Audit & Governance Weekly Financial News 26th March 2021

Company News

Published on: Friday, March 26, 2021 by Paul Stanbridge

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Hi *|FNAME|*

ORX News (https://managingrisktogether.orx.org/orx-news/5-largest-operational-risk-losses-february-2021) reports the 5 largest operational risk losses in Feb 2021. [I’m probably behind the curve, having recently been referred to this site, but this is a great resource for Ops Risk trends]

1. Navient – $22.2m. Ordered to repay USD 22.3 million to the US government for overpaid student loan subsidies.
2. Bitfinex and Tether – $18.5m. Agreed to pay a USD 18.5 million NY AG settlement for deceptive conduct.
3. NWB Bank – $9.9m. Defrauded of EUR 12 million loan based on forged documents. [ooft!]
4. CaixaBank – $2.4m. Fined EUR 2 million by CNMV for mis-selling complex financial products.
5. BNL – $1.2m. Vaults accessed by thieves who stole an estimated EUR 1 million by disabling an alarm system.

The FT cited (https://www.ft.com/content/a0d3d9b4-8dbf-4f08-8d50-17b10765032c) a number of UK execs have voiced concerns over the US-style SoX corporate governance rules, weakening boardrooms diversity and adding cost and complexity to company audits. Sir Win Bischoff, former chair of Lloyds Banking Group said “What is proposed looks like going further in that effectively attestation is made by all board members with personal liability.” (see below).

And lastly… on top of the now well known issues Wirecard had leading up to their failure last year, it appears ‘high’ rolling Wirecard execs (https://www.wsj.com/articles/wirecard-aided-online-marijuana-sales-prosecutors-allege-11616502728) aided a scheme to trick banks into processing marijuana sales. WJS reports the now-bankrupt fintech firm and its fugitive former No. 2 executives engineered fraudulent accounts to trick banks, according to testimony.

I hope you enjoy this week’s offering.

Paul

In the news this week…
NATWEST £365M MONEY LAUNDERING CASE LINKED TO SEPARATE CASE INVOLVING INFAMOUS GOLD DEALER JAMES STUNT

Criminal money laundering charges against NatWest are linked to a separate case against 13 individuals based in cities around the country… (https://www.ft.com/content/de84ddd1-3286-4025-ba2e-756abad57d8b) read more (https://www.cityam.com/natwest-money-laundering-case-linked-to-separate-case-involving-infamous-gold-dealer-james-stunt/)

GAP BETWEEN INTERNAL AUDIT AND OTHER ENTERPRISE FUNCTIONS TO NARROW, ACCORDING TO SURVEY

The Institute of Internal Auditors Internal Audit Foundation (IAF), today announced the results of a new survey that found that internal audit’s ongoing digital transformation will rapidly accelerate in 2021… (https://www.buzzfeednews.com/article/tomwarren/jpmorgan-corruption-risk-nigeria-oil-deal) read more (https://www.businesswire.com/news/home/20210325005206/en/Study-Finds-22-of-Internal-Audit-Teams-Plan-to-Implement-Cloud-Based-Audit-Management-or-GRC-Software-in-2021)
GREENSILL CAPITAL SAGA RAISES SERIOUS ISSUES ABOUT POLITICIANS, OFFICIALDOM AND BUSINESS

From the role of David Cameron to the actions of the Treasury and regulator, the need for an investigation is pressing…. read more (https://www.theguardian.com/business/nils-pratley-on-finance/2021/mar/22/greensill-capital-saga-raises-serious-issues-about-politicians-officialdom-and-business)
FCA ANNOUNCES NEW WHISTLEBLOWING CAMPAIGN

The FCA has launched a campaign to get more customers and employees to blow the whistle on financial wrongdoing, Accompanied by the tagline ‘In confidence, with confidence’… read (https://www.moneymarketing.co.uk/news/fca-announces-new-whistleblowing-campaign/) more (https://www.moneymarketing.co.uk/news/fca-announces-new-whistleblowing-campaign/)

EX-GLENCORE TRADER CHARGED WITH MANIPULATING PRICE OF FUEL OIL

Former Glencore Plc trader was charged by U.S. authorities with conspiracy to manipulate a key oil price benchmark, the latest sign that prosecutors around the world are stepping up their scrutiny of the notoriously opaque commodity trading industry… (https://www.gtreview.com/news/global/authorities-issue-fresh-guidance-on-trade-finance-money-laundering-risks/) read more (https://finance.yahoo.com/news/ex-glencore-trader-charged-manipulating-171121753.html)
FRAUD OP RISK LOSSES EDGED UP AT UK BANKS IN 2020

External and internal fraud accounted for the lion’s share of the operational risk losses at five top UK banks in 2020, and made up a greater portion of the average total than the year before, …read more (https://www.risk.net/risk-quantum/7811716/fraud-op-risk-losses-edged-up-at-uk-banks-in-2020)

INAUGURAL UK ENDORSEMENT BOARD MEMBERS APPOINTED

The UK Endorsement Board (UKEB) has been set up to endorse and adopt new or amended international accounting standards on behalf of the UK… read more (https://www.gov.uk/government/news/inaugural-uk-endorsement-board-members-appointed?utm_medium=email&utm_campaign=govuk-notifications&utm_source=f667a1d0-a6f3-4206-89b3-b5bc8dfa10d6&utm_content=daily)

U.S. REGULATOR OPENS INQUIRY INTO WALL STREET’S BLANK CHECK IPO FRENZY – SOURCES

The U.S. securities regulator opens inquiry into Wall Street’s blank check acquisition frenzy, seeking information on how underwriters are managing the risks involved… read more (https://www.reuters.com/article/idUSKBN2BH09F)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

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