Compliance & Ethics

This week marks a significant shift in the digital landscape as the European Union's Digital Markets Act (DMA) comes into full effect, introducing a series of changes that aim to reshape the behavior of major tech companies. The DMA is a set of regulations specifically targeting six tech giants classified as "gatekeepers": Amazon, Apple, Google parent Alphabet, Meta, Microsoft, and TikTok owner ByteDance.

The UK Financial Conduct Authority (FCA) has issued a warning to CEOs of Annex 1 firms, comprising certain lenders, safe custody providers, money brokers, and financial leasing companies. The FCA's cautionary letter follows recent assessments of Annex 1 firms' compliance with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Gunvor S.A., an international commodities trading company based in Switzerland, has pleaded guilty and agreed to pay over $661 million to settle an investigation by the U.S. Justice Department, resolving allegations of violations of the Foreign Corrupt Practices Act (FCPA).

Superintendent Adrienne A. Harris of the New York State Department of Financial Services (DFS) has announced a major settlement with Gemini Trust Company, LLC ("Gemini"). The agreement stipulates Gemini's commitment to returning at least $1.1 billion to customers affected by the Gemini Earn Program ("Earn") through the Genesis Global Capital, LLC ("GGC") bankruptcy proceedings.

The Financial Action Task Force (FATF), an international crime watchdog, announced the removal of the United Arab Emirates (UAE) from its 'grey list.' Simultaneously, Kenya and Namibia have been added to the list, subjecting them to heightened scrutiny due to concerns over inadequate measures against money laundering and terrorism financing.

The Securities and Exchange Commission (SEC) has announced the adoption of amendments to its ethics rules, aimed at modernizing and strengthening its ethics compliance program. These amendments, adopted in collaboration with the Office of Government Ethics, mark a substantial update to the existing regulations governing securities holdings and transactions of all SEC employees, their spouses, and minor children.

Frankfurt has been selected as the headquarters for the European Union's Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA). The decision was made through a joint vote on Thursday by Members of the European Parliament (MEPs) and EU ambassadors.