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The Morning Risk Report: Two British Banks Ensnared in Huawei Dispute |
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Huawei has repeatedly said it is owned by its employees, operates independently from the government and that its equipment is safe. PHOTO: CHRIS WATTIE/REUTERS
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Two large British banks are among those ensnared in the controversy over Huawei Technologies Co., which escalated over the weekend after the Chinese government warned Canada it would face “severe consequences” if it didn’t release the Chinese telecommunications giant’s finance chief.
HSBC Holdings PLC and Standard Chartered PLC were among the institutions told by Huawei in recent years that it wasn’t doing business in Iran through a Hong Kong company called Skycom Tech, people familiar with the matter told The Wall Street Journal. For the two lenders, it was a crucial assurance since both were under court oversight for their own U.S. sanctions violations involving Iran, and couldn’t risk further missteps.
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Canada this month arrested CFO Meng Wanzhou at the behest of U.S. authorities, who are seeking her extradition over allegations she misled banks about Huawei’s business dealings with Iran to skirt international sanctions against that country. Ms. Meng is in the midst of hearings in Vancouver that are expected to reconvene Monday.
More Huawei coverage:
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| From Risk & Compliance Journal |
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Knowledge Gap Hinders Compliance Innovation, Observers Say |
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An apparent knowledge and talent gap is holding back the development of technological innovation in anti-money-laundering compliance, speakers at an event hosted by Dow Jones Risk & Compliance and The Wall Street Journal said.
Regulators have to compete with the likes of Facebook Inc., Amazon.com Inc., Alphabet Inc.’s Google and other technology heavyweights for talent, and they’re at a disadvantage because they cannot pay as well as those firms, speakers said at the event, which focused on new anti-money laundering rules and controls.
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Nissan, Carlos Ghosn Charged in Compensation Probe |
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Japanese prosecutors on Monday indicted Nissan Motor Co. and former Chairman Carlos Ghosn on charges of underreporting his compensation on company financial reports for over five years.
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Uganda built its tank units around North Korean armored-warfare doctrine. Ugandan tanks, above, in South Sudan in 2015. PHOTO: SAMIR BOL/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Secret Workforce Funds North Korea—and Defies
Sanctions |
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North Korean soldiers, companies, contractors and arms dealers are operating around the world in violation of United Nations sanctions, helping Pyongyang skirt a Washington-led “maximum pressure” campaign, say military officers and foreign diplomats.
The pattern traces across a swath of smaller nations, many in Africa, that pledged to sever relations nurtured over decades as part of a U.N. campaign to pressure North Korea to drop its nuclear-weapons programs. Instead, countries such as Tanzania, Sudan, Zambia and Mozambique are making their ties more surreptitious, say diplomats and defense-industry analysts.
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In the aftermath of big breaches like Marriott’s, investigators scour criminal marketplaces for clues. PHOTO: BLOOMBERG NEWS
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Thieves Can Nab Your Data in a Few Minutes for a Few
Bucks |
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As investigators assess who hacked Marriott International Inc. and the extent of the damage, one place they are hunting is the shadowy digital bazaars where thieves and spies trade stolen personal data.
So much stolen data is available on the dark web, people shouldn’t worry whether their information has been swiped, said Elvis Chan, a supervisory special agent with the Federal Bureau of Investigation. “Every American person should assume all of their data is out there,” he said.
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Amazon, Amid Crackdown, Fires Employees Over Data Leak |
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Amazon.com Inc. is fighting a barrage of seller scams on its website, including by firing several employees suspected of having helped supply independent merchants with inside information, according to people familiar with the company’s effort.
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SEC Chairman Jay Clayton is expected to discuss cooperation with Chinese authorities at an accounting conference on Monday. PHOTO: BLOOMBERG NEWS
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SEC Revives Fight Over Inability to Inspect Chinese
Auditors |
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American regulators resurrected a long-simmering fight over their inability to inspect audits of Chinese companies that are traded on U.S. stock exchanges, saying the situation prevents investors from getting information they need.
The U.S. Securities and Exchange Commission said that, despite several years of talks with its Chinese counterparts, regulators still face obstacles to getting information needed for accounting investigations and inspections of China-based auditors.
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Could U.K. Auditors’ Woes Lead to Weakness in U.S. Audits? |
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As the Big Four accounting firms in the U.K. are criticized over the quality of their audits, some investors worry about the work the companies have done on the audits of U.S. companies.
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Officials inspected an engine recovered from the wreckage of Lion Air Flight 610. PHOTO: ACHMAD IBRAHIM/ASSOCIATED PRESS
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Lion Air Crash Prompts Some Carriers to Boost Pilot
Training |
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More than a month after the new Boeing Co. 737 MAX 8 jet plunged into the Java Sea, killing 189 people on board, some carriers are adding to training and emergency procedures to cope with serious flight-control issues similar to those that occurred on several trips on the same Lion Air plane within four days of the Oct. 29 crash.
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IMF’s Departing Chief Economist Issues a Warning on U.S. Growth |
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Maurice Obstfeld, the retiring chief economist of the International Monetary Fund, is on his way out the door with a warning that global growth is slowing and the U.S. will likely feel the drag as well.
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Roche Executive Daniel O’Day Is Named Gilead CEO |
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Gilead Sciences Inc. has named industry veteran Daniel O’Day to take the helm and help the drug company revive sales and recover from a disappointing deal. Mr. O'Day will become Gilead CEO after a long career at Roche Holding.
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Longtime Shareholder Seeks Board Overhaul at Yelp |
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A longtime shareholder is giving Yelp Inc.’s management and board a bad review. SQN Investors LP said years of missteps are weighing on the business-review company’s stock price and plans to publicly push for new board members, according to a letter the firm plans to send to Yelp’s board.
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Elon Musk Lobs New Criticism at SEC |
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Tesla Inc. Chief Executive Elon Musk delivered a new barrage of criticism at the Securities and Exchange Commission, saying he doesn’t respect the agency and that his communications on Twitter haven’t been censored by the company.
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Logistics Hiring Was Strong Heading Into Holiday Shipping Season |
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Uber filed documents signaling its intent to go public. Rival Lyft is also eyeing an initial public offering. PHOTO: RICHARD VOGEL/ASSOCIATED PRESS
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Uber-Lyft Showdown Shifts to Public Markets |
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The race between Uber Technologies Inc. and Lyft Inc. to go public next year promises to extend their rivalry for customers to competition for global investors.
Uber this past week confidentially filed S-1 paperwork with the Securities and Exchange Commission for its planned initial public offering, The Wall Street Journal reported. Lyft, its smaller ride-hailing competitor, announced just a day earlier that it had filed its confidential IPO paperwork as well.
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Altria Makes Big Controversial Bets in Search of Growth |
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Altria Group Inc., faced with slumping cigarette sales and the threat of new federal regulations, is placing some big bets in search of growth beyond dominant its Marlboro brand.
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GM Bids Farewell to Its Breakthrough Electric Car |
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During its decade on the market the Chevrolet Volt reflected the strengths and weaknesses of General Motors Co. and auto making in Detroit.
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