These are some of the compliance-related stories that recently caught my attention.
The 5 Most Common AML Compliance Program Deficiencies by Michael Volkov in Corruption, Crime & Compliance
In my view, AML programs do not get sufficient support and exposure from top-level management. A compliance failure usually can be traced back to the lack of tone and commitment to ethics. This basic deficiency results in blatant, systemic problems that plague AML programs: poor or outdated technology; weak controls that can be overridden by business needs; and commitment to revenue at all costs. [More….]
What Is the SEC Backup Plan if It Loses the ALJ Constitutionality Issue in Court? in Straight Arrow’s Securities Diary
The saga of challenges to the constitutionality of the SEC’s administrative law proceedings — and in particular the appointments and removal protections of the administrative law judges — has played out over many months in both court and commentary. After some early SEC victories on jurisdictional challenges, the Commission seemed content to try to fend off the court cases on such procedural grounds, and fight the merits by deciding the issue in its own favor on a petition for review of one of these proceedings (like the one now before it in the Timbervest case), with perhaps an upper hand once the case reached a federal appeals court. [More…]
Is Kim Kardashian West the New Face of Compliance? by Angela Gamalski, MHSA, CHC in SCCE’s The Compliance & Ethics Blog
About a month ago, Ms. Kardashian West posted to Instagram regarding her use of a prescription drug to control her morning sickness, including a picture of herself with said prescription drug and links to the manufacturer’s website. As Ms. Kardashian West is a celebrity with millions of followers who is often paid for her promotional ability, it was not an unusual post by any means (I assume, as I am not one of her followers). What is notable about this post is that it resurfaced this week as a hot news item after the United States Food and Drug Administration (FDA) publicized a warning letter to that drug’s manufacturer in response to said post, citing the Instagram posting for failing to contain the appropriate safety warnings. [More…]
The Justice Department Has Some Things to Tell You about Cybersecurity by David Smyth in Cady Bar the Door
In April the Justice Department’s Computer Crime and Intellectual Property Section issued its Best Practices for Victim Response and Reporting of Cyber Incidents. It is an excellent guide for a business organization to respond to cyber attacks and, one hopes, move forward with its business intact. The guide outlines what to do before, during, and after a data breach, and is quite detailed. [More…]