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The Morning Risk Report: Darfur Victims Allege BNP Paribas Helped Prop Up Sudan’s Regime
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A mother and child at a refugee camp in North Darfur in 2014, the year BNP Paribas settled with U.S. authorities. PHOTO: ALBERT GONZALEZ FARRAN/ASSOCIATED PRESS
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Good morning. Human-rights groups representing victims of the Darfur genocide filed a criminal complaint against BNP Paribas SA alleging the French bank provided financial services to Sudan that propped up its regime.
Four years ago, Europe’s largest listed bank by assets agreed to pay nearly $9 billion and pleaded guilty to violating sanctions against Sudan, Iran and Cuba, in an unprecedented settlement with U.S. authorities. BNP Paribas acknowledged using regional banks overseas to process more than $20 billion in financial transactions linked to companies and government agencies in Sudan, when the nation was engaged in what the U.S. and other countries labeled genocide.
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The genocide’s Sudanese victims never received any damages, however. “To this day, they have been denied the possibility of justice,” said Mossaad M. Ali, the executive director of African Center for Justice and Peace Studies, a Sudanese human rights organization and plaintiff in the case.
BNP Paribas said it wasn’t aware of the complaint and that the bank doesn’t comment on judicial procedures.
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From Risk & Compliance Journal
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Zurich CEO: ESG Risks Require Looking Beyond the Quarter
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After taking the helm of Zurich Insurance Group three years ago, Mario Greco put in place a plan to improve profitability by cutting costs and realigning business units. An important, though less visible, part of his strategy has involved focusing on nonfinancial factors—including environmental sustainability and employee morale—that Mr. Greco says are just as critical to the Swiss insurance giant’s long-term health.
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Push to Disclose Foreign Agents Could Ensnare Corporate Executives
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The U.S. Justice Department’s efforts to ramp up enforcement of a World War II-era statute requiring the disclosure of political work done on behalf of foreign governments could have implications for a range of actors, including corporate executives. The department unveiled a new online filing system for so-called foreign agents, which it says will make compliance with the law easier. In a briefing with reporters on the system, an official said the law didn’t just apply to lobbyists, but also to business executives who may get requests from foreign governments for help with policy-related objectives.
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Ericsson Sets Aside $1.23 Billion for Foreign Bribery Settlement, Costs
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The chief executive of Ericsson AB said that he regretted the company had not responded earlier to an inquiry by the Securities and Exchange Commission that resulted in the Swedish telecommunications-equipment maker reserving 12 billion Swedish kronor ($1.23 billion) in its third-quarter financials to cover fines and costs associated with foreign bribery violations.
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Wisconsin Marketing Company Settles Foreign Bribery Charges
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Quad/Graphics Inc. has agreed to pay nearly $10 million to settle charges from the U.S. securities regulator that the print-and-digital marketing company violated foreign bribery laws. The Sussex, Wis.-based business engaged in bribery schemes in Peru and China in violation of the Foreign Corrupt Practices Act, according to the U.S. Securities and Exchange Commission.
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ABN ABN has tripled its client due-diligence team to over 1,000 since 2013. PHOTO: PIROSCHKA VAN DE WOUW/REUTERS
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Dutch lender ABN Amro Group faces a criminal probe in the Netherlands over a lack of anti-money-laundering and terrorism financing controls, becoming the latest European bank to fuel concerns about the continent’s ability to control illicit money flows. According to the prosecutors’ office, ABN Amro “allegedly has not carried out client due diligence sufficiently, was insufficiently monitoring bank accounts and did not report unusual transactions, or reported them too late.”
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The Trump administration imposed sanctions against a Moscow-based firm and five vessels the Treasury Department said shipped fuel to Syria used to support the Assad regime’s bombing campaigns against civilians. The action announced by the U.S. Treasury Department is designed not only to disrupt fuel deliveries to Syria, but to highlight Russia’s military support for a government accused by the U.S. and others of committing war crimes.
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Federal accident investigators called for broad changes in decades-old engineering principles and design assumptions related to pilot emergency responses, the first formal U.S. safety recommendations stemming from two fatal Boeing 737 MAX crashes.
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Multinational companies need to prepare for tax reform again—this time outside of the U.S. Amazon, Google and other tech giants currently face a patchwork of controversial new “digital services taxes” levied on revenue rather than profit. A 3% tax in France is applicable in the current fiscal year, while the U.K. has proposed a 2% tax from next April. Ten other European states are considering similar measures, as are many other countries including India, South Korea and Mexico.
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Chinese state shipping behemoth Cosco Shipping Holdings Co. halted trading of shares in its oil transport unit as it tries to contain the fallout from the U.S. blacklisting of its tankers for allegedly moving illicit Iranian oil. People with direct knowledge of the issue said Cosco Shipping Energy Transportation is looking for ways to contain damage that includes canceled oil-transport bookings.
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European competition regulators are expected to open an in-depth probe into plans by Boeing to take control of the commercial-jetliner arm of Brazil’s Embraer SA in a move that could upset plans to close that deal by the end of the year. Embraer said in a regulatory filing that the companies had been told of the planned action by the European Commission, which is due to reveal its initial findings on Oct. 4.
Also...
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Energy company Total warns a lack of investment will cause issues with the supply of natural gas. PHOTO: ANDY BUCHANAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Big Asian consumers of liquefied natural gas are enjoying low prices now but fear a boom-and-bust cycle could hurt them by discouraging investment in projects needed to maintain supply.
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The Bank of Mexico cut interest rates for a second consecutive month after inflation slowed to its 3% target amid economic stagnation.
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KPMG earlier this year said it would increase oversight of its U.K. audit unit. PHOTO: REINHARD KRAUSE/REUTERS
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KPMG is moving about 750 U.K. employees, including some partners, from its advisory business to its audit division to prepare for potential regulatory changes.
The professional services firm said it is working to give its audit practice greater independence from the rest of the business.
“As you would expect, this work involves moving a number of people from the advisory side of our business into audit and vice versa,” a spokesman said.
The reorganization comes as lawmakers and regulators discuss a structural overhaul of the accounting and audit sector in Britain.
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New York’s attorney general said hackers had accessed Dunkin’ customer accounts as early as 2015. PHOTO: MARK LENNIHAN/ASSOCIATED PRESS
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The New York attorney general sued Dunkin’ Brands Inc. for not notifying nearly 20,000 customers whose accounts on the coffee chain’s website and mobile app were allegedly compromised in 2015. Dunkin’ was aware of a series of online attacks on customer accounts as early as May 2015 but didn’t conduct an appropriate investigation, Attorney General Letitia James said in the lawsuit.
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The top Republican lawmaker on an influential House committee wants the Federal Reserve to be more open about its cybersecurity preparations. Rep. Patrick McHenry (R., N.C.), the ranking member of the House Financial Services Committee, this week introduced legislation that would compel the Fed to report annually to House and Senate banking committees on detailed points regarding its cybersecurity strategy.
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Among the employees slated to depart are staffers who worked directly with ex-CEO Adam Neumann. PHOTO: KELLY SULLIVAN/GETTY IMAGES FOR THE WEWORK CREATOR AWARDS
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The post-Adam Neumann era at WeWork has begun. In the days since Mr. Neumann stepped down as chief executive, the company’s new leaders have moved to pare its headcount and assets, including advancing plans Thursday to purge nearly 20 friends and family members of Mr. Neumann and his wife, Rebekah Neumann, according to people familiar with the matter.
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Imperial Brands PLC became the first global tobacco company to lay out the financial impact of the U.S. crackdown on vaping products, as the maker of Blu e-cigarettes warned its sales and profit would be lower than expected this year. The disclosure from Imperial, whose traditional cigarette brands include Davidoff and Winston, shows how the Trump administration’s plans, announced earlier this month, to ban most vaping products in the U.S. are already affecting the tobacco industry’s fortunes.
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Cargill said the U.S.-China trade war continued to erode profits for the agricultural conglomerate, slowing soybean exports and challenging U.S. farmers. Reduced soybean sales and processing margins contributed to a 10% decline in Cargill’s quarterly profit, the Minnesota-based grain and meat giant said. Trade tensions also held down crop prices, limiting farmers’ willingness to make advance sales through Cargill.
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Japan Display is a major supplier of liquid crystal displays for iPhone models such as the new iPhone 11. PHOTO: JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Apple is looking at doubling its planned investment in a financially strapped display supplier in Japan under a revised bailout deal, people with direct knowledge of the matter said.
Japan Display Inc. said it received notification from a Chinese investment fund, Harvest Fund Management Co., that Harvest wanted to pull out of a previously announced bailout plan. Harvest had been slated to supply more than half of a ¥80 billion ($742 million) package to rescue Japan Display, and its pullout, if confirmed, would force the display maker to reopen its search for investors.
Japan Display is a major supplier of liquid crystal displays for iPhone models such as the new iPhone 11. About 60% of Japan Display’s revenue comes from Apple, according to the display maker’s financial documents.
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Takeshi Niinami, president and chief executive officer of Suntory Holdings, is being considered as the new chief executive for Nissan. PHOTO: KIYOSHI OTA/BLOOMBERG NEWS
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Nissan’s search for a new chief executive is focusing on three candidates who the company hopes will bring international experience and a fresh outlook to the troubled car maker, according to people familiar with the board’s thinking.
The current top candidates include Takeshi Niinami, chief executive of Japanese beverage giant Suntory Holdings Ltd., said one of the people. Also under consideration are Jun Seki, the Nissan executive overseeing the company’s business recovery, and Ashwani Gupta, the chief operating officer of Mitsubishi Motors and a former Renault executive, the people said.
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Blue Cross and Blue Shield of North Carolina said its board requested and received the resignation of Chief Executive Patrick Conway in the wake of fallout from an allegedly alcohol-related highway collision.
The insurer said its board took action because recently “new details have come to light” about the June accident and its aftermath, which the board hadn’t previously known. The new details “depict behavior that falls short of our standards,” the insurer said.
Blue Cross of North Carolina said Chief Operating Officer Gerald Petkau would be interim CEO.
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