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The Morning Risk Report: Tough Iran Sanctions Enforcement Is Expected |
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President Trump signed a document reinstating sanctions against Iran at the White House in May. PHOTO: SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
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U.S. sanctons on Iran, lifted under a 2015 nuclear agreement with Iran, have been reinstated. Now the Trump administration, which withdrew from the deal, is expected to underscore the heavy price of failing to comply by making examples of companies, former U.S. officials tell Risk & Compliance Journal’s Samuel Rubenfeld.
“They’re going to try to achieve the same degree of international compliance by an aggressive enforcement posture as was achieved through having a broad international coalition,” said David S. Cohen, a partner at the law firm WilmerHale who previously served as U.S. Treasury undersecretary for terrorism and financial intelligence.
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This round of U.S. sanctions on Iran are part of President Trump’s drive to contain the Islamic Republic’s regional influence and military capabilities. The move has sparked an outpouring of anti-American sentiment in Iran, where some view the sanctions as an assault on their livelihoods. Iranian President Hassan Rouhani has vowed that his country would resist the new U.S. sanctions on Iran’s oil and banks.
The Trump administration said Friday it is granting waivers to eight countries to allow them temporarily to continue importing Iranian oil without punitive U.S. sanctions, buying time for them to switch to other suppliers. Anticipation of the sanctions on Iran drove oil prices to multiyear highs last month, but the crude being pumped to replace Iran’s supply and a slowing global economy could push them lower again.
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U.S. Lifts Sanctions on Turkish Ministers |
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The Trump administration had put sanctions on Turkish Justice Minister Abdulhamit Gul and Interior Minister Suleyman Soylu after Ankara’s refusal to free an American pastor who had been arrested following a failed military coup in 2016.
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SEC Spotlights Subjective Judgement in Revenue-Recognition Rules |
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The Securities and Exchange Commission is homing in on subjective accounting decisions made by finance teams as the regulator reviews how companies comply with new revenue-recognition rules.
The standard, which went into effect for public companies on Dec. 16, 2017, has required some finance chiefs to make significant judgements about how to classify transactions and when revenues could be booked.
Only 32 of the roughly 4,000 U.S. publicly listed firms chose to apply the new rules early, according to a report by regulatory compliance analytics firm Intelligize Inc. The SEC questioned nearly one-third of the early adopters. Most of the letters included questions about how companies arrived at their decisions for performance obligations measurements.
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Impact of Looser Bank Rules Is a Mystery |
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Regulators plan to pare back requirements that banks keep billions of dollars of cash on hand to pay short-term bills. No one knows for sure what will happen next.
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Former Delta Air Lines Executive Is Top Pick to Head
FAA |
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Steve Dickson, a veteran Delta Air Lines Inc. pilot who retired as senior vice president of global flight operations at the airline, has emerged as the leading compromise choice for Federal Aviation Administration chief.
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Subaru to Recall an Additional 100,000 Vehicles in
Japan |
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Subaru Corp. said it found new problems with vehicle-inspection processes at its Japanese factories. The car maker said it would recall another 100,000 vehicles sold in Japan.
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Uber Details Safety Reforms for Its Embattled Self-Driving Vehicle Unit |
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Uber Technologies Inc. vowed to improve the safety of its self-driving vehicles as it looks to resume testing of the technology suspended earlier this year after one of its cars struck and killed an Arizona pedestrian.
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Cadillac Cancels Car-Subscription Service |
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General Motors Co. is winding down a car-subscription service it rolled out nearly two years ago for Cadillac, underscoring the challenges traditional car makers face as they try to diversify into new transportation offerings.
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Five Below, the Amazon-Proof Store |
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Many retailers are closing stores. Five Below Inc. can’t seem to open them fast enough. The chain, which sells everything from basketballs to yoga mats for $5 or less, might be the most successful retailer you’ve never heard of.
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GE’s Former CEO to Collect $4 Million in Severance |
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General Electric Co. will pay former chief executive John Flannery $4.25 million in severance over the next 12 months. GE also agreed to let Mr. Flannery keep equity awards that could equate to several million dollars more.
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Subscribe to The Morning Risk Report here.
Follow us on Twitter at @WSJRisk.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
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