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Category Archives: Compliance

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Compliance, Fraud, Deception and False Claims, Securities and Commodities

SEC’s Whistleblower Program Awards Over $3 million to Company Insider

On Friday, July 17, the Securities and Exchange Commission (SEC) announced that it will award more than $3 million to a company insider who helped the SEC “crack a complex fraud.” The SEC’s whistleblower program was adopted under the Dodd-Frank Act of 2010. It rewards high-quality, original information that results in enforcement actions exceeding $1… Continue Reading
Anti-Bribery and Corruption, Compliance, Securities and Commodities

China’s Focus on Combatting Commercial Bribery Is a Wake-Up Call

Earlier this month, six former employees of Tencent Holdings (Tencent), including Liu Chunning, a now high-level executive of Alibaba Group, were detained by Chinese authorities as part of a bribery investigation relating to payments made by online video content providers to employees of Tencent, including Liu. In addition to showcasing the continued fight against graft… Continue Reading
Compliance, Securities and Commodities

Broker-Dealer Audits: PCAOB Disciplinary Orders and Extraordinary Cooperation Credit

Despite a decreased budget in 2015, Public Company Accounting Oversight Board (PCAOB) Chairman James R. Doty believed there would be enough resources to continue with the PCAOB’s strategic plan to serve as the oversight body Congress envisioned. As we reported back in February, Doty noted that the 2015 budget would allow for 75 inspections of… Continue Reading
Anti-Money Laundering, Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

FinCEN Reasserts its Commitment to Casino Oversight and Enforcement

In a recent post we described a number of steps taken over the last year by the primary federal regulator for casinos – the Financial Crimes Enforcement Network (FinCEN) – that should cause casino operators to have Title 31 and Bank Secrecy Act (BSA) compliance among their top priorities. Based on this FinCEN activity, the… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends

Supreme Court Strikes Down Warrantless Searches of Hotel Guest Registries

Hotels possess a treasure trove of private information about their guests. Everything from the guest’s name, address, credit card and vehicle information to the number of guests in the party, arrival and departure dates and the amount paid for the stay. Needless to say, that data can be extremely useful to law enforcement. Indeed, many… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends

OIG Warns Physicians of Potential Exposure for Unlawful Compensation Arrangements

While the Department of Justice and the Department of Health and Human Services Office of Inspector General (OIG) have long scrutinized physician compensation arrangements, including medical director agreements, penalties traditionally have been sought against the institutional party to the arrangement and not the individual physicians. OIG’s recent fraud alert indicates this may no longer be… Continue Reading
Compliance, Securities and Commodities

SEC Division of Investment Management Issues Cybersecurity Guidance for Investment Funds and Advisers

The U.S. Securities and Exchange Commission’s (“SEC”) Division of Investment Management (“Division”) recently released a Guidance Update (“Guidance”) highlighting the importance of cybersecurity for registered investment companies (“funds”) and registered investment advisers (“advisers”). In the Guidance, the Division identified a number of measures for funds and advisers to consider in addressing cybersecurity risk and rapid… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB PROPOSAL TO END “PAYDAY DEBT TRAPS” MEETS SERIOUS CRITICISM

A recently released Consumer Financial Protection Bureau (CFPB) plan meant to end “payday debt traps” is meeting serious criticism from industry experts who say the rule, as proposed, would seriously limit short-term borrowing options for American consumers. According to the CFPB, the proposed rulemaking would require lenders to take steps to ensure that consumers are… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB Remains Noncommittal Regarding Restrained Enforcement Period for TILA/RESPA Integrated Disclosures Rule

The TILA/RESPA integrated disclosures (TRID) rule issued by the Consumer Financial Protection Bureau (CFPB) under the Dodd-Frank Wall Street Reform and Consumer Protection Act takes effect on August 1, 2015. Once effective, the TRID will drastically alter, among other things, the pre-closing disclosures that creditors, mortgage brokers and settlement agents must provide to borrowers under… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB Fines Military Allotment Processor $3.1 Million

Last week, the Consumer Financial Protection Bureau (CFPB) filed a consent order with Fort Knox National Co. and its subsidiary Military Assistance Co. (MAC), alleging that the companies duped U.S. military service members into paying millions of dollars in hidden fees. Fort Knox National Co., through MAC, is one of the largest processors of military… Continue Reading
Anti-Money Laundering, Compliance, Financial Institution Regulation, Fraud, Deception and False Claims

AML Compliance Developments in the Gaming Industry

Executives of regulated entities often lament that fulfilling compliance obligations interferes with their ability to operate their business. However, an extensive (and extended) regulator investigation with the potential for civil and / or criminal penalties can present an even greater obstacle to running a business. Trends over the last year in the gaming industry suggest… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims

DOJ Criminal Division Chief Provides Guidance on Corporate Charging Decisions

On April 17, 2015, Assistant Attorney General Leslie Caldwell provided helpful guidance regarding the Justice Department’s approach to corporate charging decisions in remarks that she delivered at New York University Law School’s Program on Corporate Compliance and Enforcement. Ms. Caldwell explained that her remarks furthered the Criminal Division’s efforts to increase transparency regarding corporate prosecutions,… Continue Reading
Compliance

HHS OIG Issues Guidance to Healthcare Boards Regarding Oversight

On April 20, 2015, the United States Department of Health and Human Services Office of the Inspector General (OIG) issued guidance aimed at the governing boards of healthcare entities. The guidance—issued in conjunction with associations of healthcare auditors, attorneys, and compliance professionals—aims to inform healthcare boards regarding their oversight duties. Although the guidance is written… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB Targets PayPal’s Consumer Lending Service

In a recent filing with the Securities and Exchange Commission, eBay’s PayPal division disclosed that it could be hit with an enforcement lawsuit by the Consumer Financial Protection Bureau (CFPB) as early as the second quarter of 2015. The potential suit arises from CFPB inquiries into PayPal Credit, the company’s consumer lending service formerly known as… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

Mortgage Shopping Toolkit Available for Compliance Guidance

The Consumer Financial Protection Bureau (CFPB) recently released a step-by-step guide titled Your Home Loan Toolkit as part of their Know Before You Owe mortgage initiative designed to improve compliance and help consumers understand mortgage loans. This toolkit will guide potential homeowners in securing mortgages, understanding closing costs and offering helpful hints for consumers to… Continue Reading
Compliance, Fraud, Deception and False Claims, Securities and Commodities

Inadequate Internal Controls Cost Tech Firm $750,000

Without admitting or denying the U.S. Securities and Exchange Commission’s findings, Polycom Inc. settled with the agency on Tuesday, March 31, 2015, over alleged insufficient internal controls and disclosure violations for personal perk expenses. Andrew Miller, Polycom’s former CEO, traveled to Indonesia and South Africa with his girlfriend, took limousine rides, and purchased dress shirts,… Continue Reading
Anti-Bribery and Corruption, Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation, Fraud, Deception and False Claims, Securities and Commodities

Biomet FCPA Announcement Highlights Distributor-Related Risks

Last week, Biomet Inc. announced in a filing with the U.S. Securities and Exchange Commission (SEC) that instead of its 2012 deferred prosecution agreement with the U.S. Department of Justice (DOJ) regarding violations of the U.S. Foreign Corrupt Practices Act (FCPA) expiring this week, the company would be monitored under it for an additional year.… Continue Reading
Anti-Bribery and Corruption, Compliance

The FCPA Implications of China’s Plan to Consolidate State-Owned Enterprises

China’s recently announced plan to restructure and consolidate its state-owned enterprises (SOEs) focuses on bolstering the private sector of its economy and creating economies of scale to allow Chinese companies to better compete internationally. It also may implicate companies’ efforts to comply with the U.S. Foreign Corrupt Practices Act (FCPA), in positive and negative ways.… Continue Reading
Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Securities and Commodities

SEC Awards $500K to Company Officer Whistleblower

On Monday, March 2, the Securities and Exchange Commission (SEC) announced that it will award between $475,000 and $575,000 to a corporate officer who reported “high quality, original information” about a securities fraud. The SEC’s whistleblower program was adopted under the Dodd-Frank Act of 2010 and rewards high quality, original information that results in enforcement… Continue Reading
Anti-Money Laundering, Compliance

FinCEN Issues Notice of Proposed Rulemaking on Andorran Bank as “Primary Money Laundering Concern”

On March 10, 2015, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) named Banca Privada d’Andorra (BPA) a foreign financial institution of “primary money laundering concern,” a measure that will prohibit BPA from engaging in transactions with the U.S. financial system. Along with this announcement, FinCEN issued a Notice of Proposed Rulemaking which will require… Continue Reading
Compliance, Fraud, Deception and False Claims, Securities and Commodities

Revisiting the Conflicts Minerals Rule

Companies listed in the U.S. are required by Section 1502 of the Dodd-Frank Act to report whether they manufacture products that incorporate so called conflict minerals (defined as gold, tin, tungsten and tantalum coming from the Democratic Republic of Congo and its neighboring countries). McGuireWoods partners Yves Melin and Alex Brackett, along with Estelle Levin –… Continue Reading
Compliance, Financial Institution Regulation, Immigration and Worksite Enforcement

Knowingly Employing Unauthorized Workers – Can You Give Employees a Second Chance to Provide Valid I-9 Documentation?

Knowingly employing an unauthorized worker is prohibited by federal law. As a result, I-9 audits are a necessary part of doing business, as the penalties for noncompliance are too severe to ignore this fact. One question arises often during the I-9 audit process: what to do when you discover that an employee has not provided… Continue Reading

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