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civil penalty

An Australian estate agent / property developer Rick Otton and a company of which he was a sole director, told people how they could make money by buying and selling houses. We Buy Houses Limted and Otton have just been ordered to pay a whopping AUD18 million for telling porkies.

CoNet Section: 

Australian Securities and Investments Commission (ASIC) has announced that in an agreed settlement before the Federal Court, Australian financial services group Westpac will pay a civil penalty of AUD35 million after admitting breaches of Australia's responsible lending rules. The door-of-the-court settlement avoids a lengthy trial that should have started yesterday.

*** Update: see Westpac's new best friend? Australian Federal Court rejects settlement with regulator ***

BIScom Subsection: 

The UK's Information Commissioner's Office has ordered Facebook to pay a penalty (it's not a fine because there has been no criminal prosecution and only the Crown, via the Criminal Courts, can levy fines) of GBP500,000. The amount will not trouble Facebook - it's less than the annual tax the company doesn't pay the UK as a result of its cross-border arrangements. But the principle should send shock waves through the raft of American companies that operate in Europe and think they can do as they please. Four letters are at the heart of the grenade that the ICO just sent across the pond: GDPR. The next fine will hurt - and it will hurt over and over again.

CoNet Section: 

The cost of compliance and risk management in financial institutions is an eternal bone of contention. US regulators The Financial Crimes Enforcement Network (FinCEN) and The Office of the Comptroller of the Currency together with the criminal prosecutors at The U.S. Department of Justice have agreed a USD185 million civil money penalty against US Bank National Association, in essence for failing to apply sufficient resources to its counter-money laundering policies and systems.

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One would think that when the New York Department of Financial Services, known for massive penalties against foreign, especially European banks, to say nothing of "perp walks" and heavy handed and highly prejudicial media statements, announces a penalty of USD60 million that it's for lightweight failures. Nothing could be further from the truth and the reality demonstrates why negotiated settlements are nearer to bribes than to justice, says Nigel Morris-Cotterill.

"This case is a good example of how disregarding reporting and compliance can turn into a crime" : New Jersey District Attorney's Office. But still the USA fails, even in the most blatant cases, to prosecute a bank for money laundering.

hahagotcha