Weekly roundup: China to render Variable Interest Entities illegal, FCA collects £240mn in fines, untraditional hires in compliance and more
- The Chinese Ministry of Commerce is proposing a law that could abolish a corporate structure used by US tech firms and US-listed Internet companies to sidestep restrictions on foreign investments. Under the new draft law, companies like Amazon.com or CBS could be forced to sell controlling stakes to Chinese nationals.
- Deutsche Bank is to pay British regulators a £227mn penalty in the LIBOR fixing scandal. FCA also fined Merrill Lynch International £13mn over 35 million mis-reported transactions between 2007 and 2014.
- Wells Fargo is attempting to bridge the talent gap in compliance by hiring employees from non-traditional backgrounds such as quantitative PhDs.
- A US cybersecurity firm detected a cyber attack by Russian hackers on sanctions talks between the US and an undisclosed foreign government.
- On Sunday, a Ukrainian law requiring companies competing in public tenders and major SOEs to introduce mechanisms for compliance programs and appoint a compliance officer. Just last week Ukraine appointed the first head of the newly created Anti-Corruption Bureau.
And finally, casinos are continuing to be in the spotlight of regulators and prosecutors around the world. The corporation behind the Caesar’s Palace in Las Vegas is rumored to be near a settlement in an anti-money laundering probe. The US Treasury’s investigation has been underway for roughly two years. As part of Chinese president Xi Jinping’s crackdown on corruption, casinos in Macau are under increased scrutiny. The Chinese gambling paradise has a reputation as a welcome outlet for corrupt officials and wealthy Chinese to launder their money.
Arachnys weekly update
New sources: 58
Source of the week: The Chinese Central Commission for Discipline Inspection has earlier this week published a list of 100 economic fugitives who are believed to have fled overseas. The list contains ID numbers, positions held and suspected current location.