Articles

CDD and KYC have been baked into AML compliance for two decades now, yet enforcement of money-laundering violations continues to accelerate. How is it that penalties from a highly regulated environment are not able to serve as a bulwark against the corporate (and human) appetite for profit? Know Your Customer … But to Thine Own...

I don’t really know how to talk about business ethics to my team. This is a phrase that many ethics and compliance professionals have heard from front-line supervisors. They are afraid of sounding preachy. Or of not knowing the answers. Or looking soft. If you are one of these supervisors, here’s an easy way to...

Between COVID-19 disruptions, KYC challenges, paused account onboarding and altered due diligence practices, 2020 saw financial crime compliance costs increase by roughly one-third. It remains unclear to what extent those trends will continue this year. There’s no doubt 2020 has brought many unforeseen hurdles to financial institutions (FIs) like banks and investment, asset management and...

The DOJ began casting a wider net for False Claims Act enforcement years before the pandemic broke out. Now with large-scale suspected EIDL and PPP fraud, companies need to double- and triple-check the accuracy of their applications or face the inevitable consequences.

An overstressed data-gathering process can generate information silos, and the process of proving data-backed valuations can be laborious. Greater data transparency is needed to ultimately facilitate, rather than impede, compliance efforts. While investment firms seem to be doing well handling compliance during the pandemic, some wonder if strong financial markets are actually covering up shortfalls....

The end of some pandemic-related disruptions may be in sight, but have yet to arrive. In other cases, there will be no end. Organizations need to invest in their workforces and keep their sights on ESG, according to a recent NAVEX report. Carrie Penman, CRCO at NAVEX Global, discusses. In a changed business and social...

Recent events put market controls imposed following the Great Recession to the test. While turbulence from COVID-19 was brought under control, other happenings have thrown their efficacy into question.

A family trip to Israel to honor the memory of my father-in-law turned into a war story. News of people displaced from their homes, followed by protests and riots, police blockades, and then missiles fired towards Jerusalem came on the day of the gravesite service. We woke the next morning to warnings of unprecedented civil...

The European Commission proposed a new set of regulations to both make AI trustworthy and spur its development. While rules still need to be ratified, they have the potential to affect any business leveraging or developing AI in the EU. A proposed set of regulations from the European Commission for a sweeping regulatory framework governing...

The workplace of the future is being shaped by two powerful forces: the shifting mix of permanent and non-permanent talent, and the growing adoption of digital technologies. How companies address these trends can determine their success over the next decade.

The Biden administration, in a March memo, estimated EIDL and PPP fraud has totaled $84 billion to date. Numerous federal entities and civil servants have been empowered to investigate. Organizations should expect an increase in enforcement and prepare accordingly. On March 25, 2021, House Committee on Oversight and Reform Chairwoman Carolyn Maloney and the Select...

While organizations around the world are coming to terms with ransomware, a new cyberthreat is growing in popularity. Extortionware  attacks can affect both organizations and individuals, and may continue to pose a risk long after defenses have been breached.

OFAC's recent enforcement action against MoneyGram underscores organizations' need for robust screening to ensure AML compliance and prevent sanctions violations. MoneyGram, a global payments service, has settled with OFAC for $34,329 for 359 sanctions programs violations. According to OFAC, the transactions totaled $105,627 in value and were processed on behalf of approximately 40 individuals on...

According to several studies, we have over 6,000 thoughts every day. Eighty percent of them are negative, and 95% of them are repetitive. Let that sink in. Ninety-five percent of the thoughts you will have today are thoughts you had yesterday, and the vast majority will be negative. It sheds new light on the expression...

GDPR and CCPA have proven to be landmarks of consumer data protection. Virginia’s new privacy law moves the needle even further. While the CDPA may evolve before it goes into effect in 2023, there is reason to believe it will have a global impact on privacy.

Early in the pandemic, a chance virtual meeting via a webinar appearance sparked the creation of a monthly compliance networking event now led by an all-volunteer team of compliance professionals. Compliance Career Connection now has reached hundreds of professionals across six continents -- spawning two copycat groups in other countries -- and continues to help...

The proposed U.S. Citizenship Act of 2021 includes numerous items that, if passed, would fundamentally shift the landscape of migrant labor. Its features could affect a range of visas, the green card application system and more.

The Fundamental Review of the Trading Book (FRTB) affects capital calculations and substantially impacts one's risk monitoring framework. Richard Moss encourages readers to avoid betting on the long shot. Financial institutions may be facing higher capital requirements based on the Basel Committee on Banking Supervision (BCBS) changes to FRTB. The deadline for implementing the new...

According to a recent EY report on integrity in emerging markets, many  professionals report that ethical cultures around the world are improving. But respondents also worry that disruptions from COVID-19 and fluctuating markets could erode this progress. COVID-19 variants are surging through emerging markets — and threatening to upend years of progress in the fight...

Most companies change audit firms eventually, but the process isn't easy and can present many challenges during and after the fact. Ron Kral describes steps you can take to mitigate them. Was your annual audit or quarterly filing process with the SEC more painful than usual? Did you hear more about petty issues rather than...

ACA good faith reporting standards sunsets this year. The American Rescue Plan has added further complexities. Make sure you are equipped to comply with these ever-shifting employee health care regulations to avoid unnecessary expenses. When it comes to federal Affordable Care Act (ACA) reporting this year, employers need to understand how the pandemic and a...

Most companies aren't including DEI and other workforce data in the human capital disclosure sections of their 10-Ks. A recent Intelligize report analyzes SEC filings following a rule change last November. Though companies say diversity, equity and inclusion (DEI) are top concerns, few included DEI data as part of human capital disclosures on their latest...

Working from home is obviously do-able, so employers will need creative (but airtight) policies that allow at least some of the workforce to keep doing it. Here’s a roadmap for drafting policies that meet the demand for flexibility while mitigating risk.  As many begin the process of returning to the office, millions of employees choose...

Deloitte's quarterly assessment of board focus finds that diversity, equity and inclusion subjects are a paramount concern for many companies across sectors. DEI beat out the ongoing response to COVID-19 and ESG for most entities. Once each quarter, Deloitte’s Center for Board Effectiveness and the Society for Corporate Governance collaborate to produce the Board Practices...

Organizations of all types – from startups and nonprofits to established businesses – must contend with licensing and registration challenges as they expand. These pros can facilitate the process for you. Sponsored The first line of legal defense for any business is its registered agent. When state agencies, courts and process servers need to contact...

SolarWinds is regarded as the widest-reaching cyber espionage operation against the United States government to date. Dan Verton discusses what we know so far and actions other businesses and organizations should consider in an effort to mitigate the effects of future attacks.

Corporate governance often does not receive the attention it deserves – especially at nonprofits. The following represent 10 key considerations when it comes to pursuing best practices for nonprofit corporate governance. According to the IRS (PDF download), the service “believes that a well-governed charity is more likely to obey the tax laws, safeguard charitable assets...

COVID-19 and the FFCRA threw a wrench into existing employee leave policies. Now with states and municipalities following suit, companies need to get serious about revamping how they handle employee absence. Since the onset of the pandemic last year, employers have faced an avalanche of unprecedented business challenges, including an abrupt shift to remote work,...

The COVID-19 pandemic is still a major concern. But as vaccination efforts continue, now is the time to turn to the future. Boards need to address issues that cropped up during 2020 and prepare for what comes next. In 2020, corporate boards faced a host of unexpected challenges, and the challenges haven’t stopped coming. But...

Imagine if there were an annual award show for risk. Of course, due to the pandemic, the award show would have to be virtual – but if there were such a show, the pinnacle award would be for the Most Disastrous Risk of the Year. Hands down, the award for 2020 would go to location...