Welcome to This Week In Compliance: GAN’s weekly news roundup, where we curate the latest stories on compliance and anti-corruption to keep you informed. This week, NatWest is fined USD 351M due to anti-money laundering failures. Read the full story and more news below:
NatWest Fined USD 351M in Anti-Money Laundering Failure
UK-based commercial and retail bank NatWest was fined USD 351M by a London court for failing to follow up on money laundering red flags related to the cash deposits of a customer. NatWest pleaded guilty to three counts of failure to comply with money-laundering regulations in October. The case and fine are notable as the first criminal prosecution by the U.K. Financial Conduct Authority for money-laundering breaches.
Problems Persist in Aviation Safety Oversight, Whistleblowers Say
A recently released U.S. Senate whistleblower report, featuring input from whistleblowers from Boeing, GE, and the Federal Aviation Administration, alleges fundamental problems with safety oversight in the aerospace industry. In a complaint to the FAA, Martin Bickeboeller, a high-ranking Boeing engineer, said that the company is unwilling to acknowledge the safety lapses that led to the deadly 737 Max crashes, writing that the company has cultivated “a dangerous culture not conducive to the proper safety of aerospace products.”
40% of U.K. E-Payment Companies Flagged for Money Laundering Risk
A recent Transparency International U.K. report showed that nearly 40% of companies in the e-payment space in the U.K. are at risk of money laundering. Transparency International U.K. researched all 261 companies that provide e-payments and found that, while most organizations follow money laundering regulations, there are opportunities for criminal money laundering, leading to a red flag warning. E-payments facilitated more than USD 660M in transactions in 2020/2021.
Closing Arguments Delivered in Elizabeth Holmes Theranos Case
Elizabeth Holmes’ defense attorney laid out final arguments Thursday in the case against Holmes, who is accused of defrauding investors and patients with claims of revolutionary blood-testing technology. Closing arguments focused on claims that Theranos fraudulently added pharmaceutical company logos, including Pfizer, to written reports of the blood-testing technology, thereby implying validation of the tech by industry leaders. Kevin Downey, a defense attorney for Holmes, called the claims a “distraction”. Holmes faces up to 20 years in federal prison if convicted.
DOJ issues further guidance, warnings on ephemeral messaging apps
Federal appeals court upholds 5.6B USD Visa and Mastercard settlement
The DOJ updates its guidance on corporate compliance programs