In today’s edition of Daily Compliance News:
- Short Sellers, SEC investigation and stock price up. (WSJ)
- Leon Black and Jeffery Epstein. (NYT)
- Will energy ever address digital gap. (Houston Chronicle)
- On South African corruption. (BBC)
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:
- DOJ pronouncements mandate CCO availability to and use of data.
- Data can be an actionable solution across geographic and business lines.
- Use data as a business strategy.
For more information, check out The Compliance Handbook, 4th edition, here.
Categories
Episode 032–William Reed
On this episode of The Ethics Experts, Gio welcomes William Reed, who educates us on the history of ethics within the samurai.
Check out more episodes, and don’t forget to subscribe on your favorite podcast platform!
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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:
- What are the FinCen Papers?
- What is the significance of their release?
- Does this release hurt financial institutions?
- Does it hurt the regulators?
- Do the FinCEN Papers show there is more work to be done?
- 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
In today’s edition of Sunday Book Review:
- Big Dirty Money by Jennifer Taub
- Great Tax Wars by Steven Weismann
- Perfectly Legal by David Cay Johnson
- The Pale King by David Foster Wallace
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.
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.
- 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.
- What is ‘efficient patent infringement’ (sort of like being ‘just a little bit’ pregnant)? Jon Rusch in Dipping Through Geometries.
- Of donut holes and cyber attacks. Jonathan Marks in Board and Fraud.
- What is effective discipline? Jeff Kaplan in CEP Magazine.
- 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.
- Mobile devices and internal investigations. David Carns in CCI.
- What is a Grand Jury subpoena? Sara Kropf in Grand Jury Target.
- 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.
- 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.
- 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.