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Compliance Officers and Law Enforcement: Friends or Foes?
As we saw in Part One in last month's newsletter, regulators have recently shown a tendency to focus on compliance officers who they deem to have failed to ensure that the compliance and anti-money laundering (AML) programs that they oversee adequately prevented corporate wrongdoing, and there are several indications that regulators will continue to target compliance officers in 2018 in actions focused on Bank Secrecy Act (BSA)/AML compliance.
Regulators' Scrutiny of Compliance Officers in 2018
Regulators will likely continue to focus on individuals and corporate compliance programs this year. How do we know? For one, the Department of Justice (DOJ) “Yates Memo,” issued in September 2015 by then-Deputy Attorney General Sally Yates, which requires companies to provide all facts relevant to employee misconduct in order to receive cooperation credit, is still in effect. Despite the recent change in DOJ leadership, Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein have each indicated that they will continue to prioritize individual accountability for corporate malfeasance. See, Jeff Sessions, Attorney General, DOJ, Remarks at Ethics and Compliance Initiative Annual Conference (Apr. 24, 2017) (“The Department of Justice will continue to emphasize the importance of holding individuals accountable for corporate misconduct. It is not merely companies, but specific individuals, who break the law.”); Rod Rosenstein, Deputy Attorney General, DOJ, Remarks at the 34th International Conference on the Foreign Corrupt Practices Act (Nov. 29, 2017) (“Effective deterrence of corporate corruption requires prosecution of culpable individuals. We should not just announce large corporate fines and celebrate penalizing shareholders.”). In addition, Securities and Exchange Commission (SEC) Chairman Jay Clayton stated during his confirmation hearing in 2017 that “individual accountability has a greater deterrent effect across the system than corporate accountability.” Nomination of Jay Clayton: Hearing Before the S. Comm. On Banking, Housing and Urban Affairs, 115th Cong. 99 (2017) (Responses to Written Questions of Sen. Reed from Jay Clayton). The SEC's 2017 Annual Report buttressed Chairman Clayton's statement by including a “focus on individual accountability” as one of the five core principles that will guide SEC enforcement decision-making in 2018. SEC, Fiscal Year 2017 Agency Financial Report (2017).
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Bonus Content: How Emerging Technologies Are Impacting IP: A Chat With Legalweek Speaker Ryan Phelan
A Q&A with conference speaker Ryan Phelan, a partner at Marshall, Gerstein & Borun and founder and moderator of legal blog PatentNext, to discuss how courts and jurisdictions are handling novel technologies, the copyrightability of AI-assisted art, and more.
Overview of Regulatory Guidance Governing the Use of AI Systems In the Workplace
Businesses have long embraced the use of computer technology in the workplace as a means of improving efficiency and productivity of their operations. In recent years, businesses have incorporated artificial intelligence and other automated and algorithmic technologies into their computer systems. This article provides an overview of the federal regulatory guidance and the state and local rules in place so far and suggests ways in which employers may wish to address these developments with policies and practices to reduce legal risk.
Is Google Search Dead? How AI Is Reshaping Search and SEO
This two-part article dives into the massive shifts AI is bringing to Google Search and SEO and why traditional searches are no longer part of the solution for marketers. It’s not theoretical, it’s happening, and firms that adapt will come out ahead.
While Federal Legislation Flounders, State Privacy Laws for Children and Teens Gain Momentum
For decades, the Children’s Online Privacy Protection Act has been the only law to expressly address privacy for minors’ information other than student data. In the absence of more robust federal requirements, states are stepping in to regulate not only the processing of all minors’ data, but also online platforms used by teens and children.
Revolutionizing Workplace Design: A Perspective from Gray Reed
In an era where the workplace is constantly evolving, law firms face unique challenges and opportunities in facilities management, real estate, and design. Across the industry, firms are reevaluating their office spaces to adapt to hybrid work models, prioritize collaboration, and enhance employee experience. Trends such as flexible seating, technology-driven planning, and the creation of multifunctional spaces are shaping the future of law firm offices.