Tag: messaging apps

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31 Days to More Effective Compliance Programs

31 Days to a More Effective Compliance Program: Day 3 – Key Updates in the ECCP: Messaging Apps, Internal Controls, and Compensation

Welcome to 31 Days to a More Effective Compliance Program. Over this 31-day series in January 2026, Tom Fox will post a key component of a best-practice compliance program each day. By the end of January, you will have enough information to create, design, or enhance a compliance program. Each podcast will be short, at 6-8 minutes, with three key takeaways that you can implement at little or no cost to help update your compliance program. I hope you will join each day in January for this exploration of best practices in compliance. In today’s episode, Day 3, we delve into the significant updates in the evaluation of corporate compliance programs, focusing on messaging apps, internal controls, and adequate compensation.

Key highlights:

  • Messaging Apps and Compliance
  • Internal Controls and Risk Management
  • Adequate Compensation for Compliance Teams

Resources:

Listeners to this podcast can receive a 20% discount on The Compliance Handbook, 6th edition, by clicking here.

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31 Days to More Effective Compliance Programs

31 Days to a More Effective Compliance Program: Day 3- Key Updates in the ECCP: Messaging Apps, Internal Controls, and Compensation

Welcome to a special podcast series on the Compliance Podcast Network, 31 Days to a More Effective Compliance Program. Over these 31 days series in January 2025, I will post a key part a best practices compliance program each day. By the end of January, you will have enough information to create, design or enhancement a compliance program. Each podcast will be short, at 6-8 minutes with three key takeaways that you can implement at little or no cost to help update your compliance program. I hope you will plan to join each day in January for this exploration of best practices in compliance.

In today’s episode, we delve into the significant updates in the evaluation of corporate compliance programs, focusing on messaging apps, internal controls, and adequate compensation. The revised language in the ECCP highlights the DOJ’s increased scrutiny on the use of messaging apps, emphasizing the need for tailored policies that align with a company’s specific risks and business needs. We also discuss the critical importance of internal controls as minimum expectations set by the DOJ, and the necessity of continuous monitoring to manage these risks effectively. Lastly, we examine the newly added provisions related to adequate compensation, ensuring that compliance teams are empowered and protected against retaliation. The episode concludes by summarizing three key takeaways for compliance professionals: the growing importance of communications compliance, the need for robust and functional internal controls, and the imperative of adequately compensating compliance personnel.

Key Highlights

  • Messaging Apps and Compliance
  • Internal Controls and Risk Management
  • Adequate Compensation for Compliance Teams

Resources

Listeners to this podcast can receive a 20% discount to The Compliance Handbook, 5th edition by clicking here.

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Daily Compliance News

Daily Compliance News: March 21, 2024 – The Off Channel Communications 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:

  • More CFTC fines for messaging app violations. (WSJ)
  • $12 bank fraud in Vietnam. (FT)
  • Money laundering of $6.3bn fraud in UK.  (AML Intelligence)
  • Will the Supreme Court legalize bribery? (The Lever)

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

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Compliance Into the Weeds

Compliance into The Weeds: Down The Rabbit Hole on SEC Enforcement Waivers

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 and Matt go down a rabbit hole regarding the SEC waiving penalties for messaging app violations.

The Securities and Exchange Commission (SEC) has been making headlines for its crackdown on broker dealers who violate record-keeping rules by using off-channel messaging apps like WhatsApp or Snapchat. This has led to hefty fines, yet the SEC has been granting waivers to these same firms, allowing them to continue operating in the securities world. This paradoxical approach has raised eyebrows, including those of Tom Fox and Matt Kelly. Fox finds the SEC’s actions both curious and concerning. He believes that if a waiver program exists, it should be publicly announced and the reasons for granting waivers should be transparent to ensure appropriate scrutiny. Kelly, on the other hand, expresses surprise and disappointment at the lack of transparency from the SEC, suggesting that the waiver program and its reasons should be made clear to the public. Find out more in this fascinating edition of Compliance into the Weeds.

Key Highlights:

  • SEC Sanctions for Off-Channel Messaging Violations
  • SEC Enforcement and Waivers for Internal Violations
  • Cracking down on Off Channel Communications
  • The Need for Public Announcements in SEC Enforcement

Resources:

Matt on Radical Compliance

 Tom 

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31 Days to More Effective Compliance Programs

31 Days to a More Effective Compliance Program: Day 3 – 2023 Evaluation of Compliance Programs: Messaging Apps, Internal Controls and Adequate Compensation

Messaging Apps

There was a significant addition to the language around messaging apps. The ECCP opened this section by noting, “Messaging applications have become ubiquitous in many markets and offer important platforms for companies to achieve growth and facilitate communication.” For any company under investigation or in a FCPA enforcement action, the DOJ will evaluate its “policies and mechanisms for identifying, reporting, investigating, and remediating potential misconduct and violations of law governing the use of personal devices, communications platforms, and messaging applications, including ephemeral messaging applications.”

Internal Compliance Controls

Under Section II, entitled Is the Corporation’s Compliance Program Adequately Resourced and Empowered to Function Effectively?  We find the new language, “In this regard, prosecutors should evaluate a corporation’s method for assessing and addressing applicable risks and designing appropriate controls to manage these risks.” This simple sentence packs quite a punch as it requires both appropriate internal compliance controls and then monitoring of those controls to see if they are managing the risks identified in the risk assessment.

Adequate Compensation and Salary/Bonus Review for Compliance

Under Section III, there is a significant new addition to the ECCP. It forces a company to adequately compensate those employees who investigate and pass judgment on misconduct. But it is more than simply adequate compensation, as it also requires a company not to retaliate via low salaries, limited raises, or other compensation for doing their jobs as compliance officers. In other words, if the CEO is being investigated by compliance, that same CEO should not be setting or reviewing the salary of the CCO or those doing the investigation. This mandates that the DOJ review the entire corporate organization on these issues.

Three key takeaways:

1. Communications compliance will be a key issue for compliance professionals going forward in 2024.

2. You must have both appropriate internal controls and ensure they are functioning.

3. In addition to adequate resources, a compliance function must be shown to adequately pay, promote, and protect those involved in compliance investigations.

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Compliance Into the Weeds

Compliance into the Weeds: Messaging App Enforcement and Internal Controls

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. Looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt consider the recent SEC and CFTC enforcement actions around messaging app non-compliance.

Join Tom and Matt as they take a deep dive into the enforcement actions and then consider how such claims would impact non-regulated industries. Regulated industries, particularly broker-dealer firms like Wells Fargo and Morgan Stanley, are facing enforcement actions and hefty fines for their employees’ use of messaging apps like WhatsApp and Snapchat that allow record preservation to be disabled. The involvement of senior managers in these misconducts has prompted the SEC to require an independent compliance consultant in settlements.

The conversation between Tom and Matt emphasizes the importance of messaging policies and procedures in regulated industries and the need for stricter compliance measures. They also discuss the complexities and potential consequences of record-keeping obligations and the regulatory concerns over the use of messaging apps. The conversation briefly touches on the future of AI chatbots in customer service, with differing perspectives on their ethical implications. Overall, the conversation highlights the significance of messaging policies, enforcement, and compliance in regulated industries.

Key Highlights

·      Enforcement Actions Against Regulated Industries

·      Enforcement actions and messaging policies

·      Record-keeping obligations for broker dealers and other industries

·      Regulatory concerns over the use of messaging apps

·      Internal Controls and non-regulated industries

 Resources

Matt 

LinkedIn

Blog Post in Radical Compliance

No Smoke and No Fire: The Rise of Internal Controls Absent Anti-Bribery Violations in FCPA Enforcement by Karen Woody in Cardoza Law Review

Tom 

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Daily Compliance News

Daily Compliance News: August 9, 2023 – The $555MM 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.

  • Federal judge says we need world ABC court. (WaPo)
  • Zoom and AI training. (BBC)
  • Judge order SW Airline lawyers to take religious training. (Reuters)
  • More messaging app non-compliance fines. (WSJ)
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Daily Compliance News

Daily Compliance News: July 31, 2023 – The Clear or PreCheck 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.

  • BNP Paribas to settle instant messaging allegations. (WSJ)
  • Vietnam has mass bribery and corruption roundup. (AlJazeera)
  • Clear v. PreCheck. (WaPo)
  • Top Gun CEOs. (NYT)
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Innovation in Compliance

Messaging Compliance in a Shifting Regulatory Landscape: Part 5 – Stay Ahead of Regulations

Is messaging compliance giving your compliance function headaches? Welcome to a special 5 part podcast post series, messaging compliance in a shifting regulatory landscape, sponsored by Global Relay. Over this series, I will visit with Chip Jones, Executive Vice President – Compliance at Global Relay; Alex Viall, Chief Strategy Officer at Global Relay; Rob Mason, Director, Regulatory Intelligence at Global Relay; Jennifer Clarke, Head of Content at Global Relay; and Raewyn Danvers, Sales Manager, Unified Communications. Over this series, we will consider the US and UK regulatory framework for messaging apps, consider if business innovation is being stifled by regulatory action, preview the Global Relay Report: Compliant Communications in 2023, and look down the road on how to stay Ahead of regulation with the compliant communications in one app.

In our concluding Part 5, I visit with Raewyn Danvers, Sales Manager, Unified Communications at Global Relay, and discuss how compliance professionals can stay ahead of regulatory compliance technology trends. In our conversation, Raewyn highlights the growing significance of mobile messaging in compliance, especially with millennials and Gen Z entering the workforce. We also discuss the pros and cons of using corporate devices versus bring your device (BYOD) policies in the workplace before introducing Global Relay as a solution for managing and archiving communication data compliantly. As a long-term partner in compliance, Global Relay offers dedicated onboarding specialists and account representatives to ensure customers stay on top of the latest technology trends. Are you interested in learning more? Check out Global Relay’s website for a demo today!

Key Highlights:

  • Trends in Mobile Messaging Compliance Technology
  • Adapting to Technology for Workforce Retention
  • Corporate Devices v. BYOD
  • Global Relay’s Technology Integration and Data Management

For more information go to Global Relay.

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From the Editor's Desk

From the Editor’s Desk – June and July, 2023 in Compliance Week

Welcome to From the Editor’s Desk, a podcast where co-hosts Tom Fox and Kyle Brasseur, EIC at Compliance Week, unpack some of the top stories that have appeared in Compliance Week over the past month, look at top compliance stories upcoming for the next month, talk some sports, and generally try to solve the world’s problems.

Tom Fox and Kyle Brasseur are back. In this edition, they discuss the recently concluded Compliance Week 2023, with Artificial Intelligence and off-channel communications being two of the top compliance issues. The CW ESG Virtual Conference is becoming an annual event and is set for September. Finally, they consider whether Congress will take action on data privacy due to the patchwork of state laws.

In their Sports section, they consider if the Warriors’ move was a gamble, and if Chris Paul can adjust to his new role, he could help the Warriors get back to the top. Denver is also a challenge in the Western Conference, having won the series against the Miami Heat in five games, three of which were won by double digits.

 Highlights Include:

  • Women of Compliance
  • Compliance Week 2023 Wrap Up
  • Compliance Week Conference in Atlanta
  • Chris Paul Trade
  • Marcus Smart Trade
  • NBA Finals Analysis

Resources:

Kyle Brasseur on LinkedIn

Compliance Week