The Commerzbank bank case provides a chilling story of a systemic breakdown in compliance, and the far-reaching consequences of such a breakdown.  Even in the context of a systemic breakdown, there are valuable lessons to be learned. The first and most striking question is why did Commerzbank get a DPA at all?  BNP Paribas was forced to plead guilty and Commerzbank was given a DPA....

Sometimes a picture is very clear but legal words and concepts are proffered in an attempt to disguise and even deceive.  As set forth in the factual statements outlined by the government, and agreed to by Commerzbank, it is evident that Commerzbank had no  culture of ethics and compliance.  Instead, Commerzbank was committed, strategically and operationally, to circumventing and evading US sanctions and BSA/AML laws....

Global banks are caught in US prosecutor’s cross hairs.  Not only do they have to worry about basic AML compliance and enforcement, they now have major risks in sanctions compliance.  For some inexplicable reasons, global banks appear to have committed themselves to circumvent and evade US sanctions.  It is hard to justify how foreign banks reached this point but they are now paying dearly for...

I usually avoid predicting the future because I am often wrong.  But in this case I’m going to make an exception. Here is my 100 percent, sure-to-be true prediction: technology is going to change how compliance professionals do their jobs. I know this is not that risky of a prediction but I’m just getting started. Technology has changed the way business is done overall. Everyone...

Johnny Cash was a singer for the ages — little did we know one of his great songs — Walk the Line was meant for Chief Compliance Officers. Every CCO has (or should have) the authority to report directly to the board without informing senior management. In political parlance, this is the so-called “nuclear option.” The question is when does the CCO need to pull...

Sometimes the compliance industry makes things harder than they really need to be. As a result, Chief Compliance Officers are left to modify and transform practices and tools to fit the real world. I understand why CCOs do that – they are under extraordinary pressure and need to accomplish tasks without adequate resources. In my practice, I always apply this philosophy. I am not out...

If you enjoy Spencer Tracy and Kate Hepburn movies like I do, you know the value of a great partnership. Tracy and Hepburn movies are classics, and their chemistry was powerful (on the screen and off). Like their relationship, the Chief Compliance Officer and the Internal Auditor can be a powerful force in corporate governance. There are so many areas where a CCO and IA...

FCPA settlements carry with them a basket of compliance and enforcement lessons. The recent Goodyear settlement with the SEC for $16 million carries some important compliance and strategic reminders for ethics and compliance practitioners. Here are the major lessons: The Value of Hotlines: The Goodyear investigation began with a hotline call. All too often, everyone rolls their eyes when they think about their hotline. Nearly...

The compliance field is in the early stages of a paradigm shift on managing due diligence—moving from a data drought to a data flood. Today’s compliance manager has to figure out how to proactively and continuously manage, organize and pinpoint risk in an overwhelming amount of data coming from many sources inside and outside of their organization. Join NAVEX Global and me on March 10th...

I am starting to repeat myself – it is a sign of old age (ask my wife), or maybe I have a point to make. I have written several times about financial institutions and the need to embrace a culture of ethics and compliance. This is not so controversial. It is plainly obvious. All you have to do is look at the list of recent...