Three news to start your week: September 4
Switzerland drafts new AML laws targeting lawyers, advisors and trusts
(AML Intelligence)
Switzerland announced on Wednesday that it has created new measures to close gaps in its money laundering laws. The action is taken in response to persistent criticism of the financial hub's feeble AFC system, led by AML Intelligence.
If the new regulations are approved, lawyers, accountants, and other business advisors who create holding companies, trusts, or broker real estate transactions will also be subject to reporting and due diligence requirements.
To combat money laundering through shell companies, the government also disclosed its intentions to establish a central registry to track who owns legal businesses. These plans were first announced in October.
UBS reports record-breaking $29 billion profit
(New York Times)
At the request of the Swiss government, UBS agreed to purchase its archrival Credit Suisse this spring for just over $3 billion. Analysts and investors felt that amount represented a significant discount. The recent financial results from UBS show just how good of a deal it was.
The bank announced its second quarter result on Thursday: a profit of $29 billion, the largest quarterly profit in its history.
However, the paper gain obscures the difficulties UBS is facing in completing the most significant bank merger since the financial crisis of 2008. During that process, a sizable section of its investment banking business will be closed, and part of its former competitor's domestic footprint will be absorbed.
Goldman Sachs to pay $5.5 million over audio recording failures during pandemic
(Wall Street Journal)
To resolve claims that it violated record-keeping regulations and an earlier settlement agreement by failing to maintain track of and preserve mobile phone conversations made by its traders during the start of the COVID-19 epidemic, Goldman Sachs agreed to pay roughly $5.5 million.
The Commodities Futures Trading Commission revealed the civil sanction on Tuesday, marking the most recent settlement against Goldman of inadequate record-keeping. A total of approximately $200 million was agreed to be paid by Goldman to the Securities and Exchange Commission and the CFTC in September.
This was due to the company's admission that its traders had violated record-keeping regulations by using prohibited messaging apps, like WhatsApp, to discuss business. The enforcement action has sparked debate concerning recurrent infractions and compliance with remote work.
