On Aug. 20, CVM issued fines for poor practices in pension funds. Sanctions regarding deals on behalf of State Water, Sewage Company pension fund by Bovespa Index (IND) futures contracts, Dollar (DOL), 1-Day Interest Rate (DI1). Allegations Unfair practices regarding investments to the detriment of pension fund portfolio. Sanctions Several defendants received fines totally over…
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OFAC Circumvented Sanctions
On Aug. 21, OFAC designations for evading Russia, NK sanctions. Identified individuals and entities for their roles in circumventing US sanctions. Designation is pursuant to section 224(a)(1)(B) of CAATSA, Public Law 115-44. Russia-related Sanctions Sanctions based on acts undertaken for Divetechnoservices, a Russian entity. As well as for Russian government agencies e.g Federal Security Service (FSB).…
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SEC Merrill Advisory Conflicts
On Aug. 20, SEC $8.9mn Merrill settlement on advisor conflicts. Firm will pay $8.9mn for failed to disclose conflict of interest from own business. In deciding if to continue to offer clients product managed by third-party advisor. Alleged Violations Conflict arose in handling third-party products of US subsidiary of a foreign bank. Over 1,500 of Merrill’s…
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FINRA Fine Lek Securities AML
On Aug. 15, FINRA fined Lek Securities Corporation for AML. On Jun. 1, an SEC order became final and Lek Securities Corporation was fined $100,000, sustaining the NAC's findings and sanctions imposed. Alleged Violations Such sanctions were based on Lek's failure to establish effective AML policies, procedures, controls to adequately report suspicious transactions. Such failure…
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SEC Fines Large Bank $10mn Records, Controls
On Aug. 16, SEC fined Citigroup $10mn for records and controls. Citi to pay $10.5mn for books and records violations and inadequate controls. Actions on books and records, internal accounting controls, trader supervision. From $81mn losses, due to trader mismarking and unauthorized prop trading. With $475mn of losses, due to fraudulently-loans made by Mexican subsidiary.…
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UK FCA Complaints Handling, RCA
On Aug. 15, FCA issued complaints handling review, RCA case study. FCA published findings of its review of how non-deposit taking mortgage lenders (NDTMLs), and mortgage third-party administrators (MTPAs) handle complaints. Examined how firms treat customers; if complaint handling arrangements pose potential consumer harm; what, if anything, can do to handle complaints better. Published understanding…
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