Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

Former crypto chief executive Sam Bankman-Fried's guilty verdict stemming from the FTX fraud and collapse already seems like old news in a period of serious enforcement action related to crypto scams and industry misconduct.This tenth episode of season nine brings together Helen Chan, regulatory intelligence expert in Hong Kong and Rachel Wolcott, senior editor in the UK to unpack themes emerging from recent initiatives from Chinese law enforcement, Europol, and U.S. regulators as well as the Department of Justice and the Financial Crimes Enforcement Network (FinCen).There has been that $4 billion Binance mega enforcement in the U.S. which saw the chief executive forced to step down, pay a $50 million fine, and potentially face jail time. The U.S. Securities and Exchange Commission last week brought charges against Kraken, adding to the number of crypto exchanges facing U.S. enforcement action.Not to be left out, Europol recently issued a big report on money laundering that focused in part on crypto. It too has been busy working with EU member states as well as the U.S. to take out crypto mixers and deal with crypto-related money laundering and fraud.Helen and Rachel also discuss the proliferation of money laundering as a service amongst organized crime gangs and their use of crypto. The episode starts with a look at Chinese law enforcement's efforts to take down pig butchering gangs and ends with Helen's advice to compliance officers navigating this increasingly complex landscape.LinksChina's crackdown on "pig butchering" invites domestic crypto scrutiny: www.linkedin.com/posts/helenhchan_chinas-crackdown-on-pig-butchering-activity-7135118841197576193-K62M?utm_source=share&utm_medium=member_desktopHong Kong's SFC silent on HTX legal troubles as banished exchange operates freely in the city: www.linkedin.com/posts/helenhchan_htx-operations-hong-kong-activity-7123519728999927808-0FJI?utm_source=share&utm_medium=member_desktopUK FCA signed off registered crypto's change-in-control to e-money firm fined for sanctions breaches, linked to Ukrainian PEPs and fraud: www.linkedin.com/feed/update/urn:li:activity:7120708996084195328/Crypto exchange HTX's Seychelles strike-off complicates asset recovery efforts, increases compliance risk for partner firms: www.linkedin.com/feed/update/urn:li:activity:7118129918885961729/SPECIAL REPORT-How "pig butchering" scams have emerged as a billion-dollar crypto industry: https://regintel-content.thomsonreuters.com/document/I0E082C3089FA11EE8156BA093D3C55E7The other side of the coin: Europol analysis of financial and economic crime: www.europol.europa.eu/cms/sites/default/files/documents/The%20Other%20Side%20of%20the%20Coin%20-%20Analysis%20of%20Financial%20and%20Economic%20Crime%20%28EN%29.pdfSEC charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency: /www.sec.gov/news/press-release/2023-237 Contact us:Helen.Chan@thomsonreuters.comRachel.Wolcott@Thomsonreuters.comFor more information about Regulatory Intelligence, click here: legal.thomsonreuters.com/en/products/regulatory-intelligence Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode features a special guest Michelle Giddings, head of anti-money laundering at the Institute for Chartered Accountants in England and Wales (ICAEW). Giddings joins Rachel Wolcott, senior editor at Thomson Reuters Regulatory Intelligence in London.TRRI usually covers anti-money laundering (AML) strictly from a financial services viewpoint. However, with the focus on accountants' and law firms' role in preventing financial crime like money laundering and sanctions evasion since the advent of the Ukraine war and now the war in Gaza, it is instructive to look at how these professionals are supervised in the UK.Five years ago, the Office for Professional Body Anti-Money Laundering Supervisors (OPBAS) was established to supervise the 25 professional body supervisors in the legal and accountancy sector of which the ICAEW is one. OPBAS is part of the Financial Conduct Authority (FCA).The OPBAS approach has been criticised from lawmakers as not being robust enough to manage AML risks arising from accounting and law firms. The most recent OPBAS report in April, however found improvements but said many professional body supervisors were falling short of expectations.The UK government is considering changing its approach to supervising professional services firms like accountants and lawyers for anti-money laundering purposes. One of the options on the table is eliminating OPBAS and moving to a single regulator or a consolidated professional body supervisor—which could see one regulator supervising 100,000 firms.Giddings talks Compliance Clarified through the ICAEW's response to the government's consultation on professional body supervisory reform, criticism of professional body supervisors' performance, ICAEW thematic review of money laundering reporting officers (MLRO) as well as its annual review of AML supervision. LINKS:ICAEW Consultation response: Supervisory Reform consultation response (icaew.com) Role of the Money Laundering Reporting officer: www.icaew.com/regulation/aml-supervision/aml-thematic-reviews/the-role-of-the-money-laundering-reporting-officer2022/23 anti-money laundering supervision report: www.icaew.com/regulation/aml-supervision/anti-money-laundering-supervision-reportUK Government consultation: Reforming anti-money laundering and counter-terrorism financing supervision: www.gov.uk/government/consultations/reforming-anti-money-laundering-and-counter-terrorism-financing-supervision AML: UK professional body supervisors focused on boosting SARs quality, information sharing http://go-ri.tr.com/nRE5uKContact us!Rachel.wolcott@thomsonreuters.comFor more information about Regulatory Intelligence, click here: https://legal.thomsonreuters.com/en/products/regulatory-intelligenceCompliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion. Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

This episode of Compliance Clarified brings together Rachel Wolcott, senior editor in London and Brett Wolf, senior anti-money laundering editor for the Americas to discuss Hamas, terrorist financing and the U.S. response to the 7 October attack.It has been a little over a month since Hamas fighters launched a brutal attack on Israel, unleashing a war, and leaving thousands of civilians dead. The attack took Israel and the world by surprise and raised questions about whether enough attention is being paid to terrorist financing in the Middle East and beyond.In this episode, Brett and Rachel talk through actions various U.S. agencies have taken in response to Hamas' attack to address and describe their financing activities to financial institutions and others who unwittingly or willingly are enabling funds to flow to Hamas.Topics covered include:Hamas’ current fundingNew U.S. sanctions and policy responsesHamas money flows red flagsDisputed role of crypto in financingThis episode was recorded before the UK imposed new sanctions on Hamas on 14 November.Links:Outside paywallU.S. Treasury issues additional Hamas sanctions alongside UK, meets with the private sector:https://regintel-content.thomsonreuters.com/document/IDC26C880832211EE918ACE7D4282A8B3U.S. Treasury, Commerce Departments urge financial institutions to police export control evasion worldwide:https://regintel-content.thomsonreuters.com/document/IFD79AB107CDD11EE918ACE7D4282A8B3Inside paywallU.S. Treasury Department issues alert on Hamas money flows, shares 'red flags': http://go-ri.tr.com/XhT6BPU.S. Treasury official lays out a three-pronged approach to combat Hamas financing, including financial institutions' role: http://go-ri.tr.com/wA1rvN U.S. Treasury targets Hamas 'secret investment portfolio' in response to attack on Israel: http://go-ri.tr.com/PmPeXZU.S. Treasury moves to designate crypto mixers a 'primary' laundering concern under PATRIOT Act authority: http://go-ri.tr.com/ST0DV1 Contact us!Rachel.wolcott@thomsonreuters.comBrett.Wolf@thomsonreuters.com Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Singaporean police conducted a nationwide raid (http://go-ri.tr.com/7Nm3aO) and arrested 10 ethnic-Chinese businessmen on Aug. 15. The police seized more than S$2.8 billion, making it one of the world's biggest money laundering cases (https://www.reuters.com/world/asia-pacific/assets-seized-singapore-money-laundering-case-now-2-bln-minister-2023-10-03/). In this episode, Nathan Lynch, Asia managing editor, and Yixiang Zeng, reporter in Singapore, discuss how the case began back in 2021 when the authorities were alerted by banks via suspicious transaction reports (http://go-ri.tr.com/0Aeefi) and then the police started investigating these alerts.This case is also part of a broader campaign by Asian governments to counter a huge surge in money laundering linked to organised crime. Against this backdrop, the Singaporean government is setting up an inter-ministerial committee (http://go-ri.tr.com/K6Q9E8), which will help revamp the country's financial system and strengthen its anti-money laundering regime.The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.Programme notesSingapore says $2 billion in assets seized in money laundering case (Reuters): https://www.reuters.com/world/asia-pacific/assets-seized-singapore-money-laundering-case-now-2-bln-minister-2023-10-03/#:~:text=Simultaneous%20raids%20in%20mid%2DAugust,jewellery%20worth%20S%241%20billion.Suspects back in court over Singapore's swoop on major money laundering ring (Reuters): https://www.reuters.com/world/asia-pacific/suspects-back-court-over-singapores-swoop-major-money-laundering-ring-2023-08-30/Bungalows, cars seized in Singapore's billion-dollar swoop on money laundering (Reuters): https://www.reuters.com/world/asia-pacific/bungalows-cars-seized-singapores-billion-dollar-swoop-money-laundering-2023-08-17/MAS will not tolerate the abuse of our financial system for illicit activities (MAS press release): https://www.mas.gov.sg/news/media-releases/2023/mas-will-not-tolerate-the-abuse-of-our-financial-system-for-illicit-activities Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Whistleblower cases have re-emerged in a growing share of enforcement actions brought by the U.S. Securities and Exchange Commission (SEC). SEC Chair Gary Gensler and Enforcement Director Gurbir Grewal have emphasized the need to protect individuals who report misconduct. Last week, Grewal said, "The SEC's whistleblower program is a critical part of our enforcement efforts. Each year we receive thousands of whistleblower tips, and throughout the history of the program, those tips have resulted in billions in monetary recovery."In this episode of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert for Thomson Reuters Regulatory Intelligence, is joined by Richard Satran, senior correspondent for Thomson Reuters Regulatory Intelligence, where they discuss the current round of whistleblower enforcement actions from the SEC.Since the implementation of the SEC's whistleblower program under Section 922 (http://go-ri.tr.com/iEXjLU) of the Dodd-Frank Act in 2011, the SEC has awarded more than $1 billion to whistleblowers who have submitted tips regarding securities violations that have resulted in numerous enforcement actions.Securities Exchange Act Rule 21F-17(a) (http://go-ri.tr.com/N6wOnr) states, "No person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement with respect to such communications."The SEC Office of Examinations (http://go-ri.tr.com/Q8XtDG), in a 2016 alert, warned that, at minimum, in any examinations, it will review for whistleblower rule violations in compliance manuals, codes of ethics, employment agreements, and severance agreements.Many of the enforcement actions involve the language used in separation and non-disclosure agreements. In a 2016 enforcement action involving Anheuser-Busch InBev, the company allegedly included very broad non-disclosure language in its separation agreements, asking employees to "keep in strict secrecy and confidence any and all unique, confidential and/or proprietary information" belonging to the company. Even though this agreement did not prohibit whistleblower communications with the SEC expressly, the lack of a carve-out citing whistleblower protections was still enough for the SEC to flag it as a Rule 21F-17(a) violation.The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.The podcast is available on Google, Apple, and Spotify.Additional Resources:Loophole in FCA whistle-blowing rules leaves regulator "disconnected," says lawmaker: http://go-ri.tr.com/2OkJvjSEC targets separation and severance agreements that impede whistleblowers: https://regintel-content.thomsonreuters.com/document/IB012302073DE11EEB0FFC2B000B13E50For more information about Thomson Reuters Regulatory Intelligence head to: https://regintel-content.thomsonreuters.com/ Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Australian financial institutions and their senior executives are preparing for a new Financial Accountability Regime, which will bring in a UK-style framework for senior management accountability. Under the Financial Accountability Regime (FAR), institutions will need to establish an accountability map for their directors and senior executives along with an array of conduct and compliance obligations. The object of the FAR is to impose a tougher accountability framework for the banking, insurance and superannuation industries and their directors and most senior and influential executives. Financial institutions will need to understand the requirements of the legislation and executive need to understand how they may be held accountable for their decisions and compliance failures. But will the laws be effective? Do they lack teeth? And will they genuinely improve conduct across the financial sector, in line with the recommendations of the Financial Services Royal Commission. In this episode of Compliance Clarified we have Nathan Lynch, Asia-Pacific manager for Thomson Reuters Regulatory Intelligence (TRRI), in discussion with Niall Coburn, a TRRI regulatory expert based in Brisbane, Australia.Related Reading:IMPACT ANALYSIS: Financial Accountability Regime looming for Australian firms and their senior executives: http://go-ri.tr.com/HxMybvIMPACT ANALYSIS: Australia regulators preparing for Financial Accountability Regime — firms on notice: http://go-ri.tr.com/He0KT6Regulators to continue focus on holding individuals to account, despite mixed results of previous years: http://go-ri.tr.com/s65YX4PERSONAL ACCOUNTABILITY: Poking the BEAR - Australia striving for executive accountability: http://go-ri.tr.com/VzqezaDevelopments in individual accountability: UK, Australia and Hong Kong: http://go-ri.tr.com/bDgqX1OPINION: Senior manager regimes: reasonableness the flaw to accountability: http://go-ri.tr.com/UH1x7U Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The Financial Conduct Authority mistakenly told a whistleblower they were "no longer entitled to the protections offered under the Public Interest Disclosure Act 1998," (https://www.legislation.gov.uk/ukpga/1998/23/contents) after it gave permission for their name to be disclosed to their former employer. The mistake went uncorrected for six months and was overlooked by the Complaints Commissioner in August.In this episode, Alexander Robson and Lindsey Rogerson discuss the regulator's apology and the FCA's apparent lack of enforcement action against firms which have acknowledged failures in their whistle-blowing procedures, as well as how the regulator could be more transparent in the quarterly data set it produces on individuals who have made protected disclosures.They close out the podcast with an assessment of the likelihood of an update to the UK's 25-year-old employment protections for whistleblowers.The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.Programme notesFCA apologises to whistleblower admits PIDA mistake article: http://go-ri.tr.com/rz6ot5Protect's draft bill: https://trten-my.sharepoint.com/personal/lindsey_rogerson_thomsonreuters_com/Documents/Draft-WB-Bill-v16-June-2021.pdf%20(amazonaws.com)The APPG for whistle-blowing's draft bill: https://trten-my.sharepoint.com/personal/lindsey_rogerson_thomsonreuters_com/Documents/4d9b72_4490728b5bc747e28770ed8efbe475e3.pdf%20(appgwhistleblowing.co.uk)Wells Fargo employment tribunal article on Regulatory Intelligence: http://go-ri.tr.com/2OkJvj2019 article on FCA probing Royal Bank of Canada over employment tribunal article: http://go-ri.tr.com/1YInqdRegulatory Intelligence special report on whistle-blowing July 2023: http://go-ri.tr.com/1YInqd Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Regulatory expert Helen Chan and senior editor Rachel Wolcott discuss the growing entanglement between North Korea, Russia, and cryptocurrencies. They explore how crypto exchanges have been sanctioned for helping launder assets and how North Korean cybercriminals utilize cryptocurrencies for their weapons program. The podcast also highlights the risks of closer ties between North Korea and Russia, the importance of sanctions compliance for financial institutions, and the challenges in due diligence on crypto exchanges.

Rachel Wolcott and Brett Wolf discuss the implementation of the US beneficial ownership register to prevent criminals using shell companies. They explore the Corporate Transparency Act, outreach plans of FinCEN, and concerns from small businesses. The challenges and changes in FinCEN's beneficial ownership reporting, including upcoming deadlines, are also discussed.

The podcast features guests Alexander Robson, Helen Parry, and Rachel Wolcott discussing the UK FCA's enforcement division. They debate whether it has 'all bases covered' or is 'highly unsatisfactory.' The challenges faced by the FCA, including lengthy enforcement cases and recent Upper Tribunal judgments, are explored. The Bluecrest case and its implications for the FCA's future strategy are also discussed. The podcast covers enforcement actions and trends by the FCA, including fines and actions related to anti-money laundering, comics fraud, and unauthorized crypto ATM operators. Litigation involving Ram Prakash Gopi and his pursuit of claims against the FCA is highlighted.