Compliance & Ethics

The U.S. Department of Justice (DOJ), in collaboration with the Department of Commerce's Bureau of Industry and Security (BIS) and the Treasury Department's Office of Foreign Assets Control (OFAC), has released joint compliance guidance focused on voluntary self-disclosure policies pertaining to U.S. sanctions, export controls, and other national security laws. The note includes recent updates to certain policies and aims to inform the private sector about enforcement trends while offering guidance to businesses on compliance with U.S. sanctions and export laws.

Germany is taking significant steps to strengthen its anti-money laundering (AML) efforts by introducing a new regulatory body, the Federal Bureau of Financial Intelligence, according to a draft of the planned legislation obtained by Reuters. For compliance teams in organizations operating in or with ties to Germany, this new development holds critical implications that will impact their AML practices and responsibilities.

The Financial Industry Regulatory Authority Inc. (FINRA) has imposed a $3 million fine on LPL Financial for significant compliance failures, resulting in two financial advisors misappropriating $2.4 million from 13 clients, primarily senior citizens. The advisors, whose names were not disclosed in the settlement, engaged in deceptive practices from May 2018 to August 2020, wherein they siphoned clients' funds by directing them to write checks or make wire transfers to entities they controlled. The two advisors acted independently of each other, according to FINRA.

The Securities and Exchange Commission (SEC) has announced the appointment of Natasha Vij Greiner and Keith E. Cassidy as interim Acting Co-Directors of the Division of Examinations. The appointments are effective immediately, as Division Director Richard Best is on extended medical leave from the agency.

Brazil's antitrust watchdog, CADE, has received a recommendation from its technical staff to block the sale of DPA Brasil by Nestle and Fonterra to Lactalis. The potential transaction is set to undergo further review by CADE's court, which will vote on its approval. The regulator's technical team highlighted concerns about horizontal competition issues in the Brazilian dairy products market, particularly in the fermented milk, petit-suisse, and dairy dessert segments.

Adobe's ambitious $20 billion bid to acquire cloud-based designer platform Figma is set to undergo a full-scale antitrust investigation by the European Union (EU), according to sources familiar with the matter. The decision follows EU regulators' preliminary review, expressing concerns about potential anti-competitive consequences of the deal.

Swiss bank UBS has been ordered to pay $388 million in fines to British and U.S. regulators as part of a settlement relating to Credit Suisse's dealings with private investment firm Archegos Capital Management. The settlement comes after UBS finalized its takeover of Credit Suisse last month, a deal that had been marked by a series of legal battles.