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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Innovation: Day 9-the Competitive Advantage of Data

The DOJ and SEC have both made it clear that they expect companies to be more robust in their use of data analytics in compliance programs. This means using data to not only detect and prevent illegal conduct but also in the remediation prong of any best practices compliance program as well through continuous improvement. In 2019, former Deputy Assistant Attorney General Matthew Miner said in a speech that the DOJ will inquire whether compliance departments have access to internal data that could help them identify misconduct and whether compliance officers make adequate use of data analytics in their reviews of companies under investigation. Since at least 2016 in the FCPA enforcement action involving Key Energy Services, Inc., the SEC has been communicating to compliance professionals of the need for increased use of data and data analytics in any compliance program.
The bottom line is that it is not if but when you begin to incorporate corporate information into your compliance program to make your compliance program more efficient and your business process run more effectively. My suggestion is that you begin now to identify the data you have access to and the data to which you currently do not have access. Find a way to bridge that gap.

Three key takeaways:

  1. DOJ pronouncements mandate CCO availability to and use of data.
  2. Data can be an actionable solution across geographic and business lines.
  3. Use data as a business strategy.

For more information, check out The Compliance Handbook, 4th edition, here.

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FCPA Compliance Report

The FinCen Papers


In this podcast, I am joined by Piero Molinario, Senior Managing Director, Head of Financial Crimes Risk and Compliance for EMEA for K2 Intelligence FIN and Joanne Taylor, Managing Director, K2 Intelligence FIN who works with clients investigations and financial crime compliance, including fraud risk management, anti-bribery and corruption, regulatory enforcement, and fraud investigations. Both are located in London. We take a deep dive into the FinCen Papers.
Some of the highlights include:

  1. What are the FinCen Papers?
  1. What is the significance of their release?
  1. Does this release hurt financial institutions?
  1. Does it hurt the regulators?
  1. Do the FinCEN Papers show there is more work to be done?
  1. Are there any positive takeaways from the release of the FinCEN papers?

For more information on K2 Intelligence FIN, check out their website here.
For additional reading see the white paper, The FinCEN Files Impatiently Bypasses Government Entities Responsible for Acting on SARs Filings.
See also the following policy, Policy Alert: ICIJ Leaked SAR Investigation Highlights Opportunity for BSA/AML Reform, 25 September 2020

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Daily Compliance News

October 12, 2020-the Trump Swamp edition

 
In today’s edition of Daily Compliance News:

  • Jamie Diamond says banking a long way off from the old normal. (WSJ)
  • The Trump Swamp. (NYT)
  • Disney and Coronavirus. (NYT)
  • Old boss’s revenge. (WaPo)
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Sunday Book Review

October 11, 2020, the Tax Cheat edition


In today’s edition of Sunday Book Review:

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Daily Compliance News

October 10, 2020-the Happy Brithday to my Little Sister edition


In today’s edition of Daily Compliance News:

  • CCOs respond to new compliance risks. (WSJ)
  • More on spoofing. (WSJ)
  • Basil ah Jarah sentenced. (WSJ)
  • Why you need DD in purchases in bankruptcy. (WSJ)
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FCPA Compliance Report

Jonathan Armstrong on Herbalife from a UK Perspective


In this special five-part podcast series, I take a deep dive into the recent Herbalife FCPA Resolution. Over the next 5 podcasts Mike Volkov, Jay Rosen, Matt Kelly, Jonathan Marks and Jonathan Armstrong will all bring their own unique perspectives to this settlement. In this concluding Part 5, I am joined by Jonathan Armstrong and we discuss the enforcement action from the UK perspective under the UK Bribery Act.
Some of the highlights include:

  • China is a known high-risk business venue.
  • Licenses are required in China for direct sales.
  • UK Bribery Act not as concerned with the blurring of public and private officials.
  • Scottish cases provide some interesting analogies.
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This Week in FCPA

Episode 225 – the I Beat Covid edition


As President Trump claims to be ‘Covid-free’ and the (non-cheating) Houston Astros prepare to return to the ALCS, Tom and Jay are back to look at top compliance articles and stories which caught their eye this week.

  1. JPMorgan pays $920 million fine for spooking. Matt Kelly looks at it in Radical Compalince. Tom and Matt take a deep dive in Compliance into the Weeds. Mike Volkov considers on Corruption Crime and Compliance.
  2. What is ‘efficient patent infringement’ (sort of like being ‘just a little bit’ pregnant)? Jon Rusch in Dipping Through Geometries.
  3. Of donut holes and cyber attacks. Jonathan Marks in Board and Fraud.
  4. What is effective discipline? Jeff Kaplan in CEP Magazine.
  5. Is the SEC moving to increase its penalties in light of Lui? Robert Cohen and Stefani Johnson Myrick in NYU’s Compliance and Enforcement Blog.
  6. Mobile devices and internal investigations. David Carns in CCI.
  7. What is a Grand Jury subpoena? Sara Kropf in Grand Jury Target.
  8. The Everything Complaince gang takes a dive into the Herbalife FCPA resolution. Monday-Mike Volkov on what he would have done; Tuesday-Jay Rosen on the lack of a monitorship; Wednesday-Matt Kelly on the role of Internal Audit; Thursday-Jonathan Marks on the role of gatekeepers; Friday-Jonathan Armstrong on the UK perspective.
  9. On the Compliance Podcast Network, on 31 Days to a More Effective Compliance Program, we continue our exploration of compliance for Business Ventures.  Monday-Dis-linking illegal conduct; Tuesday-JV Risks Under the FCPA; Wednesday– JV Due Diligence; Thursday-Compliance T&C’s in JV agreements; Friday-Auditing JVs .Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.
  10. Join Tom (and Matt Kelly) for Home Stretch 2020, a webinar sponsored by Complaince Line. Check at the agenda and register here.

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.

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Daily Compliance News

October 9, 2020-the Increased Compliance Risks edition


In today’s edition of Daily Compliance News:

  • Covid has increased compliance risks. (WSJ)
  • Trump NLRB accuses Google contractor of illegal anti-union activity. (NYT)
  • OSHA to workers on Covid-TS baby. (WaPo)
  • Trump ally, who worked for Jho Low, pleads guilty. (WSJ)
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FCPA Compliance Report

Jonathan Marks on the Role of Gatekeepers


In this special five-part podcast series, I take a deep dive into the recent Herbalife FCPA Resolution. Over the next 5 podcasts Mike Volkov, Jay Rosen, Matt Kelly, Jonathan Marks and Jonathan Armstrong will all bring their own unique perspectives to this settlement. In this Part 4, Jonathan Marks and Tom Fox discuss the role of gatekeepers and the lack of skepticism at the Board of Directors.
Some of the highlights include:

  • Chief Audit Executive and Chief Compliance Officer exits should be 8K events.
  • Who guards the gatekeepers?
  • The Board is responsible for management override of controls.
  • Why was there a lack of skepticism at the Board level?
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Life with GDPR

H&M Fined €35.2 for Data Privacy Breaches


In this episode Jonathan Armstrong and Tom Fox are back to discuss issues relating to data privacy, data protection and GDPR. Today, we consider recent decision by the Hamburg Data Protection Authority which fined H&M Germany €35.2m for GDPR violations. The case concerned excessive use of employee data and is the largest fine so far imposed by regulators for the handling of employee data. We are likely to see more pressure on employers to justify the handling of employee data as a result of today’s fine. Some of the highlights are:

  1. What did the regulator say?
  2. What did H&M do after the investigation began?
  3. What about the current pandemic?
  4. What are the implications going forward?
  5. What is this decision’s precedential value?
  6. What are some practical tips for compliance?

Check out the Cordery Compliance, client alert on this case, click here. For more information on Cordery Compliance, go their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.