Compliance & Ethics

The U.S. Securities and Exchange Commission (SEC) has imposed a $1.4 million fine on Cantor Fitzgerald for its repeated failure to identify and report customers who qualified as large traders. According to the SEC, Cantor Fitzgerald neglected to track and report over 100 large traders over a six-year period. The regulator also revealed that the company had failed to file required forms identifying itself or its affiliates as large traders for more than a decade.

The European Banking Authority (EBA) has released its fourth biennial Opinion on the risks of money laundering and terrorist financing (ML/TF) in the European Union's financial sector. This latest publication outlines the evolving risk landscape and provides recommendations to competent authorities and EU co-legislators on mitigating these risks.

The Federal Trade Commission (FTC) has announced the withdrawal of two antitrust policy statements that it considers "outdated." The decision targets guidance on antitrust enforcement in healthcare that was published in August 1996 and on accountable care organizations (ACOs) published in October 2011. This move aligns the FTC with the Department of Justice (DOJ), which withdrew its guidance on these matters earlier this year. The decision has implications for compliance officers navigating the complex landscape of healthcare antitrust regulations.

NextGen Healthcare has agreed to pay $31 million to settle allegations of violating the False Claims Act and the Anti-Kickback Statute. The U.S. Department of Justice (DOJ) filed a complaint stating that NextGen credited customers whose recommendations of its software led to new business, a practice that violated federal laws. The settlement emphasizes the importance of compliance officers in preventing such misconduct.

Christopher Ehrman, the long-serving director of the Commodity Futures Trading Commission's (CFTC) whistleblower program, has announced his departure from the agency. Effective immediately, Ehrman will transition to private practice as a lawyer representing whistleblowers, marking a significant change after his tenure of nearly a decade at the helm of the program.

The Federal Trade Commission (FTC) has initiated an investigation into OpenAI, the leading AI industry player, to determine if the company engaged in deceptive or unfair business practices. The probe, outlined in a "Civil Investigative Demand" (CID) obtained by The Washington Post, signifies a comprehensive examination of OpenAI's operations and could result in repercussions if harmful practices are uncovered.

In a significant move aimed at strengthening financial oversight and combatting illicit activities, the U.S. Treasury Department has appointed Andrea Gacki, a seasoned expert in economic sanctions, as the new director of the Financial Crimes Enforcement Network (FinCEN). The appointment reflects the government's commitment to addressing financial crimes and maintaining a robust regulatory framework.