Instant Payment Platforms Bring Compliance Challenges
January 01, 2025
it has become clear that there is a growing and more pronounced regulatory scrutiny of instant payment systems. As the financial system continues to innovate and improve efficiency, financial institutions are encouraged to adopt a risk-based approach and periodically update their sanctions compliance controls and related technology solutions to ensure that they remain commensurate with the sanctions risks presented by instant payment systems.
High Court May Limit the Reach of the Wire Fraud Statute
December 01, 2024
On Dec. 9, 2024, the Supreme Court will hear argument in Kousisis v. United States, a case that will again review the reach of the federal mail and wire fraud statutes. At issue this time is the so-called “fraudulent inducement” theory of property fraud — namely, whether deception to induce a commercial exchange can constitute mail or wire fraud, even if the infliction of economic harm on the alleged victim was not the object of the scheme.
Navigating ‘Click to Cancel’ Regulations
December 01, 2024
Automatic renewals have become a preferred method of goods and service delivery for many businesses, particularly in the context of e-commerce. The patchwork of state and federal laws and regulations makes absolute compliance a difficult proposition for many companies. In a purported effort to provide clarity to companies regarding their compliance obligations in this space, the FTC recently finalized its Rule Concerning Recurring Subscriptions and Other Negative Option Programs. While the Final Rule has reached the last stage of the FTC’s rulemaking process, questions remain.
Despite SCOTUS Ruling, Aggravated Identity Theft Statute Ripe for Overreach
December 01, 2024
Despite a Supreme Court ruling aimed to curb the prosecutorial overreach of the Aggravated Identity Theft Statute by narrowing its interpretation, the statute remains inherently vague, perpetuating unjust outcomes. Without legislative amendment or more definitive judicial guidance, the statute will continue to serve as a tool for prosecutorial overreach.
The Increase in Artificial Intelligence-Related Securities Class Actions
December 01, 2024
While the full scope of AI-related legal risks is still developing, both the SEC and FTC have revealed the kinds of AI-related corporate behaviors they consider problematic. The problematic corporate behavior the agencies emphasized the most is “AI Washing” — the practice of making unfounded claims about AI capabilities.
Compliance and Third-Party Risk Management
November 01, 2024
To gauge the level of risk and uncover potential gaps, compliance and privacy leaders should collaborate to consider how often they are monitoring third parties, what intelligence they are gathering with and about their partners and vendors, and whether their risk management practices have been diminished due to cost and resource constraints.
The Binding Effect of Plea Agreements In White Collar Crimes
November 01, 2024
Federal plea agreements sometimes state explicitly that they are limited to that one office and do not bind other U.S. attorney's offices. In this article, we discuss the circuit courts' competing approaches to interpreting the binding effect of plea agreements and the Department of Justice policy.
SEC Enforcements Highlight Risk of Noncompliance
November 01, 2024
he vast amount of cross-border investment in the U.S. securities market and the SEC's ever-evolving reporting structure compels foreign investor compliance teams and U.S. securities counsel to stay informed of potential reporting responsibilities and keep abreast of developments in the law.
