Forgive me for this column in advance but I had to chuckle a little bit when I read that JP Morgan was creating global compliance SWAT teams who, on a moment’s notice, would travel around the globe to respond to compliance emergencies. I know I have written on behalf of Chief Compliance Officers and the important role they play in every company, but I was...
Compliance cynics have sometimes commented that when a company gets into trouble because of misconduct by the Board of Directors or C-Suite officials that the company’s response is to increase training of mid and lower level managers and employees. It is a cynical comment but there is some truth underlying the suggestion. Compliance programs are designed, implemented and monitored under the supervision of the Board...
The advent of the Internet is not all positive – criminals like to use the Internet and they are very good at doing so. The same might be said for Bitcoin, the new raging virtual currency. Bitcoin is on the government’s radar screen from both a regulatory and an enforcement perspective. Eventually, Bitcoin will be regulated. In the meantime, however, the trade press is definitely...
Successful people know that the secret to effective communication is listening. Speaking is only half of the equation. We have all had dealings with people who do not know how to listen. In fact, I would guess most of us have experienced interacting with people whose personal agendas leave little time or inclination for listening. When a person is described as “engaging,” nine times out...
On May 2, 2013, I participated in a RAND Corporation symposium along with several distinguished participants concerning corporate culture and compliance in the C-Suite. The conference proceedings have been reported in Culture, Compliance and the C-Suite which can be downloaded or purchased here. The RAND Corporation symposium stimulated a broad conversation about the challenges posed by executive misconduct (e.g., episodes of fraud, malfeasance, unethical behavior) at...
Everyone old enough to remember will recall Y2K – the year our world was supposed to end in a catastrophic transition from December 31, 1999 to January 1, 2000. Instead, since we are still here, we all recall what happened – nothing. September 23, 2013 was the day when the new HIPAA regulations for Covered Entities came into effect. Despite all the whining and predictions...
The Department of Justice is targeting individuals for criminal FCPA violations. As I have discussed before, DOJ is bringing strong cases with overwhelming evidence against individual defendants. They have also demonstrated a willingness to use tactics typically reserved for drug traffickers and organized crime, including undercover officers, informants, and consensual recordings and videotapes. Corporate boards would be negligent if they do not recognize that the...
FinCEN’s new Enforcement Division, which was created in June of 2013, is already making its mark in the financial enforcement world. Federal regulators are focusing on compliance with Bank Secrecy Act (“BSA”) and anti-money laundering (“AML”) laws and regulations. On September 23, 2013, FinCEN, the Securities and Exchange Commission and the Comptroller of the Currency (“OCC”) assessed a $37.5 million penalty against TD Bank for...
Companies are paying more attention to strategic risk management. The reasons for this are not just the aggressive enforcement environment but the technological age in which we live. Events can occur quickly as a result of technological innovations such as social media, mobile and big data, and the cyber world. These risks can cause serious disruptions to company operations or viral negative publicity which can...
Tone-at-the-top says it all. Without the support of the CEO, a Chief Compliance Officer is limited in what he or she can accomplish. If there is no commitment from the CEO, a CCO can propose and possibly build great compliance systems, adopt state-of-the-art policies and procedures, and bring about a change in attitude within the compliance department. However, the CCO’s compliance program will be limited...
