Risk and Compliance CLE & CPE

Today’s leaders in cybersecurity continue to look for ways to protect organizations from the increasingly sophisticated cybersecurity attacks. From the antiquated belief of "trust, but verify," the security world seems to be warming up to the new principle of zero trust IT. Under the latter approach, nothing inside or outside of an organization is being trusted.  The zero trust model cuts the time spent in tracking false positives, thus, enabling organizations to increase their productivity.

Staying compliant with the evolving regulatory landscape of Anti-Money Laundering (AML) and the Bank Secrecy Act (BSA) has always been challenging. With the passage of the National Defense Authorization Act (NDAA) for the fiscal year 2021, increased scrutiny and heightened penalties are expected. Amidst these changes, financial institutions also grapple with imminent credit and liquidity risks which, if not mitigated, could significantly affect operations and revenue.

As the world grapples with the unprecedented economic disruptions brought by the Coronavirus Disease 2019 (COVID-19) pandemic, multinational enterprises (MNEs) in the U.S. and Canada are confronted by the added challenge of maintaining transfer pricing compliance. Most businesses are now forced to adjust their transfer prices, analysis, and documentation and revisit their force majeure clauses to look for alternative means of fulfilling their contract obligations. Thus, creating a profound strain on the operations of MNEs.

In May 2019, the US Treasury Department’s Office of Foreign Assets Control (OFAC) published a framework for OFAC compliance. The core elements of the guidance are aimed at creating a tailored risk-based strategy to ensure sanctions compliance across an organization. It also outlines five components of a compliance program and it includes an appendix identifying the root causes of compliance breakdowns and deficiencies. To mitigate risks, it is imperative for companies to assess the adequacy of their OFAC compliance programs and to tailor them to target risks relevant to the business.

Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations have evidently evolved with the onset of the pandemic. With several authorities reconsidering their existing laws in response to the increasing criminal activities and emerging risks, the AML/KYC regulatory landscape and its already intricate compliance environment have become more active and complex than ever.

Today’s businesses are significantly maximizing the potentials of cloud-based workforce mobility tools for improved productivity and more advanced workforce management. However, the increase of users, devices, and applications accessing outside the enterprise perimeter has resulted in a rise of cyberattacks and data breaches.

Manual processing of accounts payable (APs) is typically filled with time-consuming and tedious tasks, not to mention the risks of errors that can significantly impact production time, cost, and flow. To address these and other challenges within the AP workflow, companies have started to adopt automation technologies in recent years. With AP automation, organizations could optimize their AP performance through increased on-time payment rates, reduced cost-per-invoice, and early payment discounts.

The FINRA arbitration and enforcement landscape has been continuously reshaped with rule changes as well as complications due to Covid-19 restrictions and the resulting change to remote work. Thus, all affected professionals must keep themselves abreast of the emerging updates in this space.

In December 2020, the Financial Industry Regulatory Authority (FINRA) Board of Governors approved filing to the Securities and Exchange Commission (SEC) its proposed changes to the continuing education (CE) program under FINRA Rules 1210 and 1240.

With the new administration and several notable issues continuously emerging in the backdrop, an increase in enforcement actions is expected to hound the Foreign Corrupt Practices Act (FCPA) landscape bringing both complexity and new compliance challenges to businesses. Significant developments affecting large corporate FCPA settlements, multi-jurisdictional FCPA matters, and increased individual enforcement need crucial consideration and anticipation from companies and their counsel.

Critical and emerging issues surrounding Common Reporting Standard (CRS) continue to affect global financial institutions. More and more businesses are becoming vulnerable to financial risks and disputes because of the stiffer compliance requirements as well as the complexities brought by the COVID-19.

The anti-money laundering (AML) due diligence and compliance landscape continue to heighten with the passing of the Anti-Money Laundering Act of 2020 (AMLA). The AMLA, which is regarded as the most crucial AML legislation to date, was designed to modernize the anti-money laundering policy in the U.S. It also aims to strengthen the current financial system, improve government coordination, and streamline AML compliance obligations.

The continuous disruptions brought by the COVID-19 outbreak have significantly impacted the Foreign Corrupt Practices Act (FCPA) enforcement and compliance matters. To address the risks brought by the pandemic, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have been continuously working hand in hand in providing updated guidelines for companies to ensure compliance with FCPA.

Accounts payable (AP) automation has continuously created positive buzz across industries in recent years. Along with its upward trend is the growing prominence of electronic invoicing or e-invoicing, an effective and efficient way of extracting and validating vast volumes of invoices received daily from different sources and in varied formats. As simpler platforms, e-invoicing and AP automation help companies – big or small – to eliminate the burden of costly and laborious manual processing.

When conducting internal investigations, companies face a myriad of complex and sensitive issues, including confidentiality, attorney-client privilege, and conflicts of interest.  Adding to these issues are the new and evolving challenges arising from the COVID-19 pandemic. With internal investigations being conducted remotely, evidence collections and witness interviews have become more difficult to arrange.