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Regulatory Ramblings

Regulatory Ramblings: Episode 55 – A Former Singapore Regulator Reflects on the World of Virtual Assets with Angela Ang

Angela Ang is TRM Labs’ senior policy advisor in Singapore. TRM Labs is a world-renowned blockchain intelligence company. She is also a former regulator, having spent over a decade at the Monetary Authority of Singapore (MAS), where she was most recently its deputy director in charge of licensing for payments and crypto service providers. Angela has also been recognized as a LinkedIn Top Voice for Finance in Asia for her thought leadership on digital asset developments in the region.

In this episode of Regulatory Ramblings, she talks to host Ajay Shamdasani about growing up in Singapore, spending time in the US, her education at INSEAD, and ultimately, the early days of her career in a business development capacity at the Monetary Authority of Singapore (MAS) where she promoted the Lion City as an international financial center.
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Recalling her experiences as a regulator with fondness, she notes that as a MAS officer, she was privileged to see policymaking at the highest level up close—emphasizing that few jobs enable one to work with ministers and policymakers so early in their careers. Notwithstanding the high intellectual rigor of working for a body as mission-driven as the MAS, she stresses that regulators are people, too.

The discussion then moves on to what TRM Labs does in blockchain intelligence and analytics. Angela describes it: “Blockchain analytics is like Google Maps for blockchain. We help clients make sense of public blockchain data and use it to fight fraud and financial crime.”  She points out that while the immutable ledger functionality of a blockchain is invaluable, it is often not easily understood by clients, likening it to “looking at a satellite image without context.” TRM, she says, helps make sense of blockchain ledgers by layering information about entities and their risk levels to give clients a better picture.
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In that regard, she sees parallels between her time at the MAS and TRM Labs, which also has a compliance-centric business model and is mission-driven. “A lot of our staff have joined [TRM Labs] from the public sector,” Angela says, lauding the firm’s spirit of nimbleness and entrepreneurialism.

She also recounts her first exposure to cryptocurrencies and blockchain in 2015 when her boss asked her to undertake a research project on the subject as part of the MAS capital markets team. Her impressions then and now are that while there is much to be said for the “promise of blockchain,” they need to be weighed against the “technology and risks of investing in crypto”; Angela recalls former MAS head Ravi Menon’s speech, paraphrasing his central policy point of Singapore saying yes to digital asset innovation, but no to cryptocurrency speculation. She said such an approach was prudent for the Lion City to adopt as “crypto will be around for the foreseeable future.”

She then shared her views on the regulation in Asia, stating that the region is leading the pack regarding regulatory clarity. “There has been more movement in crypto regulation across the region, especially in financial hubs like Singapore and Hong Kong,” she says.

​For example, Japan (2017) and Singapore (2020) were amongst the first countries to pioneer bespoke crypto regulation, fully realizing the failures of crypto for the investing public over the past decade, she says. “We need to regulate and think about it [crypto] differently.”

There has been massive movement, for example, Singapore’s rules on custody of crypto assets, expansion of licensing requirements, and Hong Kong’s regulation of over-the-counter crypto trading and its virtual asset service provider (VASP) licensing regime this year.

Yet, with Asian jurisdictions at different levels of development, Angela acknowledges that even with digital assets, every Asian regulator will have their philosophy on how to view crypto. She is broadly optimistic about the direction of things, citing the region’s general move towards greater regulatory clarity.

Citing a deep-dive regional survey by TRM’s policy team, the trend worldwide was overwhelmingly (80%) towards tightening regulation and more consumer protection measures.

“Regulation is about control and the requirements needed to prevent illicit activity. Sufficient enforcement is there to ensure consequences,” Angela said, noting that more levers for action against recalcitrant entities were needed.

She added that the authorities also had the responsibility to deeply understand the technology implementation and controls regulated entities must comply with to ensure they meet the requirements of the regulatory outcomes they have in mind. This also requires having enough skilled people to conduct rigorous supervision as needed.

The conversation then turned to the perceived talent shortage in crypto compliance. While explaining that digital finance was different from traditional finance, she said that older principles of compliance and risk management were still appliable, “but the devil is in the details,” adding: “You need good governance and disclosures; it is the same with traditional finance as with digital finance. There is overlap, but the technology of blockchain and crypto creates differences. For example, verifying ownership of a bank account differs from verifying ownership of a blockchain wallet.”

Technology’s changed landscape also gives rise to the related topics of SupTech and RegTech, which are key parts of what TRM does. As Angela explains, crypto compliance professionals use TRM’s tools for ongoing due diligence and transaction monitoring. Yet, regulators also use TRM’s offerings for RegTech purposes – to obtain real-time information about entities’ activities on the blockchain.

“As regulators build their knowledge of blockchain and crypto, we will see greater opportunities for SupTech applications offering real-time monitoring without adding to the [compliance] burden of regulated entities. The goal of SupTech should be to make tools user-friendly for non-experts such as non-cryptographers and non-asset tracers,” she said.

TRM Labs’ data shows that the total amount of crypto crimes emanating from Asia was US34.8 billion, but that is still just 0.63% of the global total. Angela notes that figure is comparable to traditional finance while acknowledging that crypto is borderless and that organizations and syndicates operate across borders across and from Asia.

She says VASPs have evolved to respond better to crypto crime, citing the loss of trust in recent years. “They are winning it [trust] back. As the industry matures, with more governance and compliance, they realize their role in fighting crime,” she said, emphasizing TRM’s role in working with the public and private sectors.

Angela stresses that VASPs have lower rates of crypto crimes with proper licensing and mandated risk controls than in less regulated jurisdictions. While noting that there are different degrees of risk controls, “few exchanges in the world now exist with no risk controls,” she says. Those are high-risk exchanges and conduits for bad actors moving outside regulated parameters. Most exchanges have degrees of risk control, and there has been a leveling up of crypto regulation worldwide.”

Looking ahead, she pointed to market misconduct as an evolving area in digital finance. The Madrid-based International Organization of Securities Commissions (IOSCO) FinTech Taskforce has singled it out as a priority item for crypto regulators, she says.

Regulatory Ramblings podcasts is brought to you by The University of Hong Kong – Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law.

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Blog

Deere FCPA Enforcement Action: Lessons on Post-Acquisition Integration and Investigation in M&A

We recently had a Foreign Corrupt Practices Act (FCPA) enforcement action that reminded me that everything old is new again in anti-corruption compliance. The Securities and Exchange Commission (SEC) FCPA enforcement action involving Deere has bribery schemes that were torn literally from the first decade of the 21st century as they involved gifts, travel, and entertainment. In other words, it was about a low set of hanging fruit that any compliance officer would see. Today, I want to conclude my multipart look at the case and see what lessons the enforcement action can provide to the 2024 compliance professional.

Deere offers valuable insights for compliance professionals tasked with ensuring that corruption risks are identified, mitigated, and resolved during the post-acquisition phase of M&A. This post will explore the key lessons from the Deere FCPA enforcement action, focusing on post-acquisition integration and investigation. As organizations expand through acquisitions, especially in foreign markets, the compliance team is critical in safeguarding the company from inheriting liabilities that could have been avoided with effective post-acquisition measures.

Deere, a multinational corporation known for its agricultural machinery, faced FCPA enforcement following its acquisition of a foreign company, the Wirtgen Group, which operates in regions with high corruption risks, specifically in Thailand. The Wirtgen Group-Thailand had engaged in corrupt practices, including the bribery of foreign officials to win contracts. After the acquisition, these activities continued for a period, undetected by Deere’s compliance team, which had not yet fully integrated the acquired company into its compliance program.

This case is a cautionary tale for compliance professionals on the importance of swift and effective post-acquisition integration and investigation processes. The lesson here is clear: post-acquisition efforts cannot be an afterthought. They must be a central part of the compliance strategy from day one.

Establish a Post-Acquisition Integration Plan from the Start

One key takeaway from the Deere FCPA enforcement action is the need for a well-defined post-acquisition integration plan with a robust compliance component. All too often, post-acquisition focuses on operational integration, with compliance being pushed down the priority list. However, Deere’s case demonstrates that failing to integrate compliance programs immediately can result in ongoing illegal activities that expose the acquiring company to FCPA violations.

Compliance professionals must ensure that the integration plan includes the following.

Immediate roll-out of the parent company’s compliance policies and procedures to the acquired entity.

  • Compliance training for all acquired company employees, focusing on FCPA and anti-corruption standards.
  • Review and revise the acquired entity’s third-party relationships to ensure compliance with the company’s standards and the FCPA.
  • Enhanced monitoring of high-risk activities, particularly interactions with foreign officials or government contracts.

Had Deere implemented these steps immediately post-acquisition, it could have identified and halted the corrupt practices sooner, avoiding the costly consequences of prolonged illegal activities.

Prioritize Post-Acquisition Investigations

Post-acquisition investigations are crucial in identifying undisclosed or ongoing corrupt activities within the acquired entity. The Deere case highlights how important it is for compliance professionals to conduct thorough investigations after the acquisition to ensure that any risks missed during the pre-acquisition phase are uncovered.

Key components of a post-acquisition investigation include:**

  • Forensic reviews of financial transactions, particularly payments to third parties, to detect any suspicious or abnormal patterns that could indicate bribery or corruption.
  • Employee interviews at various levels of the acquired entity to gather information about day-to-day operations, compliance culture, and potential risks.
  • Contracts and business deals are reviewed to ensure no irregularities or unethical practices, particularly in jurisdictions with high corruption risks.
  • 3rd-party audits of key suppliers, agents, and intermediaries who may have been involved in transactions with government entities or foreign officials.

In Deere’s case, a thorough post-acquisition investigation could have identified the ongoing corrupt practices early, allowing the company to take corrective action before it became the subject of an FCPA enforcement action.

Leverage Internal and External Resources for Compliance Integration

Deere’s failure to quickly integrate its compliance program into the acquired entity highlights the need for compliance professionals to leverage internal and external resources to accelerate the integration process. Post-acquisition compliance integration is often resource-intensive, especially when acquiring companies with operations in high-risk regions.

Key steps include the following.

  • Internal audit teams will be utilized to conduct a deep-dive assessment of the acquired entity’s financial and operational controls, focusing on FCPA compliance.
  • Engaging external forensic auditors and FCPA specialists to assist with investigations in high-risk jurisdictions where corruption is more likely to occur.
  • Establishing cross-functional teams that include representatives from compliance, legal, finance, and operations to ensure that compliance integration is holistic and touches every aspect of the acquired business.

Deere could have benefited from engaging external experts to help accelerate the compliance integration process and identify areas of concern within the newly acquired entity. By failing to do so, the company allowed corrupt practices to continue, resulting in significant FCPA penalties.

Monitor and Reassess Compliance Risks Regularly

Post-acquisition compliance efforts don’t end with the initial integration. Continuous monitoring and reassessment of compliance risks are essential to ensure that the acquired entity remains aligned with the parent company’s standards and the requirements of the FCPA. This is particularly important in industries and regions where corruption is more prevalent.

Continuous monitoring should include the following.

  • Regular audits of financial transactions and third-party payments.
  • Ongoing risk assessments that factor in changes in business operations, market conditions, and regulatory environments.
  • Compliance reporting mechanisms, such as whistleblower hotlines, allow employees of the acquired entity to report any concerns anonymously.
  • Periodic reviews of the acquired entity’s compliance culture are needed to ensure that employees adhere to the company’s anti-corruption policies.

In Deere’s case, ongoing monitoring could have helped identify and mitigate corruption risks earlier in the post-acquisition phase. The absence of regular monitoring and reassessments allowed corrupt practices to continue unchecked for an extended period.

Act Swiftly on Red Flags if They Appear

The most critical lesson from the Deere case is quickly identifying red flags. In this case, the acquired entity had numerous warning signs, including operations in high-risk regions, dealings with government officials, and lacking robust internal controls. However, these red flags should have been addressed promptly, allowing illegal activities to persist.

When red flags are identified, take some of the following steps.

  • Launch a formal investigation immediately to determine the scope of the issue.
  • Take corrective action, including terminating contracts with third parties involved in corrupt practices or dismissing employees who engage in illegal activities.
  • Notify regulatory authorities if there is a risk of FCPA violations and work proactively to resolve the issue before enforcement actions are taken.

Had Deere acted swiftly on the red flags within the acquired entity, the company might have been able to avoid the FCPA enforcement action and the associated penalties.

The Deere FCPA enforcement action provides a sobering reminder that compliance efforts cannot end with signing an acquisition deal. For compliance professionals, the real work begins in the post-acquisition phase. By prioritizing compliance integration, conducting thorough post-acquisition investigations, leveraging internal and external resources, continuously monitoring compliance risks, and swiftly acting on red flags, companies can avoid the pitfalls that Deere faced.

In today’s global business environment, with companies expanding through M&A in high-risk jurisdictions, compliance professionals must take a proactive and vigilant approach to post-acquisition compliance. The lessons from Deere remind us that the cost of failure is high, but with the right strategies in place, the risks can be managed effectively.

As a compliance professional, your role is to ensure post-acquisition compliance becomes integral to your company’s M&A strategy, protecting your organization from FCPA risks and safeguarding its reputation in the global marketplace.

Categories
Compliance Tip of the Day

Compliance Tip of the Day: Assess and Act on Internal Reports Thoroughly

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

The DOJ wants to know that companies take reports seriously. This means evaluating the seriousness of allegations promptly and thoroughly.

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Everything Compliance

Everything Compliance: Episode 142, The 2024 ECCP Episode

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows.

In this episode, we are joined by Susan Divers, Consultant at Ethena as our Special Guest and we take up the 2024 Update to the Evaluation of Corporate Compliance Programs (2024 ECCP).

This week we have the quartet of Matt Kelly, Jonathan Marks, Special Guest Susan Divers and Karen Moore; all hosted by Tom Fox.

  1. Special Guest Susan Divers says the key to the 2024 is that it focuses on outputs rather than inputs or processes. She shouts out to Washington Commanders.
  1. Jonathan Marks considers continuous controls monitoring mandates in the 2024 ECCP. He shouts out to Philadelphia Phillies for making the NL Playoffs and rants about TSA.
  1. Karen Moore takes a deep dive into new information on whistleblowers, reporting functions and whistleblower protections in the 2024 ECCP. She is sad because of the increased threat of violence during the Jewish High Holy Days.
  1. Matt Kelly looks at the intersection of AI and compliance found in the 2024 ECCP. He rants about Trump appointed US district judge Kathryn Mizelle who ruled the False Claims Act unconstitutional.
  1. Tom Fox shouts out to Colorado District Judge Matthew Barrett for his sentencing of convicted election tamperor Tina Peters.

The members of the Everything Compliance are:

The host and producer, rantor (and sometime panelist) of Everything Compliance is Tom Fox the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the award-winning Compliance Podcast Network.

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Daily Compliance News

Daily Compliance News: October 10, 2024 – The Pray for Florida Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • Would the US be for sale under the 2nd Trump Administration? (The Guardian)
  • Halting slide in accounting ranks. (FT)
  • Will the US break up Google? (Reuters)
  • Former Glencore traders get the 2027 trial date. (Bloomberg)

Categories
Business Integrity Innovations

Business Integrity Innovations: Championing Integrity – Em Ekong on the Future of African Entrepreneurship

The Compliance Podcast Network (CPN) and the Center for International Private Enterprise (CIPE) bring you Business Integrity Innovations. This podcast is inspired by Ethics 1st, a multi-stakeholder initiative led by CIPE that creates pathways for accountable and sustainable investment in Africa. Companies can use Ethics 1st to standardize their business practices, develop sound corporate governance systems, and demonstrate their commitment to compliance and business ethics.

In this episode of the Ethics First podcast, hosts Tom Fox and Lola Adekanye welcome Em Ekong, who discusses her extensive experience in entrepreneurship with a focus on supporting minority communities and women’s entrepreneurship in the UK and Africa. Em shares insights from her work with the Aspen Network of Development Entrepreneurs (ANDE), emphasizing the importance of collaboration and partnerships to nurture entrepreneurial ecosystems. She highlights the crucial role of ANDE in helping small businesses in the Global South, who often face significant challenges, access finance, markets, and development support, particularly through overcoming systemic challenges like corruption.

Em shares her vision of a future where African businesses maintain standards that attract global investment, advocating for consistent messaging, collaboration, and championing ethics. Key highlights include her work on ethics initiatives with the Center of International Private Enterprise (CIPE) and successful convenings that provide platforms for honest dialogues about challenges. Lastly, the episode underscores the long-term effort required to change entrenched systems and the importance of maintaining momentum in pursuit of transparency and ethical practices.

Key Highlights:

  • Aspen Network of Development Entrepreneurs (ANDE) Overview
  • Challenges and Success Stories in African Entrepreneurship
  • Addressing Corruption and Standards in African Business

Resources:

Em Ekong on Linkedin

Aspen Network of Development Entrepreneurs (ANDE)

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Rotary Voices of Kerrville

Rotary Voices of Kerrville: Rotary’s Fight Against Polio

Welcome to Rotary Voices of Kerrville, the podcast series that shines a spotlight on the Rotary Club of Kerrville, Texas—a club with a rich history of community service, leadership, and dedication. For nearly 100 years, the Rotary Club of Kerrville has been at the heart of initiatives that make a real difference, both locally and globally. Through this podcast, we’ll be exploring the club’s incredible projects, hearing from its inspiring members, and learning about the values that drive their commitment to “Service Above Self.”

In this inaugural episode, host Tom Fox visits with Kristy Vandenberg about her leadership in Rotary’s fight against the international scourge of polio.

The discussion focuses on the Rotary Club of Kerrville’s part in the Rotary International’s fight to help eradicate polio from the globe. Kristy underlines the significance of vaccines in preventing viral diseases, noting that many people might not be aware of their continued relevance due to the effectiveness of the vaccines. We discuss our concerns about the virus, suggesting a broader need for awareness as it remains a pressing issue globally. The Pints, Pumpkins, and Pies event is at the Dietrich Center, on October 24, 2024, from 5-7 PM. It aims to address these ongoing considerations and educate people on the subject.

Highlights Include:

  • Introduction and Contact Information
  • Event Details and Venue
  • Public Awareness and Vaccines
  • Participating in the Fight

Resources:

Rotary Club of Kerrville

Rotary District 5840

Rotary International

For more information on Pints, Pumpkins and Pies, email Kristy Vandenberg at KerrvilleRotary@gmail.com

Categories
Blog

Deere FCPA Enforcement Action: Lessons on Pre-Acquisition Due Diligence in M&A

We recently had a Foreign Corrupt Practices Act (FCPA) enforcement action that reminded me that everything old is new again in anti-corruption compliance. The Securities and Exchange Commission (SEC) FCPA enforcement action involving Deere has bribery schemes that were torn literally from the first decade of the 21st century as they involved gifts, travel, and entertainment. In other words, it was about a low set of hanging fruit that any compliance officer would see. Today, I continue a multipart look at the case and see what lessons the enforcement action can provide to the 2024 compliance professional.

John Deere, a global leader in agricultural machinery manufacturing, became the focus of an FCPA enforcement action due to its acquisition of a foreign entity with significant operations in countries with high corruption risks. The acquired company had little in the way of a formal compliance program and had been engaging in questionable business practices, including bribing foreign officials to secure contracts.

Post-acquisition, these corrupt practices continued for a period, undetected by Deere’s compliance team. When the issues finally surfaced, the result was a significant FCPA investigation, costly penalties, and a tarnished reputation.

The core issue in this case? Inadequate pre-acquisition due diligence.

One of the central themes from the Deere case is the critical need for rigorous pre-acquisition due diligence in M&A. As a compliance professional, it’s your role to ensure that your organization is not inheriting illegal practices or corruption risks when acquiring a new entity. The risks of overlooking this step can be immense—both in terms of regulatory enforcement and damage to your organization’s reputation.

Let’s examine the key lessons from the Deere case and explore how compliance professionals can apply them to their M&A strategies.

  1. Conduct a Thorough Corruption Risk Assessment

The Deere case underscores the importance of assessing a target company’s corruption risk profile. This means understanding the countries where the target operates and the inherent risks associated with those jurisdictions. Countries with a high Corruption Perceptions Index (CPI) score are more likely to expose your organization to FCPA risks.

Before any acquisition, a detailed analysis of the target’s business activities in these regions must be conducted. Ask yourself:

  • How much business is done with government entities?
  • Are third-party intermediaries involved in securing contracts?
  • What are the target company’s existing compliance policies?

In Deere’s case, the acquired company operated in high-risk jurisdictions without adequate controls. A robust pre-acquisition risk assessment could have flagged this issue, allowing Deere to either walk away from the deal or insist on corrective actions before proceeding.

  1. Evaluate the Target’s Compliance Program and Culture

Another key lesson from the Deere enforcement is the need to evaluate a company’s business operations, corporate culture, and compliance program—or lack thereof. A target company may have all the right words on paper, but those policies are meaningless if the culture does not support ethical business practices.

In the Deere case, the acquired company had minimal compliance structures. This should have raised immediate red flags for Deere’s compliance team, but the issue needed to be addressed or given more weight during the due diligence process.

As a compliance professional, you must:

  • Review existing policies and procedures to assess their adequacy.
  • Interview key personnel to understand how those policies are implemented and followed.
  • Examine the company’s culture to see if ethical business practices are truly embedded in day-to-day operations.

A proactive approach would have helped Deere spot these weaknesses before the acquisition, allowing them to implement a more effective compliance integration strategy.

  1. Look for Red Flags in the Target’s Financial and Operational Data

Financial data can often reveal hidden compliance risks. In the Deere case, irregularities in how contracts were won, especially in high-risk countries, should have raised concerns. Yet, these issues were only caught after the acquisition.

During pre-acquisition due diligence, compliance teams should partner with the finance and audit departments to:

  • Review contracts and agreements with a special focus on deals involving government entities or third parties.
  • Analyze payment patterns for signs of improper payments, such as unusually high commissions or payments to offshore accounts.
  • Investigate any prior audits or investigations related to compliance or financial irregularities.

These financial indicators are often the first signs of deeper corruption issues and should be fully explored before moving forward with any acquisition.

  1. Engage Third-Party Experts When Necessary

In many cases, particularly when acquiring companies in high-risk jurisdictions, it is wise to engage third-party experts to conduct a thorough FCPA-focused due diligence. These experts can bring an external perspective and often have access to local intelligence that may not be readily available to an internal compliance team.

Had Deere engaged such experts during its pre-acquisition process, they may have been able to identify the corrupt practices that eventually led to the FCPA enforcement action.

Engaging external resources is an investment in mitigating future risks. While it may increase upfront costs, the long-term savings in avoiding penalties, legal costs, and reputational damage far outweigh the initial expense.

  1. Ensure Post-Acquisition Integration is Swift and Effective

Even if certain risks are identified during the pre-acquisition phase, the true test comes during post-acquisition integration. In the Deere case, there was a failure to implement effective compliance controls post-acquisition quickly, allowing the corrupt practices to continue unchecked for a period.

Compliance professionals must ensure that:

  • Compliance policies are integrated quickly into the acquired entity’s operations.
  • Training is provided to the acquired company’s employees on FCPA and anti-corruption best practices.
  • Ongoing monitoring ensures that any potential risks identified during due diligence are mitigated.

The Deere FCPA enforcement action is a cautionary tale for all compliance professionals engaged in M&A activity. Pre-acquisition due diligence is not just a box-ticking exercise but a critical function that can help prevent serious legal and financial consequences for your organization. By conducting thorough corruption risk assessments, evaluating compliance programs and culture, scrutinizing financial data, engaging third-party experts when necessary, and ensuring effective post-acquisition integration, compliance professionals can help their organizations navigate the complexities of M&A in today’s global business environment.

The lessons from Deere reminds us that robust due diligence is the first line of defense in preventing FCPA violations and safeguarding a company’s reputation. Do not wait until after the acquisition to address these issues, as it may be too late.

Categories
Compliance Into the Weeds

Compliance into the Weeds: Exploring Compliance Data Access and Testing Challenges

The award winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds!

In this episode, Tom Fox and Matt Kelly take a deep dive into the study, 2024 Benchmarking Study: Testing & Monitoring and Data & Systems, jointly conducted by Radical Compliance and Rethink Compliance.

The study raises critical concerns about the access and effectiveness of data testing in compliance programs. While many compliance officers engage in some level of testing, there is a significant gap in comprehensive testing and access to necessary data across enterprises. Only a small percentage tracks key performance indicators (KPIs) at granular levels, such as individual or department, which are essential for understanding program effectiveness. The discussion also highlights the importance of access to data from different departments, like HR and Finance, to improve compliance monitoring and alignment with DOJ guidelines. The episode concludes with a call for continued research, emphasizing the interconnectedness of data access, comprehensive testing, and compliance success.

Key Highlights:

  • Overview of the Compliance Study
  • Key Findings and Statistics
  • Challenges in Compliance Testing
  • Importance of Multiple KPIs
  • Access to Data Issues

Resources:

Matt in Radical Compliance

2024 Benchmarking Study: Testing & Monitoring and Data & Systems

Rethink Compliance

 

Tom

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Compliance Tip of the Day

Compliance Tip of the Day: Encouraging and Incentivizing Reporting

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

A reporting mechanism is only as effective as the culture that surrounds it. Compliance professionals must work to foster an environment where reporting is encouraged and valued.