INSIDE COMPLIANCE – Page 25 – Loyola University Chicago School of Law

The SEC’s Second Attempt to Fix a 10-Year-Old Problem

February 8, 2023The Art of Compliance

The 2008 financial collapse occurred when banks began substantially increasing access to debt. They offered adjustable-rate mortgages to borrowers who could afford the initial mortgage payments, but would end up defaulting on the loans when their adjustable interest rates kicked in. The banks then subsequently packaged these high-risk loans together and sold them as securities to mutual funds, investment banks, and pension funds. When most of these high-risk loans defaulted, the market crashed. The recession that followed cost the public thousands of jobs, homes, and retirement accounts.

#2008 Housing CrisisProposed ruleSECSEC Chair

Deutsche Bank Reorganization Results in New Compliance Chief

February 8, 2023Finance & Banking

Deutsche Bank, the multinational investment banking and financial services company, will name Laura Padovani as its new Chief Compliance Officer. The move comes as part of a broader reorganization in the company’s compliance division, taking place in the aftermath of regulatory investigations in the United States and Germany. The regulatory investigations of Deutsche Bank over the last several years concern the organization’s questionable practices as it relates to money laundering and other offenses. The investigations also involve massively high-profile individuals, such as Jeffrey Epstein and Donald Trump.

BankingChief Compliance OfficercompliancecorporateDeutsche Bankdonald trumpEpsteinfinanceFinancial CrimeFinancial CrimesFinancial TimesFTJeffrey EpsteinLaura Padovanimoney launderingNew York TimesNew York Times MagazineNYTPadovaniPascal TagnéPresident trumpReutersTagnéThomas ReutersTrendingTrumpViralwall streetWall Street JournalWSJ

Kidnapped Data: Healthcare Ransomware Attacks

February 8, 2023HIPAA & Health Information

Ransomware attacks are one of the largest threats to the healthcare industry and a tough cybersecurity problem to address. From 2016-2021, there were almost 400 ransomware attacks on healthcare organizations in the US. It is estimated that such attacks exposed the personal healthcare data of over 40 million patients. Since these attacks cannot typically be resolved without paying the ransom, it is important to invest in preventative measures to protect healthcare data from potential breach.

cyberattacksdata breachhealthcarehealthcare datahospital datahospital data breachHospitalsPrivacy & Securityransomwareransomware attackssecurity

The Collapse Of FTX and The Future Of Crypto

February 7, 2023Finance & Banking

New investment vehicles and opportunities have flooded the financial services industry over the past few decades, but arguably none have grown in popularity at a rate comparable to cryptocurrency. A cryptocurrency is a digital or virtual currency typically based on a decentralized network that utilizes blockchain technology. In other words, this decentralized feature allows a network of users to verify and record transactions without relying on any central authority, which permits the cryptocurrency to exist without government interference.

BitcoinCryptocurrencycryptocurrency regulationFINRASECSecurities and Exchange Commission

Improving the Biosimilar and Generic Drug Approval Process

February 6, 2023Uncategorized

Andrew Thompson Senior Editor Loyola University Chicago School of Law, JD 2023 As discussed previously here and here, patent evergreening and patent thickets are key drivers of prescription drug prices that also operate as a barrier to entry which blocks generic manufacturers from placing lower-cost alternatives on the market. This post will examine how newly …
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Journal of Regulatory Compliance

New Incentives from the DOJ to Urge Companies to Self-Report Crimes

February 3, 2023Uncategorized

In an action meant to incentive companies to self-report their wrongdoings, the Justice Department (DOJ), has announced big changes to its Corporate Enforcement Policy (CEP). The Department of Justice has long been fighting against corporate criminality in its pursuit to maintain the integrity of the financial market. On January 17, Assistant Attorney General Kenneth A. Polite, Jr., announced revisions to the Criminal Division’s Corporate Enforcement Policy. Some of the revisions include up to a 75 percent reduction in fines for companies that voluntarily report their wrongdoings and fully cooperate with investigations and up to a 50 percent reduction for companies that fully cooperate with investigations even if they do not voluntarily disclose the crime. These incentives further soften the aggressive stance that the Biden administration originally took against Corporate America in 2021.

AAGcompliancecorporate crimeDepartment of JusticeDOJenforcementenvironmental regulationJournal of Regulatory Compliance

Coinbase Global Inc. Settlement Raises More Questions for Financial Regulators

February 3, 2023Finance & Banking

On January 4th, 2023, the New York State Department of Financial Services made public that a $100 million settlement with the cryptocurrency exchange Coinbase Global Inc. (Coinbase) has been agreed to. The settlement follows an enforcement action imposed this past August aiming to regulate cryptocurrencies. With a lot of discussion happening given the recent collapse of FTX and anti-money laundering violations by Robinhood Markets, this action begs the question: should the digital currency industry be regulated nationwide and, if so, what should these regulatory agendas look like?

Bankingcryptocurrency regulationfinanceJournal of Regulatory ComplianceRegulationSEC

What Does The “ENABLERS Act” Mean for Attorney Regulation?

February 2, 2023Finance & Banking

The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of Treasury committed to safeguarding the financial system by detecting and preventing money laundering, the financing of terrorism, and other illicit activity since the 1970s. The Bank Secrecy Act (BSA) expanded the definition of “financial institution.” The ENABLERS Act (Act) is the latest proposed amendment that seeks to expand the provisions of the BSA to several different professions, such as lawyers, trust companies, investment advisors, accountants, public relations firms, and art dealers, amongst others. Should this amendment pass, it will be the most significant money laundering reform yet. It will expand its reach by requiring these financial service providers to adopt anti-money laundering safeguards to close the loophole in the U.S. anti-money laundering system. The safeguard will require these professionals to help prevent and report cases of money laundering by implementing due diligence rules in their practice to ensure that the money entering the system is not “dirty.” This is currently not required of lawyers or any of these other professions.

AMLAttorney RegulationENABLERS ActJournal of Regulatory Compliance

How the FTC’s Proposed Non-Compete Rule May Impact Non-Profit Hospitals

February 1, 2023Healthcare Compliance

On January 18, 2023, the Federal Trade Commission (FTC) proposed a new rule for regulating non-compete clauses. The proposed rule, which has been named the “Non-Compete Rule,” could potentially ban employers from entering into, or attempting to enter into, a non-compete clause with employees and independent contractors collectively referred to as “workers.” The proposed rule has recently sparked several discussions on the scope and constitutionality of the rule. One concern is how the proposed rule, if finalized, would impact the healthcare industry and especially non-profit hospitals.

competitionEmploymentEmployment LawFTCHospitalNon-Profit HealthcarePhysician

Fighting the Climate Crisis and Public Health Problems: A Step in the Right Direction

February 1, 2023Uncategorized

On December 20, 2022, the Environmental Protection Agency (EPA) finalized a regulation that will require heavy-duty trucks and vehicles to adopt new, more stringent standards in order to reduce smog and pollution. The EPA implemented this measure as part of its Clean Trucks Plan, a three-year plan, created to reduce emissions from heavy-duty vehicles, in hopes of addressing the climate crisis and improving public health. The new standards set by this regulation are stronger than the current ones by more than 80%. Nonetheless, many are disappointed that the regulation is not as stringent as they had hoped for.

climate crisisemissionsenvironmental regulationEPApublic health