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: 29 August 2024
- Authority: Comptroller General of the Union (CGU)
- Summary: CGU and PF conducted Operation Front Stage to investigate money laundering involving shell companies in Piauí funded by the Aldir Blanc Law executing search and seizure warrants.
- Impact: Misappropriation of funds directly harms the artistic community by diverting necessary financial support during the pandemic.
- Action Required: Ensure transparency by monitoring the investigation’s progress and report any additional suspicious activities linked to cultural funding.
- Read More: https://www.gov.br/cgu/pt-br/assuntos/noticias/2024/08/cgu-e-pf-combatem-lavagem-de-dinheiro-com-recursos-da-cultura-no-piaui
Date: 28 August 2024
- Authority: Federal Revenue
- Summary: Federal Revenue, PF and MPF launched Operation Concierge targeting criminal organisations using fintechs for money laundering, currency evasion, and asset shielding across São Paulo and Minas Gerais.
- Impact: The use of fintechs to evade taxes and judicial blocks undermines financial system transparency and enforcement.
- Action Required: Authorities should strengthen regulatory oversight of fintech operations to prevent abuse by criminal organizations.
- Read More: https://www.gov.br/receitafederal/pt-br/assuntos/noticias/2024/agosto/receita-federal-pf-e-mpf-deflagram-operacao-concierge-contra-uso-de-fintechs-por-organizacao-criminosa
- Authority: Administrative Council for Economic Defense (CADE)
- Summary: CADE fined ten automotive companies R$5.9 million for gun jumping related to eight acquisitions completed without prior approval.
- Impact: The fines highlight the importance of regulatory compliance in mergers to prevent anti competitive practices.
- Action Required: Companies should ensure timely notification of transactions to regulatory authorities to avoid similar penalties.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/empresas-pagarao-r-5-9-milhoes-por-pratica-de-gun-jumping
- Authority: Administrative Council for Economic Defense (CADE)
- Summary: CADE fined a Showa Corporation employee R$106,000 for participating in an EPS cartel that manipulated prices and market conditions in Brazil.
- Impact: The conviction reinforces the importance of upholding competitive practices and deterring illegal market manipulation.
- Action Required: Companies must strengthen internal compliance to prevent involvement in anticompetitive behavior and avoid legal penalties.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/cade-condena-gerente-envolvido-em-cartel-de-sistemas-de-direcao-assistida-eletrica-eps
Date: 26 August 2024
- Authority: Administrative Council for Economic Defense (CADE)
- ‘Summary: CADE initiated investigations into big techs’ acquisitions of AI startups to assess potential competitive impacts, even if the deals fall below mandatory notification thresholds.
- Impact: The investigation could lead to increased scrutiny of tech acquisitions, ensuring they don’t harm competition in the AI sector.
- Action Required: Big techs should prepare for possible APAC filings and ensure transparency in their acquisition strategies.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/superintendencia-geral-apura-aquisicoes-de-startups-de-inteligencia-artificial-por-big-techs
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France:
Date: 26 August 2024
- Authority: National Commission on Informatics and Liberty (CNIL)
- Summary: The Dutch Data Protection Authority in cooperation with CNIL fined UBER €290 million, for transferring personal data outside the EU without adequate safeguards.
- Impact: The fine underscores the serious consequences of non-compliance with GDPR, particularly regarding cross-border data transfers.
- Action Required: Companies must ensure all international data transfers comply with GDPR by implementing appropriate safeguards and monitoring regulatory developments.
- Read More: https://www.cnil.fr/fr/transferts-de-donnees-hors-ue-sanction-de-290-millions-deuros-lencontre-duber
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India:
Date: 27 August 2024
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI fined the Manipur State Co-operative Bank Ltd. ₹2 lakh for non-compliance with the Banking Regulation Act and Credit Information Companies Act.
- Impact: The penalty highlights the importance of adhering to statutory requirements, particularly in managing non-banking assets and reporting credit information.
- Action Required: The bank must strengthen its compliance framework to avoid future penalties and ensure timely reporting to Credit Information Companies.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58579
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI fined the Urban Co-operative Bank Ltd., Cuttack ₹1.50 lakh for non-compliance with KYC norms and exposure limits.
- Impact: The penalty reflects the bank’s failure to adhere to essential regulatory guidelines, particularly in risk management and customer verification processes.
- Action Required: The bank needs to enhance its compliance systems, ensuring regular KYC updates and adherence to exposure limits to prevent future violations.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58578
Date: 26 August 2024
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI fined the Valsad Mahila Nagarik Sahakari Bank Ltd. ₹1.25 lakh for failing to comply with KYC norms, asset classification, and other regulatory requirements.
- Impact: The penalty emphasizes the importance of adherence to financial regulations, including accurate asset classification and timely data submission to Credit Information Companies.
- Action Required: The bank must improve its compliance processes for asset classification, KYC updates, and data reporting to avoid future penalties.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58573
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Indonesia:
Date: 28 August 2024
- Authority: Special Investigating Unit (SIU)
- Summary: The KPK deposited IDR40.5 billion into the state treasury from the Rafael Alun Trisambodo case, which includes both replacement and confiscated funds. Rafael Alun had been sentenced to 14 years in prison and fined IDR500 million for corruption.
- Impact: The state recovers significant financial assets and continues with the execution process of additional confiscated goods.
- Action Required: The KPK will proceed with the auction of confiscated state assets and monitor compliance with the court’s decision.
- Read More: https://www.kpk.go.id/id/berita/berita-kpk/3562-eksekusi-perkara-rafael-alun-kpk-setorkan-rp-40-miliar-ke-kas-negara?tmpl=component&print=1&layout=default&page=
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Russia:
Date: 29 August 2024
- Authority: The Investigative Committee of Russia
- Summary: The head of the Russian Investigative Committee requested a report on an investigation into environmental violations in Koryazhma, Arkhangelsk Region, related to a waste sorting complex lacking mandatory environmental assessment.
- Impact: The investigation could reveal serious environmental and legal issues, highlighting the importance of compliance with environmental regulations in construction projects.
- Action Required: Monitor the investigation’s progress and ensure that all construction projects adhere to environmental assessment requirements to prevent similar issues.
- Read More: https://sledcom.ru/news/item/1910343/
Date: 27 August 2024
- Authority: The Investigative Committee of Russia
- Summary: The Chairman of the Investigative Committee of Russia sought an update on the probe into waste management violations in Khanty-Mansiysk Autonomous Okrug – Yugra.
- Impact: Highlights potential public health risks and regulatory failures in waste management.
- Action Required: Authorities should enhance waste management practices and ensure regulatory compliance to mitigate health risks.
- Read More: https: //sledcom.ru/news/item/1909842/
- Authority: The Investigative Committee of Russia
- Summary: Yuri Tigiev, deputy head of a temporary detention facility, faced trial for bribing an official for academic favoritism, with evidence gathered in cooperation with internal security.
- Impact: Tigiev’s case highlights corruption within educational and law enforcement institutions, affecting integrity and trust.
- Action Required: Strengthen anti-corruption measures and oversight in educational and law enforcement institutions to prevent similar misconduct.
- Read More: https: https://sledcom.ru/news/item/1909710/
Date: 26 August 2024
- Authority: The Investigative Committee of Russia
- Summary: Former head of the Starooskolsky Urban District, Alexander Sergienko, was sentenced to 12 years in prison and fined 20 million rubles for accepting over 30 million rubles in bribes and engaging in other corrupt activities.
- Impact: Highlights severe consequences for corruption in local government and increases scrutiny of officials’ financial dealings.
- Action Required: Strengthen anti-corruption measures and oversight mechanisms to prevent similar abuses.
- Read More: https://sledcom.ru/news/item/1909634/
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South Africa:
Date: 28 August 2024
- Authority: Special Investigating Unit (SIU)
- Summary: The AFU and SIU secured a preservation order for assets worth approximately R6.5 million linked to fraudulent NLC grant misuse.
- Impact: Prevents disposal of assets obtained through corruption, ensuring recovery of stolen funds.
- Action Required: Continue investigation and expedite legal proceedings to forfeit assets and return funds to the NLC.
- Read More: https://www.siu.org.za/afu-and-siu-secure-preservation-order-to-protect-millions-in-fraudulently-acquired-assets-linked-to-nlc-grant-funding/
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South Korea
Date: 26 August 2024
- Authority: Financial Supervisory Service (FSS)
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- Summary: WeMakePrice addressed unresolved damage from the Timon incident and will soon implement improvements to its e-commerce system.
- Impact: Aims to resolve issues from the incident and enhance system reliability.
- Action Required: Prepare and enforce measures to improve the e-commerce system and prevent future incidents.
- Read More: https://www.fss.or.kr/fss/bbs/B0000188/view.do?nttId=137918&menuNo=200218&pageIndex=1
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Turkey:
Date: 29 August 2024
- Authority: Turkish Competition Authority
- Summary: The Competition Board launched an investigation into Zofunlar Beton, Saros Hazır Beton, and Serin Beton for possible violations of competition laws by setting prices, allocating customers, and exchanging sensitive information.
- Impact: The investigation could lead to penalties or corrective actions if the companies are found guilty of anti-competitive practices.
- Action Required: Monitor the investigation’s progress and prepare for potential regulatory changes or sanctions based on the findings.
- Read More: https://www.rekabet.gov.tr/en/Guncel/investigation-launched-on-zofunlar-beton-ac9ea8c4d765ef1193ce0050568585c9
Date: 28 August 2024
- Authority: Ministry of Trade
- Summary: In the first 8 months of 2024, the Ministry of Trade imposed TL210.5 million in administrative fines on 221,634 businesses for non-compliance with the price tag regulations, detecting 119,112 non-compliant acts.
- Impact: Businesses face significant financial penalties for failing to adhere to price transparency and tariff display requirements, affecting their operational costs.
- Action Required: Ensure compliance with the updated price tag regulations and conduct regular internal audits to avoid administrative fines and potential grievances.
- Read More: https://ticaret.gov.tr/haberler/ticaret-bakanligi-2024-yilinin-ilk-8-ayinda-fiyat-etiketi-denetimleri-kapsaminda-idari-para-cezalari-uyguladi
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United Kingdom
Date: 29 August 2024
- Authority: Competition and Market Authority (CMA)
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- Summary: The CMA closed its investigation into ESS following market changes, including declining market share for ESS and new, less burdensome data migration methods being developed.
- Impact: The market dynamics and new tools have addressed the concerns, reducing the need for regulatory intervention.
- Action Required: Monitor the market for continued compliance and effectiveness of new data migration methods to ensure fair competition and data handling practices.
- Read More: https://www.gov.uk/government/news/cma-closes-ess-case-following-developments-in-the-market
Date: 28 August 2024
- Authority: Information Commissioner’s Office (ICO)
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- Summary: The ICO reprimanded the Labour Party for failing to respond to 352 subject access requests (SARs) on time, with significant delays due to a backlog exacerbated by a cyber-attack.
- Impact: The delay compromised transparency and accountability in handling personal data, prompting a need for immediate corrective measures.
- Action Required: The Labour Party must maintain adequate staffing and follow its action plan to ensure timely responses to SARs and compliance with data protection laws.
- Read More: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/08/action-taken-against-labour-party-for-failing-to-respond-to-requests-for-personal-information-on-time/
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United States
Date: 29 August 2024
- Authority: Environmental Protection Agency (EPA)
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- Summary: EPA Region 3 and Horizon Land Management, LLC settled wastewater treatment violations with $1.1 million in penalties from four manufactured home communities in Maryland for discharging pollutants into waterways leading to the Chesapeake Bay.
- Impact: The settlement aims to rectify long standing violations, improve water quality, and protect environmental justice areas affected by industrial pollution.
- Action Required: Horizon and the MHCs must comply with repair and maintenance orders to meet permit standards and prevent future violations.
- Read More: https://www.epa.gov/newsreleases/epa-region-3-and-four-manufactured-home-communities-settle-wastewater-treatment-cases
- Authority: Consumer Financial Protection Board (CFPB)
- Summary: The CFPB fined NewDay USA $2.25 million for misleading veterans and servicemembers about the costs of cash-out refinance loans and ordered corrective actions.
- Impact: The fine aims to compensate affected borrowers and curb deceptive practices in VA home loan refinancing, addressing long-standing issues of loan churning.
- Action Required: NewDay USA must pay the fine and cease misleading loan cost representations.
- Read More: https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-newday-usa-to-pay-2-25-million-for-illegally-luring-veterans-and-military-families-into-cash-out-refinance-loans/
Date: 28 August 2024
- Authority: Federal Trade Commission (FTC)
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- Summary: The FTC and the State of Florida secured a court order against RivX, a trucking automation company, for defrauding consumers by falsely promising profitable trucking investments in exchange for substantial upfront payments.
- Impact: The court has halted RivX’s operations and frozen its assets, addressing the deceptive scheme that has led to significant financial losses for consumers and enforcing consumer protection laws.
- Action Required: RivX must cease operations and return funds to defrauded consumers, with legal actions continuing against the company’s executives and affiliates.
- Read More: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-florida-act-stop-trucking-automation-scam-rivx-took-millions-dollars-consumers
- Authority: Equal Employment Opportunity Commission (EEOC)
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- Summary: Asphalt Paving Systems settled an EEOC lawsuit for $1.25 million, addressing claims of racial harassment and discrimination faced by Black employees, including degrading conditions and racial slurs.
- Impact: APS must pay substantial monetary relief, implement specialised training, and appoint an external monitor to ensure compliance and address racial harassment issues, improving workplace conditions and accountability.
- Action Required: APS must adhere to the three-year settlement agreement, including financial compensation, mandatory training, and monitoring to prevent future discrimination.
- Read More: https://www.eeoc.gov/newsroom/asphalt-paving-systems-pay-125-million-eeoc-race-discrimination-lawsuit
Date: 27 August 2024
- Authority: U.S. Department of Justice (US DOJ)
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- Summary: Quality Poultry and Seafood Inc., along with two managers, pleaded guilty to conspiring to mislabel seafood and commit wire fraud by selling cheap imported fish as premium local species, agreeing to pay over $1.1 million in penalties.
- Impact: The company faces significant financial penalties and legal consequences, which highlight the broader issue of fraud in the seafood industry, affecting local markets and consumer trust.
- Action Required: QPS and its managers will be sentenced in December, and they must comply with legal penalties, including the financial forfeitures and criminal fines.
- Read More: https://www.justice.gov/opa/pr/mississippi-seafood-distributor-and-managers-plead-guilty-conspiracy-and-misbranding-seafood
- Authority: Equal Employment Opportunity Commission (EEOC)
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- Summary: J.A. Croson settled an EEOC lawsuit for $1.6 million over racial and national origin harassment and retaliation, agreeing to provide equitable relief and address workplace issues.
- Impact: The settlement emphasises the need for construction companies to uphold anti-harassment laws and improve workplace conditions for minorities.
- Action Required: J.A. Croson must implement harassment complaint systems, provide training, and conduct audits to ensure compliance with anti-discrimination laws.
- Read More: https://www.eeoc.gov/newsroom/ja-croson-pays-16-million-settle-eeoc-racial-harassment-and-retaliation-lawsuit
Date: 26 August 2024
- Authority: Environmental Protection Agency (EPA)
- Summary: EPA Region 7 ordered three grocery distributors to stop selling illegal Fabuloso disinfectants and other unregistered products due to health risks and non-compliance with federal law.
- Impact: The enforcement protects consumers from harmful chemicals and ensures that only EPA-approved disinfectants are sold.
- Action Required: Distributors must halt sales and distribution of the illegal products and ensure all products meet EPA registration requirements.
- Read More: https://www.epa.gov/newsreleases/la-region-7-de-la-epa-ordena-los-distribuidores-de-comestibles-de-kansas-misuri-y
- Authority: Federal Trade Commission (FTC)
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- Summary: The FTC settled with Care.com for $8.5 million over deceptive job and earnings claims and obstructed cancellation processes.
- Impact: Consumers will receive refunds, and Care.com must provide truthful job and earnings information, and simplify subscription cancellations.
- Action Required: Care.com must comply with the settlement terms, including issuing refunds and correcting advertising practices.
- Read More: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-takes-action-against-carecom-deceiving-caregivers-about-wages-availability-jobs-its-site
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Key Sanctions:
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USA:
Date: 29 August 2024
- Authority: Office of Foreign Assets Control (OFAC)
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- Summary: HM Treasury imposed travel bans on Nazem Ahmad and Mustafa Ayash, barring them from entering the UK. This is the first use of the new travel ban powers under the Domestic Counter Terrorism Sanctions Regime.
- Impact: The travel bans prevent these individuals from entering the UK, supporting efforts to combat terrorist financing and activities.
- Action Required: Individuals subject to these bans must comply with the restrictions and the UK Government will continue to monitor and enforce these sanctions.
- Read More: https://www.gov.uk/government/news/travel-ban-on-two-individuals-under-counter-terrorism-sanctions
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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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