LEGAL
News & Views
FBI anticorruption agent sees new red flags: Seven tips for coping in high-risk places
The U.S. Federal Bureau of Investigation expanded its anticorruption force last year, as it sees opportunity to track down more of the estimated US$1 trillion that bribery takes out of the global economy each year. A top enforcer on the FBI’s Foreign Corrupt Practices Act (FCPA) team, William McMurry, who heads the New York unit, said in an interview that compliance professionals would benefit from knowing the corruption landscape wherever their company does business.
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Supporting effective compliance programs: The oversight roles of the board audit and risk committees in regulatory compliance (Part 2)
To be effective, a financial organization’s compliance program must be an integral part of strategic planning, ongoing operations, and daily decision making. To support the audit and risk committees’ oversight roles, the organization’s risk and compliance officers assure the program’s effectiveness. While Part 1 focused on high-level oversight and communications, Part 2 will delve deeper into education, risk assessment, and proper response.
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Suspicious activity reporting requirements for financial institutions
Find a detailed overview of banks' requirements to file suspicious activity reports (SARs) with the Financial Crimes Enforcement Network (FinCEN). This article also discusses the record-keeping and confidentiality requirements of a SARs filing and liability protection for institutions filing SARs.
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Artificial intelligence and anti-money laundering
It is well known that technology has revolutionized industries such as music and movies, but its impact is less well known on other sectors such as record keeping. As technology advances, it often creates avenues to rethink the way we do things. One area ripe for technological innovation is AML. Two recent examples of the superhuman powers of computers, IBM’s Watson and Google’s AlphaGo, could provide the foundation for revolutionizing AML monitoring.
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Risk survey exposes supplier and other third party failures
Too many organizations are still exposed to risks such as bribery and corruption from their suppliers, distributors, agents, and other third parties. An extensive Thomson Reuters survey highlights the shortcomings and challenges firms face. The survey found that only 62% of organizations are conducting due diligence on their third parties. And just as worryingly, 61% have no idea about the extent to which third parties are outsourcing their work.
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AML enforcement likely to be more strict under President Trump
The inauguration of President-elect Trump is right around the corner, along with the wave of policy changes that will follow the new administration. Although Donald Trump has proven difficult to predict over the past 18 months, most are reasonably certain that his administration will take a markedly different course than that taken by the Obama administration these past eight years, particularly in the area of regulation.
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