Compliance & Ethics

Interactive Brokers LLC has agreed to pay nearly $11.83 million to settle a wide-ranging enforcement case with the U.S. Treasury’s Office of Foreign Assets Control (OFAC). The fine stems from thousands of transactions spanning more than seven years that violated multiple U.S. sanctions programs, including dealings linked to Iran, Cuba, Syria, Crimea, Russia, and Chinese military-linked firms.

Brussels has approved its most comprehensive sanctions package yet against Russia, marking the 18th wave of EU action since the start of the war in Ukraine. The new measures aim to ratchet up pressure on the Kremlin’s energy revenues, financial lifelines, and military-industrial backbone, while also closing loopholes and clamping down on sanctions evasion through third countries and shadow networks.

July was quiet on the institutional front, but the Office of the Comptroller of the Currency (OCC) didn’t let misconduct slide. Instead of targeting banks, the regulator issued a number of prohibition orders aimed squarely at former bank employees who crossed the line, from check fraud and ATM manipulation to outright theft and criminal convictions.

The UK’s audit watchdog is turning its attention to the backbone of the economy (small and medium-sized enterprises (SMEs)) with a new push to make audit requirements more proportionate and accessible. On July 17, the Financial Reporting Council (FRC) released emerging findings from its ongoing market study into the SME audit landscape, alongside a public consultation on draft guidance aimed at helping auditors take a more tailored approach with smaller businesses.

France’s financial markets watchdog has imposed a total of €1,890,000 in fines on eight individuals and two legal entities, including ski infrastructure developer MND and its director, for a series of serious market abuse violations ranging from late disclosure of inside information to insider trading and breaches of professional obligations.

J.P. Morgan Securities has agreed to pay more than $2.18 million to settle charges that it let a pattern of unsuitable short-term trades go unchecked, leaving retail clients with losses while the firm and its representatives raked in fees.

The European Commission is facing scrutiny from the European Ombudsman over its failure to follow its own Better Regulation Guidelines when preparing legislative changes to corporate sustainability reporting and due diligence rules. A formal inquiry led by Ombudsman Teresa Anjinho has revealed that the Commission bypassed critical procedural steps (namely, a public consultation, an impact assessment, and a climate consistency review) without providing adequate justification.