Financial institutions face an important deadline – May 11, 2018 is the effective date for the new customer due diligence regulations governing beneficial ownership requirements. FinCEN provided financial institutions nearly two years to prepare for the implementation date. FinCEN issued comprehensive guidance on the new regulations and has sought to clarify as many issues as possible. (See HERE for Copy). There is no question that...
With all the recent hoopla and commentary on the Michael Cohen criminal investigation and the execution of search warrants against Cohen, it is important to focus on what is true, what is exaggerated and what is outright false. My related podcast on the Cohen Criminal Investigation and Search Warrants is Here. First, it is not unusual to execute a search warrant at an attorney’s office...
The Supreme Court ruled in a criminal tax case, Marinello v. United States, that a criminal tax obstruction of justice was overly broad. In a 7-2 decision, the Supreme Court ruled that the Government must prove that the defendant was aware of a pending tax-related proceeding, such as an investigation or audit, or could reasonably foresee that such a proceeding would commence. The Supreme Court’s...
On April 6, 2018, OFAC announced a new round of sanctions against Russian individuals and companies. (For Press Release Here; new FAQs Here; and new General Licenses 12 Here and 13 Here). Relying on its authority under existing executive orders, OFAC designated seven Russian oligarchs and 12 companies they own or control, 17 senior Russian government officials and a state-owned weapons trading company, and its...
These are inspiring times for the compliance profession. Looking back on the last ten years, it is amazing to observe the growth and influence of the compliance profession. Many of the original advocates for the compliance profession must be impressed. Corporate leaders are now embracing a new mantra – ethics and compliance. Business ethics is a new focus and language all to itself. At the...
A compliance program is an interdependent function that gains exponentially from coordination and cooperation with key functions. CCOs have to be politicians and they have to develop effective interpersonal skills. Without an ability to connect with other individuals in a company, a compliance program will suffer some real and substantial difficulties. Compliance officers have to develop a target list of coordinators and cooperators. A CCO...
A new episode of Everything Compliance has been posted. Please join Tom Fox, Matt Kelly, Jonathan Armstrong, Jay Rosen and myself. Here is a link to the episode.
Compliance is a dynamic subject and a profession that “never sits still.” Compliance professionals are always developing new ideas, strategies and approaches to solve problems, and increase efficiency and effectiveness. It is a fast-growing profession that is quickly gaining greater acceptance as a critical member of the corporate governance team. As compliance gains a greater foothold, compliance professionals hopefully will gain access to increased resources. ...
When you read and learn about cryptocurrencies (e.g. Bitcoin, Ripple, Ethereum), there are some commentators, politicians and others who characterize cryptocurrencies as a “Ponzi” scheme. Some countries have banned cryptocurrencies. The issue of cryptocurrencies, like many other issues, is nuanced, and not so dogmatic. As I like to say, there are benefits and there are risks. Let’s address a number of the risks and lay...
We continue to read headlines of whistleblowers receiving large, sometimes, multi-million-dollar awards after successful prosecutions of companies for a variety of criminal and civil offenses. From these headlines, we may be convinced that whistleblowers continue to grow in influence and achieving real results – the improvement of overall corporate performance. I hate to burst the proverbial bubble, but it is difficult to reach such a...
