Anti-Bribery and Corruption April 9, 2026

Old Wine, New Bottles? FinCEN Proposes to Codify AML/CFT Program Standards for Financial Institutions

By Elissa Baur, John Adams, Jeffrey M. Hanna, Jeffrey P. Ehrlich, Garen S. Marshall, Justin Givens and Lauren Mann

On April 7, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a Notice of Proposed Rulemaking (“NPRM”) that would formalize and, in certain respects, update the requirements for financial institutions’ anti-money laundering and countering the financing of terrorism (“AML/CFT”) programs under the Bank Secrecy Act (“BSA”). While FinCEN has characterized the proposed rule as the centerpiece of Treasury’s broader effort to modernize the U.S. AML/CFT regulatory and supervisory framework, many of its core elements reflect longstanding statutory requirements and supervisory expectations. The proposed rule fully supersedes a prior proposed rule FinCEN published on July 3, 2024, which the agency is withdrawing. Concurrently, the Office of the Comptroller of the Currency (“OCC”), the Federal Deposit Insurance Corporation (“FDIC”), and the National Credit Union Administration (“NCUA”) (collectively, the “Agencies”) issued their own joint NPRM proposing substantially aligned amendments to their respective AML/CFT program rules for banks they supervise. Public comments are due 60 days after publication in the Federal Register.

This alert summarizes the key provisions of both proposals, describes the proposed changes to bank supervision and enforcement, and identifies practical implications for financial institutions and compliance professionals. As discussed below, many of the proposed requirements may be familiar to institutions with mature, risk-based AML/CFT programs.

Fraud, Deception and False Claims April 6, 2026

Ninth Circuit Ruling in FCA Case Predicated on 340B Pricing Violations Has Significant Implications for Pharma Manufacturers

By Craig B. Bleifer, Michael J. Podberesky and Jessica L. Vaughn, Ph.D.

On March 17, 2026, the U.S. Court of Appeals for the Ninth Circuit issued a significant opinion in United States ex rel. Adventist Health System of West v. AbbVie Inc., reversing the district court’s dismissal of a qui tam complaint brought under the False Claims Act (FCA) against four major drug manufacturers. The Ninth Circuit held that the FCA provides an independent mechanism for relators to bring claims alleging fraudulent drug pricing in violation of the Public Health Service Act’s Section 340B Program, even though Section 340B does not provide a private right of action.

Read on to learn more about the ruling and its important implications for pharmaceutical manufacturers participating in the Section 340B Program.

Enforcement and Prosecution Policy and Trends April 3, 2026

SEC Enforcement Speaks in 2026: Enforcement Division Moves “Full Steam Ahead” with Focus on Quality over Quantity, Procedural Fairness, and Targeted Pursuit of Non-Fraud Violations

By E. Andrew Southerling, Gary Leung, David Aladdin Mollenkamp, James Hornsby and Louis D. Greenstein

SEC Acting Enforcement Director Sam Waldon declared recently that his division is moving “full steam ahead” against those who “lie, cheat, and steal” but also is focusing on quality over quantity. He rejected traditional metrics — case counts, penalty totals and aggregate dollar amounts — as effective measures of the SEC’s enforcement program.

At the 2026 SEC Speaks Conference held last month in Washington, D.C., Waldon and senior enforcement leaders emphasized the division’s commitment to transparency and procedural fairness, as embodied by recent revisions to its Enforcement Manual. The more prominent revisions are intended to foster robust two-way engagement with defense counsel during the Wells process and articulate clearer guideposts for the staff’s assessment of public company cooperation under the Seaboard factors and corporate penalties under the Commission’s 2006 Penalty Statement. Waldon also confirmed that the division will continue to bring non-fraud cases in the right circumstances — with a more thoughtful approach. He said his division aims to distinguish between an entity that makes “an honest mistake, recognizes the mistake, fixes the mistake, takes steps to remediate and improves internal controls” and one that “engages in multiple mistakes, doesn’t think it’s a mistake, covers up the mistake, [and] didn’t take steps to remediate.”

Read on to learn more about Waldon’s remarks and what companies should take away from them.

Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts April 2, 2026

New Executive Order Targets DEI Practices by Federal Contractors, Imposes Mandatory Contract Clause and FCA Liability

By Edwin O. Childs, Abram J. Pafford, Jack White, John Adams, Elissa Baur, James Dougherty, Brett Barnett, Michael J. Podberesky, David Greenspan, John E. Thomas, Jr., William Doyle, Elena Marcuss, Michael R. Phillips, Jason M. Vespoli, John Sullivan and Sophie Marsh

Continuing his Administration’s efforts to eliminate diversity, equity, and inclusion (DEI) activities, President Donald Trump signed an executive order, “Addressing DEI Discrimination by Federal Contractors,” on March 26, 2026 that directs all executive departments and agencies to include a new clause in all federal contracts and subcontracts prohibiting what the order defines as “racially discriminatory DEI activities.” The order represents another escalation of the Administration’s efforts to restrict DEI programs in the federal contracting space — building on Executive Order 14173 and the Department of Justice’s May 2025 Civil Rights Fraud Initiative — and carries substantial enforcement implications, including potential liability under the False Claims Act (FCA).

This alert summarizes the key provisions of the new executive order, analyzes the practical implications for federal contractors and subcontractors, and outlines recommended steps for compliance.

Anti-Bribery and Corruption March 31, 2026

$300 Million Reasons to Talk: FinCEN Proposes a Whistleblower Reward Program for AML and Sanctions Violations

By Lauren Mann, Garen S. Marshall and Justin Givens

On March 30, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) submitted a Notice of Proposed Rulemaking (“NPRM”) for publication in the Federal Register that would, for the first time, establish a comprehensive framework for paying monetary awards to individuals who report violations of the Bank Secrecy Act (“BSA”), U.S. sanctions programs administered by the Office of Foreign Assets Control (“OFAC”), and several other laws critical to safeguarding the financial system and national security. The proposed rule is the culmination of a multi-year legislative effort to create financial incentives and protections comparable to the longstanding whistleblower programs administered by the U.S. Securities and Exchange Commission (“SEC”), U.S. Commodity Futures Trading Commission (“CFTC”), Internal Revenue Service (“IRS”), and other agencies. Although FinCEN has accepted tips since launching a dedicated whistleblower portal in February 2026, the NPRM, if adopted as a final rule, would allow for the payment of substantial monetary awards from a $300 million revolving fund. This alert summarizes the proposal’s key provisions, compares the proposed program to its federal counterparts, and identifies practical implications for financial institutions, compliance professionals, and potential whistleblowers.

Enforcement and Prosecution Policy and Trends March 23, 2026

White House Releases AI Legislative Recommendations—Congress Has the Blueprint, but Questions Remain

By Anthony Q. Le, Aaron R. Marienthal, Garen S. Marshall, Janet P. Peyton and David Hirsch

On March 20, 2026, the White House unveiled its National Policy Framework for Artificial Intelligence, providing a blueprint on legislative recommendations and urging Congress to act. It recommends that Congress create a unified federal standard to reduce the regulatory friction of competing state AI regimes, promote AI innovation and develop an AI-ready workforce, while ensuring the protection of children, consumers and intellectual property rights.

The framework is a serious, if incomplete, attempt to bring coherence to an enforcement landscape that has been improvising. Congress has been handed a blueprint, but whether it is able to enact comprehensive federal legislation is another matter.

Read on to learn more about the framework and how companies using AI should prepare.

Fraud, Deception and False Claims, Government Contracts March 23, 2026

New GSA Proposal Could Expose Federally Funded Institutions With Programs Perceived as DEI-Related

By Brandi G. Howard, Farnaz Farkish Thompson, Jack White, Sarah Wake, Michael J. Podberesky, Edwin O. Childs, Maricris Prendingue and John Sullivan

The General Services Administration has proposed requiring all federal funding recipients to certify that they do not maintain diversity, equity, inclusion and accessibility programs. Recipients also would also need to certify they are not knowingly hiring or recruiting undocumented staff.

The GSA estimates the proposal would impact approximately 222,760 entities — including colleges and universities. If enacted, the certification requirements would expose grant recipients to potential liability under the False Claims Act. The deadline for public comments is March 30, 2026.

Read on to learn more about the GSA proposal and its potential impacts on federally funded institutions.

Anti-Bribery and Corruption March 13, 2026

SEC and FinCEN Hit Broker-Dealer for Sweeping AML Compliance Failures

By Lauren Mann, Garen S. Marshall and Justin Givens

On March 6, 2026, the SEC and FinCEN announced parallel enforcement actions against a New York-based registered broker-dealer for systemic anti-money laundering (“AML”) failures, imposing combined penalties of $80 million – the largest ever imposed against a broker-dealer for BSA violations. FinCEN’s $80 million headline penalty includes credits of $20 million each to the SEC and FINRA, with $35 million payable directly to the Treasury; the SEC separately imposed a $20 million penalty and a censure. This alert summarizes the key findings, penalties, and practical takeaways for broker-dealers and other financial institutions.

Fraud, Deception and False Claims February 26, 2026

DAAG Provides Views on FCA Enforcement Focus: Targeting Discrimination, Not DEI Programs Per Se

By Edwin O. Childs, Brett Barnett, John Adams, Jack White, Brandi G. Howard, Elissa Baur, John S. Moran, Michael J. Podberesky, Jason M. Vespoli, Sophie Marsh, John Sullivan and McGuireWoods LLP

At the Federal Bar Association’s 2026 Qui Tam Conference on February 19, 2026, Brenna Jenny, Deputy Assistant Attorney General (DAAG) in the U.S. Department of Justice’s (DOJ) Commercial Litigation Branch, delivered a keynote speech on enforcement priorities under the False Claims Act (FCA) with respect to diversity, equity, and inclusion (DEI) programs. Jenny’s reported remarks provided insight into DOJ’s enforcement priorities and viewpoints on FCA enforcement. A key takeaway from Jenny’s presentation is that, from her perspective, DOJ is not investigating federal contractors and grant recipients for having DEI programs, but rather for potentially engaging in discrimination through their implementation of those programs. She emphasized that companies can engage in discrimination with or without DEI programs and can also operate DEI programs without engaging in discrimination.

Enforcement and Prosecution Policy and Trends, Securities and Commodities February 18, 2026

When AI Isn’t Privileged, Confirmed: SDNY’s Written Opinion Elaborates on Confidentiality, Work Product, and Waiver

By Garen S. Marshall, David Hirsch, Aaron R. Marienthal, Jeffrey P. Ehrlich, Elizabeth Peters and Alice Moscicki

On February 10, 2026, U.S. District Judge Jed Rakoff of the Southern District of New York issued a bench ruling holding that a defendant’s use of generative AI to analyze legal exposure is not protected under attorney-client privilege or the work product doctrine. See When AI Isn’t Privileged: SDNY Rules Generative AI Documents Not Protected. On February 17, 2026, Judge Rakoff issued a written opinion confirming the bench ruling and adding important analysis. This client alert outlines what the written opinion adds on confidentiality, work product, and waiver, and details the practical implications and open questions left by Judge Rakoff’s opinion.

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