Audit & Governance Weekly Financial News 27th February 2021

Company News

Published on: Thursday, February 25, 2021 by Paul Stanbridge

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In case you missed it earlier in the week I’ve negotiated a concession for blog readers to attend next week’s ‘European Internal Audit Summit 2021’ running from 4th-5th March.

It’s a discounted rate of over half the original cost for joint applicants or a quarter for a single entry. Email the event organisers on this page https://glceurope.com/event/european-internal-audit-summit-2021/ and mention Fleet Search. If you need an event buddy or want to take advantage of the joint discount, email me and I’ll put you in touch with an other who’s interested in going. I’m not affiliated with or receive a commission from the organisers.

In other news…. an interesting post from the FCPA Compliance Report blog on the Internal Controls, Training, and Compliance failings of Citi’s $500M payment to Revlon lenders… A judge ruled this week in favour of Revlon leaders to keep the cash. It’s a complex case (the court had 30 pages of background text) but in short, a failure in Citi’s ‘six-eyes’ controls using Oracle’s Flexcube ledger (article below).

And lastly… Have an Amazon account? Daming article concerning lapses in Internal Data Controls at Amazon UK & EU, and the treatment of the whistleblowers who brought it to the public eye. Amazon engaged in the “systematic eradication” of employees who raised compliance issues, said one former U.S. based employee. “The organization eats its own to quiet the noise of these issues. And then papers over them,” they said. https://www.politico.eu/article/data-at-risk-amazon-security-threat/

I hope you enjoy this week’s offering.

Paul
In the news this week…
INTERNAL CONTROL WEAKNESS: RSM RESIGNS AS SOFTWARE CO. AUDITOR CITING ‘UNUSUAL TRANSACTIONS

Internal control over financial reporting was not effective as of 31 Dec. 2020 due to the identification of a material weakness, RSM said in its resignation letter on Feb. 15… read (https://www.reuters.com/article/idUSKBN2AK009) https://www.reuters.com/article/idUSKBN2AK009more (https://www.reuters.com/article/idUSKBN2AK009)
TECHNOLOGY CHANGE MANAGEMENT – FCA REPORT

Lexology hint at increased FCA scruteny on 3rd party technology. “Firms need to ensure they are investing in their operational resilience, including having clear lines of senior management accountability and responsibility….. read more (https://www.lexology.com/library/detail.aspx?g=f635a490-31f4-4992-ad7e-120648c1dae3)
PWC HEAD TO TRIAL OVER WHETHER IT RIGHTLY FIRED WHISTLEBLOWER

PwC in the US will go to trial next Monday, in which it will have to defend its audits of two tech companies and that it rightly fired a whistleblower… read more (https://www.cityam.com/pwc-us-to-head-to-trial-over-whether-it-rightly-fired-a-whistleblower/)
CITI’S $500M LOSS…A BOX TICKING BUNGLE IN FLEXCUBE

Obviously, the ‘six-eyes’ principle is an internal control. Yet this control failed. Is it a training issue?… read more (http://fcpacompliancereport.com/2021/02/complex-succeed-citibank-incorrect-wires-900mm-part-2-compliance-lessons/)

EUROPE’S INVESTMENT BANKERS FEND OFF BLEAK BACKDROP TO SCOOP UP BONUSES

Traders and dealmakers take the lion’s share of rewards while other divisions miss out on payout… read (https://www.ft.com/content/d02d4b14-30c5-4667-a21b-c436b2446ca8) https://www.ft.com/content/d02d4b14-30c5-4667-a21b-c436b2446ca8more (https://www.ft.com/content/d02d4b14-30c5-4667-a21b-c436b2446ca8)

QATAR REGULATOR UNVEILS PLATFORM TO HELP FIGHT MONEY LAUNDERING AND FIN. CRIME

Qatar ramps up AML efforts and anti terrorism finance measures with the launch of a new digital learning platform that raises awareness for the country’s capital markets professionals… read more (https://thefintechtimes.com/qatar-regulator-unveils-platform-to-help-fight-money-laundering-and-financial-crime/)
£550K FINE FOR FIRM’S ANTI-MONEY-LAUNDERING BREACH

A TRUST company that broke anti-money-laundering laws when dealing with a client who was investing millions of dollars of Angolan public money has been fined £550,000 (https://www.fca.org.uk/news/statements/fca-response-iba-proposed-consultation-intention-cease-us-dollar-libor) .read more (https://jerseyeveningpost.com/news/2021/02/21/550k-fine-for-firms-anti-money-laundering-breach/)

UK SHOULD ‘RESIST’ EU TRADE TRANSFER, SAYS BOE GOVERNOR

BoE governor Andrew Bailey has warned that the UK should “resist firmly” any attempts made by the EU to transfer euro derivative clearing from Britain to elsewhere in Europe… read (https://www.fstech.co.uk/fst/UK_Should_Resist_Firmly_EU_Trade_Transfer_Worth_Trillions_Says_BoE_Governor.php) more (https://www.fstech.co.uk/fst/UK_Should_Resist_Firmly_EU_Trade_Transfer_Worth_Trillions_Says_BoE_Governor.php)

** 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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