Tag:

compliance

Justice Department Hitting Corporate Executive Lawbreakers Where it Hurts

The Justice Department introduced a new pilot program last week that encourages companies to center their compensation policies around rewarding good behavior and punishing those partaking in criminal activity. Deputy Attorney General, Lisa Monaco, previewed the program at an American Bar Association conference in Miami.

Safeguarding Technologies through the Disruptive Technology Strike Force

On February 16, 2023, the Department of Justice (DoJ) and the Department of Commerce (DoC) announced the launch of the Disruptive Technology Strike Force. Under the leadership of Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and Matthew Axelrod, the Assistant Secretary for Export Enforcement in the Commerce Department’s Bureau of Industry and Security (BIS), the strike force will bring together various agencies throughout the government, including the FBI, Homeland Security Investigations (HSI) and 14 U.S. Attorneys’ Offices, to “target illicit actors, strengthen supply chains and protect critical technological assets from being acquired or used by nation-state adversaries”.

AI-ming for Better Healthcare: Legal Issues in Healthcare AI Usage

Artificial intelligence (AI) is a simulation of human intelligence that is subsequently processed by machines. It has revolutionized the healthcare space by improving patient outcomes in a variety of ways. It has also begun to leave a positive impact in health systems and hospitals as healthcare worker burnout remains on the rise. However, there are significant legal challenges that accompany its groundbreaking nature. Hospitals and health systems have a duty to mitigate these legal challenges and understand that AI should be used as a supplement, not a replacement, to human intelligence.

Regulatory Scrutiny of Crypto Exchange “Binance” May Cause it to Leave the U.S.

State and federal regulators are opposing a billion-dollar deal between the cryptocurrency exchange Binance.US and the bankrupt cryptocurrency lender Voyager. The regulatory intervention is part of an ongoing struggle between Binance, the ultra-dominant cryptocurrency exchange, and U.S. regulators. Tensions between the two appear to be nearing a boiling point. The dispute also highlights an American regulatory environment that is increasingly hostile toward the cryptocurrency industry writ large, particularly in the wake of the FTX cryptocurrency exchange collapse.  

The U.S. Department of Treasury Steps in to Patrol Petroleum

The US Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned nine entities involved in the production, sale, and shipment of Iranian petrochemicals and petroleum to buyers in Asia, in violation of US sanctions. Six Iran-based petrochemical manufacturers and three firms in Malaysia and Singapore have been targeted for facilitating the sale and shipment of petroleum and petrochemicals on behalf of Triliance Petrochemical Co. Ltd., which OFAC previously designated for facilitating the sale of Iranian petroleum products. The sanctions are aimed at targeting Tehran’s sources of illicit revenue, and all property and interests in property of the targeted entities must be blocked and reported to OFAC.

To Compete or to Non-Compete: A Look Into the FTC’s Proposed Ban

On January 5, 2023, the Federal Trade Commission (FTC) released a proposal to ban employers from the use of non-compete agreements with their workers. The FTC’s motivation behind the proposed rule is the protection of American workers, with the regulatory agency stating that non-compete agreements restrict about one in five American workers – about 30 million people. Additionally, the agency estimated that the rule could increase wages by $250 to $296 billion a year across the economy. Since seeking public comment on the ban, the FTC’s broad non-compete proposal has been met with both support and criticism.

Deutsche Bank Reorganization Results in New Compliance Chief

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.

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

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.

The Case for Expanding Privacy Protections in a Post-Roe World

In Dobbs v. Jackson Women’s Health Organization (Dobbs), the US Supreme Court ruled that abortion is not a fundamental right protected by the Constitution. This decision resulted in additional abortion protections in California, Michigan, and Vermont, and prompted many patients, providers, regulators, and tech companies to rethink data privacy. However, because most abortions are still banned in at least 13 states, this patchwork of state abortion laws, combined with the lack of any sufficient national privacy law, puts patient privacy at risk.

The Downfall of Twitter: Layoffs Rocking Big Tech

Over the last several weeks we have seen mass layoffs across big tech, including Salesforce, Twitter, and Meta. This comes after big tech peaked during the COVID-19 pandemic when it was essential to the nation in keeping us virtually connected. During the lock down tech giants’ profits soared as consumers upgraded devices, maximized increased storage, and were forced to get creative in communicating in the workspace. However, inflation, rising interest rates, and digital spending are driving big tech companies to implement large-scale layoffs as the economy prepares to take a downturn. While Meta CEO, Mark Zuckerberg, described the announcement as one of his hardest decisions, Twitter CEO, Elon Musk, has taken a different approach, causing continuous chaos that has led to compliance risks.