Compliance

A critical component of any best practices BSA/AML compliance program is a periodic, independent review. The need for these evaluations is clear, but do you know what’s necessary to ensure your organization is sufficiently prepared for them?

Executive Boards don’t just want to know that their companies have anti-corruption compliance programs. They want to know that the programs are effective at protecting the company. Certification can attest to more than the program’s existence, but its effectiveness for the specific organization. The key is flexibility in the standard used, with room for evaluation and feedback.

New author and compliance expert Ahmed Taimour, who specializes in AML/CFT compliance, internal audit and fraud, offers an overview of the latest developments in the compliance space worldwide. Read on for several in-case-you-missed-it news items.

With focus on compliance in Latin America on the rise, there has also been a steady increase in the compliance competency in the region. Naturally, there have been some growing pains. An international conference last month in Columbia on anti-corruption compliance and enforcement shed light on some of the more significant mistakes emerging.

Global organizations have historically struggled with capturing a holistic view of their customers – one that spans international jurisdictions, lines of business, and product offerings while still allowing the corporation to maintain compliance. How does an organization standardize the definition and identification of customers when so many factors are at play?

The U.S. Department of Justice's Antitrust Division gives little credit for an existing compliance program. However, a recent criminal case in Ohio establishes that the Division will credit certain compliance programs after conviction by a guilty plea or trial.

A continuation and expansion on the UN Framework Convention on Climate Change and the Kyoto Protocol from the ‘90s, the Paris Agreement, which took place in December, offers a glimmer of hope to those who want to see an international, coordinated response. Unfortunately, there is little substance in terms of expectations; the bar for compliance may be set pretty low.

Having complied with restrictions to its nuclear program, Iran is enjoying lightened international economic sanctions. What’s good news for Iran in this instance represents a major headache for compliance officers worldwide, who now face a more complex compliance landscape. Broad prohibitions against doing business with Iran or Iranian businesses remain in place, but the “secondary sanctions” have been lifted.

There are myriad benefits for the compliance leader to getting out from behind the desk and into the field. It’s far simpler, for instance, to cultivate relationships across the company in person. Just as important is establishing trust throughout the organization in the compliance function. Good luck doing that by email or the occasional phone call.

The Consumer Financial Protection Bureau released a bulletin in November clarifying what constitutes consumer authorization for pre-authorized electronic fund transfers. Businesses uncertain about their obligations with respect to Regulation E and the Electronic Funds Transfer Act will want to take note of this development.

2015 was a banner year for the compliance field -- or at least for the regulatory authorities. Major scandals brought FIFA much unwanted attention and sullied the previously bright and shiny Volkswagen brand. The DOJ announced with the Yates Memo a focus on investigating and prosecuting individuals, not just companies. And that's just the tip of the iceberg.

The year ahead is full of promise. Good news for all here: we’ll no doubt continue to see the rise of the compliance profession in 2016. Michael Volkov forecasts changes to come and trends to watch.