Compliance & Ethics

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.

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has taken a significant step in the fight against money laundering and terrorist financing by announcing a Notice of Proposed Rule Making (NPRM). This NPRM identifies international Convertible Virtual Currency Mixing (CVC mixing) as a class of transactions of primary money laundering concern.

Brazil is being called upon to urgently undertake significant reforms to build on its recent progress in the fight against foreign bribery, according to the Organization for Economic Co-operation and Development (OECD). The OECD's 45-country Working Group has just completed its Phase 4 evaluation of Brazil's implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and related instruments.