Introduction
Stay updated on recent enforcement actions and sanctions around the G-20 nations with our weekly digest.
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Key Enforcement Actions:
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Australia:
Date: 14 August 2024
- Authority: Australian Prudential Regulation Authority (APRA)
- Summary: APRA imposed additional licence conditions on trustees for Cbus and BUSSQ to address concerns over fitness, proprietary processes, and fund expenditure management.
- Impact: These conditions aim to improve transparency, governance, and member confidence in the trustees’ decision-making processes.
- Action Required: United Super and BUSSQ must engage independent experts to review and publish findings on compliance with APRA’s standards.
- Read More: https://www.apra.gov.au/news-and-publications/apra-imposes-additional-licence-conditions-on-trustees-for-cbus-and-bussq
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Brazil:
Date: 15 August 2024
- Authority: Comptroller General of the Union (CGU)
- Summary: The CGU imposed dismissal and removal sanctions on 12 public servants for irregularities in an IT contract worth R$78 million related to the Ministry of Labor.
- Impact: The penalties reinforce the CGU’s commitment to combating corruption and ensuring integrity in public administration.
- Action Required: No immediate action required; the penalties and disqualifications have been enforced according to legal provisions.
- Read More: https://www.gov.br/cgu/pt-br/assuntos/noticias/2024/08/cgu-aplica-12-penalidades-a-servidores-publicos-envolvidos-em-irregularidades
Date: 14 August 2024
- Authority: Administrative Council for Economic Defense (CADE)
- Summary: CADE fined an individual R$54,000 for their significant role in organizing and developing activities within the sea salt cartel.
- Impact: The conviction reinforces Cade’s stance against anti-competitive practices, holding individuals accountable for collusion.
- Action Required: The individual must pay the imposed fine; no further immediate action is required beyond compliance.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/cade-condena-por-maioria-participante-do-cartel-do-sal
Date: 12 August 2024
- Authority: Federal Police (PF)
- Summary: The Federal Police launched the 13th phase of Operation Aifa in Paranaguá / PR to combat environmental crimes, focusing on illegal occupation in protected areas.
- Impact: Over 100 uninhabited buildings were demolished, signalling a strong stance against environmental violations and illegal occupations.
- Action Required: Authorities must continue monitoring and enforcing regulations to prevent further illegal occupation in protected areas.
- Read More: https://www.gov.br/pf/pt-br/assuntos/noticias/2024/08/pf-deflagra-a-decima-terceira-fase-da-operacao-aifa-em-combate-aos-crimes-ambientais-no-pr
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European Union:
Date: 13 August 2024
- Authority: Eurojust
- Summary: Eurojust supported a large-scale anti-mafia operation resulting in the arrest of a mafia member and the freezing of €50 million in assets across Italy, Brazil, and Switzerland.
- Impact: The operation disrupts a significant money laundering network, preventing further criminal investment and weakening mafia activities.
- Action Required: Continued international cooperation and monitoring are essential to dismantle the remaining network and prevent re-establishment of the mafia’s financial operations.
- Read More: https://www.eurojust.europa.eu/news/eurojust-supports-large-scale-anti-mafia-operation-leading-arrest-and-freezing-eur-50-million
- Authority: European Securities and Markets Authority
- Summary: The ESAs’ Joint Board of Appeal allowed NOVIS’s appeal and remitted the case to EIOPA to adopt an amended decision regarding access to certain documents.
- Impact: EIOPA must review and potentially modify its decision, which could influence future cases involving document access within the European financial supervisory system.
- Action Required: EIOPA needs to reassess and issue a new decision, possibly granting partial access to the requested documents.
- Read More: https://www.esma.europa.eu/press-news/esma-news/esas-joint-board-appeal-allows-appeal-lodged-novis-and-remits-case-eiopa
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Germany:
Date: 15 August 2024
- Authority: Federal Cartel Office
- Summary: Deutsche Bahn AG (DB) concluded the first contracts with mobility platforms for access to forecast data on rail passenger transport under the conditions specified by the Federal Cartel Office.
- Impact: This move enhances consumer access to real-time travel information and supports the functionality of mobility platforms, improving overall travel experiences in Germany.
- Action Required: DB must continue to comply with antitrust regulations while the main legal proceedings are still pending. Mobility platforms should integrate the new data to optimize their services.
- Read More: https://www.bundeskartellamt.de/SharedDocs/Meldung/DE/Pressemitteilungen/2024/15_08_2024_Deutsche_Bahn.html
Date: 13 August 2024
- Authority: Federal Financial Supervisory Authority (BaFin)
- Summary: The BaFin investigated HAMILCAR CAPITAL for offering financial services without authorization on its website hamilcar-capital-invest.com, and warns consumers about the company.
- Impact: Consumers are at risk of dealing with an unauthorised and unsupervised company, potentially leading to financial losses
- Action Required: Consumers should avoid engaging with HAMILCAR CAPITAL and verify the authorization status of financial service providers through BaFin’s database.
- Read More: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_08_12_hamilcar_capital_invest_com_en.html
- Authority: Federal Financial Supervisory Authority (BaFin)
- Summary: The BaFin investigated Bunker wallet for offering financial services on bunkerwallet.io without the required authorization, and warns consumers about the company.
- Impact: Consumers are exposed to potential financial risks when dealing with an unauthorized and unsupervised company.
- Action Required: Consumers should avoid using Bunker wallet and verify the authorization of financial service providers via BaFin’s database before engaging with them.
- Read More: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_08_12_Bunker_wallet_en.html
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Russia:
Date: 13 August 2024
- Authority: Central Bank of Russia
- Summary: The Bank of Russia revoked the banking license of American Express Bank LLC as the institution opted for voluntary liquidation.
- Impact: American Express Bank LLC will cease its banking operations, and it was not covered by the deposit insurance system.
- Action Required: The appointment of a liquidator is needed to oversee the bank’s dissolution process, and customers should seek alternative banking arrangements
- Read More: http://www.cbr.ru/press/PR/?file=638591436627035000BANK_SECTOR.htm
Date: 12 August 2024
- Authority: The Investigative Committee of Russia
- Summary: Konstantin Polezhaev, former Deputy Governor of Belgorod Region, convicted for accepting bribes worth over 18 million rubles and was sentenced to 5 years in prison, fined 36 million rubles, and banned from holding government positions for 8 years.
- Impact: The conviction highlights the legal consequences of high-level corruption and imposes significant penalties on officials involved in bribery.
- Action Required: Enforcement of the court’s sentence and measures to prevent similar corrupt activities should be prioritised.
- Read More: https://sledcom.ru/news/item/1906850/
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South Africa:
Date: 12 August 2024
- Authority: Special Investigating Unit (SIU)
- Summary: The Special Tribunal invalidated a R257 million PPE contract awarded to Nkhane Projects and Supply by the Gauteng Department of Health and ordered the recovery of profits.
- Impact: The decision addresses procurement corruption and reinforces accountability in public health contracts.
- Action Required: Nkhane must submit audited financial statements and cover the SIU’s application costs, while the High Court case regarding additional payments has been stayed.
- Read More: https://www.siu.org.za/tribunal-overturns-gauteng-health-covid-19-ppe-contract-worth-over-r257-million-with-nkhane-and-orders-recovery-of-profits/
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Mexico:
Date: 15 August 2024
- Authority: Federal Economic Competition Commission (COFECE)
- Summary: COFECE investigated a potential international anti-competitive agreement in the fragrance market, coordinating with the U.S. Department of Justice and the UK’s Competition and Markets Authority.
- Impact: The investigation aims to address possible collusive practices that could negatively affect Mexican consumers and ensure compliance with competition laws.
- Action Required: Monitor the investigation’s progress and prepare for potential legal and financial repercussions if anti-competitive practices are confirmed.
- Read More: https://www.cofece.mx/cofece-investiga-un-probable-acuerdo-ilegal-transnacional-en-el-mercado-de-fragancias/
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Turkey:
Date: 14 August 2024
- Authority: Turkish Competition Authority
- Summary: The Competition Board concluded that Hamzaoğlu Kimya San. ve Tic. AŞ violated antitrust laws by setting resale prices and imposed an administrative fine of ₺1,941,954.27.
- Impact: The fine penalizes the company for anti-competitive practices, underscoring the enforcement of fair pricing regulations.
- Action Required: HAKS Kimya must pay the imposed fine and comply with competition laws to avoid further violations.
- Read More: https://www.rekabet.gov.tr/en/Guncel/investigation-concerning-hamzaoglu-kimya-4fa1c46f2a5aef1193ce0050568585c9
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United Kingdom:
Date: 13 August 2024
- Authority: National Crime Agency (NCA)
- Summary: Maksim Silnikau, aka J.P. Morgan, a major Russian-speaking cybercriminal, was arrested and extradited to the US. He and his network, involved in creating ransomware strains like Reveton and Ransom Cartel, were implicated in extensive cybercrime operations.
- Impact: Silnikau’s arrest disrupts a significant cybercrime network responsible for substantial financial and reputational harm globally, including exploiting vulnerabilities in millions of devices.
- Action Required: Follow ongoing developments in the case and review cybersecurity measures to protect against similar threats.
- Read More: https://www.nationalcrimeagency.gov.uk/news/suspected-head-of-prolific-cybercrime-groups-arrested-and-extradited
- Authority: Information Commissioner’s Office
- Summary: Jonathan Riches was fined £10,000 and ordered to pay £1,700 in costs for unlawfully accessing personal data from Enterprise Rent-A-Car to benefit his personal injury firm.
- Impact: Riches’ actions involved a significant breach of personal data, affecting numerous individuals and resulting in fraudulent claims and nuisance calls.
- Action Required: Ensure robust data protection measures and review compliance protocols to prevent similar breaches.
- Read More: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/08/porthcawl-man-sentenced-after-brazen-car-scam-worth-hundreds-of-thousands-of-pounds/
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USA:
Date: 15 August 2024
- Authority: Environmental Protection Agency (EPA)
- Summary: The EPA ordered the closure of five illegal Large Capacity Cesspools on Maui and Hawai‘i Island, with settlement agreements requiring penalties and closure by specific deadlines to protect water quality.
- Impact: The closure of these cesspools will reduce groundwater and surface water contamination, improving environmental and public health in Hawai‘i.
- Action Required: The affected property owners must comply with the closure orders and pay the penalties by the agreed deadlines.
- Read More: https://www.epa.gov/newsreleases/epa-protects-maui-hawaii-water-ordering-closure-five-cesspools
- Authority: Federal Trade Commission (FTC)
- Summary: FTC and Arizona took action against Coulter Motor Company for deceptive pricing and discriminatory practices, resulting in a $2.6 million settlement.
- Impact: Settlement provides refunds to affected consumers and enforces fair pricing and anti-discrimination measures.
- Action Required: Coulter must pay $2.6 million, establish a fair lending program, and implement training on pricing and discrimination.
- Read More: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-state-arizona-take-action-against-coulter-motor-company-deceptive-pricing-discriminatory
- Authority: US Department of Justice (US DOJ)
- Summary: Asphalt Specialists LLC was ordered to pay a $6.5 million fine for bid-rigging conspiracies in Michigan’s asphalt industry, deceiving customers with non-competitive bids.
- Impact: The sentence emphasizes severe penalties for companies engaging in anti-competitive practices, particularly in vital infrastructure sectors.
- Action Required: Ensure all bidding processes are transparent and competitive to avoid severe legal and financial consequences.
- Read More: https://www.justice.gov/usao-ndil/pr/former-attorney-sentenced-25-years-federal-prison-embezzlement-and-fraud-charges
Date: 14 August 2024
- Authority: US Department of Justice (US DOJ)
- Summary: Former Attorney Robert M. Kowalski was sentenced to 25 years for embezzlement and fraud related to the collapse of Washington Federal Bank, with restitution orders totaling $7.6 million.
- Impact: Kowalski’s sentence underscores serious consequences for financial crimes; restitution aims to recover funds for affected parties.
- Action Required: Kowalski must pay $7.2 million in restitution to the FDIC and $424,047 to the IRS, in addition to serving his prison term.
- Read More: https://www.justice.gov/usao-ndil/pr/former-attorney-sentenced-25-years-federal-prison-embezzlement-and-fraud-charges
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: ResourceOne was ordered to pay $47,500 and implement measures to prevent future racial harassment following a lawsuit by the EEOC over a supervisor’s racial slurs.
- Impact: Settlement ensures compensation for the affected employee and mandates changes to prevent workplace harassment and discrimination.
- Action Required: ResourceOne must pay the settlement amount, adopt anti-discrimination policies, and provide employee training on GINA and Title VII compliance.
- Read More: https://www.eeoc.gov/newsroom/resourceone-pay-47500-eeoc-racial-harassment-lawsuit
- Authority: Environmental Protection Agency (EPA)
- Summary: Gebbers Farms Inc. was ordered to pay a $17,078 penalty for failing to comply with pesticide safety regulations under the Worker Protection Standard.
- Impact: The penalty reinforces the importance of adhering to pesticide safety requirements to protect agricultural workers’ health.
- Action Required: Gebbers Farms must address the violations by ensuring compliance with labeling, decontamination, and pesticide storage and disposal standards.
- Read More: https://www.epa.gov/newsreleases/gebbers-farms-pays-17000-penalty-failing-protect-workers-pesticides
Date: 13 August 2024
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: The EEOC sued Buffalo Wild Wings for religious discrimination, alleging the company rejected a job applicant due to her wearing long skirts in accordance with her religious beliefs.
- Impact: The lawsuit seeks to hold Buffalo Wild Wings accountable for violating Title VII of the Civil Rights Act by refusing to accommodate the applicant’s religious practices.
- Action Required:Buffalo Wild Wings must respond to the lawsuit, potentially provide back pay and damages to the applicant, and implement measures to prevent future religious discrimination.
- Read More: https://www.eeoc.gov/newsroom/eeoc-sues-buffalo-wild-wings-religious-discrimination
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: Pilot Air Freight was ordered to pay $400,000 to settle an EEOC lawsuit alleging disability discrimination against a manager with cancer.
- Impact: The settlement enforces ADA compliance and mandates anti-discrimination training for employees.
- Action Required: Ensure ADA compliance and implement regular employee training to prevent disability discrimination..
- Read More: https://www.eeoc.gov/newsroom/eeoc-sues-buffalo-wild-wings-religious-discrimination
- Authority: Federal Trade Commission (FTC)
- Summary: The FTC’s amicus brief in Epic Games v. Google urged the court to craft remedies that effectively restore competition and prevent Google from benefiting from its illegal monopolization of the app store market.
- Impact: The FTC emphasizes that remedies should address Google’s monopolistic practices and ensure fair competition, considering factors like network effects and data advantages that hinder new competitors.
- Action Required: The court should consider robust remedies that prevent Google from maintaining its monopolistic advantage and ensure effective competition in the app store market.
- Read More: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-outlines-remedy-concerns-amicus-brief-after-jury-finds-google-illegally-monopolized-app-store
Date: 12 August 2024
- Authority: US Department of Justice (US DOJ)
- Summary: Gregory and David Melton were convicted of participating in a conspiracy to fix prices, rig bids, and allocate markets for ready-mix concrete sales in Georgia and South Carolina between 2010 and 2016. This case is part of a broader investigation that has resulted in five criminal convictions and one deferred prosecution agreement.
- Impact: This illegal activity undermined fair competition in the market for essential construction materials, leading to inflated costs for consumers and compromised infrastructure development.
- Action Required: Review procurement processes to ensure compliance with antitrust laws and report any suspicious activity related to price fixing or bid rigging to appropriate authorities.
- Read More: https://www.justice.gov/usao-ndil/pr/former-attorney-sentenced-25-years-federal-prison-embezzlement-and-fraud-charges
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Key Sanctions:
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USA
Date: 5 August 2024
- Authority: Office of Foreign Assets Control (OFAC)
- Summary: The OFAC imposed sanctions on entities linked to Sa’id al-Jamal’s network for shipping Iranian commodities to support Houthis and Hizballah.
- Impact: These sanctions aim to disrupt the financial networks that support the Houthis, Hizballah, and the IRGC-QF, which are involved in destabilizing activities in the Middle East.
- Action Required: Entities involved in global trade, particularly in the shipping and energy sectors, should review their dealings to ensure compliance with U.S. sanctions and avoid engaging with the listed entities.
- Read More: https://www.consilium.europa.eu/en/press/press-releases/2024/08/05/belarus-eu-lists-further-28-individuals-for-participation-in-internal-repression/
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Compliance Tips Staying Compliant
- Tip 1: Regularly review and update compliance policies.
- Tip 2: Conduct internal audits to ensure adherence to regulations.
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