Good morning. Deutsche Bank’s investment arm agreed to pay $25 million for overstating how it used environmental, social and governance factors in its funds, reports Risk & Compliance Journal's Mengqi Sun, one of the first cases that questioned ESG claims by money managers.

• AML charges: The investment arm, DWS Investment Management Americas, also settled allegations from the Securities and Exchange Commission that it failed to comply with anti-money-laundering rules for its mutual funds. The SEC charged DWS in two separate enforcement actions on Monday. 
   
• DWS response: DWS Investment Management didn’t admit or deny the charges, but it agreed to two separate cease-and-desist orders related to the anti-money-laundering violations and the ESG misstatements.
   
• The context: The SEC has rarely taken enforcement action against fund firms for their ESG marketing and for anti-money-laundering controls. Goldman Sachs’s asset-management arm agreed last year to pay $4 million to settle a regulatory investigation that found it failed to follow a consistent investing framework in how it managed ESG mutual funds and other products.

The WSJ Pro Sustainable Business Forum on Oct. 12 will include a discussion about risk and resilience in corporate sustainability programs with Maryam Golnaraghi, director of climate change and environment at The Geneva Association, and Torolf Hamm, head of physical catastrophe and climate risk management at Willis Towers Watson.

Other sessions will cover reporting to U.S. and European standards, the role of artificial intelligence and what corporate decarbonization measures are proving effective. Register here.

U.S. blacklists 28 entities from China, Russia and other countries, citing national security risks.

The Commerce Department on Monday targeted 28 companies from China, Russia and other countries with export restrictions, dialing up pressure on foreign actors that could undermine American national security interests.

Includes drone technology. The addition to the export blacklist included nine firms implicated in violating existing export controls through a scheme to supply a Russian company with components to build unmanned aerial vehicles for Russia’s intelligence agency, the Commerce Department said.

U.K. regulator tackles bullying and harassment in the financial services sector.

The U.K.’s top financial regulator has proposed actions aimed at increasing diversity and inclusion in the nation’s financial services market, reports Risk & Compliance Journal's David Smagalla, including measures aimed at combating bullying and sexual harassment in the workplace.

The Financial Conduct Authority said it could deny appointments to senior managers deemed to be bullies or harassers, and would consider such conduct both inside and outside the workplace.

• Assets taken from sanctioned Russian billionaires are costly to maintain as legal hurdles hold up sales, and often taxpayers end up footing the bill. 
   
• Many companies are reinforcing their commitment to diversity, equity and inclusion practices, despite high-profile lawsuits from conservative groups and scrutiny of DEI policies following the U.S. Supreme Court’s decision to strike down affirmative action in college admissions.
   
• Elliott Broidy has spent five years trying to punish Qatar, the tiny but wealthy Gulf state he believed hacked into his emails and leaked them during the Trump administration, when he was a prominent Republican fundraiser. He might have just gotten a break.

Trillions in climate funds could sow turmoil in poor nations.

A tsunami of cash is headed for developing countries to address climate change—and with it growing worries that the money will overwhelm the poorer economies it is meant to help. Wealthy nations are preparing a plan to send more than a trillion dollars each year to the developing world by 2030, a flood of foreign investment that would be unprecedented in modern history.

Unintended impacts. But capital flows of that magnitude risk sowing economic instability, economists and global finance officials say, particularly for smaller, poor countries that lack the financial institutions to channel the money into productive investment. A string of financial crises in the developing world has shown that foreign investment surging into these countries often leaves a mess.

• Labor shortages are turning into a long-term labor crisis that could push wages and turnover higher.
   
• For families who don’t need to borrow, higher rates might not affect daily life too much. But for those who do, the Fed’s aggressive rate increases are really beginning to sting.
   
• Lego is scrapping plans to make its toy bricks from recycled plastic bottles after determining that switching to the material would result in it producing higher carbon emissions.
   
• The shift in responsibility for Covid-19 shot distribution from federal agencies to the commercial market is off to a rocky start.
   
• The U.K.’s storied universities have a problem. They lose money on almost every British student they teach. 
   
• Worker shortages and high energy prices in Germany pose challenges for Intel's planned semiconductor factory.
   
• Commercial property owners, already struggling with high interest rates and rising vacancies, face exploding insurance costs that keep hitting new highs.
   
• The push for antibiotics to fight fast-evolving superbugs is snagging on a broken business model.

• By one measure—the ratio of the Big Three automakers CEO’s pay to the median worker’s—automakers have a wider pay gap than most large companies. And over the past four years, the gap at the three has widened.
   
• Hollywood writers, studios and streamers said Sunday that they have reached a tentative agreement that would end a monthslong strike. Some investors aren’t clapping.
   
• Sen. Bob Menendez (D., N.J.) said he wouldn’t resign from Congress and offered an explanation for the large amounts of cash found in his home.
   
• The work ID, long used for gaining entry to the office, now has a new job: tracking how long people stay.

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.