November 2, 2023

Royal Bank of Canada has agreed to pay a $6 million civil penalty to the SEC to settle charges of violating the internal accounting controls and books and records provisions of the Securities Exchange Act.  Between 2008 and 2020, the firm failed to properly account for the costs of internally developed software.  Because it was unable to differentiate between capitalizable and noncapitalizable costs, the bank applied a single capitalization rate year after year without sufficient basis.  SEC

Tagged in: Accounting Fraud, Financial Institution Fraud,