Swiss Regulator Censures Gazprombank After Panama Papers:

The Financial Times | February 01, 2018: Bank banned from taking new private clients over failings on money laundering checks. Swiss authorities have reprimanded Gazprombank, Russia’s third-largest bank, over “serious shortcomings in anti-money laundering processes” related to the Panama Papers. Finma, Switzerland’s financial regulator, said Gazprombank’s Swiss branch “failed to carry out adequate economic background clarifications into business relationships and…

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FinCEN Notice 2017-1 ~ FBAR Filing Requirement For Certain Financial Professionals:

FinCEN | GPE – December 23, 2017: The Financial Crimes Enforcement Network (FinCEN) is announcing a further extension of time for certain Report of Foreign Bank and Financial Accounts (FBAR) filings in light of the notice of proposed rulemaking (NPRM) FinCEN issued on March 10, 2016, which proposes to revise the regulations implementing the Bank Secrecy Act (BSA) regarding FBARs.…

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DOJ Gives Compliance Chiefs Powerful New Ally:

The FCPA Blog | By: Richard L. Cassin | December 22, 2017: The DOJ’s FCPA Pilot Program — giving companies declinations or reduced penalties if they self disclose, cooperate, and disgorge profits — has now been enshrined in the U.S. Attorneys’ Manual. It’s a permanent guideline for prosecutors. What it means for companies is more certainty. If they discover potential…

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9-47.000 ~ Foreign Corrupt Practices Act Of 1977:

Offices Of The United States Attorneys | GPE – December 22, 2017: This chapter contains the Department’s policy regarding investigations and prosecutions of violations of the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits both United States and foreign corporations and nationals from offering or paying, or authorizing the offer or payment, of anything of value to a foreign government…

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The Morning Risk Report ~ Cost Of Compliance — And Noncompliance — Rising:

The Wall Street Journal | By: Ben DiPietro | GPE – December 20, 2017: The cost of compliance for organizations rose 43% between 2011 and 2017, while the cost for not being in compliance rose 45% in that time, according to new research from data-integration firm Globalscape and Ponemon Institute. The research, based on an analysis of 53 multinational companies…

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Here Come The New EU Rules On Data Privacy:

The Wall Street Journal | GPE – December 20, 2017: Many U.S. companies may think they don’t have to worry about them. But, as Justin Antonipillai and Ajay Arora explain, they do. ‘There are thousands of companies that have no idea that you’re actually covered by this law.’ The Wall Street Journal’s Jeff Stone spoke with two experts to get…

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31 CFR § 1020.230 ~ Certification Regarding Beneficial Owners Of Legal Entity Customers:

FinCEN | GPE – December 20, 2017: The US Department Of The Treasury, Financial Crimes Enforcement Network (FinCEN) have produced a  form to facilitate conforming with the compliance requirements relating to Beneficial Owners. This is an optional form provided for your convenience. The required information may be provided in other f ormats. When completed, this form is provided to the…

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This One Weird Tax Trick Could Raise GDP, Shrink The Trade Deficit:

The Wall Street Journal | By: Greg Ip | December 18, 2017: GOP tax plan could lead companies to curb shifting of profits abroad—and could satisfy Trump’s protectionist instincts. Dublin has been a welcome port for U.S. companies engaging in ‘transfer pricing,’ moving millions of dollars in profits to low-tax countries like Ireland. But the proposed GOP tax overhaul may…

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UK Regulator ~ Smart Machines Alone Can’t Defeat Money Laundering:

The FCPA Blog | By: Richard L. Cassin | December 11, 2017: Artificial intelligence will always be a “work in progress” in fighting money laundering and won’t entirely replace humans and their intuition, a top UK regulator said. “Any bank hoping for a black box in the corner that will sniff out the launderers will be disappointed,” according to Rob…

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France Allows Use Of Blockchain To Trade Some Traditional Securities:

The Wall Street Journal | By: Sam Schechner & Patricia Kowsmann |December 08, 2017: New rule is latest mainstream effort to adopt record-keeping developed for virtual currencies. France said Friday that it will allow wider use of the record-keeping technology behind bitcoin in the issuance and trading of traditional securities, part of a growing number of experiments to speed up…

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EU Releases Tax Haven Blacklist:

The FCPA Blog | By: Richard L. Cassin | December 07, 2017: The European Union Tuesday named 17 countries and territories to its first-ever blacklist of tax havens. Forty-seven other countries were grey-listed but have committed to meeting EU standards. The EU designated a country or territory as a “non-cooperative jurisdiction” primarily by measuring the transparency of its tax regime,…

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More Enforcement Risk For China Joint Ventures:

The FCPA Blog | By: Gwen Manseau and Jialin (Jackie) Zeng | November 29, 2017: Having recently toughened up its anti-bribery laws, China is now aiming to expand its oversight of corruption in the public sector, possibly leading to increased enforcement efforts against both domestic and foreign companies. In the face of this increased scrutiny, companies doing business in China…

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FINRA Fines J.P. Morgan For Thousands Of HR Due Diligence Failures:

The FCPA Blog | By: Richard L. Cassin | November 27, 2017: The Financial Industry Regulatory Authority fined J.P. Morgan Securities, LLC $1.25 million for failing to conduct proper background checks on 8,600 new employees. FINRA – Wall Street’s independent regulator – said the due diligence failures started in 2009 and continued until May this year. Federal securities laws require…

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SEC Statements On Cybersecurity; An EDGAR Hacking – Part 1

Legal & Compliance | By: Laura Anthony, Esq. | November 21, 2017: On September 20, 2017, SEC Chair Jay Clayton issued a statement on cybersecurity that included the astonishing revelation that the SEC Edgar system had been hacked in 2016. Since the original statement, the SEC has confirmed that personal information on at least two individuals was obtained in the…

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Glencore Upends Board Of Congo Unit Amid Probe:

The Wall Street Journal | By: Scott Patterson | November 20, 2017: Swiss commodity giant says weaknesses found in subsidiary’s financial reporting. The move comes amid an investigation by Canada’s Ontario Securities Commission, or OSC, the country’s biggest regional securities regulator, into the governance practices of the Glencore copper subsidiary, Katanga Mining , KAT -3.17% which is based in the…

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Companies Face High Cost To Meet New EU Data Protection Rules:

The Financial Times | November 19, 2017: The world’s biggest companies will spend tens of millions of dollars to meet new EU data protection laws by next May’s deadline, according to a survey that shows the costs of meeting some of the world’s toughest privacy rules. Members of the Fortune 500 will spend a combined $7.8bn to avoid falling foul…

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Boards Should Think Of Cyber A Bit More Like Bank Robberies, Former AT&T Security Chief Says:

The Wall Street Journal | By: Steven Norton | GPE – November 20, 2017: Corporate boards should think about cybersecurity risk as banks think about bank robbery: a relatively common risk that must be managed. “Just like bank robbery, you can’t say get rid of (cyber risk) and make it never happen,” said Ed Amoroso, former chief security officer at…

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Wells Fargo Feels Effect Of SEC Targeting Broker-Dealer Compliance:

The Wall Street Journal | By: Samuel Rubenfeld | November 15, 2017: Anti-money laundering enforcement of broker-dealers by the Securities and Exchange Commission has been on the rise over the past year or so, but the $3.5 million penalty of a Wells Fargo unit stands out because it concerns a management shakeup and mixed messaging. The SEC in January released…

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Decoding GDPR Roles And Responsibilities:

MetricStream | Various Authors | GPE – November 15, 2017: Requirements for Data Processors, Data Controllers, and Data Protection Officers. The EU General Data Protection Regulation (GDPR) is poised to do for data protection and security what the Sarbanes-Oxley Act (SOX) did for corporate governance in the early 2000s – the implications are that significant. While the new regulation may…

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Will The EU Data Protection Rule Block Due Diligence?

The FCPA Blog | By: Robert Clark | November 13, 2017: Companies minimize the risk of corruption by adequately vetting their prospective representatives ~ typically by reviewing information about the financial interests and relevant connections of the intermediaries’ owners and key personnel, and screening those individuals for reputational and criminal-history issues. These routine inquiries will soon become considerably more difficult.…

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