Companies in the US that are placed under a monitorship must engage thoroughly and completely with the monitor. Once a monitor is in place and agreement has been reached on the terms of the enforcement agreement, engagement letter and scope of work to be performed, what should the company do to ensure a successful outcome?
Companies in the US that must recommend monitor candidates to finalize a settlement agreement with the Department of Justice have a challenge ahead of them, and they will need to access and follow published guidance. What criteria should a company prioritize as they propose an impartial but effective monitor?
Compliance is a word that all companies, especially financial firms, need to know but is one that is not always enduring to boards and senior management. After assigning compliance officers the task of designing the compliance program, many executives lose interest and move on to more compelling concerns. But considering the potentially devastating risks to reputation and profitability of non-compliance, an effective compliance program requires continuous engagement, support and investment.
The COVID-19 crisis has imposed new requirements on banks. Social distancing necessitates that employees work remotely, rendering a bank more vulnerable to cyber-hackers. A bank’s culture has never been more critical than it is now at every level of the hierarchy. From the top down, employees must be guided by company values, by the goal of doing their jobs right. How can management avoid new crises through lapses in culture?
Increasingly, the US government is imposing sanctions as an integral part of its foreign policy, and financial institutions, especially those in capital markets, have been caught in the crossfire. With penalties for sanctions violations mounting, financial players within capital markets are increasingly called upon to assess and address the risks associated with their products and services that are vulnerable to exploitation by sanctions violators, and accomplishing this is not easy.
The mandate of financial institutions is to process financial transactions for individuals and businesses, but unfortunately, these institutions are sometimes used for illicit purposes, such as money laundering and terrorist financing. Effective, accurate risk assessment is the foundation of a financial firm’s risk management and regulatory compliance, and there are a number of manual and automated methods available to assess risks. Detecting and acting against suspicious activities is a must for banks today.
The United States has reached a critical point in determining data privacy standards. With mounting concern among all stakeholders, it is no longer a question of whether more privacy laws will be enacted, but how—and specifically, whether the problem will be resolved at the state or national level.
Being your company’s chief compliance officer is not a job for the faint of heart. Being the intermediary between regulators and your fellow staff is guaranteed to make you unpopular at times—and the position can render you vulnerable to reputational risk. What are the core attributes needed to transcend the risks to become the most effective CCO possible, protecting your company against the potentially devastating consequences of non-compliance?