Good morning. New York’s financial regulator imposed a $35 million fine against Nordea Bank over alleged compliance failures at the Nordic bank, reports Risk & Compliance Journal’s Mengqi Sun.

• AML deficiencies found: The New York State Department of Financial Services said it found significant deficiencies in Nordea’s anti-money-laundering programs at its branches in the Baltics and Denmark. The regulator also determined Nordea failed to conduct sufficient due diligence on its correspondent banking relationships and its transaction monitoring system was inadequate, according to a consent order published Tuesday.
   
• Links to Panama Papers: Helsinki-based Nordea, licensed to operate a foreign bank branch in New York, had more than $627 billion in total assets by 2023. The bank was highlighted in the 2016 Panama Papers leak, when documents were published that detailed alleged offshore bank accounts held by prominent people worldwide. The leak exposed Nordea’s alleged role in helping hundreds of customers set up shell companies using offshore accounts.
   
• Baltic branch issues: Nordea’s former Baltic operations, including branches in Latvia, Lithuania and Estonia, were linked to billions of dollars of high-risk transactions relating to money laundering and suspected illicit actors, the consent order said. Nordea closed the branches and its international branch in Vesterport, Denmark, in 2017.
   
• Alleged BSA failures: The consent order follows a NYDFS investigation into whether Nordea violated New York law by allowing compliance failures in its Bank Secrecy Act program and procedures to persist.

AI regulation is coming. Fortune 500 companies are bracing for impact.

The state of artificial intelligence regulation in the U.S., or the lack of it, is a pressing matter for Fortune 500 companies as they launch AI projects.

Roughly 27% cited AI regulation as a risk in recent filings with the Securities and Exchange Commission, one of the clearest signs yet of how AI rules could affect businesses.

The concern reflects a regulatory landscape bracketed by the European Union’s AI Act on one end and a hodgepodge of U.S. state initiatives in development on the other, and that corporations are forging ahead in using AI anyway. The U.S. government hasn’t regulated AI, even as lawmakers at last week’s Democratic National Convention said they would continue to push for an election year breakthrough.

TotalEnergies unit to pay $48 million over alleged gasoline futures manipulation.

A unit of TotalEnergies, a major French oil-and-gas producer, will pay $48 million to settle a U.S. regulatory action after it allegedly attempted to manipulate a gasoline futures benchmark price by selling physical gasoline at below what buyers were willing to pay.

The Commodity Futures Trading Commission on Tuesday said TOTSA TotalEnergies Trading in 2018 sold EBOB, a type of gasoline used in European cars, at prices lower than what buyers indicated they were willing to pay.

• Austal USA agreed to a $24 million settlement after the Securities and Exchange Commission alleged the shipbuilder conducted a fraudulent revenue recognition scheme, according to Dow Jones Newswires.
   
• Cannabis stocks fell hard Tuesday after the Drug Enforcement Administration scheduled a hearing on its proposal to change the classification of cannabis to the less restrictive Schedule III for Dec. 2, after the presidential election, according to an announcement late Monday reported on by MarketWatch. 
   
• Special counsel Jack Smith on Tuesday filed a new criminal indictment against Donald Trump for trying to undo his 2020 election loss.
   
• Companies looking for a single rule that regulates how they use personal data across the U.S. are stuck with the current status quo of multiple state laws at least until after a new U.S. administration takes office.

Kamala Harris’s tax increases and cuts take shape.

Vice President Kamala Harris’s tax proposals pick up the unfinished business of the Biden administration, pushing to raise taxes on corporations and high-income households while leaving most Americans’ taxes unchanged or lower.

Harris, the Democratic nominee for president, would increase taxes by about $5 trillion over the next decade and cut other taxes by more than $4 trillion. The federal government’s total collections—projected at $63 trillion over 10 years—would be little changed, but the Harris agenda would shift who pays.

• Ukraine said for the first time that it used U.S.-made F-16 jet fighters to intercept drones and missiles as Russia unleashed a massive volley of attacks across Ukraine, battering infrastructure and eroding the country’s air defenses for a second consecutive day.
   
• Markets might be running ahead of themselves by pricing aggressive Federal Reserve interest-rate cuts this year.
   
• Bank of Japan Deputy Gov. Ryozo Himino has backed the case for further interest-rate hikes if the economy and prices grow as expected, echoing recent comments from the central bank’s chief.
   
• China’s industrial profits rose for a fourth straight month in July, a positive sign for Beijing’s manufacturing drive, though officials warn that demand headwinds persist and a recovery isn’t on firm ground yet.
   
• Australian inflation pressures eased in July supported by government rebates aimed at offsetting soaring electricity costs and rising rents.
   
• U.K. shop prices fell in August, mainly due to large discounts in the nonfood segment, a report published Tuesday said.
   
• The U.S. farm belt is headed for a bumper crop. Few farmers are celebrating, though.
   
• September is a popular time for companies to go public. This month’s stock-market volatility is putting some plans on ice.

• For years, as Donald Trump railed against the news media, CNN was often his favorite target. Now, ABC News is finding out what it is like to be the former president’s punching bag.
   
• Lawyers are ramping up battles over who gets to vote and how those votes are counted in the presidential election.
   
• Private-equity firms have been gobbling up chunks of professional sports teams in recent years, but the holy grail, the National Football League, remained out of reach. Now, after years of discussions, that’s finally changing.
   
• Exhausted by the world and desperate to truly disconnect, vacationers and others taking work breaks this summer have begun replacing courtesy with candor in their auto-responses.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

You can reach us by replying to any newsletter, or email David at david.smagalla@wsj.com.