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Daily Compliance News

Daily Compliance News: November 6, 2024 – The Post-Election 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 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:

  • FCA claims on campus. (National Review)
  • French soccer corruption investigations expand. (Bloomberg)
  • Lina Khan is a hot topic. (NYT)
  • Russia fines Google more than the Solar System’s net value. (BBC)

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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)

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Daily Compliance News

Daily Compliance News: September 12, 2024 – The Leaving the Dirty Money List 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:

  • Will South Africa leave the FATF dirty money list in 2025? (Bloomberg)
  • How corruption fuels inequality in China. (Foreignaffairs)
  • Chinese bank told to wire money after CEO disappeared. (FT)
  • Google was out to crush competition. (Reuters)

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

Check out the full 3-book series, The Compliance Kids on Amazon.com.

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Daily Compliance News

Daily Compliance News: August 9, 2024 – The Stepping into a Crisis UK 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:

  • A new Boeing CEO is stepping into a crisis.  (WSJ)
  • Microsoft says Delta is responsible for cancellations. (NYT)
  • Google and Meta had a secret deal to target teens. (FT)
  • South Africa wants off the FATF grey list. (Bloomberg)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Daily Compliance News

Daily Compliance News: December 13, 2023 – The Not Soft on Crime 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 in 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.

Stories we are following in today’s edition:

  • DOJ says it’s not soft on corporate crime. (WSJ)
  • COP28 reaches a historic deal. (FT)
  • The lure of corruption is omnipresent. (Catholic News Agency)
  • The epic verdict adds to Google int’l antitrust woes. (Reuters)
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Blog

Assessing Communication Compliance: Ephemeral Messaging and Retention

I recently had the opportunity to visit with Alex Cotoia, Regulatory Manager, and Daniela Melendez, an Associate at The Volkov Law Group, on the importance of addressing electronic communications preservation and management in this new age of rapid technological change. They joined penned an article for the Volkov Law Group’s site, Corruption, Crime and Compliance entitled, “Google’s Failure to Preserve Electronic Communications — A Warning to Every Company of a New Reality Surrounding Electronic Data.”

Ephemeral messaging, a method of communication that automatically erases content after a short period of time, is becoming increasingly popular in both personal and business settings. Platforms like Snapchat and Instagram offer features that allow messages to disappear, providing a sense of privacy and security. However, the use of ephemeral messaging in business comes with its own set of challenges and legal implications. Additionally, as both Cotoia and Melendez noted “companies have to devote significant resources and attention to information technology and security, electronic communications and business-generated data, and to overall information security and governance.”

The pointed to a recent case involving Google, where the companies document retention policy for ephemeral messaging was 24 hours, yet a Court Order required such messages be preserved. The Court found Google failed to preserve its chat data, despite a preservation order that directed Google to preserve chat records by changing the default settings for the chat system.  The Court found that Google did not effectively emphasize the importance of those obligations to its employees.

The episode highlighted the concerns raised by the Department of Justice (DOJ) regarding the use of ephemeral messaging for illegal activities, leading to more enforcement actions. This poses challenges for investigations, particularly in the corporate sector. They related that at a “fundamental level, the case underscores the criticality of applying document preservation policies to all media used by an organization’s employees to conduct company business. This echoes guidance provided by the U.S Department of Justice in the context of recent updates to its guidelines concerning the “Evaluation of Corporate Compliance Programs.”  The most recent iteration of those guidelines calls on companies to thoroughly understand the various communication channels—including ephemeral messaging applications—utilized by a company’s employees to conduct business.”

The Google case is as an example of the legal liabilities and sanctions that can result from failing to preserve relevant evidence. In this case, Google was sanctioned by a district judge for failing to preserve employee chat evidence relevant to an antitrust litigation. The employees did not follow the company’s policies regarding document preservation, leading to legal consequences.

The implications of the Google case extend beyond commercial litigation and preservation of evidence. The DOJ’s focus on ephemeral messaging applications in their guidelines for evaluating corporate compliance programs sends a clear message to organizations that they need to adopt or refine their data preservation policies in relation to employee communication.

One of the key considerations for companies is to assess their risk profile and determine whether ephemeral messaging applications are appropriate for conducting business. High-risk industries, such as those prone to corruption, should prohibit the use of these applications due to the potential for concealing illegal activities. On the other hand, companies with lower risk profiles may be more lenient in allowing employees to use ephemeral messaging applications for legitimate business purposes.

The DOJ guidelines also emphasize the need for companies to proactively manage authorized communication channels, monitor and preserve all business-related electronic data, and develop specific policies for employee obligations regarding personal devices and document retention. This requires companies to account for all communication channels, maintain data consistently, and constantly monitor content for any evidence of illegal activity.

The Google case serves as a wake-up call for companies accustomed to more lax preservation policies. It highlights the importance of enforcing existing policies and providing comprehensive training to employees on document preservation. Failure to do so can result in legal consequences and sanctions.

Cotoia and Melendez also reported that they observed “an uptick” in inquiries from clients regarding ephemeral messaging policies and the need for guidance in this area. Companies are seeking advice on how to navigate the challenges and legal implications associated with ephemeral messaging in business.

The use of ephemeral messaging in business presents challenges and legal implications that organizations need to address. It is crucial for companies to refine their data preservation policies, consider the appropriateness of ephemeral messaging for their business, and proactively manage authorized communication channels. By doing so, companies can mitigate the risks associated with ephemeral messaging and ensure compliance with legal requirements.

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FCPA Compliance Report

FCPA Compliance Report – Alex Cotoia and Daniela Meléndez Communications Compliance

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom Fox welcomes Alexander Cotoia and Daniela Meléndez from the Volkov Law Group to discuss the challenges and legal implications of ephemeral messaging in business.

Cotoia’s perspective emphasizes the significant risks ephemeral messaging poses for companies, particularly in terms of compliance and data preservation. He advocates for proactive measures, such as refining data preservation policies and monitoring all business-related electronic data. Similarly, Melendez, with her extensive knowledge and experience in conducting internal investigations, underscores the potential legal liabilities companies may face if they fail to secure relevant information. She cites real-world examples, like the Google case, to stress the importance of enforcing document preservation policies and educating employees on their responsibilities. Join Tom Fox, Alex Cotoia, and Daniela Meléndez as they delve deeper into this topic on the next episode of the FCPA Compliance Report podcast. 

Key Highlights:

  • Ephemeral Messaging: Balancing Compliance and Risk
  • Preserving Evidence and Compliance in Messaging
  • Data Preservation Policies and Risk Assessment
  • Paradigm Shift in Monitoring Business Communications

Resources:

Alex Cotoia on LinkedIn

Daniela Melendez on LinkedIn

Volkov Law Group

Google’s Failure to Preserve Electronic Communications — A Warning to Every Company of a New Reality Surrounding Electronic Data

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Daily Compliance News

Daily Compliance News: October 31, 2023 – The Happy Halloween 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 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.

Stories we are following in today’s edition:

  • Biden Administration releases statement on AI. (FT)
  • The PCAOB inspection process needs an upgrade.  (WSJ)
  • Google says it’s too important to be subject to anti-trust. (Reuters)
  • Jho Low fixer, found guilty, blames his lawyer.  (Bloomberg)
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Daily Compliance News

Daily Compliance News: October 19, 2023 – The Loser 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 in 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.

Stories we are following in today’s edition:

  • Google’s anti-trust defense ‘We’re smarter than the average bear’.   (NYT)
  • US tightens US chips sent to China.  (WSJ)
  • Computer error leads to $20MM fine for ACI. (WSJ)
  • Jim Jordan loses again. (FT)
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Daily Compliance News

Daily Compliance News: June 22, 2023 – Is the Supreme Court For Sale Edition

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

  • SCt litigant pays for trip for Alito but ‘no conflict’. (NYT)
  • ZTE and Huawei employees accused of working at Chinese spy sites in Cuba. (WSJ)
  • Google launches AML tool. (WSJ)
  • FTC says Amazon duped consumers. (Reuters)