Audit & Governance Weekly Financial News 31st July 2020

Company News

Published on: Friday, July 31, 2020 by Paul Stanbridge

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** Hi *|FNAME|*

As you will know I’ve been following the Wirecard scandal with interest. It will be no surprise that the german finance minister Scholz doubles down on his push for increased regulation [story below] ahead of hearing. What I haven’t seen covered in the broadsheets is a New claim that a Mastercard Executive apparently connected to suspicious dealings at a Cyprus Bank has connections to Wirecard. [story below]

Bank of Ireland – The Governor and Company of the Bank of Ireland was fined (the expected amount of) €1,660,000 (https://theindustryspread.com/enforcement-action-notice-the-governor-and-company-of-the-bank-of-ireland-fined-e1660000-and-reprimanded-by-the-central-bank-of-ireland-for-regulatory-breaches/) . This related to MiFD breaches from a cyber-fraud incident 2014 whereby, BOIPB made two payments to a third-party fraudster’s account who was impersonating a client.

Goldman Sachs has been ordered to pay $2.5 billion in one of the largest financial scandals in years. The Malaysian government fined GS for its role in the alleged fraud involving former Malaysian Prime Minister who was sentenced to 12 years… more here (https://www.marketscreener.com/THE-GOLDMAN-SACHS-GROUP-12831/news/Goldman-Sachs-Ex-Malaysian-Leader-Gets-Prison-In-1MDB-Case-31009296/)

Sour reading for Credit Suisse LOD staff as functions will merge and redundancies are expected (https://www.businesslive.co.za/bd/companies/2020-07-27-nordic-bankers-face-the-axe-after-jobs-boom-runs-out-of-steam/) .

Nordic bank Compliance staff (https://www.businesslive.co.za/bd/companies/2020-07-27-nordic-bankers-face-the-axe-after-jobs-boom-runs-out-of-steam/) are also expecting redundancies: Danske Bank has warned of big cuts, with outside predictions saying at least 1,000 jobs will be axed, especially in compliance. Nordea Bank are also alleged to be looking at the 1,500 employee jobs it created to fight financial crime a few years ago. It seeks to automate to keep costs in check.

Lots going on this week again, main stories below…

Enjoy!

Rgds
Paul
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In other news this week….
CREDIT SUISSE TO COMBINE COMPLIANCE AND RISK FUNCTIONS

CEO proposes merging of functions in order to make 400 million francs annual saving … (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ)
INDUSTRY BODY WARNS OF BAD CONDUCT RISKS AS BANKERS RETURN TO CITY

MFSB CEO warns of possible behavioral changes as a result of “A / B team” divison.. (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP)
FRC LEVIES FIRST FINE ON BDO FOR AMTRUST EUROPE AUDIT

£160k fine for ‘unintentional rule breaches’ in audit of international insurer AmTrust…read more (https://www.reuters.com/article/britain-accounts-regulator/update-1-uk-watchdog-levies-first-fine-on-bdo-for-amtrust-europe-audit-idUSL5N2F033K)
INDIA: CYBERSECURITY LAPSES AT NATIONAL PAYMENTS CORP

Audit of the flagship payments processor found more than 40 security vulnerabilities including “critical” and “high” risk .. (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB)
UK WATCHDOG AUDITORS TOLD ‘BE MORE SCEPTICAL’ OF CLIENTS

BIg 4 and smaller Accounting firms continue to show too little independence…read more (https://www.reuters.com/article/britain-accounts-regulator/uk-watchdog-tells-auditors-to-be-more-sceptical-of-clients-idUSL5N2F17U9)
GERMANY: SCHOLZ BACKS TOUGHER OVERSIGHT AHEAD OF WIRECARD HEARING

German Finance Minister seeks to toughen financial oversight of companies. . (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.reuters.com/article/us-wirecard-accounts/germanys-scholz-backs-tougher-oversight-ahead-of-wirecard-hearing-idUSKCN24P216)
FRC’S NEW SUPERVISION DIVISION – NEW DIRECTORS ANNOUNCED

The division will enhance forward-looking vision, build thematic work across firms and homogenise AQR and AFMAS… (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.frc.org.uk/news/july-2020/supervision-restructuring-and-appointments)
FCA RAPS BROKERS OVER ‘INAPPROPRIATE’ USE OF CLIENTS’ ASSETS

The market regulator makes latest in a series of complaints about brokerage industry… read more (https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-inappropriate-use-title-transfer-collateral-arrangements.pdff)

** 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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