GE Compliance Finds Simpler is Better
Albert Rosa, chief compliance director and senior executive counsel at General Electric Inc., discusses the values of simplicity in a compliance program and how he measures its effectiveness.
Risk and Compliance Journal
Compliance
U.S. Official: Data Transfer Agreements Don’t Have to Follow EU Model
The U.S. is building its Asia-Pacific Economic Cooperation data transfer agreement to offer a counterpoint to the powerful European Union model that is causing American regulators such headaches, a Department of Commerce official said Tuesday.
Reputation
Trace Launches Voluntary Beneficial Owner Database
Corporate compliance organization Trace International launched a database Wednesday for businesses to voluntarily disclose the beneficial owners of companies.
Sanctions
U.S. State Department Names Two Pakistani Groups as Terrorists
The U.S. State Department said Wednesday it identified two Pakistani groups as terrorists, imposing sanctions on them.
Reputation
Crisis of the Week: Plains All American Tries to Contain Reputation After Spill
Plains All American Pipeline gets the crisis treatment after the company and one of its workers were indicted on criminal charges related to a May 2015 oil spill off the California coast.
Compliance
The Morning Risk Report: Restroom Fights Spotlight Transgender Issues
The ongoing debate nationwide about which bathroom transgender people should be allowed to use should send a message to companies that they need to review all their workplace policies regarding people born under one gender but who identify under a different one.
Bribery
U.S. Compliance Expert Carrying Out New Type of Investigation
Hui Chen, the Justice Department's experimental new compliance expert, is carrying out a different kind of investigation that is bringing compliance staff front and center, according to an executive involved with an ongoing foreign corruption investigation.
Compliance
Chasing the ‘Holy Grail’: How to Measure Compliance?
It’s been referred to by some as the Holy Grail: How to accurately measure the effectiveness of a company’s ethics and compliance program? And for good reason, as no one yet seems to have come up with a definitive measurement.
Bribery
Corruption Currents: Pentagon Investigator Reveals Whistleblower Problems
A former Pentagon investigator went on record to discuss problems with the agency's whistleblower program.
Compliance
The Morning Risk Report: Compliance Officers Not in the U.S. Bullseye
The government may be focusing on individuals in corporate crime cases, but they aren't moving the bullseye over the compliance unit, top U.S. enforcers said Monday.
Bribery
U.K. Serious Fraud Office Stresses Cooperation in Investigations
In a speech to compliance and legal officers in London on Wednesday, Matthew Wagstaff, SFO’s joint head of bribery & corruption outlined how cooperation should unfold in light of the prosecutor’s relatively new use of deferred prosecution agreements.
Bribery
Corruption Currents: U.S. Drops Charge to Ease El Chapo’s Extradition
U.S. prosecutors quietly dropped a murder charge to ease El Chapo's extradition, according to a superseding indictment, following approval from Mexico's foreign ministry to extradite him.
Compensation
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.
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.
Latest News
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Alibaba Discloses SEC Probe of Its Accounting Practices WSJ
China’s biggest e-commerce company said it is cooperating with the SEC and that the commission told it a request for information shouldn’t be taken as an indication of any violation of securities law.
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Exxon, Chevron Shareholders Reject Climate-Change Stress Tests WSJ
Shareholders at Exxon Mobil and Chevron narrowly voted down resolutions calling for stress tests to determine the risk that efforts to curb climate change pose to their businesses.
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Citibank to Pay $425 Million in Benchmark Probes WSJ
Citibank agreed to pay $425 million to end long-running civil probes into the bank’s alleged manipulation of key benchmarks, becoming the first U.S. bank to resolve claims related to the Libor benchmark.
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State Department Watchdog Chastises Clinton On Email WSJ
The agency’s independent inspector general has concluded that Hillary Clinton’s use of a private email server and months of missing records from her tenure were violations of State Department policies.
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Craving More Growth, Walgreens Dismissed Its Doubts About Theranos WSJ
The drugstore chain made a blood-testing deal without fully validating the startup’s technology, worrying that Elizabeth Holmes might balk if Walgreens pushed too hard.
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Banks Ramp Up Risk With Big Trades to Help Companies Sell Stock WSJ
Wall Street firms have been doing more deals that help companies sell large chunks of stock, a process in which banks buy the shares and hope to sell for a profit later that day. But such block trades expose them to more risk.
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Report Finds Big Banks Have to Improve ‘Living Wills’ WSJ
The largest U.S. banks don't appear to have made their vast global operations less complex in recent years, supporting regulators’ conclusion that most of them have work to do to ensure they won’t need a taxpayer bailout.
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EU Privacy Case Adds New Threat to Data Flowing to U.S. WSJ
One of the last legal methods that companies have to store Europeans’ data on servers in the U.S. was thrust deeper into limbo when a privacy regulator said it would ask Europe’s top court to review its legality.
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White House to Push Firms on Greenhouse-Gas Disclosure WSJ
The White House is set to propose a new rule Wednesday that would push companies with federal contracts to publicly disclose more information about their impact on climate change, their efforts to address the issue, and how a warmer planet could affect business operations.
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U.S. Wants to Keep Charged Turkish-Iranian Businessman in Federal Custody WSJ
The U.S. government wants to detain Turkish-Iranian businessman Reza Zarrab in federal custody before trial, saying his political connections and wealth make him a significant flight risk, according to court papers filed Wednesday.
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Takata Will Restructure and Seek Cash Amid Air-Bag Recalls WSJ
Takata hired restructuring bankers to seek a cash infusion and negotiate with auto makers on mushrooming costs from rupture-prone air bags linked to 11 deaths and more than 100 injuries globally.
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Sweeping Rule Marks First Update to Chemical Safety in 40 Years WSJ
U.S. House approved sweeping new chemical safety rules designed to overhaul federal regulation covering thousands of chemicals in daily use, a rare bipartisan action in a year when Congress is torn by presidential politics.
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D.C. Appeals Court Set to Determine Fate of Several Obama Initiatives WSJ
The Supreme Court may be keeping a lower profile while it is short-handed, but high-stakes cases remain in Washington—at a powerful appeals court that could determine the fate of several important Obama administration initiatives.
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Eleven States Sue Obama Administration Over Transgender Bathroom Policy WSJ
Eleven states are suing the Obama administration over a new policy saying public schools must let transgender students use the bathroom of their choice.
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Two Vatican Bank Board Members Resign WSJ
Clemens Börsig and Carlo Salvatori have resigned over disagreements about the management and mission of the institution.
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Court Rebukes FCC Over Delay in Updating Media-Ownership Rules WSJ
A federal appeals court rebuked the Federal Communications Commission over the agency’s yearslong delay in updating its media-ownership rules.
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‘No’ Lists on Labels Make Shoppers Say ‘Yes’ WSJ
With shoppers more interested in what isn’t in skin and hair products, many marketers tout their lack of ingredients, such as parabens, sulfates and phthalates.
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U.S. Probes Real-Estate Firm With Ties to Sen. Bob Corker WSJ
Investigators are focused on accounting questions at CBL & Associates but also are reviewing the senator’s stock trades in the REIT.
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House Committee Approves Puerto Rico Bill WSJ
A House committee advanced legislation to address Puerto Rico’s debt crisis with solid bipartisan support, a strong sign the bill could now advance quickly through Congress ahead of a potential default by the territory on July 1.
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Mitsubishi Restates Earnings Over Scandal, Warns on Costs WSJ
Mitsubishi Motors Corp. restated its earnings for the previous financial year and booked a $174 million charge as it grapples with the fallout from a fuel economy testing scandal that has led to the resignation of its president.
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Ford Recalls 271,000 Pickups to Fix Brake Fluid Leak WSJ
Ford is recalling some of its top-selling vehicles in the U.S. to fix a fluid leak that can reduce braking power.
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Clash Over Car-Mileage Targets Likely WSJ
U.S. regulators soon will kick off a review of future fuel-economy targets, intensifying a debate between auto executives and Washington over buyers’ willingness to pay for emissions-cutting technology.
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Brazilian State Misses Debt Payment WSJ
A simmering debt crisis in Brazil’s state governments entered a critical new phase this week as the state of Rio de Janeiro missed an $8.4 million interest payment owed to an international creditor.
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Thousands of Living Vets Declared Dead, Lose Benefits WSJ
The Department of Veterans Affairs has mistakenly declared thousands of veterans to be deceased and canceled their benefits over the past five years, a new snafu to emerge at the embattled department.
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EU Proposed Rules Could Force Netflix to Fund European Films WSJ
The European Union proposed legal changes that could force Netflix and other online-video providers to help finance European-made films.
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How the Puerto Rico Bill Attacks the Minimum Wage WSJ
The Obama administration’s push to secure debt relief for Puerto Rico in order boost the island’s sagging economy is clashing with its effort to push for higher U.S. wage floors.
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Bank of America Tipster Gets to Keep His Reward WSJ
An appeals court threw out the penalty against the bank, but rules allow whistleblower to retain $58 million.
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Biometric Devices Raise Governance Issues for CIOs WSJ
Recent lawsuits filed by users against Facebook Inc. and Alphabet Inc.’s Google highlight the risks that companies face as they adopt the technology as an alternative to the password.
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Swedish Court Upholds Assange Arrest Warrant WSJ
A Swedish court has ruled that a request by prosecutors to detain WikiLeaks founder Julian Assange on suspicion of rape should remain in force, rejecting a recent petition by his defense team that the case against him be dropped.
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Sanofi Moves to Replace Medivation Board WSJ
Sanofi stepped up pressure on U.S. biotech firm Medivation to engage in takeover talks, calling a shareholder vote on whether to remove the entire board of the oncology drugmaker.
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Solicitor General Tells Supreme Court Not to Hear Interest-Rate Case WSJ
The Obama administration on Tuesday advised the Supreme Court not to hear a closely watched case challenging state caps on interest rates.
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Man Charged in Slaying of Longtime Coal Executive WSJ
Police arrested an Ohio man and charged him with murder in connection with the shooting death of former Patriot Coal CEO Bennett Hatfield in southern West Virginia.
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DeloitteRisk management, strategy and analysis written and compiled by Deloitte
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How Treasury Can Help Identify Hidden FX Exposures
With the dollar’s strength against other major currencies, organizations are facing functional pressure to address related risks, including foreign exchange (FX) exposure identification and visibility. Currency exposures can hide in plain sight on a company’s balance sheet and within various intercompany transactions. As a result, organizations may want to consider seven areas of focus to help identify and address FX risks, including disparate treasury systems, inconsistent accounting and a lack of standard processes.
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FX, Emerging Market Corporate Debt Could Dampen Economic Outlooks
As the financial market volatility that sparked economic concerns earlier in 2016 has abated, the global economy has improved and the outlook for U.S. companies and the U.S. economy has steadied despite weak first-quarter growth. Still, there are reasons many CFOs may retain the trepidation expressed in Deloitte’s first-quarter CFO Signals™ survey. Dr. Ira Kalish, chief global economist, Deloitte Touche Tohmatsu Limited, discusses whether the factors that caused CFOs’ downward company expectations could reoccur and looks at other potential risks that could impact the global economy.
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Board Effectiveness: A Focus on Behavior
Companies, investors and regulators recognize the importance of an effective board of directors, with an ever-greater emphasis placed on board structure, composition and refreshment. Beyond the need for a variety of skills and experience, establishing a vital mix of personality traits can also be an important consideration, as this can greatly impact the board’s effectiveness. Interacting with diverse personalities comes with the territory, but how well directors relate to conflicting personalities can mean the difference between collegial and respectful interactions—or clashes of opinions that stifle creative thinking.
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Retail Sector Risk: Building Effective Enterprise Compliance
Strengthening compliance across a retail organization—from the farthest reaches of local stores and supply chain partners to the corporate offices and, ultimately, the board—can be a challenge for many retailers and calls for a new approach. Learn how starting from a current-state risk assessment, an enterprise compliance program can put the focus on having the right people, processes and technologies in place to strengthen a retailer’s ethics and compliance program, while addressing gaps in the flow of information throughout the organization.
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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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