Survey Roundup: Communications Compliance Breakdown
A survey of 221 executives from financial services companies who have direct supervision responsibilities over compliance found 40% said too many or way too many messages are flagged for review.
Risk and Compliance Journal
Compliance
Financial Firms Turn to Artificial Intelligence to Handle Compliance Overload
The financial services industry is looking to artificial intelligence technology to help it stay on top of the ever-changing regulatory landscape.
Compliance
Judge Tosses Andorran Bank Shareholders’ Suit Against Treasury
A federal judge this week tossed the lawsuit filed by the principal shareholders of an Andorran bank, ruling that the suit was moot because they already received the relief they sought when the U.S. Treasury Department withdrew findings that the bank was a conduit for laundering money.
Whistleblowers
SEC Issues Third Whistleblower Award in a Week
The SEC announced another whistleblower award, its third in a week, issuing more than $450,000 to two individuals, who will share the bounty for their efforts.
Bribery
Corruption Currents: Philippines Tells Bangladesh to Wait for Laundered Money
As the Philippines ended its probe into money laundering linked to the hacking heist, Bangladesh kept up its demands for the money. Filipino officials said it could take a few months and they should be patient.
Compliance
The Morning Risk Report: Business Strategies to Address Overtime Rule
With a December deadline looming for new overtime rules, businesses will need to start working now to make sure they know which of their workers are eligible for overtime pay.
Compliance
U.S. Puts Sanctions on Islamic State Branches, Alleged Terror Financiers
The U.S. announced sanctions on three local branches of Islamic State and on six individuals who allegedly provided financial support to terrorists.
Bribery
Ukraine Looks to Unmask Corruption with ProZorro E-Procurement
Ukraine just enacted a law to move all of its public procurement onto an online platform from August, which will make the process more transparent as well as bring savings for the government that spends around 9% of its gross domestic product on procurement annually.
Bribery
Corruption Currents: Former Brazilian Official Receives 23 Years in Prison
An ex-chief of staff to the former Brazilian president received 23 years in prison for his role in the Petrobras scandal.
Compliance
The Morning Risk Report: Small U.K. Banks, Energy Companies Thirsty For Iran Business
Larger U.K. banks may keep on avoiding business with Iran as long as the U.S. sanctions program remains in place, but smaller and middle-sized banks and businesses are keen on commercial engagement with the country.
Compliance
Big Data Boom Also Creates New Compliance Burden
The benefits are huge for companies that can take advantage of streams of often boundless information known as big data, but so too are the corporate risks.
Compliance
Big Data Transforms, Overwhelms Compliance
Compliance officers and data specialists said they are experiencing major gains from using a growing set of big data that is transforming business operations around the globe.
Bribery
Corruption Currents: IMF Tells Iran to Fix Its Banking System
Iran has to fix its own banking system to win post-sanctions overseas business, the IMF said.
Compliance
The Morning Risk Report: Court Decision Can Tamp Down Class Suits
The Supreme Court's decision in Spokeo v. Robins may help rein in some of the class actions against companies for procedural and technical violations.
Latest News
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Alarmed Swift Urges Banks to Report Hacking Attempts WSJ
Global interbank fund-transfer service Swift told customers it was working on new measures to better secure links to its network after a series of breaches and reminded banks they are required to immediately report any unauthorized access to the system.
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Oregon Ban on Commercial Water Bottling Could Leave Industry High and Dry WSJ
A rural Oregon county approved a ballot measure this week to approve one of the the nation’s first local bans on commercial water-bottling operations, in a bitterly fought campaign that has divided residents over plans by Nestlé to open a bottling operation there.
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Colombia Threatens to Override Novartis’s Patent on Gleevec WSJ
Colombia’s government will override Novartis’s patent on a cancer medication by the end of May and open it up to generic manufacturers unless the Swiss pharmaceutical giant accepts a price cut.
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GM Offers Cash or Extended Warranty Over Crossover Fuel Economy Labels WSJ
General Motors offered cash or an extended warranty to about 135,000 customers after discovering overstated mileage labels on large crossovers.
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Cuba’s Cigar Industry Isn’t Ready for Its American Moment WSJ
With the end of the U.S. trade embargo looming, the Cuban government aims to boost production, but tobacco fields lie fallow.
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SunEdison Junior Creditors to Conduct Bankruptcy Probe WSJ
Troubled solar power developer SunEdison Inc. has agreed to allow its unsecured creditors to take on the role of bankruptcy investigators, probing for grounds for potential lawsuits against directors, officers and others involved in its troubles.
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FDA Approves New Nutrition Panel That Highlights Sugar Levels WSJ
U.S. regulators are changing food labels to show sugar levels more prominently—the first such adjustment in more than two decades—dealing a blow to food makers and aiming to change how Americans eat and drink.
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Three Hanergy Thin Film Board Members Resign WSJ
A Chinese solar-technology company that enjoyed a meteoric rise on Hong Kong’s stock exchange before trading in its shares was abruptly halted last year said late Friday that three of its board members, including its founder, resigned.
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Phil Mickelson Lands KPMG in the Sand Trap WSJ
The golfers' trading trouble and gambling could create an image problem for his Big Four sponsor
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ETFs Could Prompt New Rules, SEC’s White Says WSJ
U.S. market regulators are conducting a sweeping review of exchange-traded funds, weighing the possibility of new rules aimed at trying to contain trading and pricing disruptions that can harm investors.
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JWT, WPP File Motion to Dismiss Gender Discrimination Lawsuit WSJ
J. Walter Thompson and its parent company WPP have filed a motion to dismiss a lawsuit that accuses the agency’s former chief executive of a pattern of sexist and racist behavior that created a hostile work environment.
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Group Tasked With Finding Libor Alternatives Settles on Two Rates WSJ
An industry group tasked by the Federal Reserve with finding an alternative to the manipulated financial benchmark Libor has narrowed its focus to two alternative reference rates, according to its first report on the project.
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Fed’s Tarullo Outlines Rules for Big U.S. Insurers WSJ
Big insurers Prudential Financial and American International Group would face tougher capital requirements than peers under new rules outlined by the Federal Reserve’s point-man on regulation.
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Appeals Court Faults NLRB for Downplaying Pro-Union Threats to Workers WSJ
The National Labor Relations Board "abused its discretion" by downplaying "pro-union" threats against employees at a nursing care company during a union organizing drive, a federal appeals court ruled Friday.
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UniCredit CEO Likely to Resign, Possibly Next Week WSJ
Italian lender UniCredit SpA is heading for a management overhaul that is likely to see its chief executive step down as early as next week, people close to the bank´s board said Friday.
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Experts Urge U.S. Nuclear Plants to Implement Stricter Monitoring WSJ
U.S. nuclear facilities need more stringent measures in place to avoid fires or radioactive releases in the event of a terrorist attack or natural disaster, according to a new report from the National Academies of Sciences, Engineering and Medicine.
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Now It’s Three: Ecuador Bank Hacked via Swift WSJ
Cybercriminals stole about $9 million last year from a bank in Ecuador in an attack similar to one that took $81 million from Bangladesh’s central bank about a year later. The case suggests global bankers haven’t been sharing critical information to prevent such heists
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Collaboration, Not Competition, as Banks Combat Cyberthreats WSJ
Faced with a dizzying array of threats to their cybersecurity, financial firms have found that industry collaboration on infrastructure and defense is far superior to competition.
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Pedro Parente Named CEO of Petrobras WSJ
Brazilian state oil company Petróleo Brasileiro will get a new chief executive officer, former Bunge executive Pedro Parente, as the country’s acting president continues to replace top officials.
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Deal Settles Homeowners’ Suit Over Nuclear-Weapons Plant WSJ
Thousands of homeowners have reached a $375 million settlement over their claims that plutonium releases from the Rocky Flats nuclear-weapons plant in Colorado damaged their health and devalued their property.
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EgyptAir Plane Disappearance Raises Worries Over Air Security WSJ
The disappearance of an EgyptAir plane traveling from the French capital to Cairo has fanned concerns that one of France’s most tightly guarded terror targets—air travel—is vulnerable to Islamic State and other groups.
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Bar Prep Company Accused of Boxing Out Smaller Rival WSJ
The nation's largest bar exam-prep company is facing allegations that it elbowed a smaller rival out of the market, capitalizing on special relationships with law schools that it had nurtured with donations and gifts.
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Daniel Tully Helped Build Merrill Lynch Into a Top Investment Bank 1932-2016
Daniel Tully rose to become chairman and chief executive of Merrill Lynch. One key to his business success was an ability connect almost instantly with people of all sorts. He died May 10 at age 84.
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1MDB Figure Who Made a Splash in Art Market Becomes a Seller WSJ
A businessman closely linked to controversial Malaysian state fund 1MDB has liquidated two of his best-known investments in the U.S., including a $35 million painting of a pair of drug addicts by Jean-Michel Basquiat.
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De Blasio Averts Disclosure by Naming Special Advisers WSJ
New York City Mayor Bill de Blasio has given a new title, “agent of the city,” to five of his longtime allies. The designation makes their communications with the mayor’s office exempt from disclosure when related solely to city business, the mayor’s counsel said.
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Berkshire Names Kara Raiguel to Lead Gen Re WSJ
Berkshire Hathaway has appointed one of its longtime reinsurance executives, Kara Raiguel, to the post of chief executive of its General Re unit.
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Xerox CEO Burns to Be Chairman of Document Business Post-Split WSJ
Xerox’s Ursula Burns won’t continue as chief executive after the company’s planned split, but will serve as chairman of the company’s legacy document business after the breakup.
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‘Preventable Errors’ Led to 2015 California Oil Spill, Regulators Say WSJ
Plains All American Pipeline LP failed to prevent a massive oil spill in California last year and its delayed response compounded the severity of the accident, federal regulators said Thursday.
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Bayer’s Monsanto Bid Faces Hurdles WSJ
Bayer’s offer to buy Monsanto, on the heels of two other giant agricultural deals, would put a significant share of the corn-seed and pesticide market in the hands of just three companies, raising concerns among U.S. farmers and legislators about more expensive products and fewer choices.
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DeloitteRisk management, strategy and analysis written and compiled by Deloitte
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Will US Wages Rise as Moderate Growth Continues?: Weekend Reading
U.S. consumers are carrying the economy in the face of slowing business investment, falling exports and rising imports. But the strength of the consumer is largely based on a greater number of people working rather than the increased spending power of individual workers. Further, although U.S. unemployment is low, there still remains considerable slack in the market. Learn more about the trends affecting wages in the United States in this reported from Deloitte University Press.
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Tax Implications of the Internet of Things
As the Internet of Things (IoT) blurs the line between products and services, taxation may have a bigger impact than many expect. Companies are taxed differently depending on whether they sell a product or service, and are taxed as a regulated utility if what they sell is deemed to be ‘telecommunications.’ To address IoT-related tax challenges effectively, an organization’s tax leader should have an understanding of the new products and services being brought to market and consider joining the development process early.
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A Board Director’s Perspective: Jose Luis Prado
There is a major power shift in and around corporations that potentially gives consumers and shareholders more control over organizations than they had in the past, according to Jose Luis Prado, president, Prado Strategic Consulting LLC, who also serves on several corporate boards. Mr. Prado discusses how "shared control" of organizations can create challenges related to communications, reputation and risk-taking, as well as how corporate directors can effectively respond to these challenges.
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Aligning Cybersecurity with Corporate Culture
Creating a “cybersecurity culture” means instilling in employees an acute sensitivity to cyber risks and arming them with knowledge and tools to mitigate these threats. Tightly linking cybersecurity to the day-to-day work environment could vastly improve organizations’ security posture. To tilt organizational cultures toward greater cyber awareness, IT and security leaders can take a page from the history of workplace safety. When managers took up the safety mantle—establishing and enforcing safety protocols, providing worker training, and encouraging supervisors and employees to report hazards—accidents and injuries declined sharply.
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Facing (and Embracing) Strategic Risks
Executives are finding that by focusing on strategic risks they are better equipped to identify what could undermine their future business, adapt to new challenges and take advantage of emerging opportunities. Andrew Blau, managing director, Strategic Risk Solutions, Deloitte & Touche LLP, and Henry Ristuccia, partner, Global Governance, Regulatory and Risk leader, Deloitte Touche Tohmatsu Limited, discuss the barriers to recognizing and responding to strategic risks and outline some of the tools available to help harness them.
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Sanctions Investigations Sensitize Firms to Compliance
Organizations that have undergone an investigation for sanctions compliance are more likely to recognize the importance of regularly assessing and updating compliance programs, as well as testing sanctions screening systems, according to an online survey of 107 executives conducted by Deloitte Financial Advisory Services LLP. Companies that focus on these issues not only can increase the effectiveness of their sanctions compliance program, but they also could potentially present a stronger defense should the company fall under regulatory scrutiny, the survey found.
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