The week in news - August 3
The United Kingdom’s Financial Conduct Authority (FCA) has recently announced that it will require financial institutions to produce an annual financial crime report. With the first documents expected to be submitted by March of next year, reports suggest that this new regulation will impact 1,400 firms in the territory, as all firms with revenue greater than £4 million will be required to file a report. It is hoped that the consistent acquisition of information will help to identify trends and risks related to financial crime.
The South Korean government has fined Volkswagen $16 million for falsifying documents relating to emissions and noise testing. The German car manufacturer has now been banned from selling 80 models, with the sanctions imposed by the country’s Ministry of Environment.
The on-going saga between Herbalife and known activist shorter Bill Ackman continues. Having recently agreed to a $200 million settlement with the Federal Trade Commission (FTC), Herbalife is now also obligated to restructure their business. The nutritional supplements business has come under public scrutiny in recent years following allegations it has been operating as a pyramid scheme, though shares continue to rise following the FTC’s decision to allow them to stay in business.
Shiwei Yan has been jailed for 20 months after being found guilty of paying more than $800,000 in bribes to the former UNGA President John Ashe. Yan has been charged with making payments to Ashe in an attempt to facilitate private business relationships between China and Antigua. Ashe was himself indicted in October of last year, but passed away in June of this year, while awaiting trial.
The merger between Uber and Didi Chuxing in China has come under fire following a statement by China’s Ministry of Commerce (MOFCOM) that the two firms did not apply for approval from the regulator. In a report by Reuters, the two largest players in the market have sparked concerns of an impending monopoly, though whether technical approval is required has been the subject of recent debate, as neither company are currently turning a profit.