CUBE RegNews:
July 24th
US Treasury issues EU–US joint statement
EU and US financial regulators met in Brussels on June 27-28 to discuss a range of key issues, including the implementation of Basel III reforms, resolution frameworks, AML/CFT, sustainable finance, capital markets, operational resilience and digital finance.
Participants from both sides reaffirmed the importance of close cooperation and regular communication on regulatory and supervisory issues of mutual concern. They agreed that such cooperation is necessary to support financial stability, investor protection, market integrity, and a level playing field.
The forum also discussed the recent events in the banking sector and the associated market reactions. Participants highlighted the importance of strong bank prudential standards, resolution frameworks, and robust supervision practices in monitoring vulnerabilities and enhancing the resilience of the financial system.
The next EU-US Joint Financial Regulatory Forum is scheduled to take place in 2024.
FinCEN reminder on beneficial ownership
The Financial Crimes Enforcement Network (FinCEN) has published a reminder regarding the implementation of the Corporate Transparency Act (CTA) which establishes uniform beneficial ownership information reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States.
The beneficial ownership information reporting requirements of the CTA was issued in September 2022.The rule is intended to strengthen the integrity of the US financial system by making it harder for illicit actors to use shell companies to launder their money or hide assets.
The new regulations come into effect on 1st January 2024.
Crypto CEO jailed for nine years
Eddy Alexandre, the person behind the cryptocurrency and forex trading platform known as EminiFX, has been sentenced to nine years in prison by a US District Judge.
Alexandre defrauded 25,000 investors on the EminiFX platform, manipulating them out of more than $248 million. The scheme involved fabricating false weekly investment returns of 5% and luring victims with promises of doubling their money within five months through a supposed “Robo-Advisor Assisted account” using undisclosed cutting-edge technology.
According to the allegations in the Indictment and other court filings, Alexandre ran EminiFX from September 2021 to May 2022, promoting it as a passive income investment platform for cryptocurrencies and forex trading. However, behind the facade of guaranteed returns, he misappropriated vast sums of investors’ money, failing to invest as promised and sustaining significant losses that were kept hidden from his victims.
The investigation revealed that Alexandre diverted approximately $14.7 million of investor funds to his personal bank account, using some of it to purchase luxury items.
In addition to the prison term, Alexandre has been ordered to pay a total forfeiture of $248,829,276.73 and restitution amounting to $213,639,133.53, ensuring some restitution for the victims impacted by his fraudulent activities.
BoE publishes latest minutes
The Bank of England has published latest minutes from May 25th 2023.
The minutes include updates from the Enforcement Decision Making Committee and Audit and Risk Committee.
CUBE RegNews:
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