GRI

Enforcement & Sanctions Weekly Digest: 30 September – 4 October 2024

Read Multi-Work Area
Date: 7th Oct, 2024 Source: Akshaya Bala | In-house team Country: G-20 Original Source

Brief

Introduction 

Stay updated on recent enforcement actions and sanctions around the G-20 nations with our weekly digest.

______________________________________________________________________________________________________________________

Key Enforcement Actions:

______________________________________________________________________________________________________________________

Argentina:

Date: 1 October 2024

  • Authority: Financial Information Unit (FIU)

______________________________________________________________________________________________________________________

Australia:

Date: 2 October 2024

______________________________________________________________________________________________________________________

Brazil:

Date: 30 September 2024

______________________________________________________________________________________________________________________

European Union:

Date: 3 October 2024

  • Authority: European Commission
    • Summary: The European Commission initiated infringement procedures against Member States for non-compliance with various EU directives on water management and noise pollution.
    • Impact: These actions emphasise the Commission’s enforcement of EU law, which could lead to improvements in environmental protection and public health across the involved Member States.
    • Action Required: Each Member State has two months to respond and address the identified deficiencies, or they may face further legal action from the Commission.
    • Read More: https://ec.europa.eu/commission/presscorner/detail/en/inf_24_4561

______________________________________________________________________________________________________________________

France:

Date: 2 October 2024

  • Authority: French Competition Authority
    • Summary: The General Rapporteur of the Autorité de la concurrence notified an objection regarding an anticompetitive agreement affecting the treatment and transport of potentially infectious medical waste in a French overseas territory.
    • Impact: This action could lead to increased scrutiny of market practices and potentially enhance competition in the waste management sector, ensuring safer handling of medical waste.
    • Action Required: Monitor the investigation’s progress and assess its implications for regulatory compliance and market practices in waste treatment and transport.
    • Read More: https://www.autoritedelaconcurrence.fr/en/article/potentially-infectious-medical-waste-french-overseas-territories-general-rapporteur

Date: 3 October 2024

  • Authority: French Competition Authority
    • Summary: The Autorité de la concurrence initiated an ex officio investigation into potential anti-competitive practices in the pay TV sector regarding the acquisition and broadcasting of cinematographic works.
    • Impact: This investigation may lead to regulatory changes that could affect pricing, content availability, and competition among pay TV providers.
    • Action Required: Stakeholders in the pay TV and film distribution sectors should prepare for potential regulatory changes and ensure compliance with competition laws during the investigation.
    • Read More: https://www.autoritedelaconcurrence.fr/en/article/autorite-de-la-concurrence-has-opened-investigation-ex-officio-potential-practices-sector

______________________________________________________________________________________________________________________

Germany:

Date: 1 October 2024

  • Authority: Federal Financial Supervisory Authority (BaFin)

Date: 30 September 2024

  • Authority: Federal Cartel Office
    • Summary: The Federal Cartel Office determined that Microsoft is of outstanding cross-market significance, subjecting it to extended abuse control under Section 19a GWB, allowing the office to prevent anti-competitive practices across its services and products.
    • Impact: This decision aims to enhance competition by regulating Microsoft’s practices, which could influence market dynamics in various sectors including cloud services and software applications.
    • Action Required: Microsoft must comply with the oversight measures imposed by the Federal Cartel Office and avoid practices that could harm competition during the five-year supervision period.
    • Read More: https://www.bundeskartellamt.de/SharedDocs/Meldung/DE/Pressemitteilungen/2024/30_09_2024_Microsoft.html

______________________________________________________________________________________________________________________

Mexico:

Date: 3 October 2024

  • Authority: Federal Economic Competition Commission (COFECE)
    • Summary: COFECE imposed fines exceeding 237 million pesos on companies involved in price manipulation in the waterproofing sector, revealing collusion that lasted over nine years and applying the maximum legal penalties.
    • Impact: This enforcement action aims to deter anti-competitive behavior and restore fair market practices in the waterproofing industry.
    • Action Required: Companies must cease any collusive practices and ensure compliance with competition laws to avoid future penalties.
    • Read More: https://www.cofece.mx/cofece-multa-con-mas-de-237-millones-de-pesos-por-manipular-precios-en-impermeabilizantes/

______________________________________________________________________________________________________________________

Saudi Arabia:

Date:  3 October 2024

  • Authority: Ministry of Human Resources and Social Development 
    • Summary: The Ministry penalized 222 employers for violating domestic worker regulations and suspended the licenses of 25 recruitment offices for non-compliance, while withdrawing licenses from 11 others for failing to meet performance standards.
    • Impact: These measures aim to enforce compliance within the recruitment sector, protect the rights of domestic workers, and improve service quality through enhanced monitoring.
    • Action Required: Employers and recruitment offices must adhere to domestic worker regulations and improve compliance to avoid penalties and maintain operational licenses.
    • Read More: https://www.hrsd.gov.sa/media-center/news/031020241

______________________________________________________________________________________________________________________

South Korea:

Date:  30 September 2024

  • Authority: Korea Consumer Agency
    • Summary: The Consumer Dispute Mediation Committee initiated mediation procedures involving Timon and WeMakePrice to address group disputes related to travel, accommodation, and airline services.
    • Impact: This initiative aims to provide a structured resolution process for consumers facing issues with these service providers, potentially improving consumer rights and satisfaction.
    • Action Required: Affected consumers should engage with the mediation process to seek resolution for their disputes with the involved companies.
    • Read More: https://www.kca.go.kr/home/sub.do?menukey=4002&mode=view&no=1003733049

______________________________________________________________________________________________________________________

United Kingdom

Date: 3 October 2024

  • Authority: Information Commissioner’s Office (ICO)
    • Summary: The ICO fined the Police Service of Northern Ireland (PSNI), £750,000 for a serious data breach that exposed the personal information of all 9,483 officers and staff due to inadequate procedures during a freedom of information request.
    • Impact: The breach raised significant concerns for the safety of PSNI personnel, as the exposed data could be misused for intimidation or harm, particularly by dissident groups.
    • Action Required: PSNI must enhance its data protection procedures and training to prevent similar breaches in the future, and affected personnel should be informed about potential risks and protective measures.
    • Read More: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/10/what-price-privacy-poor-psni-procedures-culminate-in-750k-fine/

Date: 2 October 2024

  • Authority: Financial Conduct Authority (FCA)
    • Summary: The FCA fined Starling Bank £28,959,426 for failing to maintain adequate financial crime controls, particularly in financial sanctions screening, and for opening over 54,000 accounts for high-risk customers despite a regulatory restriction.
    • Impact: The breach poses significant risks to the integrity of the financial system, potentially allowing criminals and sanctioned individuals to exploit the bank’s services, undermining public trust in financial institutions.
    • Action Required: Starling Bank must continue to implement robust remediation programs and enhance its financial crime controls to ensure compliance with regulatory requirements and prevent future breaches.
    • Read More: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/10/what-price-privacy-poor-psni-procedures-culminate-in-750k-fine/

______________________________________________________________________________________________________________________

United States

Date: 3 October 2024

  • Authority: Federal Reserve Board (FRB)
    • Summary: The FRB issued enforcement actions against Opportunity Bank of Montana for flood insurance violations resulting in a civil money penalty, and against former Bank of Jackson Hole employee Lindsay Graves for the misappropriation of confidential supervisory documents.
    • Impact: These actions highlight regulatory scrutiny in banking practices, reinforcing compliance with flood insurance regulations and safeguarding sensitive information, which may prompt increased vigilance in similar institutions.
    • Action Required: Banks should review and strengthen their compliance measures related to flood insurance and employee access to confidential information to mitigate potential violations and enforcement risks.
    • Read More: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20241003a.htm
  • Authority: Federal Trade Commission (FTC)
    • Summary: The FTC issued over $1.1 million in refunds to 12,077 consumers misled by LCA-Vision’s deceptive advertising for LASIK vision correction, which falsely advertised procedures for under $300 while only a small fraction of consumers qualified for that price.
    • Impact: This action reinforces consumer protection against misleading advertising practices in the healthcare sector, potentially deterring similar deceptive practices by other companies and promoting transparency.
    • Action Required: Consumers who filed valid claims should cash their checks or redeem PayPal payments promptly, and businesses should review their advertising practices to ensure compliance with truth-in-advertising laws to avoid penalties.
    • Read More: https://www.ftc.gov/news-events/news/press-releases/2024/10/ftc-sends-more-11-million-refunds-consumers-deceived-bait-switch-ads-lasik-vision-correction
  • Authority: Financial Conduct Authority (FCA)
    • Summary: The FCA initiated criminal proceedings against Matthew and Nikolas West for insider dealing, charging them with conspiracy involving four stocks and additional insider dealing charges against Matthew related to two stocks, resulting in a profit of approximately £110,000 from 2016 to 2020.
    • Impact: This prosecution highlights the FCA’s commitment to combating insider trading, potentially serving as a deterrent to others in the financial sector who might consider engaging in similar illegal activities.
    • Action Required: Financial institutions should reinforce compliance training regarding insider trading laws and monitor employee trading activities closely to prevent and address potential violations.
    • Read More: https://www.fca.org.uk/news/press-releases/fca-begins-criminal-proceedings-against-two-individuals-insider-dealing

Date: 2 October 2024

  • Authority: Federal Reserve Board (FRB)
    • Summary: The David A. Coppola, Vice President of Al’s Asphalt Paving Company, pleaded guilty to bid rigging in two conspiracies involving collusion with other companies for asphalt paving contracts in Michigan from 2013 to 2019, marking the ninth guilty plea in a wider investigation into anti-competitive practices in the asphalt industry.
    • Impact: This case underscores the Justice Department’s commitment to enforcing antitrust laws and maintaining competitive markets, which is essential for fair pricing and quality services in public infrastructure projects.
    • Action Required: Companies in the construction and paving industries should conduct compliance training on antitrust laws and establish internal controls to prevent bid rigging and ensure fair competition practices.
    • Read More: https://www.justice.gov/opa/pr/vice-president-asphalt-paving-company-pleads-guilty-bid-rigging-0
  • Authority: U.S. Department of Labor (US DOL)
    • Summary: AB Specialty Silicones LLC was ordered to pay $1.3 million in federal penalties and implement comprehensive safety programs following a 2019 explosion at its Waukegan plant that resulted in the deaths of four workers due to safety violations related to flammable materials and equipment.
    • Impact: This settlement highlights the critical need for strict adherence to safety standards in the chemical manufacturing industry, reinforcing the importance of workplace safety measures to prevent future tragedies.
    • Action Required: AB Specialty Silicones must develop and implement a robust safety management system and provide ongoing training to ensure compliance with OSHA regulations and improve overall workplace safety.
    • Read More: https://www.dol.gov/newsroom/releases/osha/osha20241002
  • Authority: U.S. Department of Labor (US DOL)
    • Summary: Walmart was ordered to pay $175,000 and implement various relief measures to settle three disability discrimination lawsuits filed by the EEOC, which alleged the company failed to provide reasonable accommodations for employees with disabilities and fired them for related absences.
    • Impact: This settlement reinforces the importance of adhering to the Americans with Disabilities Act (ADA) by ensuring that employers accommodate employees’ medical needs and preventing discriminatory practices in the workplace.
    • Action Required: Walmart must enhance its policies and training regarding disability accommodations, implement mechanisms for employees to request such accommodations, and conduct annual training to ensure compliance with the ADA.
    • Read More: https://www.eeoc.gov/newsroom/walmart-pay-175000-settle-three-eeoc-disability-discrimination-suits

Date: 1 October 2024

  • Authority: Federal Reserve Board (FRB)
    • Summary: The Federal Reserve Board terminated the cease and desist order against Citigroup Inc., originally issued on March 21, 2013, indicating that the bank has made sufficient progress in addressing the concerns raised.
    • Impact: This termination signifies Citigroup’s compliance with regulatory requirements and may enhance its operational flexibility and reputation in the financial sector.
    • Action Required: Citigroup should continue to maintain robust compliance practices to avoid future regulatory actions and ensure ongoing adherence to financial regulations.
    • Read More: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20241001a.htm

 

  • Authority: U.S. Department of Justice (US DOJ)
    • Summary: Evan Frederick Light, a 21-year-old from Indiana, pleaded guilty to conspiracy charges involving a cyber intrusion that resulted in the theft of over $37 million in cryptocurrency from an investment holdings company and its clients.
    • Impact: Light’s actions highlight the significant risks associated with cyber crimes, particularly in the cryptocurrency sector, and demonstrate law enforcement’s commitment to combating such offenses.
    • Action Required: Stakeholders in the financial and tech industries should enhance cybersecurity measures and protocols to protect against similar intrusions and safeguard customer information.
    • Read More: https://www.justice.gov/usao-sd/pr/indiana-man-pleads-guilty-conspiracies-involving-cyber-intrusion-and-37-million

 

  • Authority: Federal Trade Commission (FTC)

 

  • Authority: National Credit Union Administration (NCUA)
    • Summary: The NCUA issued permanent prohibitions against Monica Jackson and Autumn S. Smith from participating in the affairs of any federally insured depository institution due to their past employment at Koin Credit Union and SecurityPlus Federal Credit Union, respectively.
    • Impact: This action aims to maintain the integrity of the credit union system by ensuring that individuals with questionable conduct cannot influence federally insured institutions.
    • Action Required: Federally insured depository institutions should review their internal practices and compliance measures to prevent any violations that may lead to similar enforcement actions.
    • Read More: https://ncua.gov/newsroom/press-release/2024/ncua-prohibits-two-individuals-participating-affairs-any-federally-insured-depository-institution-0

Date: 30 September 2024

  • Authority: U.S. Department of Justice (US DOJ)
    • Summary: Mark Kazee pleaded guilty to violating the Atomic Energy Act by unlawfully transferring radioactive material from his licensed employer to an unlicensed company he co-owned.
    • Impact: This case highlights the importance of compliance with NRC regulations to ensure public safety in handling radioactive materials.
    • Action Required: Companies using radioactive materials must strictly adhere to NRC guidelines for transfers and maintain accurate records to avoid legal consequences.
    • Read More: https://www.justice.gov/opa/pr/hawaii-man-pleads-guilty-violating-atomic-energy-act

 

  • Authority: U.S. Department of Justice (US DOJ)
    • Summary: Ovintiv USA was ordered to pay $5.5M and invest $10M in facility upgrades to resolve Clean Air Act violations in Utah, reducing emissions from 139 sites.
    • Impact: The settlement will cut over 2,000 tons of VOCs and 50,000 tons of CO2-equivalent emissions annually, improving air quality and reducing climate pollution.
    • Action Required: Ovintiv must implement corrective measures, including infrared inspections and maintenance upgrades, to comply with air quality regulations.
    • Read More: https://www.justice.gov/opa/pr/ovintiv-usa-pay-55m-penalty-and-upgrade-facilities-utah-resolve-clean-air-act-violations

 

  • Authority: Federal Trade Commission (FTC)
    • Summary: The FTC issued a consent order preventing Hess CEO John B. Hess from joining Chevron’s Board of Directors due to concerns about anticompetitive communications with OPEC.
    • Impact: This action mitigates risks of potential industry coordination, protecting competition and preventing higher oil prices.
    • Action Required: Chevron must comply with the order, ensuring Hess does not serve on its Board, except for advisory roles regarding Guyana and the Salk Institute.
    • Read More: https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-order-bans-hess-ceo-chevron-board-chevron-hess-deal

______________________________________________________________________________________________________________________

Key Sanctions:

______________________________________________________________________________________________________________________

United Kingdom

Date: 1 October 2024

  • Authority: National Crime Agency (NCA)
    • Summary: The UK, US, and Australia sanctioned sixteen members of the notorious cybercrime group Evil Corp, revealing connections to Russian state actors and ransomware groups like LockBit, with indictments against key figures including Aleksandr Ryzhenkov for his role in ransomware attacks.
    • Impact: This action aims to disrupt the operations of Evil Corp, which has extorted over $300 million from global victims, significantly reducing their capability to carry out further cybercrimes and protecting critical sectors from ransomware threats.
    • Action Required: Continued international collaboration and intelligence sharing are essential to combat ransomware threats and to monitor the activities of sanctioned individuals to prevent their reintegration into cybercriminal operations.
    • Read More: https://www.nationalcrimeagency.gov.uk/news/further-evil-corp-cyber-criminals-exposed-one-unmasked-as-lockbit-affiliate

______________________________________________________________________________________________________________________

USA

Date: 1 October 2024

  • Authority: Office of Foreign Assets Control (OFAC)
    • Summary: The U.S. Treasury sanctioned additional members and affiliates of Russia-based cybercriminal group Evil Corp, in a coordinated effort with the U.K. and Australia.
    • Impact: These sanctions target individuals and entities linked to ransomware attacks, strengthening global actions against cybercrime.
    • Action Required: Financial institutions and businesses must ensure compliance by blocking transactions with sanctioned individuals and entities.
    • Read More: https://home.treasury.gov/news/press-releases/jy2623

______________________________________________________________________________________________________________________

Compliance Tips Staying Compliant

  • Tip 1: Regularly review and update compliance policies.
  • Tip 2: Conduct internal audits to ensure adherence to regulations.

______________________________________________________________________________________________________________________

Explore More Resources

 

Highlights content goes here...

Related Documents
Compliance Compass: Weekly Regulatory Roundup (23 – 27 September 2024)
Date: 4th Oct, 2024 Source: Akshaya Bala | In-house team Country: G-20
Read Multi-Work Area
California Governor Newsom Vetoes AI Bill: A Closer Look at the Impact of SB 1047 and AI Regulations
Date: 1st Oct, 2024 Source: Shweta | In-house team Country: USA
Read Artificial Intelligence
Consultation on Low-Carbon Hydrogen Methodology: A Milestone for Europe’s Energy Transition
Date: 30th Sep, 2024 Source: In-house team Country: European Union
Read Environment Carbon footprint

Form successfully submitted. One of our GRI rep will contact you shortly

Thanking You!

Click here
Login
Signup
*
*
    Strength: Very Weak