Compliance & Ethics

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced significant sanctions against nearly 50 entities and individuals forming a vast "shadow banking" network supporting Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolutionary Guard Corps (IRGC). This network has facilitated illicit access to the international financial system, processing billions of dollars since 2020. The primary activities generating these revenues include the sale of Iranian oil and petrochemicals, vital for funding advanced weapons systems and regional proxy groups.

The European Union has officially launched its new framework for tackling money laundering and terrorist financing. The European Banking Authority (EBA) has welcomed this development, which includes the establishment of a dedicated anti-money laundering and countering the financing of terrorism authority (AMLA).

The Securities and Exchange Commission (SEC) has taken action against Meta Materials Inc. and its former CEOs, John Brda and George Palikaras, alleging a market manipulation scheme that raised $137.5 million from investors in 2021.

The Federal Reserve Bank of Chicago has entered into a Written Agreement with Pedcor Financial, LLC, Pedcor Financial Bancorp, and Fidelity Federal Bancorp. This action comes in response to concerns about the financial soundness and risk management practices of these entities, which control United Fidelity Bank, FSB in Evansville, Indiana.

The Securities and Exchange Surveillance Commission (SESC) has recommended that administrative disciplinary action be taken against MUFG Bank, Ltd. (MUBK), Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS), and Morgan Stanley MUFG Securities Co., Ltd. (MSMS). This decision follows a comprehensive inspection revealing serious violations under the Financial Instruments and Exchange Act (FIEA).

Sikorsky Support Services Inc. (SSSI) and Derco Aerospace Inc., subsidiaries of United Technologies Corporation at the time of the alleged misconduct, have reached a $70 million settlement with the United States Department of Justice over False Claims Act violations. The settlement resolves accusations that the companies overcharged the U.S. Navy for spare parts and materials essential for naval aircraft maintenance.

In a multifaceted effort to bolster national security and combat international illicit activities, the U.S. Department of the Treasury has announced a series of sanctions targeting significant threats from Mexico's La Nueva Familia Michoacana drug cartel and Russian nationals under Executive Order 14024. These actions aim to disrupt drug trafficking networks and address emerging challenges in global security.