This year, 2020, has been an enforcement year opening with billion-dollar settlements: first, Airbus settled FCPA charges for $4 billion, and now Wells Fargo for $3 billion. What a start to an enforcement year! We all have heard about the Wells Fargo debacle, and I have written repeatedly about Wells Fargo’s blatant misconduct. Wells Fargo has defined itself as a company lead by rotten senior...
Companies are rapidly implementing automated solutions for compliance program functions. Technology accelerates compliance program performance and creates opportunities to measure and evaluate a company’s compliance program. In this Episode, Michael Volkov discusses how to measure and evaluate a compliance program using data generated from automated platforms.
The Fourth Circuit joined the fast-growing club of federal courts objecting to federal prosecutors and agents reliance on so-called “filter-team” procedures to review documents seized from a law firm that may contain privileged attorney-client and work product information. The Court’s decision is here. Over the last twenty years, federal prosecutors and agents have relied on filter team procedures to review documents and other materials that...
We often hear about the dangerous risk to a company’s culture from rigorous sales incentive programs. Like most issues, the answer to this issue is not cut and dried. On the one hand, we have a glaring example of failure – the Wells Fargo case. Financial sales staff were subjected to an incredible sales program – for each client, a sales employee was required to...
As companies move forward on third-party risk management programs, and as automated third-party risk solutions are being implemented, compliance professionals have to re-examine and re-balance the allocation of resources and time among three separate functions: (1) onboarding due diligence; (2) monitoring third-party conduct; and (3) review and audit of third-parties. Over the last ten years, companies have focused on initial due diligence and onboarding procedures,...
In a comprehensive enforcement action, the Office of the Comptroller of Currency (OCC) announced a $17.5 million settlement with former Wells Fargo Bank CEO John Stumpf for his role in the sales practices misconduct scandal. In addition, the OCC announced settlements with two other Wells Fargo executives: (1) Hope Hardison, former Chief Administrative Officer and Director of Human Resources, Cease and Desist Order and $2.25 million...
Corporate boards are under increasing attack by investors, shareholders and the public. In the aftermath of corporate legal train wrecks, such as the Wells Fargo, Volkswagen Emissions, General Motors, J.P. Morgan 1MDB Malaysia, and increased demand for sustainability, ESG and other shareholder public policy objectives, corporate board members have a significant target on their respective backs. Corporate governance is at a critical juncture. The old-line,...
February 18, 2020 1 PM EST/10 AM PST Sign Up HERE A comprehensive third party risk management program integrates with ethics and compliance activities across the enterprise to provide an accurate and actionable view of risk exposure. Implementing a holistic approach to due diligence extends beyond third party screening and monitoring. Effective risk management programs integrate with risk profiles across the organization, breaking down silos...
In this episode Mike Volkov and Tom Fox — the second episode — discuss the movie A Night at the Opera and how it informs the 2019 in Compliance, FCPA enforcement actions and Compliance into 2020 and beyond. The Episode is available HERE.
Compliance officers face almost an infinite number of risks – not to be trite, but CCOs can drive themselves crazy identifying every plausible legal and compliance risk a company faces. I am exaggerating a little bit to make a point. Perhaps the most overused phrase in compliance is – companies should not implement a one-size-fits-all compliance program. Add this to the long list of profound...
