Tag: compliance

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10 For 10

10 For 10: Top Compliance Stories For The Week Ending November 18, 2023

Welcome to 10 For 10, the podcast that brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance, brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes, hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for compliance professionals, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • Corruption in lithium mining in Africa.   (Inside Climate News)
  • The State of Texas moves to anti-business.  (Bloomberg)
  • The legal baggage at Fox News awaiting Lachlan. (FT)
  • 2 sexual harassment claims per week at McDonalds UK (TT)
  • Can Barclay’s move beyond scandal (and Jes Staley)? (FT)
  • Chinese corruption in Nepal? (NYT)
  • FDIC hires a law firm to investigate allegations of a toxic workplace. (FT)
  • The law firm said it didn’t know the partner was living with Judge. (Reuters)
  • Matt Kelly declares Supreme Court Code of Ethics is broken (already).  (Radical Compliance)
  • Safe for businesses to return to China? (NYT)

You can check out the Daily Compliance News for four curated compliance and ethics-related stories each day, here.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 13 – Preventing Retaliation to Improve Culture

Retaliation against a person who speaks up is a pervasive issue that not only creates a toxic work environment but also discourages victims from reporting incidents. This means you must address retaliation and encourage reporting in workplaces. When employees report harassment face severe retaliation, which leads to a loss of trust in the reporting process. This fear of being labeled a “rat” or “gossip” often prevents victims from coming forward and seeking justice. To combat this issue, non-retaliation protocols are crucial to protect individuals and ensure legal compliance.

Non-retaliation protocols must be in place to encourage reporting.  The fear of retaliation is deeply rooted in the perception of being a whistleblower or complainant. Every compliance must have strong policies, consequences for violators, and open workplace conversations to empower bystanders. Bystanders play a crucial role in identifying and reporting harassment, but they often fear retaliation or loyalty conflicts.

Addressing retaliation and encouraging reporting in workplaces requires a multifaceted approach. Strong non-retaliation protocols, open workplace conversations, and the empowerment of bystanders are key factors in creating a safe and inclusive work environment. By prioritizing the well-being of employees and fostering a culture of trust, organizations can effectively combat sexual harassment and ensure compliance with legal and regulatory requirements.

 Three key takeaways:

1. You must have robust policies and procedures against retaliation.

2. A lack of confidential reports will have an impact on culture.

3. Bystanders are the key to a robust culture.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.

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31 Days to More Effective Compliance Programs

One Month to More Effective Compliance Through Culture: Day 12 – Fixing an Unsafe Workplace

We continue to look at fostering an ethical culture through psychological safety, using as a starting point the “Fostering Ethical Conduct Through Psychological Safety” whose authors believe that “when psychological safety is lacking, it may be a consequence of the employee having witnessed unethical behavior.” The more unethical behavior a person sees, the more likely they are to feel psychologically unsafe.

The authors basically state the obvious when they write, “It makes intuitive sense that being in a work environment where unethical behavior is prevalent might diminish psychological safety.” Put another way “people are most reluctant to speak up in ethically troubled environments, where we most need them to do so.” This is an important issue for every CCO and business leader. To overcome such a deficiency, they found that “several other factors correlated with strong speak-up behavior, keeping everything else constant: moral engagement, moral attentiveness, and organizational justice combined with clarity of expectations.”

Moral engagement. As a CCO you should endeavor to create an atmosphere where ethical conduct matters, “so that when employees recognize a potentially unethical situation, they will be motivated to do what’s right.”

Moral attentiveness. You can educate employees to recognize the ethical dimensions of situations. You can have managers highlight examples of ethical and unethical behavior with their teams and encourage dialogue on workplace ethics.

Organizational justice. Obviously, talk is cheap and it is actions, not deeds, that matter. The DOJ has made clear in the 2023 Evaluation of Corporate Compliance Programs that the keeper and responsibility of institutional justice sits with the CCO and the authors find that this same concept “is vital to building a reputation of organizational justice.”

Clarity of expectations. CCOs must communicate a clear message to employees so that employees will have “an understanding of organizational standards and are clear about expectations.”

Unethical conduct can remain hidden for a time but is likely to be discovered eventually, causing far more harm than if it were caught and corrected early. Psychological safety thus can help organizations respond and improve quickly instead of allowing misconduct and unethical behavior to fester and further degrade workplace psychological safety, thus triggering a vicious cycle.”

 Three key takeaways:

1. Without psychological safety, corporate culture will suffer.

2. When your CEO engages in illegal behavior, what is the impact on culture?

3. Use moral engagement, moral attentiveness, and organizational justice to foster an improved culture.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.

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Compliance Into the Weeds

Compliance into the Weeds: OIG Says CCO Should be Independent

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 explore a subject more fully. Looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the recent OIG guidance for healthcare compliance professionals and healthcare compliance programs which notes that CCOs should be independent from the General Counsel’s Office.

The Office of Inspector General (OIG) has recently released guidelines that underscore the importance of independence for compliance officers in the healthcare sector. These guidelines, seen as a significant development in the field, stipulate that compliance should be separate from legal and finance departments, and outline the responsibilities of healthcare compliance officers.

Tom views this as a clear call for compliance officers to be independent and report directly to the CEO and the board. He suggests that this trend towards independence may extend beyond healthcare. Matt echoes this sentiment, highlighting the OIG’s strong endorsement of the independence of compliance officers. He believes this aligns with the emphasis on independence and autonomy that leading voices in the regulatory world have been advocating for. Join Tom Fox and Matt Kelly as they delve deeper into this topic in this episode of the Compliance into the Weeds podcast. 

Key Highlights:

  • The Importance of CCO Independence in Compliance Programs
  • The role of a healthcare CCO
  • Do you need a Law Degree to be a CCO in Healthcare Compliance
  • The Growing Significance of CCO Independence

Resources:

Matt’s blog post in Radical Compliance

Tom 

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Innovation in Compliance

The Future of Communication in Financial Compliance: Part 3 – Data Analysis and Insight

This week, I have a special five-part podcast series sponsored by Verint on the Future of Communication in Financial Compliance. My guest in this series is Phil Fry, VP and GTM of Financial Compliance Strategy at Verint. Over this series, we will take a deep dive into the current status of communications in financial institutions, how to be or not be compliant, analysis and insight into the area, and how to avoid accentuating the negative and the human element in compliance. In this third podcast, we take a deep dive into data analysis and insights.

Phil Fry, the VP and General Manager of Financial Compliance Strategies at Verint, brings over forty years of experience in the financial compliance industry and a deep understanding of the challenges financial firms face in adhering to regulations amidst evolving communication modes. He specializes in enhancing surveillance systems through data analysis and risk management. His perspective on this topic is shaped by his commitment to bridging the gap between what is captured and what is perceived to be captured, with a focus on proactive compliance.

Fry believes that surveillance teams can make proactive and smarter decisions by utilizing early analytics and risk analysis on captured data, focusing on high-risk conversations. He also emphasizes incorporating additional metadata points, such as time, geography, and communication patterns, to enhance surveillance capabilities. Fry’s initiatives, which include plans to add emotion detection and real-time call translation capabilities, aim to provide valuable data and insights to various corporate disciplines. Join Tom Fox and Phil Fry on this episode of the Future of Communications podcast to learn more about his innovative approach to improving surveillance systems.

Key Highlights:

  • Bridging the Gap: Pre-surveillance Insights
  • Improving Surveillance Efficiency through Data Analysis
  • Uncovering Valuable Intelligence from Spoken Interactions

Resources:

Phil Fry on LinkedIn

For More Information check out Verint.

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31 Days to More Effective Compliance Programs

One Month to More Effective Compliance Through Culture: Day 11 – Psychological Safety in the Middle

Advancing ethical culture through psychological safety can be a powerful tool. But how can you determine the state of psychological safety in your organization? Once again using the article “Fostering Ethical Conduct Through Psychological Safety” as a starting point, “there are a number of things organizations can do to make it more likely that people will speak up when they observe unethical behaviors.” But one key is psychological safety, defined by co-author Edmondson as “a shared belief held by members of a team that the team is safe for interpersonal risk-taking” — or, put another way, that “we can say what we think” or “be ourselves around here.”

There is a non-siloed nature of psychological safety at the workplace. Ethics, risk management, legal and compliance functions, plus HR all share an interest in fostering such an environment. This mandates a cross-functional approach as an essential requirement of molding an organization’s culture to include psychological safety. The authors believe, “Managers throughout a company must become aware of the blind spots created by a psychologically unsafe environment, along with the associated risk of underreported misconduct.” They also caution that a formal program such as a reporting hotline “may capture only a fraction of the problematic behaviors that occur.” This leads the authors to posit that gauging psychological safety “may help companies determine whether misconduct is being reported and, in turn, enhance the effectiveness of their formal speak-up programs.”

The authors also confirmed a greater problem which is that “in a global context, psychological safety is not uniform across nations.” Survey respondents from “the Americas and Europe tended to score higher on psychological safety than respondents from Asia.” This suggests to the authors that “the potential effectiveness of tailoring interventions that promote speaking up in order to address the specific circumstances of different groups of employees.” Moreover, “global organizations that seek to build psychological safety must assess its various region-specific drivers and derailers to adjust their activities to specific seniorities and cultures.”

 Three key takeaways:

1. How can you determine the state of psychological safety in your organization?

2. Psychologically safety at the workplace is non-siloed.

3. Middle managers are critical.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 10 – Improving Culture Through Investigations

Meric Bloch strongly emphasizes the importance of workplace investigations and fostering a culture of employee compliance. He believes that merely setting up a hotline and establishing policies is insufficient; companies must actively engage with employees to understand their motivations for speaking up or remaining silent. Bloch also underscores the need for accountability and a critical evaluation of the effectiveness of compliance programs. His experiences with multinational companies have shaped his understanding of the challenges they face, particularly the fear of being perceived as incompetent and the difficulties in reporting.

One of the key points raised by Bloch is the importance of making speaking meaningful and credible. He pointed out that companies often fail to communicate what should be reported, leading to confusion among employees. Bloch also highlights the lack of follow-up interviews and training for reporters as a problem. He stressed the need for organizations to engage with reporters and gather additional information to better understand the context and potential gaps in the initial report. Bloch also discussed the importance of addressing friction points within organizations. He mentioned that employees often hesitate to speak up due to concerns about the involvement of headquarters or fear of retaliation. Organizations must actively address these concerns and create an environment where employees feel safe and supported when reporting issues.

To create a culture of speaking up, organizations must move beyond passive measures such as hotlines and policies. They need to actively engage with employees, educate them about their role in the process, and provide clear guidance on what should be reported. By doing so, organizations can foster a culture of compliance where employees feel empowered to speak up and contribute to maintaining ethical standards.

Three key takeaways:

1. Your investigation process must go beyond simple policies and procedures.

2. Seeking additional information from a reporter will enhance the investigative process and your culture.

3. Remove friction points in the speak-up and investigative processes.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein, on Tuesday, November 28, 12 CT, For more information and registration, click here.

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FCPA Compliance Report

FCPA Compliance Report – Billy Jacobson on Building a Boutique Law Firm

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom Fox welcomes Billy Jacobson, well-known to the compliance community, who recently opened a new boutique law firm, Jacobson Lopez. We talk about why he co-founded the firm, the type of work it takes on, and where he hopes it might grow.

Billy Jacobson is a seasoned attorney with a rich background in white-collar law and compliance, having served as a DOJ attorney and worked on high-profile fraud cases such as the Enron trials and as CCO at Weatherford. His experience and knowledge of AML, FCPA, and BSA practices shape his viewpoint on Jacobson Lopez, a boutique law firm that specializes in compliance and investigations. With his partner, Jonathan Lopez, Billy co-founded Jacobson Lopez, a boutique law firm offering specialized services in compliance work, internal investigations, government enforcement, and individual representation. They aim to provide big law firm expertise at more modest rates, with greater flexibility and no conflict issues, positioning their firm as an alternative to larger law firms. To gain more insights into Billy’s perspective and the work of Jacobson Lopez, join Tom Fox and Billy Jacobson on this FCPA Compliance Report podcast episode.

Key Highlights:

  • Boutique White Collar Law Firm in DC
  • Organic Growth and Strategic Partnerships in Law
  • Federal Prosecution Experience: Navigating Complex Legal Issues

Resources:

Billy Jacobson on LinkedIn

Jacobson Lopez

Tom Fox

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Culture: Day 9 – Fostering Culture with Psychological Safety

How can you improve corporate culture through speaking up? In an MIT Sloan Management Review, Summer edition, entitled “Fostering Ethical Conduct Through Psychological Safety” authors Antoine Ferrère, Chris Rider, Baiba Renerte, and Amy Edmondson asked such questions as “How do organizations encourage people to speak up about ethical breaches, whether inadvertent or deliberate?” and “Why do some employees choose to remain silent when others report misconduct?” Additionally, they “analyzed the perceptions of those who report misconduct against those of “silent bystanders” to help “better understand both the drivers and derailers of speaking up — and revealed insights into how leaders and compliance officers can encourage employees to make such reports.’”

The authors believe today, “it is more essential than ever that when misconduct happens or difficult problems arise, there is a strong ethical climate for surfacing information so leaders can respond quickly and appropriately. An environment in which employees feel comfortable reporting such issues is also vital to preventing future misconduct.”

The authors believe that a “healthy organizational culture is one in which speaking up and listening go hand in hand, reinforcing ethical standards. If concerns are expressed, changes can be made promptly.” This is important because it moves from the detect prong to the prevent prong, which is by far the most important and effective prong in any compliance regime. Further ideas or innovations, rather than simply reporting untoward actions, can make a company more efficient and more profitable. This means a company can receive far more benefits than monetary fines or penalty avoidance if psychological safety exists.

 Three key takeaways:

  1. How a speak-up culture improves your culture.
  2. What is the role of psychological safety in improving culture?
  3. What is the role of externals in your corporate culture?

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.

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Blog

Transforming Financial Communications Compliance in the Digital Age

This week I have a special five-part podcast series, sponsored by Verint on the Future of Communication in Financial Compliance on the Innovation in Compliance podcast series on the Compliance Podcast Network. My guest in this series is Phil Fry, VP and GTM of Financial Compliance Strategy at Verint. Over this series, we will take a deep dive into the current status of communications in financial institutions; how to be or not be compliant; an analysis and insight into the area; and how to avoid accentuating the negative and the human element in compliance. In this first post, we consider the current status of communications in financial institutions.

The financial industry’s compliance landscape has undergone significant changes in recent years, driven by factors such as hybrid working, Generative AI, and diverse communication modes. These changes have presented challenges for compliance solutions and vendors, making it harder than ever to keep up with evolving regulations. In this episode of the podcast “Future of Communication,” hosted by Tom Fox and featuring Phil Fry, the topic of adapting financial compliance solutions to evolving communication modes is explored in depth.

Financial firms today face more demanding challenges in adhering to regulations than ever before. The increase in unified communications, mobile phones, and changing client demands has transformed the way traders conduct business. Instead of traditional one-to-one conversations, there is now a growing use of conference calls and persistent interactions involving varying numbers of people. This shift, termed as non-binary communications by Verint, a leading provider of compliance solutions, adds complexity to compliance efforts.

Verint recognizes the need for a comprehensive solution that captures the entire communications environment, including voice and persistent chat. They are also at the forefront of pioneering generative AI-driven transcription, communications, pre-surveillance, and speech analytics capabilities. By aligning their solutions with the three lines of defense – business compliance, internal audit, and IT – Verint aims to provide financial firms with a holistic compliance solution.

One of the key challenges in adapting financial compliance solutions to evolving communication modes is the inconsistency in enforcing fines. While Tier one banks have borne the brunt of regulatory fines, there is still a lack of consistency in holding smaller financial institutions accountable. This inconsistency creates a sense of complacency among some institutions, leading them to believe they can get away with non-compliance. However, the increasing number of fines related to communication technologies like WeChat and WhatsApp highlights the importance of controlling all aspects of operations.

Compliance capture has traditionally been associated with fraud prevention. However, in the modern world, the focus has shifted towards managing conduct risk within organizations. Compliance technology solutions, such as Verint’s, play a crucial role in ensuring users act with integrity, due skill, care, and diligence. These solutions also help organizations treat customers fairly, adhere to market conduct standards, and support the needs of their employees.

When it comes to adapting financial compliance solutions, it is essential to consider the tradeoffs involved. Financial institutions often rely on highly advertised solutions that fall short of fulfilling regulatory requirements. For example, some vendors claim to capture Microsoft Teams chat compliantly but can only capture one-off sidebar conversations, not persistent chats with attachments. This lack of technology hampers compliance controls and exposes institutions to unnecessary risks.

In conclusion, adapting financial compliance solutions to evolving communication modes is a complex task. Financial firms must navigate the challenges posed by non-binary communications and changing regulatory landscapes. Compliance solution providers like Verint are at the forefront of addressing these challenges by offering comprehensive solutions and leveraging generative AI-driven technologies. As financial institutions face increasing fines and scrutiny, they must prioritize compliance and consider the impact of communication modes on their operations. By doing so, they can ensure they meet regulatory requirements and maintain the trust of their stakeholders.

For More Information check out Verint.