Compliance & Ethics

SkyCity Entertainment, a prominent casino operator, is grappling with potential financial setbacks as it navigates a complex legal battle against allegations of breaching anti-money laundering (AML) and counter-terrorism financing (CTF) laws at its Adelaide Casino. The company's future is shrouded in uncertainty as it faces the prospect of a substantial penalty imposed by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Swiss banking giant UBS has reached a landmark settlement, agreeing to pay a combined $1.4 billion in civil penalties to address allegations of fraud and misconduct related to its offering of mortgage-backed securities during the lead-up to the global financial crisis. The announcement was made by federal prosecutors on Monday, marking a significant development in the aftermath of the financial turmoil.

Dutch lender De Volksbank, a state-owned entity encompassing various smaller Dutch banks, including SNS and ASN, has come under scrutiny from the Dutch central bank (DNB) for its inadequate money laundering prevention systems. As a result, the bank is expected to incur fines for the shortcomings, the institution announced on Friday.

Grupo Aval Acciones y Valores S.A., a prominent Colombian conglomerate, along with its banking subsidiary, has agreed to pay a total of $80.8 million to settle Foreign Corrupt Practices Act (FCPA) offenses. The resolution stems from activities related to a toll road project in Colombia and underscores the company's commitment to address legal concerns.

The UK Financial Conduct Authority (FCA) has issued a directive to asset managers, requiring them to substantiate the fees associated with their funds, intensifying the scrutiny that firms are facing in light of the growing popularity of low-cost passive trackers.

The U.S. Securities and Exchange Commission (SEC) has imposed a $1.5 million fine on electric vehicle manufacturer Canoo Inc for alleged reporting failures related to overinflated revenue projections. The regulator asserts that the company misled investors about its financial prospects before going public through a merger with a special purpose acquisition company (SPAC) in December 2020.

U.S. regulators have unleashed a barrage of penalties, amassing a total of $549 million against Wells Fargo and a cohort of smaller or non-U.S. firms for their failure to uphold electronic records of employee communications. The Securities and Exchange Commission (SEC) spearheaded this crackdown, unveiling charges and levying $289 million in fines against 11 companies over "widespread and longstanding failures" in record-keeping. In tandem, the Commodity Futures Trading Commission (CFTC) announced fines totaling $260 million against four banks for their noncompliance in maintaining records stipulated by the agency.