Category:Uncategorized
Department of Justice Announces The Second Monaco Memo
On September 15, 2022, Deputy Attorney General Lisa Monaco issued a memorandum to the Department of Justice (DOJ) titled “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group”. This memorandum is otherwise known as the “Second Monaco Memo”, named after the Deputy Attorney General. This is the second memorandum Monaco has issued in the past year, as the first memorandum was issued in October of 2021. The first memorandum announced the establishment of a Corporate Crime Advisory group, its purpose was to guide and review the DOJ’s approach to corporate criminal enforcement. These memorandums are important to both the defense bar and corporate counsel, as they establish rules and guidelines for corporate criminal enforcement.
Climate-Related Disclosures for Investors: What the SEC Has Proposed & How Proposals May Impact the Regulatory World and Small Businesses
In March of this year, the Securities and Exchange Commission (SEC) proposed a new rule that would require public companies to disclose important information about their carbon footprint. Although many continue to sing the praises of the new rule, a fair share of critics has emerged as well. Additionally, while this proposal may have an impact on large public companies, critics question what this rule will mean for smaller suppliers.
U.S. Makes Forced Labor a “Top-Tier” Compliance Issue as Chinese Government Continues to Commit Human Rights Violations
China has long persecuted individuals in their Xinjiang region, mostly Uyghurs and Turkic Muslims. Specifically, the Chinese government has a long history of forcing Uyghurs and Turkic Muslims to do manual labor. These human rights violations prompted President Biden to sign the Uyghur Forced Labor Prevention Act (UFLPA) into law late last year. On June 21, 2022, the UFLPA went into effect, blocking the importation of goods made from forced labor in the Xinjiang region of China. The law has four main functions. It employs both an enforcement strategy and a diplomatic strategy, it applies a presumption that all goods from the Xinjiang region are barred, and it has required sanctions. Although the United States had previously restricted imports from the Xinjiang region under the Trump administration, this is the furthest step forward the US government has taken to eliminate imports from the region all together.
OSHA’s New Directive: An Incentive or a Drawback?
In September 2022, the Occupational Safety and Health Administration (OSHA) issued a new instruction which broadens the scope of the agency’s inspection program, the Severe Violator Enforcement Program (SVEP). The previous directive, which went into effect in 2010, allowed OSHA to place employers in the program if its employees committed certain serious violations, especially if they had already been cited for the violation once or received a failure-to-abate notice. The new instruction allows OSHA to place employers in the program that probably would not have met the criteria in the previous directive.
FDA’s Response to Baby Formula Shortage
This year the Food and Drug Administration (FDA) has come under fire for its slow response to the nationwide baby formula shortage. In September 2022, FDA Commissioner Robert M. Califf authorized the release of an internal report. The report details how the baby formula shortage occurred, the FDA’s response to the shortage, and the challenges it faced in resolving the shortage. The report also revealed the changes in FDA regulatory procedure to ensure another shortage does not occur.
SEC Proposes Rules to Combat Cyber-Attacks
On March 9, 2022, the U.S. Securities and Exchange Commission (SEC) proposed rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies. In an attempt to further protect against cybersecurity attacks and increase cyber transparency among issuers and investors President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA). Before CIRCIA goes into effect, it requires the Cybersecurity and Infrastructure Security Agency (CISA) to complete mandatory rulemaking activities, to develop/publish a Notice of Proposed Rulemaking (NPRM), and a final rule. The SEC proposal and CIRCIA both have different implications, but both will increase cybersecurity regulations and procedures, even making employees more conscious of potential attacks.
Possible Pitfalls in Michigan State’s Certification of Title IX
On Friday, September 30th, the Michigan State University Board of Trustees released an audit conducted earlier this month on the Title IX certification process. This audit was conducted after concerns arose regarding failure of compliance with the state-mandated Title IX certification process last year. Michigan State University President, Samuel Stanley, is at the forefront of the investigations.
The Mahsa Amini Protests: The Fight for Freedom and Women’s Rights in Iran
On September 16, 2022, a 22-year-old Iranian woman named Mahsa Amini died on her third day in police custody after being arrested for allegedly violating Iran’s strict dress code rules by wearing her hijab too loosely. While Iranian authorities claim that Ms. Amini died of heart failure, her family and protestors across the country are alleging that she was killed by law enforcement. Thousands of Iranians have taken to the streets to protest, which has led to demonstrations in over 40 cities across Iran, resulted in thousands of arrests and dozens of deaths from clashes with security forces, and the implementation of communication restrictions by the Iranian government. Now, the United Nations and its member countries are taking action in response to Iran’s persistent violations of the International Covenant on Civil and Political Rights treaty, to which they are signatories.
Artificial Intelligence: The Next Regulatory Frontier
Until recently, Artificial Intelligence (AI) was the domain of science fiction connoisseurs and Silicon Valley tech savants. Now, AI is ubiquitous in our daily lives, with a seemingly endless number of possible applications. As with any new and emerging technology, there are many novel questions and concerns that need to be addressed. Whether it be related to copyright ownership, ethics, cybersecurity obstacles, or discrimination and bias, concerns surrounding AI usage are mounting. AI system regulation has been rapidly increasing worldwide, while the U.S. regulatory landscape has remained relatively sparse. But it won’t be for long.
DOJ’s Unveils New Tool to Fight Corporate Crime: Care About Compliance
In an effort to deter corporate crime, the Justice Department (DOJ) has implemented a new policy aimed at giving chief compliance officers more authority. Chief Compliance Officers (CCOs) may now need to certify the integrity of their compliance programs and be personally liable if their programs do not “reasonably prevent and deter compliance issues.” According to Brian Michael, a former chief compliance officer (CCO), some industry professionals fear that such a policy would place compliance officers in a position to be personally liable for decisions that they have little say over. There is also worry that implementing such a policy would place CCOs in direct conflict with senior executives. However, Kenneth Polite, assistant attorney general in charge of the DOJ’s criminal division, insists that the new policy will place CCOs in a better position to ensure the integrity of their compliance programs. Polite hopes to force corporations to invest in compliance now rather than pay later.