Internal Controls


Bank fail

Recent OCC case shows widespread liability when a BSA program fails

2020-09-18T19:13:00+01:00By

Who faces liability when a Bank Secrecy Act program is deemed to be deficient? A series of recent enforcement actions taken by the OCC against individuals at a now-defunct New Jersey bank provides a case study.

Telecom satellite

Compliance official key to Comtech sanctions penalty

2020-09-18T16:36:00+01:00By

The alleged actions of an export compliance official are at the heart of “egregious” apparent OFAC sanctions violations by New York-based Comtech Telecommunications Corp. and its wholly owned subsidiary regarding sales in Sudan.

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Volkswagen completes monitorship; Deloitte family leave policy too good to be true?

2020-09-17T20:32:00+01:00By Compliance Week

Volkswagen gets a nod this week for successfully completing its 3-year compliance monitorship related to Dieselgate. Deloitte, on the other hand, lands on the wrong side of our list.

Employee compensation

Report: Median general counsel salary rises again, to $2.6 million

2020-09-17T16:18:00+01:00By

General counsel compensation is steadily on the rise, according to the latest in-house counsel compensation report by Equilar and executive search firm BarkerGilmore. Inside, we also explore what companies seek in a general counsel.

AIDA cruise line

Chapter 6: Carnival looks toward a new horizon

2020-09-17T13:00:00+01:00By

Carnival will go through extraordinary scrutiny as it prepares to resume guest operations—not just in health, safety, and security but in environmental compliance as well. The storm is not over yet.

Carnival

Chapter 5: The storms merge

2020-09-17T13:00:00+01:00By

How can Carnival meet the expectations of a government-mandated environmental compliance plan and stay in the court’s good graces while the coronavirus brings business to a standstill?

Peter Anderson

Chapter 4: Carnival moves ethics and compliance to the fore

2020-09-16T13:00:00+01:00By

This installment looks at how new Carnival CECO Peter Anderson restructured the Ethics and Compliance department and developed a culture action plan to drive change across the organization.

EY

EY chairman: Auditors should work harder to find fraud

2020-09-15T20:31:00+01:00By

The chairman and chief executive of Big Four auditing firm EY says auditors should do more to uncover fraud while conducting external audits, a topic the industry has historically been reluctant to tackle.

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Daimler, U.S. authorities reach $1.5B proposed emissions settlement

2020-09-15T19:54:00+01:00By

Daimler AG and subsidiary Mercedes-Benz USA have reached a proposed settlement with U.S. authorities totaling $1.5 billion in fines and other costs to resolve emissions-cheating allegations.

Elizabeth Holmes

Elizabeth Holmes might seek ‘mental disease’ defense at Theranos trial

2020-09-15T16:29:00+01:00By

Elizabeth Holmes, founder and CEO of now-defunct blood testing company Theranos, is exploring the idea of using “mental disease or defect” as part of her defense during her criminal fraud trial, which is set to begin in March.

Magic pipe

Chapter 3: Carnival’s history as serial polluter catches up to it

2020-09-15T13:00:00+01:00By

This installment looks back at Carnival’s history of environmental law convictions, plea agreements with the DOJ, criminal fines, and environmental compliance plans (yes, there is more than one).

Princess passengers

Chapter 1: Amid compliance overhaul, COVID-19 hits hard

2020-09-14T13:00:00+01:00By

It’s early 2020, and the world’s largest cruise line operator is about to confront an immutable collision of two storms: its court-mandated environmental compliance plan, more than 2 years in progress, and the imminent coronavirus pandemic.

Diamond Princess

Chapter 2: Carnival put to the test as early COVID-19 hotspot

2020-09-14T13:00:00+01:00By

As more and more Carnival ships become hotbeds of infection and the company faces harsh criticism, CEO Arnold Donald trumpets the company’s unwavering focus on compliance.

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Compliance Week presents: ‘A Tale of Two Storms’

2020-09-14T13:00:00+01:00By

Our first-ever case study is the story of Carnival’s quest for compliance redemption, set in the context of not only new leadership and a court-appointed monitorship, but in the midst of a global pandemic.

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Credit to JPMorgan Chase in this week’s banking-themed naughty/nice list

2020-09-10T21:14:00+01:00By Compliance Week

JPMorgan Chase, Danske Bank, Deutsche Bank, and Bank of America all either “Nailed It” or “Failed It” this week.

Cooperation

10 reasons why should you be a compliance officer

2020-09-09T15:43:00+01:00By Jonathan Bowdler, International Compliance Association

Jonathan Bowdler of the International Compliance Association shares his list of factors that make compliance an appealing profession today.

Wells Fargo

FINRA sanctions Wells Fargo $2M over variable annuity switches

2020-09-08T18:47:00+01:00By

Two Wells Fargo subsidiaries were ordered to pay more than $2 million due to supervisory failures regarding the switching of customers’ variable annuities, the Financial Industry Regulatory Authority announced.

Carnival

‘Tale of Two Storms’: Carnival compliance case study to launch Sept. 14

2020-09-08T14:22:00+01:00By

CW is excited to announce the upcoming publication of its first-ever case study, a deep dive into the history of environmental transgressions at Carnival, its path back to compliance under new leadership, and its shift to crisis management mode when COVID-19 hit.

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Credit social media giants for prepping for election chaos

2020-09-03T18:12:00+01:00By Compliance Week

Silicon Valley’s social media heavyweights deserve a nod for “war-gaming” potential misinformation scenarios in advance of November’s elections, while McDonald’s again finds itself on our “Not Lovin’ It” list.

FBI

FBI reforms compliance procedures, to establish new audit office

2020-09-02T17:24:00+01:00By

Compliance reforms set to take place at the FBI include enhanced training and oversight mechanisms and a newly created office to carry out “rigorous and robust auditing.”

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Q&A with Kara Brockmeyer: How pandemic has impacted third-party risk

2020-08-31T15:18:00+01:00By

In advance of her keynote at Compliance Week’s upcoming TPRM virtual event (Sept. 17-18), former SEC official Kara Brockmeyer discussed with CW the heightened risk third parties have during a pandemic and what companies can do about it.

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Credit to KPMG for shining a light on fraud at Wirecard

2020-08-27T15:08:00+01:00By Compliance Week

A scathing report on the extensive fraud at German payment giant Wirecard had a compliance silver lining: KPMG’s by-the-books, transparent approach to a special audit helped bring that fraud to light.

Employee pressure

Survey: Weak leadership contributes to employee pressure to bend rules

2020-08-21T17:56:00+01:00By

A new global business ethics survey released by the Ethics & Compliance Initiative seeks to explain what factors contribute to employee pressure to compromise ethical policies or regulations and how to reduce that pressure.

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Jury’s out on Wells Fargo compliance moves; Twitter #fail for Irish DPC

2020-08-20T18:33:00+01:00By Compliance Week

While it’s not yet clear whether Wells Fargo’s compliance moves (including the loss of its CCO) will pay off, we’re much more certain about the Irish Data Protection Commission’s stance on a potential Twitter fine.

Scotiabank

Scotiabank to pay $127.4M for commodities scheme, compliance failures

2020-08-19T18:58:00+01:00By

The Bank of Nova Scotia will pay $127.4 million in total penalties in resolutions with the Justice Department and the CFTC for its role in a massive price-manipulation scheme in the precious metals futures contracts markets.

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Wells Fargo CCO Roemer to depart amid new risk hirings

2020-08-14T16:09:00+01:00By

Wells Fargo announced Chief Compliance Officer Mike Roemer will depart two years after taking on the daunting task of transforming the troubled bank’s compliance and risk management efforts. Paula Dominick will succeed him as CCO.

AuditResources

New survey highlights internal audit’s vital role in fraud risk management

2020-08-13T17:48:00+01:00By

The more internal audit plays a key role in the strategic management of fraud, the more effective and robust organizations’ fraud risk management processes seem to be, according to the results of a recent Kroll/IIA survey.

columnist icons - kyle

NRA shot itself in foot with poor compliance commitment

2020-08-11T15:55:00+01:00By

The New York Attorney General’s lawsuit to dissolve the National Rifle Association might not play out as intended, but it nevertheless exposes a number of systemic compliance flaws at the organization that appear to still need to be addressed.

woods

Having difficult conversations is key to modern compliance

2020-08-11T15:44:00+01:00By

Now more than ever, difficult conversations are necessary and increasingly expected of compliance professionals. Financial crime expert Martin Woods has some ideas on how to make them less painful.

Chambers_index

Q&A: IIA president Chambers on Three Lines update, COVID-19, more

2020-08-10T18:16:00+01:00By

In the wake of drastic updates to the “Three Lines Model” for managing risk, IIA President and CEO Richard Chambers catches up with Compliance Week to discuss the changes, how COVID-19 has impacted the internal audit profession, and more.

McDonald's

McDonald’s whistleblower leads to lawsuit against fired CEO

2020-08-10T17:50:00+01:00By

An anonymous whistleblower’s complaint alleging sexual misconduct by fired McDonald’s CEO Steve Easterbrook prompted the company to file a lawsuit attempting to claw back some of the $41 million severance package it paid upon his ouster.

CapitaoOneStory

OCC fines Capital One $80M over 2019 data breach

2020-08-07T17:10:00+01:00By

Capital One and Capital One Bank (USA) were fined $80 million for failing to establish sound risk management processes and internal controls related to the company’s data breach last year.

Accounting

Despite pandemic, ‘time to act is now’ on LIBOR transition

2020-08-07T14:47:00+01:00By

Focus on LIBOR transition may have slipped during the coronavirus pandemic, but the recent conversation among regulators is once again looking toward life after the soon-expiring reference rate.

New York Supreme Court

New York AG cites ‘culture of noncompliance’ in NRA fraud lawsuit

2020-08-06T20:48:00+01:00By

Central to the New York Attorney General’s lawsuit seeking to dissolve the National Rifle Association are allegations that the nonprofit’s “culture of noncompliance” allowed EVP Wayne LaPierre and three other NRA officers to steal $64 million from the organization over three years.

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CCOs show resilience in early survey data; compliance-blind NRA in crosshairs

2020-08-06T20:41:00+01:00By Compliance Week

The National Rifle Association “Failed It” big time if a suit alleging a lack of compliance controls proves true. Meanwhile, we tip our caps to the stalwart CCOs who carry on despite a cut in pay and resources due to the pandemic.

Canada

Canadian market regulator floats flexible firm CCO models

2020-08-05T16:00:00+01:00By

The Canadian Securities Administrators has published guidance that effectively gives registered firms in Canada more flexibility in satisfying chief compliance officer staffing requirements through three optional models.

coronavirus office

Don’t wait for Congress to save your firm from coronavirus liability

2020-08-05T13:59:00+01:00By

If you are an employer hoping Congress will pass a “coronavirus liability shield” bill to help your company deflect COVID-19 lawsuits, consider this: No such “shield” will do much good unless you’ve already taken action to create a safe workplace.

KYC

Firms must apply contact tracing rules to bank relationships

2020-08-04T15:28:00+01:00By

In order to prevent debacles like the one Deutsche Bank is embroiled in, there is a need to combine the processes of “know your employee” and “know your customer,” writes Martin Woods.

DOJ building

Advice for compliance from new DOJ Criminal Division head

2020-08-03T12:00:00+01:00By

Acting Justice Department Criminal Division head Brian Rabbitt shares his perspective on recent updates to the Evaluation of Corporate Compliance Programs guidance, the FCPA Resource Guide, and more.

PG&E

PG&E names new CECO amid leadership shuffle

2020-07-31T16:18:00+01:00By

PG&E Corp. is shaking up its management team, including the impending appointment of John Simon as executive vice president, general counsel and chief ethics & compliance officer.

Credit Suisse

Credit Suisse combines risk and compliance, adds sustainable investing unit

2020-07-31T15:54:00+01:00By

Credit Suisse has combined separate risk and compliance heads into one board-level position, part of a shakeup of the bank’s corporate structure that includes a renewed emphasis on sustainable investing.

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What do FIFA chief, ‘Florida man,’ and Trump have in common? All Failed It this week

2020-07-30T18:18:00+01:00By Compliance Week

The lesson in this week’s edition of “Nailed It or Failed It?” is the more things change, the more they stay the same.

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CPE Webcast: Ensuring supplier resilience in your business continuity plans

2020-07-30T14:00:00+01:00Provided by

The global pandemic has put every organization’s business continuity plans to the test. Identifying the gaps have been easy and often the list has included inadequate vendor risk management and resilience planning.

Three Lines

Analysis: Comparing the IIA’s new ‘Three Lines Model’ to the old one

2020-07-29T16:42:00+01:00By

The biggest improvement in the IIA’s new “Three Lines Model” of risk management is it allows for greater flexibility between “lines” and is less likely to be interpreted so literally.

GoodRiskMgmt

Shared elements of best-in-class risk and compliance programs

2020-07-28T15:50:00+01:00By

A revamped NAVEX Global report reinforces a long-held belief in the compliance industry that those companies that trust employees to behave ethically continuously work to improve culture.

Training

How to navigate states’ patchwork quilt of return-to-office training requirements

2020-07-28T13:57:00+01:00By

As if cobbling together a return-to-office plan for your company during a pandemic is not difficult enough, 16 states now require employees receive coronavirus safety training.

Ghost CCO

The problem with ‘ghost CCOs’ and the haunting consequences

2020-07-27T13:01:00+01:00By

If you’re a small investment firm owner acting as your firm’s chief compliance officer, here are some scary stories that might keep you up at night.

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Nailed It or Failed It? Disney sends anti-hate message to Facebook

2020-07-22T18:30:00+01:00By Compliance Week

In this week’s “Nailed It or Failed It?”, Disney gets kudos for throwing its weight behind the #StopHateForProfit protest, while PG&E earns criticism after being found responsible for yet another California wildfire.

FightFraudData

Using data to fight fraud fire with fire

2020-07-21T13:42:00+01:00By

When it comes to ferreting out and thwarting fraud, one must think like the fraudster, advises financial crime expert Martin Woods, who offers tips on using data to make your firm a hostile environment for bad actors.

Three Lines

IIA’s ‘Three Lines of Defense’ updated to stress collaboration

2020-07-20T18:30:00+01:00By

The Institute of Internal Auditors’ updated “Three Lines Model” ditches the focus on defense of its predecessor to encourage more effective collaboration between key players within an organization.