What News Should People in Compliance Read

Our option of key compliance stories this month

• Facebook hires first master compliance officeholder
• UAE threatened with blacklist over money laundering & terror financing
• CD Projekt hitting by cyberattack
• Former Goldman Sachs analyst charged with insider dealing
• Construction company & client fined over unsafe removal of asbestos
• TikTok facing serious GDPR breaches
• Cancer eye dominate £23k unfair dismissal award
• Anti-fraud Santander bank worker jailed for client fraud
• COVID-xix phishing scam spoofs NHS email
• Epic Games files Eu competition complaint confronting Apple tree

Facebook hires outset chief compliance officeholder

In the face of intensive regulatory pressure concerning its business practices, Henry Moniz has been hired as Facebook's first main compliance officer. The social media giant is currently contesting against numerous allegations, lawsuits and investigations.

The United states Federal Trade Committee along with a large group of state attorneys general filed lawsuits against Facebook alleging violations of antitrust constabulary. Facebook has been accused of using its market position to destroy up-and-coming rivals by copying their features or pressuring them into beingness caused.

Privacy scandals have too blighted the company's image. A recent update to WhatsApp, the Facebook-owned messaging app, turned into a PR nightmare when users misconstrued a privacy update and believed that Facebook would have the correct and ability to read their personal messages.

UAE threatened with blacklist over money laundering & terror financing

The European Commission has threatened to identify the United Arab Emirates on the European union's anti-money laundering and counter-terrorist financing list if it has not fabricated significant progress in the fight against money laundering and terror financing by June 2021.

A recent written report by the Carnegie Endowment for International Peace describes Dubai as an 'bonny destination for dirty money'.

The report also stated: 'Corrupt and criminal actors from around the world operate through or from Dubai. Afghan warlords, Russian mobsters, Nigerian kleptocrats, European coin launderers, Iranian sanctions-busters, and East African golden smugglers'.

As the Middle Eastern state looks to shed its reputation as a financial offense hotspot, the UAE's central bank has responded past fining eleven banks a combined total of $12.5m for anti-coin laundering (AML) failings.

Key takeaways

• Deport initial and ongoing customer due diligence using a gamble-based approach
• Expect out for unusual or suspicious customers or transactions. Pay particular attention to high-risk customers and jurisdictions.
• Study any knowledge or suspicionof money laundering or terrorist financing to your MLRO immediately.
• Contact your MLROif you learn that a customer has become a politically-exposed person, or is reported to be linked with whatsoever criminal activity or subject area to sanctions.
• Exercise farthermost care to avoid tipping off anyone who has been reported for money laundering or terrorist financing.

CD Projekt Hit Past Cyberattack

Video game developer CD Projekt was hitting with a cyberattack, resulting in its servers being encrypted and the source code of its games being sold on the dark web.

'Although some devices in our network take been encrypted, our backups remain intact', CD Projekt said on Twitter. 'Nosotros have already secured our IT infrastructure and begun restoring the data.'

CD Projekt said it doesn't believe the compromised systems contained whatever personal data. The company said information technology has contacted law enforcement and Jan Nowak, the president of Poland's Personal Data Protection Office (UODO), every bit well equally IT forensics investigators.

News of the cyberattack has seen shares of CD Projekt sink v.5%.

Key takeaways

• Be extra vigilant - remember that having access to corporate networks and data makes you a target for cyber criminals.
• Be cautious and even contemptuous about offers, demands and letters that are designed to arouse curiosity, anxiety or fears.
• Treat all unsolicited or unexpected requests with caution -challenge anything that is unusual or suspicious.

Sometime Goldman Sachs analyst & brother charged with insider dealing

A former Goldman Sachs analyst was charged with six offences of insider dealing and three offences of fraud by simulated representation.

Mohammed Zina and his blood brother are accused of making a profit of about £142,000 from insider dealing in shares of companies including Arm Holdings and Punch Taverns in 2016 and 2017, according to the Financial Conduct Authorisation (FCA).

The pair are also accused of three counts of fraud related to loans totalling £95,000 taken out from Tesco Banking company. The brothers allegedly told the banking company they intended to utilise the funds for home improvements, when the loans are said to have been used to fund their scheme.

The case was sent to Southwark crown court for a plea and trial preparation hearing on 16 March 2021. The pair face a fine and/or upwards to 10 years' imprisonment. Insider dealing is punishable by a fine and/or up to seven years' imprisonment.

Primal takeaways

• Be articulate about what is sensitive non-public information and what isn't.
• Never disembalm not-public information to outsiders.
• Don't make recommendationsor induce others to deal while in possession of inside data.
• During the recruitment stage, probe and document the work history of candidates.

Construction company & client fined over unsafe removal of asbestos

Samer Constructions Ltd and its customer Swift Belongings Management MCR accept both been fined later on declining to manage asbestos safely during a refurbishment of a sometime role cake in Stockport.

The construction company were hired to refurbish a belongings in Hazel Grove, Stockport. All the same, materials containing asbestos forth with general waste were discarded from the property and were spread across the roof of a i storey part of the block. Some of the materials had also fallen onto a car park area below that was non segregated from passing members of the public.

The HSE found that Samer Constructions failed in its duty to identify whether a survey had been undertaken and went alee with the work 'in a reckless mode', resulting in two employees existence exposed to asbestos fibres.

Swift Belongings Management pleaded guilty to breaching sections two(1) and 3(1) of the health and Safety at Work etc. Human activity 1974. Information technology was fined £25,000 and ordered to pay costs of £3,428.

Samer Constructions Ltd pleaded guilty to breaching sections 2(1) and iii(1) of the health and Safety at Work etc. Human action 1974. It was fined £12,000 and ordered to pay costs of £3,428.

Key takeaways

• Remember that steps must be put in place to protect workers from exposure to asbestos fibres.
• Ensure you lot find out if in that location are any asbestos materials where work is to be carried out.
• Assess the risk presented past any asbestos materials and make a plan to manage that risk appropriately.
• Don't remove asbestos unnecessarily -sometimes leaving it in situ is safer.
  

TikTok facing GDPR charges

TikTok has been accused of breaching GDPR rules by the European Consumer System (BEUC).

A complaint filed with the European Committee argues that the video-sharing social network misleads users regarding the type of personal data it collects.

The BEUC commented that 'We have brought our data protection findings to the attention of Data Protection Authorities in the context of their ongoing investigations into the company'.

They have too called on TikTok to 'respect its users' privacy and data protection rights. It should ensure that its policies respect all the obligations under EU information protection law. Data collection, profiling and targeted advertising for all users below eighteen should exist severely restricted'.

The BEUC argues that several terms in TikTok'south user agreement are unclear and unfair. The fact that TikTok can change the exchange rate between in-app coins and virtual gifts on the platform is also defendant of being unfairly biased against the consumer.

Cancer centre dominate awarded £23k by unfair dismissal tribunal

An employment tribunal awarded well-nigh £23k to a former manager of Maggie's Cancer Centre in Manchester later on finding she was dismissed unfairly by her employer.

The tribunal heard that in the summer of 2019, Sinead Collins' then line manager gave her an annual functioning review rating of 45/50 - considered to be a 'strong' operation.

However, just months afterwards, in Autumn 2019, a new line director placed Miss Collins on 'operation direction'. In that location was no formal performance plan, no targets and no written record of the 'problems' with her work.

In February 2020, there was a evolution review meeting between Miss Collins and her manager, who commented that she did non feel the Manchester Centre was 'in proficient hands'. The claimant believed her boss was 'pushing her to resign'.

Key takeaways

• Ensure that your reasons for dismissal are entirely fair -be aware that some reasons for dismissal are automatically classed as unfair, such every bit reasons relating to pregnancy or parental leave.
• Make certain you lot follow a fair disciplinary procedure,conveying out a thorough investigation.
• Take detailed notesand brand sure  you lot follow upwardly meetings in writing.
• Treat all employees consistently
  

Santander anti-fraud worker jailed for customer fraud

A member of Santander's anti-fraud team was jailed for selling customers' details in a £90,000 scam.

Bilal Abbas sold the data to Umair Memon, who then used it to purchase luxury goods by telephone under a imitation name. The transactions would be flagged as fraudulent and cancelled several days later leaving businesses 'out of pocket', Northumbria Police force said.

Detective Constable Patrick Naughten said information technology was a 'large-calibration scam' and that Abbas 'abused a position of trust'.

He said: "It became articulate they had been living the high life at the expense of their victims and showed no remorse for those businesses they had left out of pocket."

COVID-xix phishing scam spoofs NHS vaccine e-mail

Security experts are warning of a new COVID-nineteen vaccine phishing scam, this time using NHS-branded emails to trick users into handing over their personal and financial details.

This scam informs recipients they accept been selected for a jab based on family unit and medical history, using the trusted brand of the Health Service and the promise of protection from the deadly virus to socially engineer victims.

Information including name, date of birth and credit bill of fare details handed over by any unsuspecting recipients tin then exist sold on the nighttime spider web and/or used in follow-on fraud, co-ordinate to Mimecast.

Mimecast'southward Head of e-crime, Carl Wearn, states that the pandemic is forcing organized offense groups to discover new ways to brand money.

'The bulk of online scams rely on some form of human error, as it is far easier to compromise a unmarried user than a whole system. Threat actors know this well and are continuing to exploit the human factor by tailoring scams to target current events and the fears of their victims', he added.

Primal takeaways

• Be enlightened of the signs of phishingand practise not open malicious emails.
• Do not select links or open documents,even from known sources, if you lot suspect  message might exist a phishing scam.
• Report whatever malicious emailsto an IT ambassador.

Ballsy Games EU competition complaint against Apple

Epic Games has filed an Eu antitrust complaint against Apple tree, ratcheting up its battle with the tech behemothic over app store payments.

The two companies take been locked in a dispute since August, when Epic launched its ain in-app payment system in a bid to sidestep Apple'due south 30 per cent commission on some in-app purchases.

The movement prompted the iPhone maker to kick Epic'south Fortnite game off the app store and pull the visitor'south developer licence.

In the complaint filed today, Epic accused Apple of setting upward a "serial of carefully designed anti-competitive restrictions", adding that the tech behemothic had "non simply harmed only completely eliminated competition in app distribution and payment processes".

Key takeaways

• Don't talk over or enter agreements  with competitorsregarding prices, production volumes, intended bids, or agree to share markets or customers.
• Don't place price, territorial or online sales restrictionson suppliers or distributors.
• Never act in a way that restricts contest in any marketwhere your company has a dominant position.
• Never hash out commercially-sensitive data, such as future pricing plans and promotions with competitors or suppliers, or discuss RRPs with retailers.
• Report any suspicion or violation of competition law to the appropriate authorities immediately.
  

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Source: https://www.skillcast.com/blog/compliance-news-february-2021

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