financial institutions need to consider the changes they might need to make permanent after their largely successful response to the COVID-19 pandemic. A combination of flexibility, deployment of technology and, in the case of banks, balance sheets which had been substantially bolstered following the financial crisis, all helped meet the unprecedented challenges in early 2020. It is likely that for many firms, work is already underway to reassess the strategic approach, together with associated policies, procedures and control infrastructure. The risks financial services firms run are institution-specific but there are some high-level risks applicable to all firms, irrespective of geography or sector.

The full five key risks for firms in 2022 can be downloaded from here: https://legal.thomsonreuters.com/en/insights/reports/5-key-risks-for-firms-in-2022

TV interview with Susannah discussing the five key risks can be viewed here: https://cdnapisec.kaltura.com/p/2363721/sp/236372100/embedIframeJs/uiconf_id/49465922/partner_id/2363721?iframeembed=true&playerId=kaltura_player_1643735688&entry_id=1_cryd0pq8

The 2022 cost of compliance survey is open – to take part please click here https://reuters.az1.qualtrics.com/jfe/form/SV_4SmwDAc25WrncsC

Special reports mentioned in the podcast:

ESG: Fast-emerging challenges for financial institutions report https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/

Cryptos on the rise report https://www.thomsonreuters.com.sg/en/resources/cryptos-on-the-rise.html

Fintech, regtech and the role of compliance in 2022 report https://legal.thomsonreuters.com/en/insights/reports/fintech-regtech-and-the-role-of-compliance-in-2022/form

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the first episode of season 4 of the Compliance Clarified podcast, Susannah Hammond is joined by Mike Cowan to discuss the ten things the compliance officers of financial services firms need to consider in 2022.

Heading into 2022, the pandemic should have been in the rear-view mirror, but instead the world is dealing with the impact of another variant of COVID-19. Many financial services firms had scheduled post-pandemic reviews but those have morphed into a rolling review of the efficacy of hybrid working arrangements.

As ever, risk and compliance officers will play a central role in preparing their firms for all eventualities. The list of issues for compliance officers to consider will of course be firm and business specific but there are number of areas which all compliance officers regardless of jurisdiction or sector will need to consider in the coming year.

As discussed in the podcast here are some additional resources:

The full ten things compliance officers need to consider in 2022 can be downloaded from here: https://legal.thomsonreuters.com/en/insights/reports/10-things-compliance-officers-need-to-consider-in-2022.

The 2022 cost of compliance survey is open – to take part please click here https://reuters.az1.qualtrics.com/jfe/form/SV_4SmwDAc25WrncsC

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the tenth, and last, episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Mike Cowan her co-author on the report Fintech, regtech and the role of compliance in 2022. The subtitle of the report is “challenges arising from technological opportunities” which gives a sense of the findings. It is clear that digital transformation has been a fundamental enabler for financial services firms particularly in navigating the pandemic. Indeed, it is hard to underestimate the opportunities firms can derive from the robust implementation of technological solutions but maximising their potential can present challenges. And the most significant challenges highlighted by respondents to this year's survey concerned four key areas - data, operational resilience, the management of third parties and skill sets.

The Fintech, regtech and role of compliance report 2022 can be downloaded from: https://legal.thomsonreuters.com/en/insights/reports/fintech-regtech-and-the-role-of-compliance-in-2022

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the ninth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson and Henry Engler to revisit ESG – that is environmental, social and corporate governance with a particular focus on the ‘G’ – governance together with the ramifications for financial services firms coming out of COP26.

For the last couple of weeks practically every headline has been about COP26 and the agreements reached or indeed not reached. Those agreements and the governance element of ESG are inextricably linked – without robust corporate governance financial service firms (among others) will simply not be able to deliver on the environmental and social challenges.


As mentioned in the podcast some additional resources:

Formation of International Sustainability Standards Board "pivotal moment" https://www.linkedin.com/feed/update/urn:li:activity:6869302667005571072/


COP26 Deforestation & methane pledges will help banks, asset managers get to net zero
https://www.thomsonreuters.com/en-us/posts/news-and-media/cop26-deforestation-methane-pledges/?utm_source=TRI&utm_medium=Social&utm_campaign=Govt_COP26_Deforestation_Methane_Pledges_Social

Link to prototype ISSB climate standard
https://www.ifrs.org/content/dam/ifrs/groups/trwg/trwg-climate-related-disclosures-prototype.pdf

Link to prototype ISSB general standard
https://www.ifrs.org/content/dam/ifrs/groups/trwg/trwg-general-requirements-prototype.pdf

Oliver Wyman - Climate And Compliance The Time To Engage Is Now!
https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2021/oct/Climate_and_compliance_.pdf

Special report: ESG report highlights new challenges for financial institutions
https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the eighth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Todd Ehret to take another look at cryptos. In a wide-ranging discussion, we update on both developments in the U.S. and the evolving picture for Central Bank Digital Currencies together with a debate as to whether or not all things crypto are actually regulatable. Or is that mission impossible?

As mentioned in the podcast, here are some additional resources:

INSIGHT: Coinbase proposal for U.S. crypto regulatory framework may kickstart process
https://www.linkedin.com/posts/todd-ehret-91827264_coinbase-proposal-for-a-regulatory-framework-activity-6867108724322918400-N-sl

G7 public policy principles for retail CBDCs
https://www.linkedin.com/posts/susannahhammond_g7-public-policy-principles-for-retail-cbdcs-activity-6867035415677816832-whqM

Blog U.S. crypto framework begins to evolve
https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/us-crypto-framework-evolves/

Special report: Cryptos on the rise
https://www.thomsonreuters.com.sg/en/resources/cryptos-on-the-rise.html

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

n the seventh episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Mike Cowan to consider operational resilience with a particular focus on the supply chain, outsourcing and third parties. The discussion will cover the latest regulatory developments, the timeline to a raft of new reporting obligations and the need for compliance functions to be, and stay, involved in all things operational resilience.

As discussed in the podcast here are some additional resources:

Outages focus UK regulators on market infrastructure operational resilience
https://www.linkedin.com/feed/update/urn:li:activity:6864862477658669056/

Operational resilience risk posed by third parties, cloud will be a post-pandemic focus, central bankers say
https://www.linkedin.com/feed/update/urn:li:activity:6864863665368129536/

IOSCO updates outsourcing principles to ensure operational resilience

https://www.linkedin.com/posts/michael-cowan-00768049_iosco-principles-on-outsourcing-activity-6864602910722936832-nwS8

FSB calls for standardisation of cyber incident reporting

https://www.linkedin.com/posts/michael-cowan-00768049_fsb-cyber-incident-reporting-activity-6864602291320721408-4SEj

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the sixth of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott to assess the persistence of market abuse, not just as a result of hybrid working but as a continuing supervisory focus. This episode takes a look at where we are now, discusses recent cases and gives an insight into what compliance officers need to consider in the continuing battle against market abuse and manipulation.

As discussed in the podcast here are some additional resources:

Insider dealing convictions of UBS compliance officer and day trader upheld, December 2020
https://www.fca.org.uk/news/press-releases/insider-dealing-convictions-upheld-court-appeal
FCA considering broader action on trading influencers after signalling case judgment
https://www.jdsupra.com/legalnews/fca-considering-broader-action-on-2280957/

FCA Market Watch 66
https://www.fca.org.uk/publications/newsletters/market-watch-66

FCA fines and prohibits hedge fund Chief Investment Officer for market abuse
https://www.fca.org.uk/news/press-releases/fca-fines-and-prohibits-hedge-fund-chief-investment-officer-market-abuse

FCA fines TFS-ICAP £3.44 million for market misconduct
https://www.fca.org.uk/news/press-releases/fca-fines-tfs-icap-market-misconduct

Tesco to pay redress for market abuse
https://www.fca.org.uk/news/press-releases/tesco-pay-redress-market-abuse

Insider dealers sentenced in Operation Tabernula trial
https://www.fca.org.uk/news/press-releases/insider-dealers-sentenced-operation-tabernula-trial

FCA commences criminal proceedings against brothers for insider dealing and fraud
https://www.fca.org.uk/news/press-releases/fca-commences-criminal-proceedings-against-brothers-insider-dealing-and-fraud

Focus on market abuse highlights need for effective approach to ‘dawn raids’
https://www.linkedin.com/posts/susannahhammond_market-abuse-dawn-raids-activity-6859152841676746753-reat

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the fifth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Todd Ehret to discuss the continuing regulatory dilemma surrounding all things cryptos, crypto firms themselves and the potential direction of regulatory travel.

Special report: Cryptos on the rise https://www.thomsonreuters.com.sg/en/resources/cryptos-on-the-rise.html

US crypto framework starts to take shape https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/us-crypto-framework-evolves/?utm_source=TRI&utm_medium=Social&utm_campaign=Fraud_and_Risk_US_Crypto_Framework_Evolves_Social

Perimeter Report 2020/21 https://www.fca.org.uk/publication/annual-reports/perimeter-report-2020-21.pdf
https://tabbforum.com/opinions/inexperienced-mlros-poor-applications-fca-vetting-create-barriers-for-crypto-firms-regulatory-approval/

Binance continues FCA engagement, opaque corporate structure an issue https://www.linkedin.com/feed/update/urn:li:activity:6859513325148004353/

Textbook market abuse observed in Bitcoin Futures https://www.linkedin.com/feed/update/urn:li:activity:6859514841615405056/

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the fourth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Todd Ehret to take a look at the developing issues and what good is beginning to look like for the evolving management of personal accountability. Not only are accountability regimes proliferating around the world but also firms and their compliance officers need to also consider an increasingly wide range of non-financial misconduct when assessing whether or not individuals are, and remain, fit and proper. And individuals need to be considered ‘fit and proper’ in order to be a licensed or registered employee and thus authorised to undertake financial services.

As discussed in the podcast here are some additional resources:

New York City Bar Association proposals for compliance officer liability https://www.nycbar.org/member-and-career-services/committees/reports-listing/reports/detail/framework-for-chief-compliance-officer-liability

Survey of graduates around the world https://www.cfainstitute.org/-/media/documents/survey/Graduate-Outlook-Survey-2021.ashx

UK senior managers and certification regime stocktake https://www.fca.org.uk/publications/multi-firm-reviews/senior-managers-and-certification-regime-banking-stocktake-report

Firms' recruitment procedures require change to meet regulators' diversity and suitability requirements https://www.jdsupra.com/legalnews/firms-recruitment-procedures-require-8560749/

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the third episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson, Helen Chan and Henry Engler to take a global look at the developing issues and what good is beginning to look like for managing ESG as a strategic priority.

Virtually every industry is affected by the collective efforts of governments to tackle climate change, the effects of which have become all too stark in 2021 – those efforts have been collectively badged as ESG. In last week’s episode we spoke about diversity which has also fallen under the umbrella of ESG and is another challenge for risk and compliance functions. This episode is going to consider ESG in a much wider sense - financial services firms are, for instance, heavily involved managing the transition from a fossil fuel-dominated economy to one supported by renewable energy.


As discussed in the podcast here are some additional resources:


TRRI’s new ESG report https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/

New York Fed paper that looks into stress testing banks for climate risk. https://www.newyorkfed.org/research/staff_reports/sr977

Bank of Japan statement that they will begin providing zero-interest funds to financial institutions for loans and investments that contribute to addressing climate change. https://www.boj.or.jp/en/announcements/press/koen_2021/ko211005a.htm/

ESG questions in palm oil production post compliance, reputational risk for financial firms https://www.linkedin.com/posts/helenhchan_esg-questions-in-palm-oil-production-considerations-activity-6854614204649996288-I6Rw

Banks need COP26 to deliver key milestones for the transition https://www.linkedin.com/feed/update/urn:li:activity:6854715735319674881/

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the second episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson and Henry Engler to discuss the increasing importance of diversity issues for financial services firms. Diversity, in and of itself, is an important issue but it has risen up regulatory agenda as it come under the umbrella of ESG issues which are fast becoming a strategic priority for firms and regulators alike. Alongside the headline grabbing need to tackle climate change, questions around human rights, social justice, and human diversity now also need to be managed alongside firms’ more traditional values and concerns.

As discussed in the podcast here are some additional resources:

TRRI’s new ESG report https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/

Article summarising a New York Fed webinar on diversity: https://www.reuters.com/article/bc-finreg-corporate-diversity/corporate-diversity-inclusion-needs-focus-on-middle-management-influential-employees-ny-fed-webinar-idUSKBN2B11I4

Stanford University study of how U.S. companies have responded to a 2020 SEC human disclosure rule that required them to share more information about their workforce. https://www.gsb.stanford.edu/faculty-research/publications/human-capital-disclosure-what-do-companies-say-about-their-most

Overview of U.S. SEC proposals on diversity disclosures https://www.reuters.com/world/us/us-sec-prepares-take-corporate-america-over-workforce-disclosures-2021-08-16/

Harvard Business Review article that argues: “Increasing diversity does not, by itself, increase effectiveness; what matters is how an organization harnesses diversity, and whether it’s willing to reshape its power structure.” https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case

Link to Regulatory Intelligence article UK regulators plan pilot diversity data collection, regular reporting to follow https://www.linkedin.com/feed/update/urn:li:activity:6851538365377069056/

Link to Regulatory Intelligence article Collecting and protecting diversity data in the finance sector: critical considerations https://www.linkedin.com/feed/update/urn:li:activity:6851540501397667840/

The UK’s Social Mobility Commission’s socio-economic questions https://socialmobilityworks.org/toolkit/financial-and-professional-measurement/

Link to the McKinsey research on diverse company outperformance https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/most-diverse-companies-now-more-likely-than-ever-to-outperform-financially
Link to academic paper which questions McKinsey's research https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3849562

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the first episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Helen Chan and Brett Wolf to discuss the shifting sands around sanctions. Sanctions screening, sanctions compliance and evidencing compliance with the patchwork quilt of under and overlapping requirements has never been easy, but it has got a whole lot more challenging in the wake of the Taliban take-over of Afghanistan and the emerging use of sanctions against a crypto exchange deemed to be a conduit for illicit funds. If that wasn’t challenging enough there are also the implications of the Chinese counter foreign sanctions law and where that leaves international firms in terms of compliance.

As discussed in the podcast here are some additional resources:

UAE central bank guidance on sanctions screening and transaction reporting: https://www.linkedin.com/posts/susannahhammond_uae-central-bank-guidance-on-sanctions-screening-activity-6848249167937077248-BfUi

U.S. Treasury Department issues two general licenses aimed at ensuring a continued flow of humanitarian aid to Afghanistan https://www.linkedin.com/posts/amlwolf_ofac-licenses-afghanistan-activity-6848247094038319104-C49D

The need for "high-alert" due diligence with regard to Afghanistan https://www.linkedin.com/feed/update/urn:li:activity:6834530562347200512/

Implications of transactions with the Afghan government vs humanitarian aid https://www.linkedin.com/feed/update/urn:li:activity:6838915397341777920/

Firms likely to ‘wholesale de-risk’ from Afghanistan https://www.linkedin.com/feed/update/urn:li:activity:6837037096738320384/

China’s countermeasures sanctions regime and the implications for compliance functions. https://www.linkedin.com/posts/helenhchan_china-countermeasures-sanctions-regime-activity-6848540647100706816-QIuj

Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2