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The Morning Risk Report: Canada Arrests Huawei CFO at U.S. Request over Alleged Iran Sanctions Violations |
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A sign board of Huawei’s at CES (Consumer Electronics Show) Asia 2018 in June. PHOTO: ALY SONG/REUTERS
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Canadian authorities in Vancouver have arrested Huawei Technologies Co.’s chief financial officer at the request of the U.S. government for alleged violations of Iranian sanctions, the latest move by Washington to crack down on the Chinese cellular-technology company. The U.S. is seeking Meng Wanzhou's extradition so as to have her appear in federal court in the Eastern District of New York.
Ms. Meng’s arrest comes amid a year-long U.S. government campaign against a company it views as a national-security threat. In the past year, Washington has taken a series of steps to restrict Huawei’s business on American soil and, more recently, launched an extraordinary international outreach campaign to persuade allied countries to enact similar curbs. Huawei lost a chunk of business from one of its biggest and oldest Western customers.
[Continue below…]
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A spokesman for Canada’s justice department said Ms. Meng was arrested in Vancouver on Dec. 1 and is sought for extradition by the U.S. A bail hearing has been tentatively scheduled for Friday, according to the spokesman. Ms. Meng, the daughter of Huawei’s founder, Ren Zhengfei, serves as the company’s CFO and deputy chairwoman.
The Wall Street Journal reported in April that the Justice Department had launched a criminal probe into Huawei’s dealings in Iran, following administrative subpoenas on sanctions-related issues from both the Commerce Department and the Treasury Department’s Office of Foreign Assets Control. U.S. authorities have suspected Huawei’s alleged involvement in Iranian sanctions violations since at least 2016, when the U.S. investigated ZTE Corp., Huawei’s smaller Chinese rival, over similar violations.
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The Institute of Internal Auditors to Review "Three Lines of Defense" |
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The Institute of Internal Auditors is looking to review the “Three Lines of Defense,” a commonly used governance concept that the advocacy group is looking to update as companies face more complex challenges.
The study hopes to update the model that was rooted in financial services but has since been used widely in risk management and governance practices across industries, said IIA Chief Executive Richard Chambers. The study will be conducted by a working group that is independent of IIA, with direction from an advisory group.
“There are things that are happening in the broader market that is making it a good time to take a look at the model,” Mr. Chambers told Risk & Compliance Journal on Wednesday.
The IIA last published a paper on its position on the model in January 2013, suggesting that organizations assigned clearly defined responsibilities to risk management and control roles.
Critics have said in recent years that the model doesn’t sufficiently address the dynamic governance challenges of the day and limit its effectiveness with its focus on defense, compared with the perspective of improving value.
The Institute plans to present its review and proposals for public comments in February 2019. The final paper is expected to be published in the second half of 2019.
-- Mengqi Sun
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Australia Plans to Make Allow Cracking of Encrypted Devices |
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U.S. allies are pressing ahead with efforts to crack encrypted devices and platforms, despite concerns among tech giants including Apple Inc. that they may weaken digital security.
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Brazil’s Car Wash Probe Eyes Glencore, Vitol, Trafigura for
Bribery |
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Brazil’s sprawling Operation Car Wash corruption probe is investigating mining giant Glencore PLC, Trafigura Group and Vitol Group for allegedly paying millions of dollars in bribes to employees of Brazilian oil company Petróleo Brasileiro SA, or Petrobras, in return for better terms on trading contracts.
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Former Hong Kong Minister Convicted in Bribery Scheme |
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Appeals Court to Consider AT&T’s Deal for Time
Warner |
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The second run of United States v. AT&T Inc., the blockbuster antitrust fight over the telecom giant’s acquisition of Time Warner, opens on a new stage Thursday as an appeals court considers whether a blunt-spoken trial judge was correct to bless the merger.
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Lam Research CEO Resigns Amid Misconduct Investigation |
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Biotech Venture Capitalist Burrill Sentenced to 30 Months in
Prison |
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Boeing Omitted Safety Details, Minimized Training for Lion Air Model |
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An automated flight-control system on Boeing Co.’s 737 MAX aircraft, which investigators suspect played a central role in the fatal Oct. 29 jetliner crash in Indonesia, was largely omitted from the plane’s operations manual and was the subject of debate inside Boeing, government and industry officials say.
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The Bond That Could Be Wiped Out by California’s
Wildfires |
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U.K. Releases Internal Facebook Emails Deliberating Selling Data |
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The U.K. Parliament released on Wednesday a trove of internal Facebook Inc. emails that show Mark Zuckerberg and other executives pursuing hard-nosed tactics to stifle competitors, as well as considering a range of possibilities for monetizing the massive amounts of data the company collected on its users.
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Amazon Hires Public-Affairs Firms to Aid New York Efforts |
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Boeing Leadership Faces PR Hurdles After Lion Air
Crash |
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The Lion Air accident in Indonesia has created new engineering and public-relations challenges for Boeing Co. and its chief executive Dennis Muilenburg, who took the top job at world’s largest airline manufacturer in 2015, and Kevin McAllister, the commercial-plane division chief who joined a year later.
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Bayer Lays Out Plans in Hopes of Easing Investor Headaches |
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Germany’s Bayer AG Wednesday laid out ambitious sales and profit targets in its latest effort to convince the market it is serious about boosting profits, reducing debt and stopping a downward spiral in its stock price that has put management under heavy pressure.
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Lion Air Co-Founder Considers Canceling Giant Boeing Order |
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MiMedx to Shed Jobs as Part of Overhaul |
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Wells Fargo Firing Dozens of Regional Managers |
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Wells Fargo & Co. is firing around three dozen district managers for oversight failures related to a sales scandal that erupted in its retail bank more than two years ago, according to people familiar with the matter.
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Facebook has confirmed that Sheryl Sandberg sent an email to her staff in January asking whether George Soros has shorted the company’s stock after he called internet “monopolies” a “menace” during a speech. PHOTO: JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Facebook Board Backs Sandberg’s Handling of Soros
Research |
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Facebook Inc.’s board of directors said it was “entirely appropriate” for Sheryl Sandberg, the company’s chief operating officer, to ask if George Soros had shorted the company’s stock after the billionaire investor called the social-media giant a “menace.”
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Japan’s Crusade for Corporate Overhaul Under Threat, Watchdog Says |
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Veteran Ad Executive to Return to WPP’s Wunderman Thompson
Unit |
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Activist Investor to Push Del Frisco’s to Sell Itself |
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Engaged Capital LLC has bought nearly 10% stake in Del Frisco’s Restaurant Group Inc. and plans to push it to sell itself, according to people familiar with the matter.
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Gannett CEO Robert Dickey Plans to Retire |
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