Regulatory Enforcement


PwC

News Brief

FRC fines PwC, auditor combined $4.1M over 2019 work of Wyelands Bank

2025-03-27T13:11:00+00:00By

The U.K. Financial Reporting Council issued penalties against PwC and a former auditor over deficiencies on work related to the 2019 financial statements of now shuttered Wyelands Bank.

DOJ

News Brief

DOJ fines MORSE Corp $4.6M for lax cyber controls amid crack down on federal contractors

2025-03-27T12:49:00+00:00By

Yet another government contractor has been slapped with a fine by the Department of Justice for applying lax cybersecurity defenses on sensitive government data.

European Commission

News Brief

EU regulator questions 'culture of compliance' with Digital Markets Act at Apple, Google

2025-03-26T18:48:00+00:00By

The European Commission released its preliminary findings last week regarding Apple and Google not complying with the Digital Markets Act. It issued orders to both companies regarding their business practice and plans to release all of its findings next week.

Ethereum_web

News Brief

Treasury reversal of OFAC sanctions against Tornado Cash signals eroding AML scrutiny

2025-03-24T20:16:00+00:00By

The U.S. Treasury Department lifted its sanctions against cryptocurrency mixer Tornado Cash on Friday after a federal appeals court ruled in November the penalty levied by the agency’s Office of Foreign Assets Control was an overreach.

Raytheon

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RTX and Raytheon: A case study in juggling four compliance monitors

2025-03-24T16:06:00+00:00By

In October 2024, aerospace and defense company Raytheon and parent company RTX reached a $950 million settlement with U.S. government agencies to resolve multiple federal law violations. More significant than the criminal penalties were the four compliance monitorships that came with the agreements.

FTC seal

News Brief

Democratic FTC commissioners blast Trump's 'illegal' firings

2025-03-19T19:15:00+00:00By

President Donald Trump fired two Democratic commissioners serving on the Federal Trade Commission, the regulatory agency overseeing antitrust and consumer protection laws and which has been traditionally independent and staffed by members of both political parties.  

SEC office

News Brief

CCO who was ‘sole person controlling’ investment firm charged with recidivist concentration violations

2025-03-19T11:53:00+00:00By

An investment company and its founder, president, and chief compliance officer flagrantly kept violating mutual fund rules for multiple years after settling with the Securities and Exchange Commission, the SEC said in a complaint against the company.

BIO_web

News Brief

Expert: Treasury’s move to ‘narrow’ BOI requirements would gut AML law

2025-03-18T16:56:00+00:00By

The U.S. Treasury’s effort to dramatically narrow the focus of the Corporate Transparency Act through “emergency” rulemaking would gut the law’s anti-money laundering efforts, a transparency expert said.

FRC_web

News Brief

FRC launches probe into MacIntyre Hudson’s 2022 audit of collapsed LSG

2025-03-18T16:37:00+00:00By

The U.K. Financial Reporting Council has launched an investigation into MacIntyre Hudson’s audit of collapsed construction company ISG Limited, which abruptly entered administration in September, laying off 2,200 workers.

AI Act

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Experts: Companies ‘underestimate risk’ as first provisions of EU AI Act come into force

2025-03-18T13:00:00+00:00By

A European Union-wide ban on AI systems with “unacceptable” risk came into force on Feb. 2 as the first provisions of the EU’s AI Act took effect. Problems persist, however, over what the legislation requires and what corporate practices or uses of data may risk flouting the rules.

Financial Conduct Authority

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‘Abject failure’: U.K. lawmakers sound off on FCA’s failed 'naming and shaming' enforcement

2025-03-17T14:18:00+00:00By

U.K. lawmakers slammed the country’s chief financial regulator’s hopes of “naming and shaming” firms as part of its efforts to beef up enforcement, denting its credibility in the process and questioning the leadership of its chief executive.

Audit review

News Brief

PCAOB fines KPMG units $3.4M, PwC Singapore $1.5M for audit, independence violations

2025-03-14T15:10:00+00:00By

Nine affiliates of KPMG agreed to pay a total of nearly $3.4 million for alleged violations of audit and quality control standards, while PwC Singapore will pay $1.5 million to settle separate allegation that the firm manipulated independence compliance reporting.

Robinhood

News Brief

Robinhood pays $30M in fines, restitution for faulty AML program, customer disclosures

2025-03-12T18:56:00+00:00By

Robinhood will pay nearly $30 million in penalties for violating Financial Industry Regulatory Authority rules with shortcomings in its anti-money launderingprogram, as well as supervisory and disclosure violations.

SEC office

News Brief

Firm, two execs fined, including ex-CCO, for misappropriating $220K, SEC alleges

2025-03-12T16:01:00+00:00By

Two executives at New York-based Momentum Advisors, including the firm’s chief compliance officer, allegedly misappropriated more than $220,000, the Securities and Exchange Commission said.

CFPB

News Brief

Dismissal of CFPB’s Zelle case marks shift to ‘collective effort’ in consumer protection

2025-03-10T14:30:00+00:00By

The Trump administration isn’t slowing down its efforts to defang the Consumer Financial Protection Bureau, with lawsuits dropped against a handful of big banks and financial services firms, most notably a case previously accusing payments app Zelle of failing to secure its network.

CFPB

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Judge to hear arguments for and against CFPB cuts before agency potentially ‘choked out of existence’

2025-03-06T21:04:00+00:00By

The future of the CFPB–and the Trump administration’s efforts to dismantle it–hang in the balance as a federal judge pushed consideration of a request by a federal employees’ union to preserve the agency.

Euros chained

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'Measured approach' or light-handed GPDR? Noyb reports only 1.3 percent of EU cases result in fine

2025-03-06T18:47:00+00:00By

When Europe’s strict set of data protection rules came into force nearly seven years ago, privacy campaigners, industry experts, and lawyers all warned that noncompliance could result in eye-watering fines and other costly sanctions, especially for repeated breaches. However, the reality appears to be very different.

Steptoe

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As DOJ pivots away from white-collar enforcement, is FCPA still relevant?

2025-03-05T13:00:00+00:00By Iris Bennett and Claire Rajan, CW guest columnists

While executives and boards will never conclude that bribery is a legitimate way of doing business, understandably many have questions about how to direct their FCPA compliance program efforts and resources, write Iris Bennett and Claire Rajan, partners at law firm Steptoe.

Coinbase

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New era dawns on crypto industry with SEC dismissal of Coinbase case

2025-03-03T15:51:00+00:00By

The Securities and Exchange Commission dismissed its lead case against the cryptocurrency industry, a lawsuit against crypto exchange Coinbase, signaling an about-face in the agency’s enforcement approach toward digital assets under President Donald Trump.

FinCEN

News Brief

Treasury announces plan to narrow CTA's scope; FinCEN says no fines, penalties for failure to report BOI

2025-02-28T19:08:00+00:00By

The Treasury Department’s Financial Crimes Enforcement Network notified businesses that fail to report or update their beneficial ownership information  before the agency’s March 21 deadline will not face fines or penalties. The agency further said it would not enforce the Corporate Transparency Act against U.S. citizens and domestic businesses.

PwC building

News Brief

PCAOB fines PwC Israel $2.75M amid ongoing sweep for internal training exam cheating

2025-02-27T12:45:00+00:00By

The Israeli affiliate of Big Four audit firm PwC agreed to pay $2.75 million to settle allegations it failed to prevent widespread cheating on training examinations despite internal warnings to staff about an ongoing crackdown.

CFTC

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CFTC first agency to describe self-reporting credit under Trump

2025-02-26T18:44:00+00:00By

The CFTC issued new guidance for firms seeking to self-report misconduct, accompanied by a “mitigation credit index” that details how “exemplary” cooperation and remediation can knock up to 55 percent off the final penalty. The agency is the first enforcement agency to issue self-reporting guidance under President Donald Trump.

OKX_web

News Brief

Crypto exchange OKX latest target of DOJ, hit with $505M penalty over AML, KYC failures

2025-02-25T18:03:00+00:00By

One of world’s largest cryptocurrency exchanges agreed to pay more than $500 million in penalties and plead guilty to AML and KYC violations, along with failing to register as a money transmitting business with the U.S. Treasury Department, the DOJ said.

Financial Conduct Authority

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FCA fine against Infinox Capital may signal widening risk for smaller financial services firms

2025-02-25T13:00:00+00:00By

The decision by the U.K.’s financial regulator to fine a small trading platform around ten percent of its annual profits under previously unenforced rules has wider ramifications for the sector.

Fake_Reviews_web

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U.K. competition and markets regulator wields new power to combat fake online reviews

2025-02-24T15:41:00+00:00By

Fake reviews of products and services are a global phenomenon, but regulators in the U.K. are beginning to use newly expanded powers to protect buyers and honest competitors following a recent crackdown by U.S. authorities.

DOJ

News Brief

Interim DOJ Civil Division head nominated to take on full role

2025-02-20T14:57:00+00:00By

President Donald Trump announced his intent to nominate Brett Shumate, the current acting head of the Civil Division at the Department of Justice, to assistant attorney general of the division. Shumate’s nomination to the arm of the DOJ that primarily handles civil cases comes at a time when Trump’s administration ...

Financial Conduct Authority

News Brief

FCA fines Mako $2.1M for ineffective financial crime monitoring program

2025-02-19T16:40:00+00:00By

Mako Financial Markets Partnership will pay $2.1 million (1.7 million pounds) in penalties to the U.K. Financial Conduct Authority to settle allegations that its financial crime prevention program was ineffective.

DOJ

News Brief

DOD health contractors rack up more than $100M in excess payments, DOJ alleges

2025-02-18T20:08:00+00:00By

Six health centers that contracted with the Department of Defense, intentionally overbilled the government for more than $100 million, the Department of Justice alleged in announcing a settlement with one of the plans.

CFTC

News Brief

CFTC takes acting off enforcement director’s title

2025-02-18T18:44:00+00:00By

The Commodity Futures Trading Commission announced the appointment of Brian Young as director of the agency’s Division of Enforcement.

Deloitte

News Brief

Former Deloitte partner dinged by PCAOB for failures in Bancolombia audit

2025-02-14T19:34:00+00:00By

A former Deloitte partner will pay $75,000 and be barred from working as a public company registered accountant for two years by the Public Company Accounting Oversight Board after violating audit standards during a 2016 audit.

Bribery

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Trump has called for a six-month ban on FCPA enforcement. How should compliance respond?

2025-02-13T15:50:00+00:00By

With a six-month ban on enforcement of the Foreign Corrupt Practices Act, compliance should retreat from fear-based messaging and instead focus on why ethical practices make good business sense, experts say.

lockheed_martin_web

News Brief

DOJ orders Lockheed Martin to pay $30M over defective pricing on F-35 contracts

2025-02-10T19:41:00+00:00By

The Department of Justice announced it reached a settlement with Lockheed Martin stemming from allegations of “defective pricing on contracts for F-35 military aircraft.” The deal comes days after Attorney General Pam Bondi was confirmed by the Senate, which will shift the DOJ’s focus away from white-collar misconduct.

SFO

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Experts question effectiveness of new enforcement tool SFO is finally wielding

2025-02-10T16:42:00+00:00By

The U.K.’s Serious Fraud Office has made its first use of an enforcement tool that was meant to bring oligarchs and kleptocrats to book. But lawyers are unsure whether the move signifies either a change in direction or fortune for the agency.

Brinks_truck_web

News Brief

BSA failures lead to $42M fine for Brink's over unregistered cash shipments to Mexico

2025-02-07T17:09:00+00:00By

Armored car company Brink’s Global Services will pay $42 million in penalties to settle charges laid by federal regulators for violating anti-money laundering provisions of the Bank Secrecy Act.

AG_Bondi

News Brief

Bondi-led DOJ sharply pivots away from prosecution of corporate FCPA violations

2025-02-06T20:05:00+00:00By

The U.S. Department of Justice under new Attorney General Pam Bondi will de-emphasize white collar misconduct linked to bribes and foreign corruption, instead prioritizing corruption cases linked to human smuggling and the trafficking of narcotics and firearms.

FINRA

News Brief

Apex Clearing Corp. to pay $3.2M over improper disclosures, distorting investor payouts

2025-02-06T14:39:00+00:00By

A clearing firm agreed to pay $3.2 million and certify that it put in place compliance measures under an agreement with the Financial Industry Regulatory Authority.

DOJ

News Brief

Arizona couple pleads guilty in vast $1.2B skin graft false claims case

2025-02-05T14:22:00+00:00By

Two owner-operators of three Arizona medical companies have pleaded guilty to billing more than $1.2 billion in false and fraudulent claims to Medicare and other government health programs in less than two years, the Department of Justice said.

Wise Payments

News Brief

CFPB issues $2.5M penalty against Wise in last action of Chopra era

2025-02-03T21:18:00+00:00By

A fine by the Consumer Financial Protection Bureau (CFPB) against the U.S arm of London-based foreign exchange company Wise could be one of the agency’s final actions as a new regulatory regime reportedly froze rules and litigation amid calls for defunding.

Hackers

News Brief

FBI, Europol shut down hacking sites selling personal info, tools for cybercriminals

2025-02-03T15:56:00+00:00By

Two massive hacking websites–where criminals sold everything from stolen social security numbers to tools for cybercriminals to gain access to computers–have finally been shut down by an international law enforcement team, the Department of Justice announced.

columnist dale

Opinion

Five reasons why I’m excited about CW’s Cyber Risk & Data Privacy Summit

2025-01-30T16:32:00+00:00By

Having worked for Compliance Week for three years, I’ve found it remarkable how compliance professionals can be so consistently upbeat about their plight. An often refrain in compliance circles is “be comfortable with being uncomfortable.” As difficult as the job can be, that clearly doesn’t mean it can’t be fun.

Financial Conduct Authority

News Brief

FCA dings Infinox in first fine under U.K. capital market reforms of 2018

2025-01-29T18:43:00+00:00By

The U.K. Financial Conduct Authority issued a landmark fine against trading platform Infinox Capital for failing to report “high-risk” transactions, the first-ever enforcement under a 2018 law.

Cryptocurrency wallet

News Brief

KuCoin latest crypto firm to pay hefty price for violating BSA with $297M penalty

2025-01-29T15:11:00+00:00By

The Seychelles-based owner of cryptocurrency exchange KuCoin has agreed to pay nearly $300 million in penalties–and cease doing business in the U.S. for two years–to settle charges that it failed to properly monitor potential criminal activity on its network.

North Korea sanctions

News Brief

DOJ indicts five in remote IT work scheme to circumvent North Korean sanctions

2025-01-27T21:00:00+00:00By

Five people, including two Americans, allegedly duped U.S. companies into hiring North Koreans for contract IT work, and funneled millions in U.S. dollars to the sanctioned regime, the Department of Justice said.

DOJ wall

News Brief

Ex-nursing home operator who defrauded Medicaid sentenced to 12 years in prision

2025-01-24T20:53:00+00:00By

The former operator of a Massachusetts homecare agency was sentenced to 12 years in prison for defrauding Medicaid of more than $100 million, the Department of Justice said.

Fitbit_web

News Brief

CPSC fines Google-owned Fitbit $12M for failing to report smartwatch burn hazard

2025-01-24T19:55:00+00:00By

The U.S. Consumer Product Safety Commission ordered Google-owned Fitbit to pay more than $12 million and comply with certain undertakings to settle allegations the company knowingly failed to report a serious burning hazard with its Ionic smartwatches.

AdobeStock_372316218_Editorial_Use_Only

News Brief

Trump gives TikTok 75-day reprieve after ban goes into effect

2025-01-22T20:42:00+00:00By

President Donald Trump signed an executive order Monday delaying the Department of Justice (DOJ) from enforcing the long-awaited TikTok ban. While the social media platform’s fate is still up in the air, Trump signaled his support for it being sold, with the U.S. as a “partner.”

Liability

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SEC charge against CCO in penny stock scheme raises more questions about gatekeeper liability

2025-01-22T16:13:00+00:00By

A recent complaint by the Securities and Exchange Commission against the chief compliance officer of a Chicago-based investment firm contains some of the most worrisome examples of how CCOs can be found liable for misconduct at their firm.

Walgreens_Rx_web

News Brief

Walgreens ducked compliance, filled fake opioid prescriptions, DOJ suit alleges

2025-01-22T15:41:00+00:00By

Walgreens skimped on compliance and filled millions of prescriptions for narcotics that weren’t medically necessary, the Department of Justice alleged in a complaint against the company, first brought by four whistleblowers.

KPMG

News Brief

FRC discloses probe of KPMG over 2022 audit of gambling company Entain

2025-01-22T15:05:00+00:00By

The U.K. Financial Reporting Council disclosed an investigation into KPMG’s audit of international sports betting and gambling company Entain Group.

LPL Financial

News Brief

SEC fines LPL Financial $18M for failed due diligence on new, high-risk accounts

2025-01-21T16:10:00+00:00By

Broker-dealer LPL Financial will pay $18 million to settle charges by the Securities and Exchange Commission that its anti-money laundering program did not properly vet customers and failed to close or restrict thousands of high-risk accounts.