In a recent decision, Securities and Exchange Commission v. Jarkesy, the Supreme Court voted 6-3 to reject the Securities and Exchange Commission’s use of in-house administrative proceedings to adjudicate securities fraud claims. The Supreme Court specifically ruled that the defendant in a securities fraud case has a Seventh Amendment right to a jury trial when the SEC seeks civil penalties against the defendant. The Seventh...
LRN has issued another important report — in its latest report, The 2024 Benchmark of Ethical Culture Report, LRN has focused on the critical issue of corporate culture. LRN is a pacesetter and the leader in reliable studies on complex ethics and compliance issues. If not properly promoted or maintained, a defective culture can lead to serious misconduct, government investigation, reputational damage and collateral harm. ...
OFAC has been busy and not so busy — what do I mean? OFAC is administering a complex set of coordinated sanctions against Russia, in close coordination with the EU and the UK. This is not a simple matter. In addition to this close coordinating responsibility, the United States and its allies are expanding the reach and bite of the sanctions to restrict Russia and...
Diligent recently released an important report — Cybersecurity, audit, and the board: How does board oversight impact cybersecurity performance? Diligent’s Report includes several key findings on the importance of Board oversight and its importance to cybersecurity performance. Dottie Schindlinger, Executive Director of Diligent Institute, the global corporate governance research arm of Diligent – joins us to discuss the report and its key findings. https://audio-delivery.cohostpodcasting.com/audio/433377ff-16d7-421e-867c-0a97a76cc861/episodes/0848361f-ac8a-4bae-94c9-ce35daa4e211/episode.mp3
Checklists can be handy — by simplifying and focusing on specific issues, a checklist can organize thinking and prioritize tasks. Here are five (5) questions that are fairly simple but revealing as to whether a company’s Sanctions Compliance Program (“SCP”) is effective. This is not an exhaustive list but it is my top 5. Question 1 — Does the Company conduct annual sanctions compliance training...
The new compliance cottage industry surrounds artificial intelligence. We are at such an early stage of AI development — companies are still figuring out how they can employ the technology. Some industries, such as financial institutions, however, have been using AI for fraud detection and other issues. I expect financial institutions will set the tone for much of compliance practices around AI. There is no...
We all know what a “core” sanctions violation looks like. The heartland of such misconduct has been described on numerous occasions in OFAC enforcement actions and settlements. In this environment, however, companies have to be aware of conduct that may still violate the law but is not necessarily in the “heartland” of misconduct. DOJ, OFAC and BIS are well aware of the broad reach of...
In this new era of aggressive sanctions enforcement, companies have to understand the red lines that define where criminal and civil enforcement risk increase. In contrast to the history of FCPA enforcement, DOJ and OFAC have provided helpful guidance to alert companies where risks are likely to increase. Sanctions enforcement involves an off mix of civil and criminal line drawing. On the civil side, OFAC...
LRN’s research consistently paints a picture that every board member, senior executive and middle manager should view — corporate culture is an organization’s most valuable intangible asset and is a significant determinant of success in the marketplace. Corporate leaders know how to mouth the words to express their commitment to ethical values, principles and culture. The disconnect between words and action is easy to spot...
With the beginning of the era of the “New FCPA,” as coined by DOJ’s Deputy Attorney General Lisa Monaco, we now need to focus on third-party risk and sanctions enforcement. The law, the practice and the risks are important and not just the same as FCPA legal requirements. As we embark on a new criminal enforcement era surrounding sanctions violations, companies have to address this...
