Deutsche Bank

Some red meat for all you sanctions compliance nerds: a Deutsche Bank subsidiary has agreed to pay $583,000 for two separate sanctions violations. One involved compliance employees improperly configuring a sanctions screening tool; the other, senior business and compliance managers rushing a transaction without appropriate due diligence.  The Office of Foreign Assets Control announced the…

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due diligence

Banking regulators have published fresh guidance about how financial firms should perform due diligence on “politically exposed persons” — stressing that you don’t need to take extra steps simply because a customer is a PEP, although banks do need to understand the higher corruption risks PEPs can pose.  The guidance is a joint statement from…

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FinCEN

Anti-money laundering regulators gave fresh guidance Monday about what financial firms should do for adequate customer due diligence — guidance that was, alas, light on specific steps to take. Instead, compliance officers have a three-page document best described as “Do what you think is best, based upon risk.” The guidance comes from FinCEN, the Financial…

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Deutsche Bank

We have a follow-up to last week’s news about Deutsche Bank and its many compliance failures that allowed convicted sex trafficker Jeffrey Epstein to remain a client for years: the New York Times has identified several executives, including one of the bank’s senior compliance officers, involved in those decisions. New York banking regulators hit Deutsche…

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Deutsche Bank

New York banking regulators hit Deutsche Bank with a $150 million penalty Tuesday for its business dealings with notorious sex trafficker Jeffrey Epstein, and painted a damning picture of compliance failures that went on for years at the bank while it reaped millions from such a lucrative customer.  The New York Department of Financial Services…

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fcpa

Chalk up another victory for effective compliance programs: Goldman Sachs just avoided FCPA charges from the Securities and Exchange Commission because its compliance team uncovered a sketchy deal one of its bankers cooked up in Ghana — while the banker himself is now facing charges from the SEC.  The defendant in question is Asante Berko,…

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covid

As we all struggle to understand the new compliance challenges forced upon us by covid, today I pass along an example relayed to me by a compliance officer working in financial services. From nitty-gritty issues of policy and procedure, to substantive questions about risk assessment, my friend told quite the thought-provoking tale.  We’ll call my…

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third-party

One of the nation’s top banking regulators just dropped some fresh guidance about third-party risk management, well worth any compliance professional’s time if you’re looking for advice on regulatory compliance or just good insight on third-party risk generally. The Office of the Comptroller of the Currency, regulator for the country’s community banks, published the guidance…

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cohen

The lawyer for Stormy Daniels dropped yet another eye-popping allegation Tuesday afternoon: that some of the biggest names in Corporate America gave hundreds of thousands of dollars to Michael Cohen via the same shell company he used to give Daniels $130,000 in hush money just before the 2016 election. That gasping sound you hear is…

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A new report from the Government Accountability Office says tough AML compliance obligations are contributing to a “derisking” wave in banks along the U.S.-Mexico border, which are closing branches and filing far more suspicious activity reports than in other parts of the country. The report examined 406 banks across the United States, including 115 along…

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