Compliance & Ethics

In a candid interview with the Wall Street Journal's Risk and Compliance Journal, Acting Comptroller of the Currency Michael Hsu delved into the multifaceted landscape of banking regulations, risk management, and the intricate dance between financial stability and technological evolution. The tumultuous year of 2023 witnessed the banking sector thrust into the spotlight, grappling with crises that engulfed Silicon Valley Bank, Signature Bank, and Credit Suisse Group. Against this backdrop, Hsu provided unique insights into the regulatory intricacies shaping the industry and outlined potential strategies for the future:

The Securities and Exchange Commission (SEC) has taken swift action against Miami-based real estate developer Rishi Kapoor, securing an asset freeze and emergency relief in response to an alleged $93 million real estate investment fraud. The SEC has also filed charges against Location Ventures LLC, Urbin LLC, and 20 other entities connected to the fraudulent scheme.

Securities and Exchange Commission Commissioner Mark T. Uyeda has been sworn in for his second term, solidifying his commitment to overseeing the nation's financial markets. The ceremony took place at the Securities and Exchange Commission on December 28, 2023, marking the continuation of Commissioner Uyeda's dedicated service.

BNP Paribas, one of Europe's leading financial institutions, is under investigation by French prosecutors in connection with alleged "aggravated money laundering," according to a report by French daily Le Monde. The probe centers around transfers made by Cypriot brokerage firm TCR International Limited, which collaborated with BNP Paribas' custodian unit.

LPL Financial LLC, a leading financial services firm, is facing a hefty fine of $5.5 million from the Financial Industry Regulatory Authority (FINRA) due to multiple supervision lapses spanning several years. The sanctions come in response to a range of violations related to direct business transactions, inadequate record-keeping, inaccurate customer communications, and shortcomings in supervisory systems.

The Securities and Exchange Commission (SEC) has granted awards totaling more than $28 million to seven individuals. This collective effort of whistleblowers resulted in successful SEC enforcement actions, showcasing the effectiveness of the whistleblower program in upholding investor protection and market integrity.

The U.S. Justice Department and the Federal Trade Commission (FTC) have jointly released the 2023 Merger Guidelines, outlining the factors and frameworks employed by the agencies in their scrutiny of mergers and acquisitions. The guidelines, the result of nearly two years of public engagement, reflect the evolving landscape of modern markets, advancements in economics and law, and insights gleaned from a diverse range of market participants.