- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2024-11-26T19:59:00
The U.K. Financial Conduct Authority (FCA) fined the London branch of Australian-based Macquarie Bank Limited (MBL) more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.
The trader, Travis Klein, was banned from the financial services industry for acting dishonestly and without integrity, the FCA said in a press release Tuesday. Klein, a relatively junior trader, would have been fined £72,000 (U.S. $90,277), but his application for financial hardship was accepted, the agency noted.
Between June 2020 and February 2022, Klein served on MBL’s London Metals and Bulk Trading Desk. During the relevant period, he was able to bypass three key internal controls to input more than 400 fake trades to hide his own losses, the FCA alleged.
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Companies spend huge sums on audit, risk management, and compliance to alert them about potential legal issues before they escalate into serious corporate governance failings. There’s only one problem, however–they often misread their own early warning signs or ignore them altogether.
The Financial Conduct Authority and Prudential Regulation Authority combined to fine a London-based Citigroup subsidiary approximately £61.7 million (U.S. $78.6 million) for control failures related to its trading system.
The Office of the Comptroller of the Currency levied a $65 million civil penalty against Los Angeles-based City National Bank over alleged risk management and internal control failures.
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
