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...

Buying an FCPA Violation: Merger and Acquisition Risks October 22, 2013 12 Noon – 1 PM EST Register: Here  FCPA risks are significant when companies acquire other companies. The Justice Department and the SEC have imposed “successor” liability on companies for past bribery violations committed by an acquired company. Pre-closing due diligence is critical when companies buy another company. Due diligence is an art, not...

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...

We always read that corporate leaders regularly identify data security as one of the top-five risks they face in the business world. Many companies are appointing a Chief Privacy Officer to oversee the proper handling of data.  In some cases, Chief Compliance Officers are charged with responsibility for protecting a company’s data and making sure that the company does not violate any law or regulation...

Whenever a new competitor threatens an established industry, you can always count on entrenched competitors to use any strategy they can to frustrate the new competing technology.  Our economic history is replete with examples of this phenomena. The virtual currency industry, which is rapidly growing, is a threat to traditional financial companies.  As more e-commerce websites and Internet businesses embrace virtual currencies, there is likely...