Sanctions enforcement continues to be a significant risk. With the focus on unraveling elaborate corporate ownership schemes, the risk of conducting business with sanctioned individuals or entities is increasing. The Treasury Department’s Office of Foreign Asset Control has increased expectations regarding corporate compliance programs. In addition, OFAC encourages voluntary disclosures when violations occur, and has set out an elaborate scheme regarding transparency. On the criminal...

While reading the independent directors’ report on the Wells Fargo sales incentives scandal, you will be overwhelmed by the feeling of frustration. At the same time, what is described in the report is the extent to which every control function came up against the problem staring them in the face – Wells Fargo’s sales incentive program was out of control. Notwithstanding the 20-20 hindsight pictured...

I am pleased to announce the release by Corporate Compliance Insights of my new e-book: Moving the Goalposts: The Justice Department Redefines Effective Compliance.  You can download the book here. Many thanks to the Corporate Compliance Insights Team — Maurice Gilbert, Emily Ellis and Sarah Hadden.  They are an incredible team to work with and it is always a pleasure to partner with Corporate Compliance...

In a scathing report (available here), the independent directors at Wells Fargo released their findings and actions based on a comprehensive internal investigation of Wells Fargo’s sales abuses. Based on its findings, Wells Fargo’s independent board took steps to clawback an additional $75 million from former CEO Stumpf and head of Community Banking Carrie Tolstedt for sales abuses resulting from the sales incentives program. The...

The more you learn about Wells Fargo’s culture problems, the more difficult the problems become. But you have to start somewhere, and assuming that Wells Fargo really is committed to addressing the serious problems they face, this will take a long time and a lot of work. Wells Fargo is really at the early stages of a massive remediation project. The board has essentially taken...

Earlier this year, in January 2017, Western Union entered into a Deferred Prosecution Agreement with the Justice Department and the FTC, and agreed to pay $586 in forfeiture to settle anti-money laundering and consumer fraud violations. At the same time, Western Union agreed to pay $184 million in civil monetary penalties for AML violations. The Western Union prosecution sends an important reminder to financial institutions,...

I am pleased to announce with our sponsor, Workplace Answers, the release of a new white paper, Online Compliance Training: Making the Right Choice.  You can download the white paper here. My white paper analyzes the steps that companies should take to maximize the benefits of online training programs as an important part of a company’s overall training and communications program. In this white paper,...

We all understand that issues are not black and white, meaning there are areas of gray when analysis and cost-benefits need to be weighed. Lawyers are regularly identifying legal risks and applying such risks to specific courses of action. Depending on the countervailing considerations, lawyers can recommend moving forward in the face of a specific risk. Much has been written (including on this blog) about...

The problem of human trafficking and smuggling is staggering when you consider the human impact behind the numbers. Human trafficking is a $30 billion industry annually. There are more people in slavery today than at any time in history. One in five victims of human trafficking are children, while in certain regions of Africa and Asia, they comprise a majority of trafficked persons. Women constitute...

Law enforcement focus on anti-money laundering appears to be increasing. While the last ten years has seen a marked increase in AML regulatory obligations, the new administration is likely to return to some of the more “traditional” AML enforcement programs, such as terrorist financing, organized and transnational money laundering, tax evasion and other areas. The regulatory focus of enforcement will continue on beneficial ownership, shell...