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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Brazil:
Date: 21 August 2024
- Authority: Administrative Council for Economic Defense (CADE)
- Summary: CADE investigated alleged collusion in the advertising rights market for football championships involving suppression of proposals in bidding processes.
- Impact: Potential fines and penalties for involved companies and individuals, affecting the advertising market in sports events..
- Action Required: Companies and individuals involved should prepare defences and ensure compliance with Cade’s leniency agreement obligations.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/cade-investiga-acordo-no-mercado-de-direitos-de-publicidade-em-campeonatos-de-futebol
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Germany:
Date: 21 August 2024
- Authority: Federal Financial Supervisory Authority (BaFin)
- Summary: BaFin expanded its investigation into identity theft involving a cloned website impersonating Swiss Financial Services AG.
- Impact: Increased scrutiny on unauthorised financial activities, potentially leading to legal actions against perpetrators.
- Action Required: Verify the legitimacy of financial service providers and report suspicious activities to BaFin.
- Read More: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_04_22_Swiss_Financial_Services_AG_en.html
- Authority: Federal Financial Supervisory Authority (BaFin)
- Summary: BaFin investigated sparzinsinvest.de for identity theft and fraud involving unauthorised sales of TikTok shares and false claims of association with Swiss Financial Services AG.
- Impact: Consumers are at risk of financial fraud, and trust in legitimate financial services may be undermined.
- Action Required: Avoid transactions with sparzinsinvest.de, verify the legitimacy of financial offers, and report any suspicious activity to BaFin.
- Read More: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Verbrauchermitteilung/weitere/2024/meldung_2024_03_06_sparzinsinvest_de_en.html
- Authority: Federal Financial Supervisory Authority (BaFin)
- Summary: BaFin investigated Groiki Germany GmbH for potentially unauthorized financial activities under German financial regulations.
- Impact: Consumers are exposed to potential financial risks when dealing with an unauthorized and unsupervised company.
- Action Required: Avoid transactions with sparzinsinvest.de, verify the legitimacy of financial offers, and report any suspicious activity to BaFin.
- Read More: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_08_19_Groiki_Germany_GmbH_en.html
Date: 20 August 2024
- Authority: Federal Network Agency
- Summary: The Federal Network Agency initiated proceedings against Elektrizitätsversorgung Berlin ElVeBe GmbH due to complaints about inaccurate energy bills and potential legal violations.
- Impact: Potential regulatory actions against the company, aimed at protecting consumer rights and ensuring compliance with energy billing laws.
- Action Required: Affected consumers should review their bills, report discrepancies to the Federal Network Agency, and follow guidance on the agency’s website..
- Read More: https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/DE/2024/20240820_ElVeBe.html
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India:
Date: 22 August 2024
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI imposed a ₹25 lakh penalty on Shikshak Sahakari Bank Limited for failing to comply with exposure limits on single and group borrowers.
- Impact: The penalty highlights regulatory non-compliance, which may affect the bank’s operations and could lead to further actions by the RBI.
- Action Required: Shikshak Sahakari Bank Limited should review and adjust its credit policies to comply with RBI regulations and prevent future violations.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58550
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI imposed an ₹8 lakh penalty on The Co-operative Bank of Rajkot Ltd. for non-compliance with regulations on deposit interest rates and KYC requirements. false claims of association with Swiss Financial Services AG.
- Impact: The penalty underscores deficiencies in regulatory compliance, potentially affecting the bank’s operations and leading to further scrutiny.
- Action Required: The Co-operative Bank of Rajkot Ltd. should update its practices to adhere to RBI’s deposit interest rate and KYC regulations to avoid future penalties.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58551
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI imposed a ₹1 lakh penalty on The Gandhidham Mercantile Co-operative Bank Limited for violating regulations on donations to trusts where directors or their relatives have interests.
- Impact: The penalty highlights the bank’s failure to comply with regulatory guidelines, potentially affecting its reputation and compliance standing.
- Action Required: The bank should review and revise its policies on donations to ensure compliance with RBI regulations to prevent future penalties.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58552
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Japan:
Date: 22 August 2024
- Authority: Japan Fair Trade Commission (JFTC)
- Summary: The JFTC issued a warning to Nissin Food Products Co., Ltd. for potentially violating resale price restriction regulations under Article 19 of the Antimonopoly Act.
- Impact: Nissin Food Products may face further legal actions or penalties if found in violation of competition laws.
- Action Required: Nissin Food Products should review their pricing practices to ensure compliance with the Antimonopoly Act and address any identified issues.
- Read More: https://www.jftc.go.jp/houdou/pressrelease/2024/aug/240822_kinki_shina.html
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Russia:
Date: 22 August 2024
- Authority: The Investigative Committee of Russia
- Summary: Residents of Pochinki village in the Moscow region had appealed to the Investigative Committee regarding the illegal dumping of construction waste on agricultural land, leading to a criminal investigation.
- Impact: The investigation may result in legal actions against those responsible for environmental damage and potential disruptions to the local drainage system.
- Action Required: Authorities must monitor the investigation’s progress and ensure the responsible parties are held accountable. Residents should stay informed and cooperate with the investigation.
- Read More: https://sledcom.ru/news/item/1909044/
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South Africa:
Date: 21 August 2024
- Authority: Financial Intelligence Centre (FIC)
- Summary: The FIC Act Appeal Board upheld sanctions against Capital Point Properties for failing to comply with anti-money laundering regulations, emphasising the importance of adherence to FIC Act obligations.
- Impact: The ruling underscores strict enforcement of compliance measures, with significant financial penalties for non-compliance, reinforcing the need for institutions to adhere to regulatory requirements.
- Action Required: Accountable institutions must promptly implement risk management and compliance programs, scrutinize clients against sanctions lists, and comply with FIC directives to avoid sanctions.
- Read More: https://www.fic.gov.za/2024/08/21/web-notice-guidance-on-the-interpretation-of-high-value-goods-dealers-3-2/
Date: 20 August 2024
- Authority: Special Investigating Unit (SIU)
- Summary: President Ramaphosa authorized the SIU to investigate serious maladministration in five water supply contracts in the O.R. Tambo District Municipality.
- Impact: The investigation could lead to legal actions, recovery of lost funds, and recommendations to prevent future losses.
- Action Required: Municipality officials and service providers should cooperate fully with the investigation and address any identified deficiencies.
- Read More: https://www.siu.org.za/siu-is-authorised-to-investigate-allegations-of-serious-maladministration-at-the-o-r-tambo-district-municipality-for-the-procurement-of-five-contracts-related-to-the-construction-of-water-supply-stru/
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South Korea
Date: 22 August 2024
- Authority: Financial Services Commission (FSC)
- Summary: Financial authorities conducted on-site inspections of virtual asset exchanges to ensure compliance with the Virtual Asset Act’s requirements for abnormal transaction monitoring.
- Impact: Enhanced oversight may lead to stricter enforcement of regulations, promoting a more secure and transparent virtual asset market.
- Action Required: Virtual asset exchanges must ensure continuous monitoring, reporting, and compliance with the Virtual Asset Act to avoid potential penalties.
- Read More: https://www.fsc.go.kr/no010101/82943?srchCtgry=&curPage=&srchKey=&srchText=&srchBeginDt=&srchEndDt=
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Turkey:
Date: 22 August 2024
- Authority: Turkish Competition Authority
- Summary: The investigation into Bilim İlaç Sanayii ve Ticaret AŞ and Drogsan İlaçları Sanayi ve Ticaret AŞ concluded with fines for engaging in no-poach agreements, violating competition laws.
- Impact: Bilim İlaç and Drogsan İlaç face substantial fines, reflecting stricter enforcement of competition regulations.
- Action Required: Companies must review and revise their labor market practices to ensure compliance with competition laws.
- Read More: https://www.rekabet.gov.tr/en/Guncel/investigation-about-bilim-ilac-sanayii-v-527973455760ef1193ce0050568585c9
Date: 19 August 2024
- Authority: Turkish Competition Authority
- Summary: The investigation into Tetra Laval Holding & Finance SA and Tetra Pak Paketleme Sanayi ve Ticaret Limited Şirketi concluded, focusing on potential competition law violations.
- Impact: The outcome may lead to fines or corrective actions if violations are confirmed, affecting the companies’ operations and market practices.
- Action Required: Review the investigation results and ensure compliance with competition regulations to avoid penalties and legal issues.
- Read More: https://www.rekabet.gov.tr/en/Guncel/investigation-conducted-on-tetra-laval-h-c2f32274095eef1193ce0050568585c9′
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United Kingdom
Date: 22 August 2024
- Authority: Competition and Market Authority (CMA)
- Summary: The CMA found that Santander breached Part 2 of the Retail Banking Market Investigation Order 2017 by failing to provide accurate and up-to-date information through Open Banking.
- Impact: 106 data fields were either outdated or missing, with some inaccuracies persisting for up to seven years, potentially affecting customers’ access to correct product information.
- Action Required: Santander must promptly update and maintain all required Open Banking information to ensure full compliance and prevent future breaches.
- Read More: https://www.gov.uk/government/publications/cma-letter-to-santander-about-breaching-part-2-of-the-retail-banking-order
- Authority: Competition and Market Authority (CMA)
- Summary: The CMA found that Barclays breached Part 5 of the Retail Banking Market Investigation Order 2017 by failing to provide timely Payment Transaction Histories to customers who closed their accounts.
- Impact: 1,648 customers did not receive their Payment Transaction Histories, and 659 histories were sent late between June and August 2023.
- Action Required: Barclays must ensure all Payment Transaction Histories are sent promptly to comply with the Order and prevent future breaches.
- Read More: https://www.gov.uk/government/publications/cma-letter-to-barclays-about-breaching-part-5-of-the-retail-banking-order
Date: 21 August 2024
- Authority: Competition and Market Authority (CMA)
- Summary: The CMA closed its Competition Act cases against Google’s Play Store and Apple’s App Store, planning to address these issues under the upcoming digital markets competition regime.
- Impact: The closure allows the CMA to use new, broader powers to tackle concerns about unfair app store practices and potentially unfair terms for UK app developers, with implications for consumer choice and pricing.
- Action Required: Monitor the rollout of the new digital markets regime and anticipate potential interventions or new investigations involving Google and Apple.
- Read More: https://www.gov.uk/government/news/cma-looks-to-new-digital-markets-competition-regime-to-resolve-app-store-concerns
- Authority: Intellectual Property Office (IPO)
- Summary: The IPO reviewed whether Fancy-it Agencies Ltd.’s registered design for a clothes hanger meets the criteria of novelty and individual character under Section 1B of the Registered Designs Act 1949.
- Impact: The decision will determine if the design’s registration remains valid or is invalidated.
- Action Required: Monitor the outcome to understand the implications for design protection strategies.
- Read More: https://www.gov.uk/government/publications/design-hearing-decision-o078724
- Authority:Intellectual Property Office (IPO)
- Summary: The Tribunal declared the UK registered design of Nima Aran invalid due to prior public disclosure before the filing date.
- Impact: The design registration is invalidated, and Nima Aran must pay £298 in costs to Zeyshan Mahmoud.
- Action Required: Nima Aran should pay the ordered sum within 21 days of the appeal period or after final determination if appealed.
- Read More: https://www.gov.uk/government/publications/design-hearing-decision-o079424
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United States
Date: 22 August 2024
- Authority: U.S. Department of Justice (US DOJ)
- Summary: Clean Harbors Inc. agreed to a $5 million settlement with the DOJ and EPA to clean up contamination at the Devil’s Swamp Lake Superfund Site in Baton Rouge, Louisiana.
- Impact: The settlement mandates over $3 million for cleanup and $2 million to reimburse the U.S. government, addressing decades-old pollution in an environmentally burdened area.
- Action Required: Clean Harbors must implement the cleanup plan and reimburse the U.S. for incurred and future costs related to the site.
- Read More: https://www.justice.gov/opa/pr/clean-harbors-inc-agrees-clean-devils-swamp-lake-superfund-site-near-baton-rouge-louisiana
- Authority: U.S. Department of Justice (US DOJ)
- Summary: Seven defendants, including two former presidents of the Boilermakers Union, were indicted for their roles in a $20 million embezzlement scheme over 15 years.
- Impact: The indictment charges the defendants with RICO violations and other crimes, aiming to restore financial integrity to the union and protect its members.
- Action Required: Union members and leadership should review financial controls and ensure compliance with ethical standards to prevent future abuses.
- Read More: https://www.justice.gov/opa/pr/two-former-presidents-boilermakers-international-union-among-seven-indicted-20m-embezzlement
Date: 21 August 2024
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: The Laurels of Athens was ordered to pay $150,000 and provide additional relief to settle a federal lawsuit for age and sex discrimination, including retaliation against a physical therapy assistant fired after medical leave.
- Impact: The facility must pay damages, report periodically, and provide training to ensure compliance with anti-discrimination laws.
- Action Required: Implement and enforce compliance training, monitor practices, and ensure non-discriminatory policies are followed.
- Read More: https://www.eeoc.gov/newsroom/ohio-nursing-and-rehabilitation-facility-pay-150000-age-sex-and-retaliation-discrimination
Date: 19 August 2024
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: ABM Industry Groups agreed to pay $52,000 and provide additional relief to settle an EEOC charge for failing to communicate with a deaf worker who requested reasonable accommodation under the ADA.
- Impact: ABM must pay damages, review non-discrimination policies, and provide training to ensure compliance with ADA requirements.
- Action Required: Implement ADA training, review and improve accommodation processes, and ensure timely communication with employees requesting accommodations.
- Read More: https://www.eeoc.gov/newsroom/abm-resolves-eeoc-disability-charge
- Authority: U.S. Department of Justice (US DOJ)
- Summary: Ten additional states joined a DOJ antitrust lawsuit against Live Nation-Ticketmaster for monopolising the live concert industry, now involving 40 co-plaintiffs.
- Impact: The expanded lawsuit seeks to address and rectify alleged monopolistic practices and anticompetitive behaviour in the live entertainment sector.
- Action Required: Monitor developments in the case and prepare for potential regulatory or legal changes affecting market practices and competition.
- Read More: https://www.justice.gov/opa/pr/ten-additional-states-join-justice-departments-suit-against-live-nation-ticketmaster
- Authority: Environmental Protection Agency (EPA)
- Summary: EPA issued an Administrative Order on Consent to Powder Ridge Mountain Park for violations of the Clean Air Act related to the handling of anhydrous ammonia in its ice-making unit.
- Impact: The order mandates corrective actions to improve safety and compliance with hazard assessment and emergency planning requirements, aiming to prevent chemical accidents.
- Action Required: Ensure all facilities using hazardous substances comply with Clean Air Act requirements and conduct regular hazard assessments and safety reviews.
- Read More: https://www.epa.gov/newsreleases/epa-orders-connecticut-winter-sports-park-correct-alleged-violation-clean-air-act
- Authority: Environmental Protection Agency (EPA)
- Summary: AES Puerto Rico was ordered to pay a $3.1 million penalty and improve monitoring for mercury and other emissions at its Guayama facility under a settlement with the EPA. The company failed to monitor and report emissions properly, violating the Clean Air Act and Mercury and Air Toxics Standards (MATS).
- Impact: The settlement requires AES to operate new mercury monitors, enhance transparency by posting compliance reports publicly, and address past violations, benefiting the health of local communities.
- Action Required: Ensure rigorous monitoring and reporting of emissions, particularly for hazardous pollutants, and comply with environmental standards to avoid penalties and protect public health.
- Read More: https://www.epa.gov/newsreleases/epa-settlement-aes-requires-more-monitoring-and-payment-penalty-clean-air-act
- Authority: Federal Trade Commission (FTC)
- Summary: The FTC filed an amicus brief opposing IXL Learning’s attempt to use the Children’s Online Privacy Protection Act (COPPA) to force parents into arbitration.
- Impact: The brief supports parents’ rights to challenge alleged illegal data collection practices by IXL Learning, regardless of arbitration clauses in agreements between schools and the company.
- Action Required: Companies should be cautious about how they apply terms of service and arbitration clauses, especially in contexts involving children’s data and parental rights.
- Read More: https://www.epa.gov/newsreleases/epa-orders-connecticut-winter-sports-park-correct-alleged-violation-clean-air-act
- Authority: U.S. Department of Justice (US DOJ)
- Summary: D.C. Councilmember Trayon White Sr. arrested on charges of bribery. The complaint alleges he agreed to accept $156,000 in bribes to influence the extension of $5.2 million in contracts for violence intervention services.
- Impact: This case highlights potential corruption in government contracting and underscores the importance of ethical conduct and transparency in public office.
- Action Required: Government officials should ensure they avoid any conflicts of interest and comply with legal and ethical standards.
- Read More: https://www.justice.gov/usao-dc/pr/dc-city-councilmember-arrested-bribery-charge
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Key Sanctions:
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USA
Date: 23 August 2024
- Authority: Office of Foreign Assets Control (OFAC)
- Summary: The U.S. Department of the Treasury and the Department of State expanded sanctions against nearly 400 individuals and entities connected to Russia’s military-industrial supply chains and sanctions evasion.
- Impact: These sanctions aim to disrupt Russia’s ability to sustain its military efforts and evade existing sanctions, further isolating Russia economically and politically.
- Action Required: International businesses, financial institutions, and regulators should scrutinise dealings with Russian entities and their overseas branches to ensure compliance with sanctions.
- Read More: https://home.treasury.gov/news/press-releases/jy2546
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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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