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PHOTO: MAXIM SHIPENKOV/EPA-EFE/REX/SHUT/EPA/SHUTTERSTOCK
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Sanctions on EN+ Group PLC, United Co. Rusal PLC and JSC EuroSibEnergo are set to be removed in mid-January after the companies implement a deal with the U.S. Treasury Department that cuts Russian oligarch Oleg Deripaska’s stake in the companies, severs his control and prevents him from benefiting from future dividends the companies issue.
Critics seized on the announcement to suggest President Trump was seeking to curry favor with Russian elites close to the Kremlin. But sanctions experts say the removals show the opposite, and that wealthy oligarchs should be fearful of the U.S. sanctions program, Risk & Compliance Journal’s Samuel Rubenfeld reports.
[Continued below...]
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The Treasury now has a playbook for imposing sanctions on a person with vast holdings and then negotiating that person’s exit from the holdings while minimizing the effects of sanctions on those holdings, said David Murray, a former director of Treasury’s office of illicit finance.
A company can look to this agreement for ways to seek the removal of sanctions and continue to operate by separating itself from the acts of individuals who own large stakes in the company. “That could make [the Treasury] more willing to go after wealthy individuals with vast holdings in the future,” said Mr. Murray, now a vice president at consulting firm Financial Integrity Network.
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Holiday Schedule for The Morning Risk Report |
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The Morning Risk Report will not be published for the remainder of 2018. We will resume publication of the newsletter on Jan. 2.
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| From Risk & Compliance Journal |
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PHOTO: CHRISTOPHE ENA/ASSOCIATED PRESS
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Former Alstom Power Executive Sentenced to Prison in
U.K. |
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A former global sales director at Alstom Power Ltd. was sentenced to 4½ years in prison following his conviction on charges related to a bribery scheme in Lithuania, the U.K.’s Serious Fraud Office said.
Nicholas Reynolds was found guilty on charges of conspiracy to corrupt regarding contracts with the Lithuanian government worth $273.5 million. Two other Alstom Power executives, and the company itself, previously were convicted and sentenced in connection with the Lithuanian deals.
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Carbon-Fiber Firm to Pay $7.8 Million in Sanctions Settlement |
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A Missouri-based maker of carbon fiber agreed to pay $7.8 million to settle U.S. allegations of violating sanctions in a case that illustrates the potential pitfalls that could arise when executives rely on foreign local counsel when making certain business decisions.
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PHOTO: JUSTIN CHIN/BLOOMBERG NEWS
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Goldman CEO Defends Firm on 1MDB Accusations |
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Goldman Sachs Group Inc. Chief Executive David Solomon made his most forceful defense yet of the Wall Street firm, which is under fire for its dealings with a Malaysian sovereign-wealth fund at the center of an international bribery scandal.
In a message posted to Goldman’s internal website and seen by The Wall Street Journal, Mr. Solomon defended the firm’s culture and compliance measures—both of which were criticized by U.S. prosecutors who last month criminally charged two former Goldman bankers in the widening probe of 1Malaysia Development Bhd., known as 1MDB. He had been relatively quiet on the matter so far.
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UBS to Pay $68 Million to Settle State Libor-Manipulation Claims |
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UBS Group AG agreed to pay $68 million to end state investigations into alleged manipulation of a key lending benchmark that was considered one of the most important barometers of the world’s financial health.
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Huawei Had a Deal to Give Washington Redskins’ Fans Free Wi-Fi, Until the Government Stepped
In |
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Two years after a congressional report labeled Huawei Technologies Co. a national-security threat, the Chinese firm unexpectedly scored a big-name ally in Washington. It was the Redskins, the capital’s National Football League franchise. Huawei reached an agreement in 2014 to beam Wi-Fi through the suites at the team’s FedEx Field, in exchange for advertising in the stadium and during broadcasts. But the deal didn’t last long.
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Regulators Lift Consent Order Against U.S. Bancorp |
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A federal regulator terminated a consent order against U.S. Bancorp over anti-money-laundering deficiencies. The Office of the Comptroller of the Currency disclosed the termination as part of a regular update.
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What Amazon Isn’t Telling Investors About Its Revenue |
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SEC Goes After Robo Advisers for the First Time |
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Sprint to Pay $330 Million to Settle N.Y. Tax Probe |
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Sprint Corp. will pay $330 million as part of a settlement with the New York state attorney general for failing to collect adequate state and local taxes on some of its wireless calling plans.
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PHOTO: TOBY MELVILLE/REUTERS
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Two Held Over Suspected Drone Use at London Airport Are
Released |
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U.K. police Sunday released without charge two suspects held for disruptions caused by drones at one of Europe’s busiest airports, highlighting the difficulty authorities face in combating the malicious use of unmanned aircraft.
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Venezuela-Guyana Feud Halts Exxon Project |
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An oil exploration ship run by Exxon Mobil Corp. halted work and fled after being intercepted by Venezuela’s Navy, rekindling a dispute between two nations just as a separate political crisis threatened Guyana’s government.
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Journalist at Center of False-Reporting Scandal Faces New Allegations Over Donation
Requests |
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German magazine Der Spiegel said it would file a criminal complaint against a former star writer who admitted falsifying reports, after discovering that he also appeared to have set up a fake charity operation for Syrian children.
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Spiegel’s Imperious Style Made Snapchat a Success—Until Users Fled |
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Snap Inc., once seen as a viable competitor to Facebook, is struggling after CEO Evan Spiegel ignored warnings about a redesign that proved unpopular. The redesign mess adds to troubles swirling around Snap and raises questions about whether Mr. Spiegel’s management instincts can help it pull through.
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Nissan CEO Says Board Rejected Request for Shareholder
Meeting |
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Nissan Motor Co. Chief Executive Hiroto Saikawa said a majority of Nissan’s board supported the company’s refusal to call a snap shareholder meeting in response to the indictment of former Chairman Carlos Ghosn.
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JD.com Founder Faces Backlash at Home |
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