GRC Report Staff

Between May and October 2024, the Federal Reserve has been busy shaping the regulatory landscape for U.S. financial institutions, reinforcing its commitment to ensuring the safety, stability, and soundness of the banking system while protecting consumers in a rapidly changing environment. In its latest Supervision and Regulation Report, the Fed highlights several initiatives that reflect its ongoing efforts to keep pace with emerging risks and challenges in the financial sector.

The Consumer Financial Protection Bureau (CFPB) has hit Global Tel Link Corporation (GTL), now operating as ViaPath Technologies, with a $3 million fine for exploiting incarcerated individuals and their families. The company was found to have systematically frozen and drained payment accounts, leaving those behind bars without access to the money they rely on for basic essentials like food, medicine, and clothing.

The clock is ticking for Europe’s financial sector as the Digital Operational Resilience Act (DORA) prepares to go live on 17 January 2025. To pave the way, the European Supervisory Authorities (EBA, EIOPA, and ESMA—collectively, the ESAs) have announced how they’ll collect the vital information needed to designate Critical ICT Third-Party Providers (CTPPs). The message is clear: start preparing now, or risk falling behind.

Pharmaceutical company QOL Medical LLC (QOL) and its CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations of orchestrating an elaborate kickback scheme. The allegations, brought under the False Claims Act (FCA), paint a picture of aggressive marketing tactics that veered dangerously into unethical territory, all in the name of driving prescriptions for the company’s flagship drug, Sucraid.

Meta, the parent company of Facebook, is back in the regulatory hot seat—this time, for crossing the line in Europe. The European Commission has fined the tech giant a staggering €797.72 million for abusing its dominance to boost Facebook Marketplace at the expense of competitors. The penalty serves as a sharp reminder to Big Tech that the EU won’t tolerate market manipulation under its watch.

The Australian Prudential Regulation Authority (APRA) has released findings from its second climate risk self-assessment survey, offering insights into how financial institutions are addressing climate-related risks. The survey, aimed at all APRA-regulated banks, insurers, and superannuation trustees, drew responses from over half of the invited entities. It builds upon a smaller 2022 assessment that initially focused on large entities, marking a broadening effort to gauge sector-wide climate resilience.

Archer-Daniels-Midland Co. (ADM.N), a global leader in agricultural and nutrition markets, has announced that its Chief Compliance Officer, Ben Bard, will step down early next year, citing personal reasons. The news arrives at a precarious moment for ADM, as the company struggles with escalating scrutiny over accounting issues that have forced it to delay regulatory filings and overhaul financial practices.