Tag: Financial crime

Regulatory Watch News

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  Federal Reserve Board announces it has fined EagleBank $9.5 million for violation of the Board’s insider lending regulation and has permanently barred its former CEO and chairman from the banking industry

  Federal Reserve Board

  August 17, 2022

  The Federal Reserve Board on Tuesday announced that it has fined EagleBank, of Bethesda, Maryland, $9.5 million for violation of the Board's insider lending regulation. The bank improperly extended credit to entities owned or controlled by its then-CEO and Chairman, Ronald D. Paul. The Board found that EagleBank had deficient internal controls over insider lending practices between 2015 and 2018, which allowed the bank to extend credit totaling nearly $100 million to entities that Paul owned or controlled, including certain family trusts, without making appropriate disclosures to, or obtaining required approvals from, a majority of the bank's board of directors. These internal control deficiencies also extended to the bank's supervision of lending staff, who permitted Paul to participate in matters in which he had a conflict of interest. The Board also cited EagleBank for third-party risk management deficiencies over the same period that resulted in inadequate oversight of contracts between the bank and a local government official.

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  FCMC issues the first EU-wide authorisation to provide crowdfunding services in Latvia to SIA CrowdedHero Latvia

  FCMC

  August 17, 2022

  On 16 August, the Board of the Financial and Capital Market Commission (FCMC) adopted a decision to issue the first authorisation to provide crowdfunding services in Latvia to SIA CrowdedHero Latvia in accordance with Regulation (EU) 2020/1503. The FCMC is one of the first supervisory authorities to issue such authorisation to provide crowdfunding services.

  The commercial activities of SIA CrowdedHero Latvia aim to provide crowdfunding services to invest in equity-based projects. The plans to attract investment concern start-ups and mature companies, as well as small and medium-sized enterprises with an existing cash flow matching the business model established by SIA CrowdedHero Latvia.

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  FINTRAC imposes an administrative monetary penalty on Cheetah Consulting Ltd.

  Fintrac

  August 17, 2022

  FINTRAC announced today that it has imposed an administrative monetary penalty on Cheetah Consulting Ltd. This money services business in Richmond, British Columbia, was imposed an administrative monetary penalty of $33,000 on July 20, 2022, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations.