INSIDE COMPLIANCE – Page 36 – Loyola University Chicago School of Law

OFAC Publishes New Guidelines Regarding the Russia Investment Ban

September 21, 2022Compliance Spotlight, Finance & Banking

On June 6, 2022, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) released new and revised guidelines regarding the Russian investment ban established by Executive Orders 14071, 14066, and 14068. As a result of the executive orders, sanctions can be imposed on individuals or entities determined to have operated in the accounting, trust and corporate formation services, or management consulting sectors of the Russian Federation economy. OFAC has consistently been updating and revising the guidelines to keep the guidelines as clear and consistent as possible, in an attempt to keep Americans doing business in Russia out of legal trouble.

businessfinanceInternational FinancerussiaSanctionsUkraine

SEC Looks to Modernize the Fund Names Rule

September 16, 2022Finance & Banking

On May 25th, 2022, the Securities and Exchange Commission (SEC) issued a proposal to the Investment Company Act of 1940 Rule 35d-1 which expands on a rule that mostly regulates fund names. The SEC has decided to take these measures to combat “greenwashing”; a marketing ploy used by fund investors to draw in socially conscious investors for investments that are anything but sustainable. The SEC believes investors lack comparable, consistent, reliable information on ESG products. This article will discuss these new proposals and what they mean for important stakeholders.

Banking RegulationcompliancefinanceHedge Fund RegulationMutual Fund RegulationRegulationSEC

Tick Tock for TikTok as Kids Addiction to App Grows

September 16, 2022Uncategorized

In June of this year, a new California bill, which allows social media companies to be sued by state government attorneys for having features that contribute to the addiction of children to their apps, cleared the state Senate. The bill was originally brought to California’s state assembly as one that would permit parents to sue social media giants for up to $25,000 per violation but was later amended after lobbying from business and tech-industry groups. The worry that social media is able to exploit children through ads, notifications, and other features in the design that are promoting addiction has amplified since the premiere of 2020 documentary, “The Social Dilemma.” Since then, the warning that regulation was looming has quickly turned into actual movement towards regulating the actions of social media companies. The bill has since failed, a disappointing end to an initiative that could have made a real change towards keeping social media giants in check.

addictionadvertisingcaliforniadata regulationJournal of Regulatory CompliancePrivacy & Securitysocial media

Possible Pitfalls of the New DOJ Compliance Policy

September 15, 2022Fraud & Abuse

In March 2022, the U.S. Department of Justice (DOJ) introduced a new policy idea that requires a Chief Compliance Officer (CCO) undergo certification. This certification requires CCOs to attest at the end of company resolutions that their compliance program is reasonably designed to detect and promptly remedy behavior suspected or known to be in violation of applicable laws. The new policy is part of an effort to take more proactive measures against criminal behavior and activities such as fraud, bribery, corruption, etc. The certification is also aimed at empowering the CCOs as they speak on behalf of their company’s obligations to the compliance program.

CCODOJpersonal liabilityRegulationwhite-collar crime

DOJ Renews Efforts to Prosecute White-Collar Crime

September 15, 2022Uncategorized

In October of 2021, the Department of Justice (“DOJ”) announced it would ramp up its enforcement against corporate repeat offenders of white-collar crimes and prioritize action against individual actors to promote accountability. The new measures implemented permit the DOJ to consider all prior wrongdoing by a corporation when deciding how to resolve a new investigation. Leniency programs of the past will not be extended to wrongdoers unless all believed participants, whether employees or executives, are disclosed. There has also been a shift from financial penalties to probationary settlements, which require companies not only to admit fault and pay fines but also to improve their monitoring of employees to deter crime. This may require outside monitoring to verify compliance, which can be burdensome and expensive.

DOJenforcementJournal of Regulatory ComplianceprosecutionRegulationwhite-collar crime

Meta Sued for Unlawful Collection of Patient Data

September 15, 2022HIPAA & Health Information

A recent class action lawsuit alleges Meta (the parent company of Facebook) used an illegal tracking tool to retrieve patient information from over 664 hospitals for marketing purposes. Meta and a handful of US-based hospitals have violated privacy laws such as HIPAA that control the means and methods for lawfully handling covered medical information. John Doe filed the case on June 17, 2022, in the U.S. District Court for the Northern District of California, seeking class action certification for a jury trial to recover compensatory damages and attorney’s fees.

HIPAAMETAPrivacy & Security

The AMLA – Blowing the Whistle on Fraud

September 14, 2022Fraud & Abuse

Whistleblowing – a powerful weapon in the arsenal of defense against fraud – is a highly effective tool utilized by the government to enforce regulatory compliance. Nevertheless, many employees remain hesitant to initiate criminal proceedings. In 2021, in an effort to dispel such concerns and to empower potential whistleblowers to take action, Congress enacted the Anti-Money Laundering Act (AMLA).

abuseanti money laundering actfraudwhistleblower

The SEC and Its ESG Investment Disclosure Proposal

September 14, 2022Fraud & Abuse

The Securities and Exchange Commission (SEC) established the Environmental, Social, and Governance (“ESG”) Task Force in 2021. In March and May of 2022, the SEC proposed a disclosure rule “forcing publicly traded companies to disclose how climate change could threaten their businesses and describe their contributions to global warming.” The rule further accentuates the SEC’s mission “to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” However, the proposal has faced substantial opposition, as some believe the proposal exceeds the SEC’s authority.

ESGInvestment advisorRegulationSEC

A New FDA Rule Will Change the Future of the Hearing Aid Industry

September 14, 2022Food and Drug Law

Thanks to a new FDA final rule, published in August of this year, Americans can soon purchase specific hearing aids over-the-counter (OTC) without a hearing exam, prescription, or fitting. Although this rule will improve access to hearing aid devices and lower the costs for those with hearing impairments, many critics are convinced the rule will do more harm than good.

FDAhealthcaremedical device

Patient Privacy in the Post Roe Era

September 9, 2022HIPAA & Health Information

On June 24, 2022, the Supreme Court finally handed down its long-awaited opinion in Dobbs v. Jackson Women’s Health Organization. In this decision, the Court set aside nearly 50 years of precedent and unequivocally overruled Roe v. Wade, declaring that there is no Constitutional right to abortion. This decision will unsurprisingly change laws and significantly impact millions of people across the country. Although pro-choice activists have been bracing for this outcome and mobilizing to maintain access to abortions, they have to contend with a consideration that did not exist to the same magnitude the last time that abortion was illegal in the US: anti-abortion laws’ impact on data privacy.

abortionbig techCivil Rightsdata privacyDepartment of Health & Human ServicesHIPAApatient dataPrivacy & SecurityprosecutionSupreme Court