Monthly Archives: February 2018

FR CNIL Transitioning to GDPR

On Feb. 23, FR CNIL updated on new processes for data protection. Cited imminent entry into force of the European Data Protection Regulation (GDPR). Implement new compliance tool, certification, and gradually ending labeling activity. Background European Regulation and draft law currently under discussion invite data protection authorities to develop protection certification mechanisms to assist data…
Read more

HK SFC AML N. Korea Sanctions

On Feb. 23, HK SFC updated list on UN sanctions for North Korea. Updated list specifying relevant persons and entities under section 31 of the UN Sanctions (Democratic People’s Republic of Korea) Regulation, of Feb. 23, 2018. Licensed corporations are reminded to refer to SFC Chapter 6 of AML Guideline. Guidance on measures to take…
Read more

FINRA Legend Churning Fraud

On Feb. 16, FINRA fined Legend Securities $200k re sale supervision. Office of Hearing Officers decision became final and the firm was fined $200k. Alleged Violations Firm failed to supervise representative who fraudulently churned an account. Fraud against elderly and blind customer resulted in net losses of over $170k. Customer was charged a total $232k…
Read more

CBOE AML Compliance Program

On Feb. 14, CBOE issued AML due diligence for permit holders. Follows 2016 FinCEN rules, on customer due diligence requirements. Require trading permit holders be in compliance with CDD rules by May 11, 2018. Must have written AML program, designed to achieve compliance with CDD rules. Application Where TPH is not a FINRA member, and…
Read more

CFPB Payday Debt Trap Rule

On Feb. 13, 2018, CFPB published finalized change to final rule in federal register. Becomes effective Apr. 9, 2019, with all changes from Jan. 25, reflected comment. Background: Rule covers loans that require consumers to pay all or most of the debt at once. Include auto title loans, deposit advance products, loans with balloon payment.…
Read more

FINRA Wedbush Client Assets

On Feb. 5, FINRA fined Wedbush $1.5mn for client asset violations. To punish violations of Customer Protection and Net Capital Rules, and related supervisory and books and records failures over period of 2009-2016, several consumers defrauded. Customer Protection, Net Capital Rule Broker-dealer obligated to protect customer assets as custodian for investments must be segregated in…
Read more