Compliance & Ethics

Buffalo Grove, Illinois-based financial services and payments firm Swift Prepaid Solutions, Inc., operating under the trade name daVinci Payments (daVinci), has reached a settlement with the Office of Foreign Assets Control (OFAC), agreeing to remit $206,213 to resolve potential civil liability for a significant number of apparent violations related to OFAC sanctions programs targeting regions including Crimea, Iran, Syria, and Cuba. The violations took place between November 15, 2017, and July 27, 2022, and revolve around daVinci's management of prepaid reward card programs that enabled individuals in sanctioned jurisdictions to redeem rewards.

Singapore's largest bank, DBS, is grappling with financial exposure of approximately S$100 million (US$73.8 million) in connection with a recent money-laundering scandal that has rocked the city-state, according to the bank's chief executive, Piyush Gupta. He made this revelation during a press briefing on Monday, shedding light on the bank's involvement in the ongoing investigation.

In a significant policy shift, U.S. regulators have cleared the path for an increased oversight of asset managers, hedge funds, and other non-bank financial institutions that are perceived to pose potential risks to the country's financial system. This move marks the revival of a robust regulatory framework that had been sidelined during the previous administration of President Donald Trump.

The Securities and Exchange Commission (SEC) has announced charges against John Hughes, the President and Chief Compliance Officer (CCO) of Prophecy Asset Management LP, a registered investment adviser. The charges come in connection with a multi-year fraud scheme that concealed losses of hundreds of millions of dollars from investors.

Morgan Stanley is reportedly in negotiations to settle a prolonged U.S. investigation into its handling of private stock sales. The bank may pay between $500 million and $1 billion to resolve the matter, according to sources familiar with the situation. As part of the potential settlement with the Department of Justice and the U.S. Securities and Exchange Commission (SEC), the bank may agree to strengthen its internal controls. However, it is unlikely to plead guilty to any crime, and individuals are not expected to face criminal charges.

Nostrum Laboratories Inc. and its CEO, Nirmal Mulye, Ph.D., have agreed to a settlement of up to $50 million to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates for Nostrum's drug Nitrofurantoin Oral Suspension (Nitro OS). The settlement, which includes a minimum payment of $3,825,000, is contingent on certain financial conditions.

The Financial Action Task Force (FATF), the international watchdog focused on combating financial crime, has announced the addition of Bulgaria to its "grey list." This designation indicates that the country is subject to enhanced scrutiny for money laundering and terrorism financing risks. Meanwhile, four other jurisdictions—Albania, the Cayman Islands, Jordan, and Panama—have been removed from the grey list after meeting specific FATF recommendations.