Compliance

By white collar defender and former federal prosecutor Michael Volkov, this book looks a the DOJ's latest attempts to deter corporate criminals

With big data in the news almost every day and the requirement for due diligence on third parties to meet compliance obligations, there has been an explosion of providers entering the market. For companies looking for due diligence providers, it is important to be aware that not all parties are created equal.

FINRA has expanded the regulatory landscape by announcing its focus on and evaluation of firm culture. For the first time, regulatory oversight may include behavioral psychology in its calculus. It is paramount that the industry participates in this dialogue and contributes to meaningful guidance.

The Supreme Court’s recent ruling in the Escobar case is a fairly sweeping victory for whistleblowers and the government. While the High Court did not agree with every aspect of the First Circuit's reasoning, the ruling represents a validation of an implied false certification theory that expands liability under the FCA, and could precipitate a surge in FCA lawsuits.

Blockchain has the potential to transform many business processes, making the data more available, transparent, immediate and secure. Its application in the financial services industry promises to improve efficiency and confidence in some of the most complex, cumbersome and costly processes, including regulatory compliance and reporting, KYC and financial crime prevention.

The government cannot use a search warrant to compel access to consumer data stored outside the U.S. This decision was handed down by the Second Circuit, which found that the Stored Communications Act does not authorize courts to enforce warrants to obtain information on foreign servers.

Human rights violations in business, particularly in the form of human trafficking, modern-day slavery and forced labor, continue to be a major worldwide issue. A company that uses suppliers engaged in such actions could sustain significant fines and reputational damage. Incorporate anti-trafficking measures throughout your company’s operations to ensure workers’ dignity isn’t sacrificed for the sake of higher profits.

The SEC has taken an aggressive stance against the use of employee confidentiality agreements that may discourage whistleblowers. While the agency has only brought one enforcement action based solely on such an agreement, the message is clear: Employers should think twice about the confidentiality requirements they impose on their employees.

India offers vast potential for worthwhile business ventures. However, while the rewards can be great, so can the risks. To achieve success, companies must have a holistic compliance strategy, which requires a thorough understanding of the country's marketplace, business culture and regulatory environment.

By integrating a compliance framework into the customer communications design and development workflow from the start, regulated organizations can simultaneously achieve what can seem to be the competing goals of ensuring compliance and maintaining flexibility in document design. A holistic approach is needed to ensure compliance in regulated industries.

Some simple tweaking can be all it takes to make online compliance training courses more successful. Add a few elements here and there to your training program to reduce noncompliance in your organization. Since most compliance violations can be attributed to ignorance rather than ill will, a more effective instructional program should be top priority.

In order to build and maintain a strong ethics and compliance function, top leadership needs to check in periodically with the head of compliance – and ask the hard questions. While the answers to some of their questions may be tough pills to swallow, awareness of an issue is necessary if improvement is ever to happen. Start the conversation with...