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February 2021 Regulatory Updates

February 2021 Regulatory Updates

by | Mar 2, 2021 | Compliance Updates, iComply Insights

February 2021 Regulatory Updates

Regulatory Actions and Updates from Around the Globe


Enforcement Highlights – February 2021

 

United States: 

  • The U.S. Securities and Exchanges Commission (SEC) suspended trading in the securities of 15 companies due to questionable trading and social media activity targeted at artificially inflating their stock price.

 

  • The SEC charged an Oklahoma-based gas exploration and production company, Gulfport Energy Corporation, and its former CEO Moore, for failing to properly disclose executive perks and related person transactions.

 

  • The SEC charged three individuals with running a Ponzi-like scheme that raised over $1.7 billion from 17,000 retail investors through securities issued by a New York-based registered investment adviser GPB Capital.

 

  • FINRA fined Atlanta-based investment firm Triad Advisors $200,000 over findings that it neglected to follow proper compliance procedures when switching customers’ investments between funds.

 

  • The SEC’s initial fine of $5 million on two Ukrainian traders and their firm for defrauding investors was increased to $7.5 million in February 2021 by a U.S. Supreme Court judge.

 

  • OFAC fined BitPay, Inc., a digital currency company based in Georgia, more than $500,000 for over 2,100 international sanctions violations from multiple digital currency transactions.

 

United Kingdom:

  • FCA began criminal proceedings against two brothers, former Goldman Sachs and Clifford Chance employees, for fraud by false representation and insider trading.

 

Hong Kong:

  • The Securities and Futures Commission (SFC) reprimanded Brilliance Asset Management Limited and fined it $3.15M over failures to ensure short position reports (SPRs) for four collective investment schemes.

 

  • SFC prohibited 13 brokers from dealing with assets held in 54 trading accounts related to a suspected social media ramp-and-dump scam involving the manipulation of the market

 

Regulatory Updates

Singapore:

The Monetary Authority of Singapore (MAS) recently published its Technology Risk Management Guidelines with a focus on establishing robust governance to ensure cyber resilience and sound technology risk practices for those companies operating both inside and outside of Singapore.

 

 

Upcoming Events:


The New Consumer: How to Ensure Integrity
in the Virtual Economy

 

Join our upcoming fireside event as we discuss the rise of virtual marketplaces as the new eCommerce, and how every player in these marketplaces – from consumers to payment processors – can establish a vibrant digital ecosystem built on integrity and accountability.

Register Now

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Fireside Chat: The New Consumer: How to Ensure Integrity in the Virtual Economy

Fireside Chat: The New Consumer: How to Ensure Integrity in the Virtual Economy

by | Feb 16, 2021 | Blog, Events, iComply Insights

Fireside Chat: The New Consumer — How to Ensure Integrity in the Virtual Economy

Date: Thursday, March 4, 2020 | 10am PST – 1pm EST – 7pm CET

 

Virtual marketplaces have risen in popularity, as consumers—and socio-economic events such as COVID-19—drive the demand for platforms that give them more flexibility in the availability of products and prices, and offer more accessibility to smaller vendors across the globe that were previously unreachable.

Behind this innovative digital economy is the need for accountability and security for consumers, vendors, platforms, and payment processors. What steps can each stakeholder take to ensure they adhere to compliance standards for the health of the digital ecosystem?

We invite you to our live chat, “The New Consumer: How to Ensure Integrity in the Virtual Economy” as we discuss: 

  • How virtual marketplaces have transformed the behavior of today’s consumers
  • Major advantages and disadvantages of virtual marketplaces
  • How sellers and consumers can protect themselves through mutual accountability
  • What compliance means for each stakeholder in the new digital ecosystem

We welcome you to join us for this free Fireside Chat on March 4th at 10am PST / 1pm EST featuring a live panel of trusted thought leaders. 

Register today!

About iComply
iComply Investor Services Inc. (“iComply”) is a Regtech company that provides fully-digital KYC and AML compliance solutions for non-face-to-face financial and legal interactions. iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience. By partnering with multinational technology vendors such as Microsoft, DocuSign, Thomson Reuters and Refinitiv, iComply is bringing compliance teams into the digital age. Learn more: www.icomplyis.com

 

February 2021 Regulatory Updates

January 2021 Regulatory Updates

by | Feb 2, 2021 | Compliance Updates, iComply Insights

January 2021 Regulatory Updates

Regulatory Actions and Updates from Around the Globe

Enforcement Highlights – January 2021

 

United States: 

 

  • Fund manager at MG Capital Management real estate fund was charged by the SEC with misappropriating $7 million from retail investors.

 

  • The SEC charged Deutsche Bank AG with violations of the Foreign Corrupt Practices Act (FCPA) due to a lack of sufficient internal accounting controls. The bank agreed to pay $43 million in disgorgement and interest.

 

Germany:

 

Hong Kong:

  • The Securities and Futures Commission (SFC) has issued restriction notices to five brokers to freeze client accounts related to suspected market manipulation.

 

Regulatory Updates

Austria:

An Austrian startup building an app for trading in security tokens became the first fintech company to be admitted to Austria’s Financial Market Authority (FMA) regulatory sandbox.

***

FMA announced that it has granted registration to 18 virtual asset providers since tightening anti-money laundering regulations in January 2020.

 

 

Past events:

Mergers & Acquisitions – The Future of Enhanced Due Diligence

 

Missed our January 2021 Fireside Chat? Watch the full event where guest panelists discuss the trends for enhanced due diligence within mergers and acquisitions for both buyers and sellers, and the importance that proper due diligence plays in successful M&A transactions.

Watch Now

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

Fireside Chat: Mergers & Acquisitions: The Future of Enhanced Due Diligence

Fireside Chat: Mergers & Acquisitions: The Future of Enhanced Due Diligence

by | Jan 12, 2021 | Blog, Events, iComply Insights

Fireside Chat: Mergers & Acquisitions — The Future of Enhanced Due Diligence

Date: Thursday, January 28, 2020 | 10am PST – 1pm EST – 7pm CET

 

In a Merger and Acquisition (M&A) transaction, due diligence is a critical step to take in providing both parties the assurance that all risks and rewards have been scrutinized prior to completion.

From the buyer’s perspective, legal due diligence assesses the potential risks involved in the transaction. From the seller’s perspective, it provides the purchaser with trust, and can benefit the seller in ensuring the fair market value of the seller’s company.

This enables both parties to make a reasonable assessment of their findings and conclude whether to proceed with the transaction, or to include additional warranties and seek additional protection in the form of indemnities.

We invite you to our live chat, “Mergers & Acquisitions: The Future of Enhanced Due Diligence” as we discuss: 

  • Reasons why due diligence is essential for M&A 
  • Digital tools that evolved to meet the increased demand 
  • Guidelines for the scope of M&A due diligence
  • Protections for buyers and sellers due to COVID-related uncertainty
  • When it’s appropriate to conduct enhanced due diligence

We welcome you to join us for this free Fireside Chat on January 28th at 10am PST / 1pm EST featuring a live panel of trusted thought leaders. 

Register today!

VIDEO: Watch the full Fireside Chat below

 

GUEST PANELISTS

 

Ramona Tudorancea | Founder & Managing Director, JupiterBlock

Ramona is the Founder and Managing Partner of JB Advisory Services SEZC (JupiterBlock), a RegTech company based in Cayman Enterprise City that is a compliance and FinTech Accelerator platform. With a broad legal background in U.S. and E.U. business law, Ramona is a Columbia Law School and Paris Sorbonne alumna and was admitted as an attorney in New York (2008) and Paris (2009), and as an England and Wales (2019) and BVI (2020) solicitor. She practiced for nine years as an associate in the Paris office of Kramer Levin Naftalis & Frankel LLP before moving to the Cayman Islands to work in the investment funds industry and is highly experienced in M&A deals, corporate finance, and investment funds. In 2017, Ramona became part of the leadership of the Lawyers Abroad Committee (LAC) of the International Law Section of the American Bar Association. Ramona has also been using her experience as a lawyer to help start-ups and investment funds with the increasing burden of compliance and regulations and to access funding.

Gene DiMira | Chief Identity Officer, The AML Shop

As one of Canada’s leading voices in the anti-money laundering industry and digital identification space, Gene has designed, implemented, and sustained AML/ATF programs digital identity programs both nationally and internationally. His background in systems, operations, and compliance controls spans financial planning firms offering securities, banking, and insurance products. His compliance focus progressed with Manulife, where he most recently served as the Head of Global Compliance AMLATF program. He currently volunteers with several organizations such as the DIACC Outreach Expert Committee, ACAMS International Sanctions Task Force, and the International Institute of Finance’s Digital Trust Initiative.

Dimitrij Gede | Founder, Anagram Compliance

Dimitrij has held specialized roles within the Luxembourg banking sector which have given him a robust perspective on the vital nature that regulation plays within traditional and decentralized markets. Dimitrij has extensive experience in compliance monitoring programs, screening and AML/KYC procedures, and client onboarding while keeping abreast of regulatory changes and identifying potential exposures to organizations. Adept in project management and problem resolution, he led the creation and management of a KYC department for a major German bank and liaised with several international partners to ensure that the bank’s KYC procedures enabled smooth client onboarding.

About iComply
iComply Investor Services Inc. (“iComply”) is a Regtech company that provides fully-digital KYC and AML compliance solutions for non-face-to-face financial and legal interactions. iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience. By partnering with multinational technology vendors such as Microsoft, DocuSign, Thomson Reuters and Refinitiv, iComply is bringing compliance teams into the digital age. Learn more: www.icomplyis.com

 

February 2021 Regulatory Updates

December 2020 Regulatory Updates

by | Jan 4, 2021 | Compliance Updates, iComply Insights

December 2020 Regulatory Updates

Regulatory Actions and Updates from Around the Globe

Enforcement Highlights – December 2020

 

United States: 

  • The Securities and Exchange Commission (SEC) charged jewelry wholesaler Gregory Altieri for defrauding both current and retired police officers and firefighters in a Ponzi-like scheme.
  • SEC filed emergency action by imposing an asset freeze against Virgil Capital LLC in connection with an alleged securities fraud related to Virgil Sigma cryptocurrency fund.
  • SEC charged Ripple and its co-founders with raising over USD $1.3 billion through an unregistered, ongoing digital asset securities offering.
  • SEC charged real estate development company Silicon Sage Builders for USD $119 million securities fraud targeting the Northern California South Asian community.
  • China-based Luckin Coffee agreed to pay USD $180 million in penalties to settle accounting fraud charges for misstating the company’s revenue, expenses, and net operating loss.
  • General Electric paid a USD $200 million penalty to settle charges for repeated disclosure failures across multiple businesses that materially misled investors.

 

United Kingdom:

  • The Financial Conduct Authority fined Charles Schwab GBP 8.96 million for failing to arrange adequate protection for its clients’ assets and carrying out a regulated activity without permission.

 

Hong Kong:

  • The Securities and Futures Commission of Hong Kong fined Fulbright Securities Limited USD $3.6 million for failing to implement internal control procedures to detect and prevent illegal short selling.
  • SFC issued a restriction notice to CNI Securities Group Limited to freeze client accounts linked to suspected market manipulation

 

Regulatory Updates

United Kingdom:

The Financial Conduct Authority has established a Temporary Registration Regime for cryptoasset businesses, which are required to be registered with the FCA by 10 January 2021. 

The regime was established due to FCA’s inability to assess and register all firms that have applied for registration due to the complexity of applications and COVID-19 pandemic restricting FCA’s ability to visit firms. It will allow existing firms that have applied for registration before 16 December 2020, and whose applications are still being assessed, to continue trading.

Businesses that began operating after 10 January 2020 are required to obtain full registration with the FCA before conducting business.

***

Her Majesty’s Treasury and The Home Office issued the third national risk assessment of money laundering and terrorist financing in the UK. The policy paper outlines how the key risks have changed since the UK’s second NRA was published in 2017, and the action taken since 2017 to address these risks.

 

 

Past events: How Compliance Changed in 2020

 

Watch the recording of our most recent webinar reviewing the impact that the Fifth Money Laundering, more commonly known as AMLD5, had on the landscape of compliance in 2020 for businesses and financial services providers around the globe.

Watch Now

 

Biometric Authentication in KYC

How is biometric authentication used in the realm of KYC and compliance? Learn more about how financial services providers are using biometric authentication to keep their customer’s identity secure in our most recent Regtech Glossary post.

 

 

 

Read More

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

iComply Launches Digital Compliance Administration Platform for $181 Billion KYC and AML Market

iComply Launches Digital Compliance Administration Platform for $181 Billion KYC and AML Market

by | Dec 15, 2020 | AML - Anti-Money Laundering, Blog, KYB - Know Your Business, KYC - Know Your Customer, Press Releases, Product Updates, Solutions

iComply Launches Digital Compliance Administration Platform for the $181 Billion KYC and AML market

The updated iComplyKYC platform leverages edge computing and AI to support onboarding and identify verification for legal entities and natural persons

Vancouver, B.C. – December 15, 2020 – iComply Investor Services (“iComply”), a global compliance software provider, is announcing that it is launching an updated version of its iComplyKYC platform for digital compliance administration that now supports the onboarding and authentication of legal entities and natural persons as a part of its all-in-one compliance solution.

Unlike existing electronic identification (e-ID) solutions that require tools from multiple vendors and manual processing for B2C and B2B customer due diligence, iComplyKYC offers a standalone system to manage the full lifecycle of KYC and AML administration for each client.

Globally, AML spend by financial services providers grew to over $181B USD a year in 2019, according to a 2020 report from Compliance Week.

“The latest directives from the Financial Action Task Force (FATF) have broadened AML requirements to include law firms, accounting, eCommerce, luxury sales and M&A transactions,” said Matthew Unger, CEO of iComply. “Further, new requirements for work-from-home have complicated the day-to-day compliance operations of most of the market, and ‘digital first’ is no longer a nice-to-have, but a necessity.”

Remote workforces and lockdowns have forced businesses to implement digital solutions for client onboarding, identification, and AML risk management.  iComplyKYC can service law firms, accounting firms, eCommerce platforms, mortgage brokers, and other industries regulated by the AML-5 directive. iComply estimates the global AML spend will exceed $300B USD by 2022.

The platform leverages edge computing for GDPR, PIPA, PPIA, and CCPA risk management. This means that the updated iComplyKYC platform enables companies to gather, authenticate, and encrypt user data via dynamic KYC Portals before that data leaves the user’s device. 

KYC services on the platform also include AI-enabled identity verification, biometric authentication, DUNS, and GLEI validation, supporting document workflows, and AML screening across 150 million daily sources. Compliance teams can access all results in a single dashboard to make better decisions, quickly manage issues, and generate reports.

“Integrating edge computing and artificial intelligence into the KYC portal reduces the total cost of compliance and improves user privacy, cybersecurity, and straight-through processing capabilities,” added Unger. “Businesses can no longer afford to mess with half a dozen onboarding tools and APIS, the market needs a banking grade digital identity and risk management solution that can be set up in hours.”

About iComply Investor Services Inc.
iComply Investor Services Inc. (“iComply”) is a Regtech company that provides fully-digital KYC and AML compliance solutions for non-face-to-face financial and legal interactions. iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience. By partnering with multinational technology vendors such as Microsoft, DocuSign, Thomson Reuters, and Refinitiv, iComply is bringing compliance teams into the digital age. Learn more: www.icomplyis.com

Vaidyanathan Chandrashekhar

Vaidyanathan Chandrashekhar

Advisors

“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas Linder

Thomas Linder

Advisors

Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas Hardjono

Thomas Hardjono

Advisors

Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney Dobson

Rodney Dobson

Advisors

Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen Mandal

Praveen Mandal

Advisors

Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul Childerhose

Paul Childerhose

Advisors

Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John Engle

John Engle

Advisors

John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff Bandman

Jeff Bandman

Advisors

Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg Pearlman

Greg Pearlman

Advisors

Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven Sharma

Deven Sharma

Advisors

Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.