Global companies should implement an AML program and KYC practices that follow the general outline for best practices, though it does not need to be as rigorous as a financial institution. For most companies, AML risks can...more
Global companies should incorporate AML risks into their risk analysis of their third-party distributors, agents and other intermediaries. The basic questionnaire, due diligence risk analysis, contractual provisions,...more
11/29/2017
/ Anti-Money Laundering ,
Best Practices ,
Compliance ,
Customer Due Diligence (CDD) ,
Customer Identification Program (CIP) ,
Financial Institutions ,
Know Your Customers ,
Risk Management ,
Suppliers ,
Third-Party Risk ,
Vendors ,
White Collar Crimes
Global companies need to actively work to prevent fraud and corruption. Fraud and corruption go hand-in-hand. To commit bribery, bad actors have to gain access to money for unauthorized (illegal) purposes. A failure to...more
11/8/2017
/ Bribery ,
Compliance ,
Corporate Fraud ,
Corruption ,
COSO ,
Ethics ,
Financial Reporting ,
Internal Controls ,
Procurement Guidelines ,
Risk Management ,
Third-Party Risk ,
Transparency ,
White Collar Crimes
Chief compliance officers are politicians and have to possess great interpersonal skills. They have to “get along” and persuade key constituencies — most especially their business partners – to commit and devote time and...more
As we celebrate Ethics and Compliance Week in 2017, I wanted to offer my own assessment of where the compliance profession stands and the challenges facing the profession for the future....more
I always enjoyed the assumption underlying economic models – assuming people are rational actors, then . . . Sometime people do not act rationally, and sometimes people react out of fear or make unrealistic assumptions....more
Corporate boards need to devote more energy to oversight and improvement of corporate culture and compliance. Over the last ten years, we have witnessed corporate scandals and misconduct that could have been prevented or, at...more
10/24/2017
/ Board of Directors ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Employee Training ,
Ethics ,
Leadership ,
Risk Management ,
White Collar Crimes
In my final posting on ISO 37001, I review requirements for training, raising concerns and internal investigations as part of a company’s anti-bribery risk management system....more
In Part IV of my series on ISO 37001, I examine requirements relating to risk assessments, design of policies and procedures, and due diligence requirements.
Section 4.5 sets out requirements for conducting risk...more
10/19/2017
/ Anti-Bribery ,
Anti-Corruption ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Conflicts of Interest ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Due Diligence ,
Leadership ,
Performance Incentives ,
Policies and Procedures ,
Risk Assessment ,
Risk Management ,
White Collar Crimes
In Part III of my continuing series on ISO 37001, today I examine the board and top management’s respective responsibilities in the implementation and oversight of an anti-bribery management system....more
10/18/2017
/ Anti-Bribery ,
Anti-Corruption ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Leadership ,
Risk Management ,
White Collar Crimes
In Part II of my continuing series, I identify in broad strokes some of the more significant positive and negative aspects of ISO 37001. While it is easy to second-guess the ISO 37001 authors, there are some interesting...more
10/17/2017
/ Anti-Bribery ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Corporate Governance ,
Corruption ,
Ethics ,
Internal Controls ,
Risk Management ,
Risk Mitigation ,
White Collar Crimes
Lawyers get a bad rap, and I am not just referring to all the lawyer jokes we have heard numerous times. Lawyers get a bad rap when it comes to compliance. Much of it is not deserved – but candidly, some of it is deserved....more
It is always interesting to learn how companies handle specific compliance issues. Years ago, I could always tell when a compliance department was lacking in stature and independence in a company. Typically, I observed three...more
Chief compliance officers have to throw out their template for charts, diagrams and data that they use to report to the Audit/Compliance Committee and start over. Slick and colorful charts and diagrams are great but CCOs are...more
People are getting confused. A company’s ethical culture is not a touchy-feely concept that makes everyone warm and cozy all over. At the same time, compliance controls are not hard and fast rules that are mechanically...more
It is time for an honesty check – many CCOs do not like change. CCOs, however, need to embrace change as a powerful force. Compliance is an evolutionary process – it is constantly changing. A compliance program has to move...more
A chief compliance officer can get overwhelmed with responsibilities and initiatives. CCOs have a never-ending to-do list – once an initiative is finished, the CCO has to jump to another “priority.”...more
Compliance officers understand that a company’s greatest risks surround access to and use of money. A CCO has to understand a company’s financial controls, and in a perfect world, should have a seat at the table in the...more
The legal profession is undergoing significant changes. With an over-supply of attorneys and lower profits, lawyers are looking for new angles to distinguish themselves in the marketplace....more
A corporate entity is like its own community – it has a culture, a set of values and principles that form the foundation for the company’s operations, and an overall purpose. The interesting factor that has to be identified,...more
Every company has done it. Chief Compliance Officers have had to hold their respective noses and push forward with due diligence to retain a risky third party.
Rather than reject the third party, a CCO convinces him or...more
Ethical culture is the flavor of the year these days. We are seeing more postings and articles about the importance of ethical culture, and even pushing the idea of measuring and monitoring culture....more
Chief compliance officers are the rising stars in the corporate governance world. However, CCOs have to avoid complacency. CCOs have a lot more to accomplish — it is almost as if the profession has put its collective foot...more
Compliance practitioners are opportunists. They have to look for openings in the corporate resource world to build partnerships with related functions. To put it another way, they are purveyors of compliance thinking – they...more
Compliance practitioners divide their commentary and insights into two general categories – ethical culture and compliance controls. It is easy to divide compliance issues into these two categories. Ethical culture articles...more