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The Morning Risk Report: Banks Start Using Information-Sharing Tools to Detect Financial Crime
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Good morning. Banks have long struggled to spot illicit transactions among the multitudes they process daily because criminals move dirty money from one institution to another to cover their tracks, leaving compliance staff with only a partial road map of their actions.
That has started to change, reports Risk & Compliance Journal’s Dylan Tokar, with financial institutions and service providers in several countries creating information-sharing platforms and messaging tools with the potential to vastly improve the detection of money laundering and fraud.
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Content from our Sponsor: DELOITTE
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At Bread Financial, CEO Embraces Stronger Board Engagement
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Cultivating a more inclusive, transparent relationship between the board and executive management was a high priority for new CEO Ralph Andretta as he embarked on transforming the company. Read More ›
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A research project supported by the Royal United Services Institute, a U.K. think tank, has identified at least 15 information-sharing initiatives around the world. Although most countries don’t allow banks to share information, several recent efforts have shown significant success in identifying crime, according to the Future of Financial Intelligence Sharing project.
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The U.S. District Courthouse in Boston. PHOTO: LIU JIE/ZUMA PRESS
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A New York man has been convicted of defrauding investors of more than $6 million by marketing and selling fraudulent virtual currency, the U.S. Justice Department said.
A jury returned a guilty verdict Thursday against Randall Crater, 51, of East Hampton, N.Y., in the U.S. District Court in Boston. He was convicted of four counts of wire fraud, three counts of money-laundering and one count of operating an unlicensed money transmitting business, according to court documents.
Prosecutors said Mr. Crater founded My Big Coin Pay Inc., a purported cryptocurrency and virtual payment services company based in Las Vegas. Between 2014 and 2017, he allegedly marketed to investors a fraudulent digital currency called “My Big Coin” with misrepresentations on the nature and value of the coins.
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Hyundai Motor Co. said Friday that it has “no evidence that there is any truth” of allegations published in a news article that a subsidiary of the South Korean auto maker used child labor at a manufacturing plant in Alabama.
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A Hyundai majority-owned unit known as SMART Alabama LLC was said to be using child labor, with some underage workers as young as 12 years old, at a plant in Luverne, Ala., Reuters reported Friday. The news article cited claims made by a family of three underage workers, current and former factory employees and area police. Luverne is about 50 miles south of Montgomery.
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The U.S. Trade Representative Office this week filed for dispute settlement consultations under the U.S.-Mexico-Canada Agreement on grounds that Mexico’s energy policies undermine U.S. firms in favor of state-run companies, in a case that has bipartisan support and the backing of the energy industry in the U.S.
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The U.S. has blacklisted former Paraguayan President Horacio Cartes for his role in “significant corruption,” U.S. Secretary of State Antony Blinken said Friday, as Washington singled out the former powerful leader of the landlocked South American country.
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California Gov. Gavin Newsom signed a bill into law Friday allowing private citizens to sue the gun industry to enforce the state’s ban on certain weapons.
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Former Trump adviser Steve Bannon Friday was found guilty of contempt of Congress, handing a victory to the Justice Department and the House select committee investigating the Jan. 6, 2021, attack on the Capitol.
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U.N. Secretary-General António Guterres, left, and Turkish President Recep Tayyip Erdogan at the signing ceremony of a grain deal Friday. PHOTO: OZAN KOSE/AGENCE FRANCE-PRESSE/ GETTY IMAGES
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Russia and Ukraine agreed Friday to resume exports of millions of tons of Ukrainian grain via the Black Sea for the first time since the Russian invasion, a deal aimed at freeing up vital supplies amid fears of a global food crisis.
The deal is the product of months of diplomacy led by the United Nations and Turkey, both of which are signatories to a pair of parallel agreements with Russia and Ukraine. It raises hopes that grain stocks could soon be shipped out from Ukrainian ports, after the war caused a worldwide surge in the cost of food, pushing tens of millions of people closer to starvation.
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Russian President Vladimir Putin can afford to cut off natural-gas exports to Europe thanks to ample revenues from other commodities, but such a move would come with longer-term risks for Russia’s sanctions-stricken economy and its prolific energy industry.
Earlier this week, Moscow resumed gas supplies via the Nord Stream pipeline after annual maintenance ended, easing worries in Europe that Mr. Putin would further crimp exports at a time when the continent is filling up its storage ahead of winter. The restarted pipeline, however, is pumping at just 40% capacity, after a separate, still-unresolved technical issue that Moscow blames on Western sanctions.
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Growing signs that price pressures are easing suggest that June’s distressingly high 9.1% increase in consumer prices will probably be the peak. But even if inflation indeed comes down, economists see a slow pace of decline.
Ed Hyman, chairman of Evercore ISI, pointed to many indicators that 9.1% might have been the top. Gasoline prices have fallen around 10% from their mid-June high point of $5.02 a gallon, according to AAA. Wheat futures prices have fallen by 37% since mid-May and corn futures prices are down 27% from mid-June. The cost of shipping goods from East Asia to the U.S. West Coast is 11.4% lower than a month ago, according to Xeneta, a Norway-based transportation-data and procurement firm.
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The administration hasn’t asked Mrs. Pelosi to forgo the trip, which hasn’t been officially announced, in deference to the separation of powers among different branches of government, according to officials. Chairman of the Joint Chiefs of Staff Army Gen. Mark Milley and Adm. John Aquilino, the head of the Indo-Pacific command, briefed Mrs. Pelosi on Capitol Hill on Wednesday, with White House staff present, the officials said
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T-Mobile admitted a security lapse in 2021 after personal information of over 50 million of its current, former and prospective customers was found for sale online. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
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T-Mobile US Inc. proposed paying a group of victims $350 million to settle a class-action lawsuit brought by victims of a 2021 hack of sensitive customer information.
The cellphone carrier said in a securities filing Friday that its proposed settlement would pay for claims from class members, legal fees and administrative costs. The company also pledged to spend $150 million for security technology in 2022 and 2023.
The company said Friday it admitted no liability, wrongdoing or responsibility in the proposed settlement, which could win court approval as soon as December. Attorneys for the victims backed the proposal Friday in a court filing.
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Volkswagen CEO Herbert Diess drove the company’s transformation into a leading electric-car maker in the wake of its diesel emissions scandal. PHOTO: WOLFGANG RATTAY/REUTERS
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Key shareholders in Volkswagen AG joined forces with labor leaders to oust Chief Executive Officer Herbert Diess, who was in the midst of a push to turn the German auto company into a top maker of electric vehicles.
Mr. Diess will be succeeded by Oliver Blume, CEO of VW’s sports-car maker Porsche AG and long an ally of the Porsche-Piëch family that controls a majority of VW voting rights. Mr. Blume will retain his job running Porsche, which is slated for an initial public offering this autumn.
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Tesla Inc. is scheduled for court-ordered settlement talks in a shareholder lawsuit over Chief Executive Officer Elon Musk’s 2018 tweets suggesting he had funding to take the company private.
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China Evergrande Group ousted its longstanding chief executive officer and its finance chief, after finding the duo were involved in borrowing arrangements that led to banks seizing $2 billion from a key subsidiary.
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Vince McMahon, the king of U.S. wrestling, retired as chief executive officer and chairman of World Wrestling Entertainment Inc., following disclosures by The Wall Street Journal of multiple payouts to women who had alleged sexual misconduct and infidelity.
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Instacart founder Apoorva Mehta will step down as chairman once the company completes its initial public offering, the grocery delivery company said Friday.
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Twitter’s request to fast-track its lawsuit against Elon Musk was granted this week. PHOTO: IAN BATES FOR THE WALL STREET JOURNAL
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Twitter Inc. reported a surprising decline in revenue that the social-media company blamed on advertising weakness and uncertainty related to its pending $44 billion acquisition by Elon Musk.
Twitter’s results Friday follow rival social-media company Snap Inc. posting its weakest-ever quarterly sales growth because of what it said was “increasing competition for advertising dollars that are now growing more slowly.”
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One Medical has worked to expand its own clinic network but has burned through cash doing so. PHOTO: STEPHANIE AARONSON/THE WALL STREET JOURNAL
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Amazon.com Inc. wants to bring healthcare into the “Everything Store.” It might become one of the most difficult expansions in the company’s history.
The technology giant’s acquisition of 1Life Healthcare Inc., which operates a primary-care practice under the name One Medical, will give Amazon more than 180 clinics with employed physicians across roughly two dozen U.S. markets. The $3.9 billion deal, including debt, also gives Amazon a larger foothold in selling healthcare services to employers, a competitive arena that the company only entered in 2019.
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