First Sentier Investors (Us) Llc

Allegations: FOLLOWING AFFILIATE MUFG BANK'S CONVERSION OF ITS STATE BANKING LICENSES ISSUED BY THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ("DFS") TO FEDERAL BANKING LICENSES ISSUED BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY IN NOVEMBER 2017, DFS ISSUED AN ORDER ASSERTING CONTINUING REGULATORY AUTHORITY OVER THE BANK. MUFG BANK THUS FILED THE LAWSUIT SEEKING A DECLARATION THAT DFS DID NOT HAVE CONTINUING AUTHORITY OVER IT. IN RESPONSE, DFS FILED COUNTERCLAIMS AGAINST MUFG BANK UNDER BANKING AND RELATED LAWS. Status: Final Summary: ON JUNE 24, 2019, MUFG BANK REACHED A SETTLEMENT WITH DFS TO RESOLVE ITS CIVIL LITIGATION AGAINST THE DFS IN U.S. DISTRICT COURT, WHICH WAS ORIGINALLY FILED IN NOVEMBER 2017. DETAILS REGARDING MUFG BANK'S COMPLAINT, DFS'S COUNTERCLAIM, AND THE SETTLEMENT ARE INCLUDED ABOVE.

Allegations: ON MAY 16, 2019, THE EUROPEAN COMMISSION (THE "COMMISSION") IN A SETTLEMENT DECISION FINED AFFILIATE MUFG BANK LTD. ("MUFG BANK") ALONG WITH SEVERAL OTHER BANKS FOR VIOLATING EUROPEAN UNION ANTITRUST RULES IN CONNECTION WITH TRADING IN THE SPOT FOREIGN EXCHANGE MARKET FOR 11 CURRENCIES. THE COMMISSION'S INVESTIGATION FOUND THAT INDIVIDUAL TRADERS INVOLVED IN THE FOREX SPOT TRADING OF THE CURRENCIES, WHICH INCLUDED ONE FORMER MUFG BANK TRADER WHO WAS BASED IN LONDON, HAD EXCHANGED SENSITIVE INFORMATION AND TRADING PLANS AND OCCASIONALLY COORDINATED TRADING STRATEGIES THROUGH VARIOUS ONLINE PROFESSIONAL CHATROOMS. THE PERIOD OF INFRINGEMENT WAS SEPTEMBER 2010 TO SEPTEMBER 2011 FOR MUFG BANK. Status: Final Sanction Detail: THE TOTAL FINE ISSUED BY THE EUROPEAN COMMISSION AGAINST THE BANKS WAS EUR 1.07 BILLION. THE PORTION REQUIRED TO BE PAID BY MUFG BANK LTD. WAS EUR 69,750,000 (APPROXIMATELY $77.865 MILLION). Summary: ON MAY 16, 2019, THE EUROPEAN COMMISSION (THE "COMMISSION") IN A SETTLEMENT DECISION FINED AFFILIATE MUFG BANK LTD. ("MUFG BANK") ALONG WITH SEVERAL OTHER BANKS FOR VIOLATING EUROPEAN UNION ANTITRUST RULES IN CONNECTION WITH TRADING IN THE SPOT FOREIGN EXCHANGE MARKET FOR 11 CURRENCIES. THE COMMISSION'S INVESTIGATION FOUND THAT INDIVIDUAL TRADERS INVOLVED IN THE FOREX SPOT TRADING OF THE CURRENCIES, WHICH INCLUDED ONE FORMER MUFG BANK TRADER WHO WAS BASED IN LONDON, HAD EXCHANGED SENSITIVE INFORMATION AND TRADING PLANS AND OCCASIONALLY COORDINATED TRADING STRATEGIES THROUGH VARIOUS ONLINE PROFESSIONAL CHATROOMS. THE PERIOD OF INFRINGEMENT WAS SEPTEMBER 2010 TO SEPTEMBER 2011 FOR MUFG BANK. THE TOTAL FINE ISSUED BY THE EUROPEAN COMMISSION AGAINST THE BANKS WAS EUR 1.07 BILLION. THE PORTION REQUIRED TO BE PAID BY MUFG BANK LTD. WAS EUR 69,750,000 (APPROXIMATELY $77.865 MILLION).

Allegations: ON JUNE 6, 2019, SWITZERLAND'S COMPETITION COMMISSION (THE "COMPETITION COMMISSION") CONCLUDED AMICABLE SETTLEMENTS WITH SEVERAL BANKS, INCLUDING AFFILIATE MUFG BANK LTD. ("MUFG BANK"), AND FINED THE BANKS FOR PARTICIPATING IN ANTI-COMPETITIVE ARRANGEMENTS IN FOREIGN EXCHANGE SPOT TRADING. THE COMPETITION COMMISSION FOUND THAT TRADERS FROM THE BANKS, WHICH INCLUDED ONE FORMER MUFG BANK TRADER WHO WAS BASED IN LONDON, PARTIALLY COORDINATED THEIR CONDUCT IN FOREIGN EXCHANGE SPOT MARKETS FOR SEVERAL G10 CURRENCIES THROUGH THE USE OF CHATROOMS. THE RELEVANT PERIOD FOR MUFG BANK WAS SEPTEMBER 2010 TO SEPTEMBER 2011. THIS RELATES TO THE SAME ISSUE FOR WHICH MUFG BANK WAS RECENTLY FINED BY THE EUROPEAN COMMISSION IN LATE MAY 2019. Status: Final Sanction Detail: THE TOTAL FINE ISSUED BY SWITZERLAND'S COMPETITION COMMISSION AGAINST THE BANKS WAS APPROXIMATELY CHF 90 MILLION, AND THE PORTION REQUIRED TO BE PAID BY MUFG BANK WAS APPROXIMATELY CHF 1.5 MILLION. Summary: THE TOTAL FINE ISSUED BY SWITZERLAND'S COMPETITION COMMISSION AGAINST THE BANKS WAS APPROXIMATELY CHF 90 MILLION, AND THE PORTION REQUIRED TO BE PAID BY MUFG BANK WAS APPROXIMATELY CHF 1.5 MILLION.

Allegations: THE OCC ISSUED ON FEBRUARY 22, 2019 A CEASE AND DESIST ORDER AGAINST THE NEW YORK (PRIMARY), CHICAGO, AND LOS ANGELES FEDERAL BRANCHES OF THE FIRM'S AFFILIATE, MUFG BANK, LTD., TOKYO, JAPAN, FOR VIOLATING THE BANK SECRECY ACT (BSA) AND ITS UNDERLYING REGULATIONS. THE OCC FOUND THE BRANCHES' BSA COMPLIANCE PROGRAM HAD DEFICIENCIES, DATING BACK TO JUNE 2016, IN THE BRANCHES' INTERNAL CONTROLS, SUSPICIOUS ACTIVITY MONITORING, FOREIGN CORRESPONDENT DUE DILIGENCE PROGRAM, TRADE FINANCE MONITORING, INDEPENDENT AUDIT, AND BSA OFFICER STAFFING FUNCTIONS. THESE FINDINGS CITED VIOLATION OF THE STATUTORY AND REGULATORY REQUIREMENTS TO MAINTAIN AN ADEQUATE BSA COMPLIANCE PROGRAM, FILE SUSPICIOUS ACTIVITY REPORTS, AND CONDUCT APPROPRIATE DUE DILIGENCE ON FOREIGN CORRESPONDENT ACCOUNTS. THE ORDER REQUIRES THE BRANCHES TO TAKE COMPREHENSIVE CORRECTIVE ACTIONS TO IMPROVE THEIR BSA/AML COMPLIANCE PROGRAM. THE BRANCHES CONTINUE TO OPERATE UNDER AN OCC CONSENT ORDER, ISSUED IN NOVEMBER 2017, REQUIRING CORRECTIVE ACTIONS TO IMPROVE THEIR OFAC COMPLIANCE PROGRAM AND HAVE BEGUN CORRECTIVE ACTIONS AND ARE COMMITTED TO REMEDYING THE DEFICIENCIES IDENTIFIED BY THE OCC AND ENHANCING THEIR BSA/AML COMPLIANCE PROGRAM. Status: Final Sanction Detail: THE OCC ISSUED THE ABOVE-REFERENCED CEASE AND DESIST ORDER AGAINST THE NEW YORK, CHICAGO, AND LOS ANGELES BRANCHES OF MUFG BANK, LTD. Summary: THE OCC ISSUED ON FEBRUARY 22, 2019 A CEASE AND DESIST ORDER AGAINST THE NEW YORK (PRIMARY), CHICAGO, AND LOS ANGELES FEDERAL BRANCHES OF THE FIRM'S AFFILIATE, MUFG BANK, LTD., TOKYO, JAPAN, FOR VIOLATING THE BANK SECRECY ACT (BSA) AND ITS UNDERLYING REGULATIONS. THE OCC FOUND THE BRANCHES' BSA COMPLIANCE PROGRAM HAD DEFICIENCIES, DATING BACK TO JUNE 2016, IN THE BRANCHES' INTERNAL CONTROLS, SUSPICIOUS ACTIVITY MONITORING, FOREIGN CORRESPONDENT DUE DILIGENCE PROGRAM, TRADE FINANCE MONITORING, INDEPENDENT AUDIT, AND BSA OFFICER STAFFING FUNCTIONS. THESE FINDINGS CITED VIOLATION OF THE STATUTORY AND REGULATORY REQUIREMENTS TO MAINTAIN AN ADEQUATE BSA COMPLIANCE PROGRAM, FILE SUSPICIOUS ACTIVITY REPORTS, AND CONDUCT APPROPRIATE DUE DILIGENCE ON FOREIGN CORRESPONDENT ACCOUNTS. THE ORDER REQUIRES THE BRANCHES TO TAKE COMPREHENSIVE CORRECTIVE ACTIONS TO IMPROVE THEIR BSA/AML COMPLIANCE PROGRAM. THE BRANCHES CONTINUE TO OPERATE UNDER AN OCC CONSENT ORDER, ISSUED IN NOVEMBER 2017, REQUIRING CORRECTIVE ACTIONS TO IMPROVE THEIR OFAC COMPLIANCE PROGRAM AND HAVE BEGUN CORRECTIVE ACTIONS AND ARE COMMITTED TO REMEDYING THE DEFICIENCIES IDENTIFIED BY THE OCC AND ENHANCING THEIR BSA/AML COMPLIANCE PROGRAM.

Allegations: THE PRUDENTIAL REGULATION AUTHORITY ("PRA") IMPOSED A FINE OF 17.85M POUNDS ON MUFG AND A FINE OF 8.925M POUNDS ON MUFG SECURITIES EMEA PLC FOR FAILING TO BE OPEN AND COOPERATIVE WITH THE PRA IN RELATION TO AN ENFORCEMENT ACTION ON MUFG BY THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES. Status: Final Sanction Detail: THE PRUDENTIAL REGULATION AUTHORITY ("PRA") IMPOSED A FINE OF 17.85M POUNDS ON MUFG AND A FINE OF 8.925M POUNDS ON MUFG SECURITIES EMEA PLC FOR FAILING TO BE OPEN AND COOPERATIVE WITH THE PRA IN RELATION TO AN ENFORCEMENT ACTION ON MUFG BY THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES. Summary: THE PRUDENTIAL REGULATION AUTHORITY ("PRA") IMPOSED A FINE OF 17.85M POUNDS ON MUFG AND A FINE OF 8.925M POUNDS ON MUFG SECURITIES EMEA PLC FOR FAILING TO BE OPEN AND COOPERATIVE WITH THE PRA IN RELATION TO AN ENFORCEMENT ACTION ON MUFG BY THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES.

Allegations: MUFG WRONGFULLY MISLED THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES (DFS) IN CONNECTION WITH ITS UNDERSTANDING OF MUFG'S U.S. DOLLAR CLEARING SERVICES ON BEHALF OF SANCTIONED SUNDANESE, IRANIAN AND BURMESE PARTIES. UNDER THE TERMS OF THE AGREEMENT WITH DFS, MUFG HAS MADE A PAYMENT OF US$315 MILLION TO DFS. AFTER THOSE CONSENT ORDERS, MUFG TOOK ACTIONS AGAINST PERSONS INVOLVED IN THE MATTER AT THAT TIME AND RELOCATED ITS U.S. BSA/AML AND OFAC SANCTIONS COMPLIANCE PROGRAMS TO NEW YORK. IN ADDITION, DFS DESIGNATED A THIRD PARTY ORGANIZATION TO CONDUCT A COMPREHENSIVE REVIEW OF MUFG'S BSA/AML RELATED COMPLIANCE PROGRAMS, POLICIES, AND PROCEDURES AND TO IMPLEMENT CORRECTIVE MEASURES TO ADDRESS ANY FLAWS, WEAKNESSES, OR DEFICIENCIES AS THEY ARE IDENTIFIED. UPON MUFG'S CONVERSION TO OCC REGULATION ON NOVEMBER 7, 2017, THE DFS CONSENT ORDERS WERE REPLACED BY A NEW OCC CONSENT ORDER, WHICH REQUIRED MUFG TO DELIVER RELATED ACTION PLANS AND REPORTS TO THE OCC SUCH THAT THE OCC COULD REGULATE THE MATTER ON A GOING-FORWARD BASIS. Status: Final Sanction Detail: MUFG WILL MAKE FULL PAYMENT OF A CIVIL MONETARY PENALTY OF $315,000,000 WITHIN 10 BUSINESS DAYS OF THE CONSENT ORDER. Summary: MUFG WRONGFULLY MISLED THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES (DFS) IN CONNECTION WITH ITS UNDERSTANDING OF MUFG'S U.S. DOLLAR CLEARING SERVICES ON BEHALF OF SANCTIONED SUNDANESE, IRANIAN AND BURMESE PARTIES. UNDER THE TERMS OF THE AGREEMENT WITH DFS, MUFG HAS MADE A PAYMENT OF US$315 MILLION TO DFS. AFTER THOSE CONSENT ORDERS, MUFG TOOK ACTIONS AGAINST PERSONS INVOLVED IN THE MATTER AT THAT TIME AND RELOCATED ITS U.S. BSA/AML AND OFAC SANCTIONS COMPLIANCE PROGRAMS TO NEW YORK. IN ADDITION, DFS DESIGNATED A THIRD PARTY ORGANIZATION TO CONDUCT A COMPREHENSIVE REVIEW OF MUFG'S BSA/AML RELATED COMPLIANCE PROGRAMS, POLICIES, AND PROCEDURES AND TO IMPLEMENT CORRECTIVE MEASURES TO ADDRESS ANY FLAWS, WEAKNESSES, OR DEFICIENCIES AS THEY ARE IDENTIFIED. UPON MUFG'S CONVERSION TO OCC REGULATION ON NOVEMBER 7, 2017, THE DFS CONSENT ORDERS WERE REPLACED BY A NEW OCC CONSENT ORDER, WHICH REQUIRED MUFG TO DELIVER RELATED ACTION PLANS AND REPORTS TO THE OCC SUCH THAT THE OCC COULD REGULATE THE MATTER ON A GOING-FORWARD BASIS.

Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS OR CONCLUSIONS IN THE ORDER, MUFG CONSENTED TO THE ENTRY OF THE ORDER WHICH FOUND THAT FROM AT LEAST JULY 2009 TO DECEMBER 2014, MUFG, BY AND THROUGH ONE OF ITS TRADERS LOCATED IN JAPAN, ENGAGED IN THE DISRUPTIVE TRADING PRACTICE OF "SPOOFING" VARIOUS FUTURES PRODUCTS TRADED ON DESIGNATED CONTRACT MARKETS IN THE UNITED STATES IN VIOLATION OF CEA SECTION 4C(A)(5) Status: Final Sanction Detail: FINED $600,000 AND ORDERED TO CEASE AND DESIST FROM VIOLATING THE COMMODITY EXCHANGE ACT'S PROHIBITION AGAINST SPOOFING. Summary: FINED $600,000 AND ORDERED TO CEASE AND DESIST FROM VIOLATING THE COMMODITY EXCHANGE ACT'S PROHIBITION AGAINST SPOOFING.