Compliance & Ethics

AI Revolution: Transforming Governance, Risk Management, and Compliance

In recent years, the astonishing capabilities of artificial intelligence have catapulted us into a realm once thought to exist only in the world of science fiction. With the current state of generative AI and the relentless progress in this field, the commercial applications of AI have become a focal point for organizations and businesses across the spectrum.

Federal Court Orders South African Company to Pay Over $1.7 Billion in Restitution for Forex Fraud

The U.S. District Court for the Western District of Texas has entered a consent order against Mirror Trading International Proprietary Limited (MTI), a South African company currently in liquidation. The court found MTI liable for multiple violations, including fraud in connection with retail foreign currency (forex) transactions, fraud as a commodity pool operator (CPO), registration violations, and failure to comply with CPO regulations. This ruling comes as a result of a complaint filed by the Commodity Futures Trading Commission (CFTC) on June 30, 2022.

SEC Charges Monolith Resources for Violating Whistleblower Protection Rules

The U.S. Securities and Exchange Commission (SEC) has announced that it has settled charges against Monolith Resources LLC, a privately held energy and technology company based in Lincoln, Nebraska. Monolith has been charged with employing employee separation agreements that violated the SEC's whistleblower protection rules.

FINRA Takes Action Against Network 1 for Supervisory Failures

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary action against Network 1 Financial Securities Inc. (Network 1) and one of its registered representatives, Molinaro, for their alleged failure to establish and enforce a supervisory system and written supervisory procedures (WSPs) designed to ensure compliance with the suitability requirements related to excessive trading.

Global Regulators Pursue Stricter Oversight of Decentralized Finance (DeFi)

Global securities regulators are taking their first steps toward establishing a framework to hold participants in the world of "decentralized finance" (DeFi) accountable for their actions, with the aim of safeguarding market stability. DeFi platforms have gained prominence for enabling users to lend, borrow, and save in digital assets while leveraging blockchain technology to bypass traditional financial intermediaries, such as banks and exchanges.

Fluor Corp. to Pay $14.5 Million Settlement to SEC for Accounting Improprieties

The U.S. Securities and Exchange Commission (SEC) has announced that Fluor Corporation, headquartered in Irving, Texas, will pay a substantial settlement of $14.5 million to resolve charges stemming from alleged improper accounting practices related to two significant fixed-price construction projects. Additionally, five former and current officers and employees of Fluor have agreed to settle related charges for their roles in causing the company's accounting violations.

Australian Regulator Initiates Legal Action Against PayPal Over Unfair Contract Terms

Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has announced its intention to take legal action against PayPal Australia Pty Ltd, alleging that the digital payments giant has included an unfair term in its standard contracts with small business customers. The contentious clause, according to ASIC, could potentially shield PayPal from accountability for errors in overcharging, imposing an unjust burden on its clientele.