Global Financial Insights is a weekly feature for the users wherein we aim to provide the latest updates on financial reporting, and auditing practices from across the globe. This week we have covered updates of International Financial Reporting Standard (IFRS), and Security and Exchange Commission (SEC).
1. International Finance Corporation joins hands with IFRS Foundation to improve sustainability reporting in emerging markets
The International Finance Corporation (IFC) and IFRS Foundation have signed a Memorandum of Understanding agreeing their strategic partnership to strengthen sustainable capital markets by improving sustainability and climate reporting in emerging markets and developing economies.
The IFRS Foundation considers sustainability and climate reporting as pivotal and hence has issued two inaugural standards in June 2023. IFRS has partnered with IFC with an objective to maintain global consistency and comparability of sustainability-related financial disclosures for capital markets. Further, this partnership focuses on implementing programmes to promote and build capacity for the consistent application of the IFRS Sustainability Disclosure Standards across emerging markets and developing economics. These global organization shall jointly develop toolkits and research publications and also conduct training programmes to encourage sustainability reporting.
Source: IFRS Foundation
2. Failure to furnish adequate information led Finance Capital Company to civil penalty of 50 million US dollar
The Securities and Exchange Commission (SEC) has charged a finance capital company engaged in crypto-currencies for misleading the investors about the compliance of Bank Secrecy Act and Anti-Money Laundering Act. Further, the company has also been charged for not providing adequate information related to company’s losses to its investors.
Despite of having flawed compliance program, the management of the company stated to its investor that the company has an effective compliance program and they has duly complied with all the requirements of Bank Secrecy Act and Anti-Money Laundering Act. SEC believes that the public company and its officers should be truthful to its investors. The company’s failure to communicate the deficiencies eventually wiped out billion in market value for investors.
Further, the company also provides exchange platform to the customer for buying and selling cryptocurrencies. The company has also been alleged for not monitoring automated transaction system and thereby failing to monitor $1 trillion of transactions of its customers on its payments platform.
Considering the severity of non-compliance by company, the SEC has failed a compliant against the company in the district court of New York. Now, after completion of trial, the court has imposed civil penalty of $ 50 million against the company.
Source: Security and Exchange Commission
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