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The Morning Risk Report: U.S. Encourages Banks to Innovate in Anti-Money Laundering Compliance |
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Sigal Mandelker, U.S. Treasury undersecretary of terrorism and financial crimes. PHOTO: ZACH GIBSON/BLOOMBERG NEWS
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Good day. Banks that find problems with legacy compliance programs when testing new technology won’t necessarily be penalized for prior failures, U.S. regulators said Monday. The pledge, in a joint statement from multiple U.S. regulators, comes as authorities encourage lenders to try out new technology and intelligence-gathering methods as they combat evolving illicit-finance threats, Risk & Compliance Journal’s Samuel Rubenfeld reports.
“Private sector innovation, including new ways of using existing tools or by adopting new technologies, can be an important element in safeguarding the financial system against an evolving array of threats,” Sigal Mandelker, the U.S. Treasury Department undersecretary for terrorism and financial intelligence, told lawyers and compliance officers Monday during a speech at a financial crimes enforcement conference hosted by the American Bankers Association and the American Bar Association.
[Continued below…]
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The statement from the Federal Reserve, the Federal Deposit Insurance Corp., the Treasury’s Financial Crimes Enforcement Network, the Office of the Comptroller of the Currency and the National Credit Union Administration nudges banks toward adopting new forms of technology, such as artificial intelligence, while recognizing that some of the new methods may be unsuccessful.
The agencies acknowledged testing technology could identify vulnerabilities the banks may not have previously understood. They assured financial institutions that such incidents wouldn’t always lead to a penalty, but would depend on the adequacy of the bank’s existing compliance program.
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Money Laundering: New Rules, New Crimes, New Controls |
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Join the Risk & Compliance Journal team at 8 a.m. on Dec. 6 in New York for a panel discussion and interview on trends in anti-money laundering with executives from Coinbase, PayPal Holdings Inc. and the Florida International Bankers Association. Sign up here.
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The acquisition of Aetna Inc. by CVS Health Corp. requires court approval to become final. PHOTO: RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS
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A federal judge sharply questioned the Justice Department’s decision to green-light CVS Health Corp.’s nearly $70 billion acquisition of Aetna Inc., and said he may order CVS to halt its integration of Aetna’s assets while he considers the merger’s implications.
It is unusual for a judge to make such an announcement, since Justice Department antitrust enforcers approved the deal in October under the condition the companies sell Aetna’s Medicare drug business to preserve competition. The companies sold those assets to WellCare Health Plans Inc.
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Agent Orange’s Other Legacy—A $12 Billion Cleanup and a Fight Over Who
Pays |
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A New Jersey manufacturing site owner is using the U.S. bankruptcy process, creditors allege, in a bid to escape liability. How a court answers could determine whether other companies with billions of dollars in environmental liabilities can use the chapter 11 process to avoid them.
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Probe Into Glencore Copper Business Nears Settlement |
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Canada’s top stock-market regulator is aiming to settle a long-standing probe with Glencore PLC’s Katanga Mining Ltd. by the end of the month, according to people familiar with the matter.
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Judge Dismisses Market-Manipulation Case Against Prominent
Trader |
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A federal judge sided with Donald Wilson Jr., founder and chief executive of proprietary trading firm DRW Investments LLC, in a showdown with U.S. regulators over whether Mr. Wilson’s firm engaged in market manipulation.
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Saudi Arabia’s Bankruptcy Court Gets a $6 Billion Test
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A Saudi business empire that defaulted on billions in loans during the global financial crisis is trying to settle its debts through the kingdom’s new bankruptcy laws, posing a test for Crown Prince Mohammed bin Salman’s economic modernization efforts.
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Data Breach at Q&A Site Quora Affects 100 Million |
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The website Quora Inc., which lets users ask and answer almost any question, said hackers gained access to users’ names, email addresses and direct messages.
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U.K.’s Intelligence Chief: Britain Faces Tough Decision on
Huawei |
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The head of Britain’s foreign intelligence agency said the U.K. had a tough decision to make on whether to allow Chinese telecommunications giant Huawei Technologies Co. to supply a 5G mobile network in the country.
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Disney Raises the Bar Robert Iger Has to Clear to Win Bonus |
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Shareholder pushback against Walt Disney Co. Chief Executive Robert Iger’s compensation has led the company to increase the targets he must meet to collect his performance bonus.
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Shell to Link Carbon Emissions Targets to Executive
Pay |
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Ernst & Young Chairman, CEO to Step Down |
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Mark Weinberger, the global chairman and chief executive of accounting firm Ernst & Young, has decided to step down next year. Mr. Weinberger has led EY since 2013.
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The acquisition hands GlaxoSmithKline Tesaro’s ovarian cancer drug Zejula, which went on sale in the U.S. and Europe last year. PHOTO: KIRSTY WIGGLESWORTH/ASSOCIATED PRESS
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GlaxoSmithKline to Acquire Tesaro for $4.16 Billion |
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GlaxoSmithKline PLC on Monday said it would buy cancer-focused drug company Tesaro Inc. for about $4.16 billion, positioning the health-care giant in a promising, but fiercely competitive, area of medicine.
The acquisition hands Glaxo Tesaro’s ovarian cancer drug Zejula, which went on sale in the U.S. and Europe last year. Zejula is one of a new class of drugs known as PARP inhibitors, which have increased survival rates for women with recurrent ovarian cancer.
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Unilever to Buy Horlicks, One of India’s Biggest Brands, From GSK |
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Regulators Look More Closely at CLO Boom |
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A pair of senior U.S. regulators say they are examining banks’ exposure to risky corporate debt, but stopped short of sounding alarm bells about a lending boom.
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Long-Term Care Insurance Policies Weigh Down GE, Other
Companies |
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General Electric Co.’s bet on selling long-term care insurance policies, which ballooned into a $16.5 billion liability, underscores how policies meant to pay for nursing homes and prescription costs have become one of the most unpredictable segments of the insurance industry.
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Smaller Films Finding Big Problems in China |
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Chinese regulators have significantly slowed approving independent movies imported from the U.S., the latest sign of tension between Hollywood and its most important foreign market.
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