Compliance & Ethics

The Securities and Exchange Commission (SEC) has brought charges against Austin-based software firm SolarWinds Corporation and its Chief Information Security Officer (CISO), Timothy G. Brown, alleging fraud and internal control deficiencies related to known cybersecurity risks. The complaint states that SolarWinds and Brown deceived investors from their initial public offering in October 2018 through the announcement of a major cyberattack called "SUNBURST" in December 2020. SolarWinds is accused of inflating its cybersecurity practices while downplaying or not disclosing existing risks.

The Autorité des marchés financiers (AMF) and the United States Commodity Futures Trading Commission (CFTC) have signed a Memorandum of Understanding (MOU). The MOU aims to facilitate the supervision and oversight of regulated firms that operate across the United States and France.

The Commodity Futures Trading Commission (CFTC) and 30 state securities regulatory agencies affiliated with the North American Securities Administrators Association (NASAA) have jointly announced the entry of a consent order in the U.S. District Court for the Central District of California against Safeguard Metals LLC and Jeffrey Ikahn (formerly Jeffrey Santulan a/k/a Jeffrey Hill). The order finds them liable for orchestrating a nationwide fraudulent scheme, valued at $68 million, involving the sale of overpriced silver coins to elderly and retirement-aged individuals.

In a move that highlights the importance of accurate disclosures in the financial industry, the U.S. Securities and Exchange Commission (SEC) has charged BlackRock Advisors, LLC, an investment adviser, with failing to provide precise information regarding investments in the entertainment industry within a publicly traded fund under its guidance. To settle these charges, BlackRock has agreed to pay a substantial $2.5 million penalty.

The growing use of cryptocurrency mixers has raised significant concerns for regulators, particularly in the context of anti-money laundering (AML) compliance. These services, designed to blend cryptocurrencies from multiple users, present a unique set of challenges as authorities grapple with the dual imperatives of preserving privacy and combating financial crimes like money laundering.

For years, Australia and New Zealand have basked in their reputation as two of the world's least corrupt nations. The Transparency International Corruption Perception Index consistently ranked Australia within the top 10 nations, while New Zealand often clinched the number one spot. This accolade, however, has recently encountered a significant challenge.

The Federal Financial Supervisory Authority (BaFin) has recently issued an administrative fine of €170,000 against Deutsche Bank AG. This penalty comes as a consequence of the bank's failure to promptly submit reports on suspicious transactions, a fundamental element in combating money laundering and terrorist financing.