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The Morning Risk Report: Expedia Settles Alleged Violations of U.S. Sanctions on Cuba, Treasury Says
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The Treasury Department said the alleged violations happened because some Expedia subsidiaries lacked an understanding of U.S. sanctions laws. PHOTO: FABRIZIO BENSCH/REUTERS
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Good morning. Expedia Group Inc. agreed to pay more than $325,000 to settle allegations that it violated U.S. sanctions on Cuba, the Treasury Department said.
The settlement, one of several announced Thursday by the Treasury’s Office of Foreign Assets Control involving travel services companies, comes as the Trump administration ramps up pressure on Havana over its support of the Nicolás Maduro regime in Venezuela.
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OFAC said the alleged violations happened because some Expedia subsidiaries lacked an understanding of and familiarity with U.S. sanctions laws and that the company overlooked aspects of its business that had sanctions compliance risks, according to the settlement agreement.
OFAC on Thursday announced two other settlements regarding Cuban sanctions. The settlements involved Hotelbeds USA Inc. and Cubasphere Inc.
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Join Risk & Compliance Journal on June 19 for a webinar discussing major antibribery and corruption enforcement actions of 2019. The Wall Street Journal’s Nicholas Elliott, Laura Perkins, a partner at Hughes Hubbard & Reed LLP and Nicole Sprinzen, vice chair of white collar defense and investigations at Cozen O’Connor P.C., will discuss lessons compliance and risk officers can learn from these cases. Register here.
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The aftermath of the dam failure in Brumadinho, Brazil, in January. PHOTO: ADRIANO MACHADO/REUTERS
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Iron-ore giant Vale SA lacked required stability certificates and full engineering records for several of its mine dams in Brazil—sometimes over a period of years—and is currently investigating stability issues at a complex of dams in Canada, according to recent disclosures by the company.
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KPMG LLP is preparing to pay as much as $50 million to settle civil claims related to the conduct of former partners who learned which of their audits would be subject to surprise regulatory examinations, according to people familiar with the matter. The fine would be the highest ever imposed on an auditor in a Securities and Exchange Commission action. The details could change as agency commissioners debate the final details of the settlement.
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U.S. prosecutors accused Abraaj Group founder Arif Naqvi of misappropriating more than $250 million in a widening investigation into the world’s biggest failed private-equity firm. The accusation was made in an updated criminal indictment published Thursday.
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The wife of U.S. Rep. Duncan Hunter (R., Calif.) on Thursday pleaded guilty to a single count of conspiracy and agreed to cooperate with prosecutors preparing to try her husband on federal campaign-finance and wire-fraud charges.
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PwC has announced various measures aimed at overhauling its U.K. audit business. PHOTO: JACK TAYLOR/GETTY IMAGES
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A U.K. regulator fined and reprimanded PricewaterhouseCoopers LLP and two of its partners for shortfalls in its audits of a British service provider, following increased scrutiny over the practices of the country’s biggest audit firms.
The Financial Reporting Council, Britain’s regulator for accounting and audit, on Thursday penalized PwC and partners Jaskamal Sarai and Arif Ahmad in relation to audits of the 2015 and 2016 financial statements of Redcentric PLC, a Harrogate, England-based company.
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An oil tanker was ablaze Thursday after it was attacked off the Iranian coast. PHOTO: /ASSOCIATED PRESS
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Attacks on two tankers carrying Saudi and Emirati oil products are jacking up insurance rates for ship operators in the region, and forcing some captains to forgo setting sail—threatening one of the biggest disruptions to crude trading in the Strait of Hormuz in years. The Trump administration says Iran is responsible for attacks.
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With the grounding of Boeing Co.’s 737 MAX airliner stretching into its fourth month, some suppliers are reconsidering their decision to keep making parts for the plane at full steam, as inventories swell and a timeline for recertifying the plane remains hazy.
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Lawmakers in the House advanced a bipartisan plan to overhaul the federal flood-insurance program, which has struggled to keep pace with record disaster payouts in recent years. The bill, approved unanimously Wednesday by the House Financial Services Committee, aims to change the financial stakes that people in flood-prone areas face when shopping for insurance.
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Judith Pinto, managing director at Promontory Financial Group, spoke about cyber threats during a presentation at The Wall Street Journal’s CFO Network Annual Meeting in Washington, D.C. PHOTO: DENNY HENRY FOR THE WALL STREET JOURNAL
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Cyber threats are pressuring finance chiefs to make more space in their budgets for routine software and systems updates to protect sensitive customer data. But figuring out just how much money to earmark for cybersecurity has become a challenge, executives at The Wall Street Journal’s CFO Network Annual Meeting said.
The unpredictability of cyberattacks can lead to unexpected spending to shore up defenses. But not all finance chiefs are equipped to swiftly advise on major technology expenditures—particularly those CFOs who don’t have existing expertise or the bandwidth to delve into the intricacies of each spending decision.
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An unexpected expense such as a car repair can force many to use credit cards, raid 401(k)s or borrow from family members. PHOTO: LUKE SHARRETT/BLOOMBERG NEWS
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A growing number of employers are helping workers start emergency savings accounts, reflecting concern over the impact money problems are having on productivity levels and workers’ ability to retire. Companies including Levi Strauss & Co., SunTrust Banks Inc. and Kroger Co. are encouraging employees to fund emergency accounts, in some cases by offering them cash and other incentives. Others are diverting a portion of employees’ paychecks into rainy-day funds related to their 401(k) plans.
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Finance chiefs are spending more time on helping employees chart career paths in a bid to hold on to talent.
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Red Robin last week adopted a shareholder-rights plan—also known as a ‘poison pill.’ Such plans are designed to deter an unwanted takeover. PHOTO: FRANCIS JOSEPH DEAN/NEWSCOM/ZUMA PRESS
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Private-equity firm Vintage Capital Management LLC said it is willing to pay $40 a share for Red Robin Gourmet Burgers Inc. and called on the restaurant chain to launch a review of strategic alternatives.
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A group of investors in Barnes & Noble Inc. is speaking out against the price that hedge fund Elliott Management Corp. agreed to pay to acquire the book retailer.
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A Volkswagen T6 Bulli with an electric engine. PHOTO: JULIAN STRATENSCHULTE/DPA/ZUMA PRESS
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Volkswagen is following Tesla’s lead into the heart of the battery industry. The move carries huge risk, but the German auto giant has no other choice.
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Facebook Inc. has signed up more than a dozen companies including Visa Inc., Mastercard Inc., PayPal Holdings Inc. and Uber Technologies Inc. to back the new cryptocurrency that the social-media giant plans to unveil next week
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The biggest U.S. meat company wants a cut of the meat-replacement business as well. Tyson Foods Inc., which slaughtered and processed nearly 2 billion chickens last year, plans to introduce nuggets made from peas, flaxseed and other plants. The new nuggets will compete with patties and sausages made by startups and large food companies vying for a slice of the fast-growing plant-based foods business.
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A group of investors this week set plans in motion to take Hudson’s Bay Co. private, hoping to fix the business out of the public eye. But going private won’t solve the company’s biggest problem: It owns department stores, a segment of retailing that has been losing share for years to discount chains, e-commerce companies and other upstarts.
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