Compliance into the Weeds

The award winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance?

Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the recent SEC enforcement actions involving AI washing and what it all may mean for the compliance professional.

The evolving landscape of Artificial Intelligence (AI) has brought on a new paradigm of risk management in AI disclosures. This has caught the attention of regulatory bodies like the SEC, thereby necessitating a heightened focus on transparency and the implementation of comprehensive risk strategies.

Tom advocates for the integration of AI risk reporting into the overall risk management strategy, emphasizing the need for governance and the right risk control measures. His views are shaped by his understanding of the potential repercussions of misleading AI disclosures and the significance of transparency in warding off enforcement actions from regulatory bodies.

Matt echoes a similar sentiment, underscoring the importance of recognizing and managing AI risks. His perspective is influenced by the unique challenges that AI poses, calling for strategically tailored governance and risk management practices to navigate the complexities of AI technology.

Key Highlights:

• AI Misrepresentation Enforcement by SEC
• Transparency in AI Risk Reporting for Compliance
• Integrating AI Risk into Overall Risk Management
• Collaborative Roles for Effective AI Governance
• A theory of unified risk management
• What does all this mean for compliance and the compliance professional?

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Matt on Radical Compliance

Tom  

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance?

Look no further than Compliance into the Weeds!

In this episode, Tom and Matt take a deep dive into the recent SEC climate reporting rules and how this could lead to a unified risk management process.

The topic of the recently proposed SEC climate change reporting rule, which requires companies to disclose their greenhouse gas emissions and climate-related risks, raises intriguing discussions across various sectors. This rule emphasizes the importance of transparency, necessitating companies to adapt their risk disclosure frameworks to encompass a range of risks, including cybersecurity, climate change, anticorruption, and financial reporting.

Tom sees this rule as a much-anticipated development with significant implications for companies. He advocates for a comprehensive risk management strategy that aligns with the SEC’s push for holistic risk disclosures, taking into consideration the continuous relevance of climate change regulations at multiple levels. On the other hand, Matt acknowledges the significant challenges and changes that the rule has encountered, particularly litigation from both oil and gas interests and environmental groups. Despite the legal and political uncertainties, he underscores the importance of prioritizing climate change disclosures, given the existence of similar rules in California and Europe.

Key Highlights:

• Climate risk disclosure mandates for companies
• Enhancing transparency in risk management
• A theory of unified risk management
• What does all this mean for compliance and the compliance professional?

Resources:

Matt on Radical Compliance

 Tom 

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into a recent speech by Deputy Attorney General Lisa Monaco on the DOJ’s creation of a whistleblower program and compliance oversight of AI.

The Department of Justice Whistleblower Awards Program is a recent development that has prompted considerable discussion due to its possible implications and the potential range of awards. The program, which is designed to protect whistleblowers, raises a number of complex issues, particularly for compliance officers. According to Tom, the program is aligned with those from other regulatory bodies, like the SEC, and is not necessarily groundbreaking. He points out potential limitations in the range of awards and questions the efficiency of the review process.

Matt views the program as a significant, yet familiar, development for compliance officers. He highlights that the program seems to follow an existing trend, rather than pioneering a new approach and points out the need for further clarification on the eligibility criteria and the procedure for issuing awards. Both Fox and Kelly, from their extensive experience in the field, emphasize the program’s potential benefits for whistleblowers seeking protection but concur that there are still many details to be clarified.

Key Highlights:

• Navigating DOJ Whistleblower Program: Award Dynamics
• Navigating Compliance in DOJ’s Whistleblower Program
• Enhancing Criminal Penalties for AI-based Crimes
• Enforcement Challenges in AI Technology Governance

Resources

Matt on Radical Compliance

Tom  

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the recently released Gunvor FCPA Enforcement Action.

The Gunvor FCPA case, a high-profile instance of bribery involving Ecuadorian government officials, serves as a stark reminder of the perils of corruption in international business and the critical need for stringent compliance measures. Tom emphasizes the importance of adherence to anti-corruption laws and regulations. He stresses the necessity for robust compliance programs and internal controls to prevent such violations, and the potential fallout of non-compliance, including reputational damage, financial penalties, and legal repercussions.

Matt Kelly sees the Gunvor FCPA case as a significant example of the consequences companies face when engaging in corrupt practices. He would underscore the importance of strong compliance programs, ethical business practices, transparency, and accountability to prevent similar instances of bribery and corruption in the future. Check out the key lessons learned from this matter.

Key Highlights:

• Bribery Scheme in Gunvor’s Ecuador Dealings
• Ethical Practices and Regulatory Compliance Strengthening
• Gunvor’s Bribery Scheme: FCPA Enforcement Consequences
• Proactive Transparency in Mitigating Legal Penalties

Resources:

Matt on Radical Compliance

Tom  

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt look at the recent ACFE publication of its 2024 Anti-Fraud Technology Benchmarking Report and what it means for compliance professionals.

The ACFE 2024 Antifraud Technology Benchmarking report unveils an intriguing shift towards the use of AI in antifraud analytics, with a significant 83% of respondents planning to adopt generative AI in the coming years. However, the report also highlights a gap in current practices, with only a quarter of organizations utilizing analytics for corruption and bribery detection. Tom views this report as a crucial tool for understanding the evolving landscape of fraud detection. He emphasizes the importance of staying ahead of technological advancements and the potential risks of not having sophisticated tools for managing fraud investigations.

Similarly, Matt underscores the report’s insights into the challenges faced by antifraud professionals. He stresses the importance of aligning analytical capabilities with manpower resources and the critical role of experienced professionals in managing complex issues like bribery and corruption. Both perspectives highlight the need for a strategic blend of technology and human expertise in the ever-evolving world of compliance and audit.

Key Highlights:

• Generative AI Integration in Antifraud Analytics
• Generative AI Impact on Fraud Examination Trends
• AI’s Role in Fraud Detection and Compliance
• Detecting Financial Fraud Through Advanced Analytics

Resources:

Matt on Radical Compliance

Tom  

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The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt look at the Trump Organization Monitor and Independent Director of Compliance required in the trial court Order. 

The topic of internal controls within the Trump Organization has recently come under scrutiny, with the need for improved financial practices and systems of accounting control becoming increasingly apparent. Tom views internal controls as the backbone of financial reporting and compliance. He points out the inconsistencies and errors in the Trump Organization’s financial disclosures, emphasizing the need for accurate certifications and attestations about the organization’s financial health. Similarly, Matt underscores the importance of consistent and accurate financial disclosures. He raises concerns about the lack of basic financial controls within the Trump Organization and sees the need for a significant overhaul of internal controls to ensure transparency, accuracy, and compliance with financial reporting standards. Both Fox and Kelly’s perspectives are shaped by their extensive experience in the field of compliance and their understanding of the critical role internal controls play in maintaining financial integrity.

 Key Highlights

·      Compliance Monitor’s Oversight in Fraud Detection

·      Navigating Financial Compliance in the Trump Organization

·      Implementing Effective Accounting Control Systems at Trump

·      Enhancing Financial Integrity in the Trump Organization

Resources

Matt on Radical Compliance

Tom  

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt go down a rabbit hole regarding the SEC waiving penalties for messaging app violations.

The Securities and Exchange Commission (SEC) has been making headlines for its crackdown on broker dealers who violate record-keeping rules by using off-channel messaging apps like WhatsApp or Snapchat. This has led to hefty fines, yet the SEC has been granting waivers to these same firms, allowing them to continue operating in the securities world. This paradoxical approach has raised eyebrows, including those of Tom Fox and Matt Kelly. Fox finds the SEC’s actions both curious and concerning. He believes that if a waiver program exists, it should be publicly announced and the reasons for granting waivers should be transparent to ensure appropriate scrutiny. Kelly, on the other hand, expresses surprise and disappointment at the lack of transparency from the SEC, suggesting that the waiver program and its reasons should be made clear to the public. Find out more in this fascinating edition of Compliance into the Weeds.

Key Highlights:

• SEC Sanctions for Off-Channel Messaging Violations
• SEC Enforcement and Waivers for Internal Violations
• Cracking down on Off Channel Communications
• The Need for Public Announcements in SEC Enforcement

Resources

Matt on Radical Compliance

 Tom  

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The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the seeming inconsistency in approaches to monitorships (or lack thereof) in two recent DOJ enforcement actions involving eBay and SAP. 

The Department of Justice’s (DOJ) seemingly inconsistent approach to corporate enforcement and compliance monitoring has been a topic of much debate and confusion. Or has it? This inconsistency is particularly evident in the assignment of compliance monitors and CCO certification, as seen in the contrasting cases of eBay and SAP. Does the DOJ have a contradictory approach? What are the criteria for assigning monitors? Are local U.S. Attorneys may be following their own agendas, leading to this inconsistency. Is there a lack of logic and effectiveness in the DOJ’s policies. To delve deeper into this issue, join Tom Fox and Matt Kelly in this episode of the Compliance into the Weeds.

Key Highlights

·      Effectiveness and Consistency of Compliance Monitors

·      Incentivizing self-disclosure and remediation in corporate enforcement

·      Inconsistent assignment of monitors based on misconduct

·      Inconsistent enforcement practices by U.S. Attorneys

Resources

Matt on Radical Compliance

Tom  

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into a payments and internal controls miasma involving actors Tom Holland and Tom Hollander.

The recent incident involving British actor Tom Hollander, who accidentally received a payment intended for Tom Holland due to a mix-up at their shared talent agency, has brought to light the critical importance of robust accounting controls for payments. Tom emphasizes the need for a second set of eyes to oversee payments and ensure they are going to the correct recipients. He suggests that smaller organizations can implement human review controls, while larger ones may need to rely on technology such as robotic process automation. Matt is highlighting the potential legal and regulatory consequences of sending payments to the wrong recipients. He stresses the need for organizations to demonstrate to regulators that errors are rare and accidental and that they have effective assurance processes in place. Join Tom Fox and Matt Kelly as they delve deeper into this topic in the latest episode of Compliance into the Weeds.

Key Highlights:

• Payment Mix-up Highlights Importance of Internal Controls
• Error Prevention and Correction in Payments
• Mitigating Compliance Risks with Internal Controls

Resources:

Matt on Radical Compliance

Tom 

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The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into the recent SEC enforcement action for pre-taliation against JPMorgan and what it means for whistleblower programs going forward.

The Securities and Exchange Commission (SEC) has been ramping up fines for companies found guilty of retaliation, as evidenced by the recent JP Morgan securities case, which resulted in an $18 million sanction. This development underscores the importance of compliance and the need for companies to protect individuals’ rights to report misconduct. Tom views this as a significant shift, expanding the range of individuals who may be affected by retaliation claims. He predicts a broader legal discussion and increased protection for those who bring claims related to misconduct. Matt emphasizes the need for companies to be proactive in preventing retaliation. He points out that enforcement has been increasing since 2016 and that companies should already be aware that they cannot restrict employees from reporting wrongdoing to the SEC. Join Tom Fox and Matt Kelly as they delve deeper into this topic on the Compliance into the Weeds podcast.

Key Highlights:

• The underlying facts
• Expanding Retaliation Risk in Corporate Settings
• Retaliation Clauses and Whistleblower Protection
• CBRE’s Swift Remediation Efforts and SEC Settlement

Resources:

Matt on Radical Compliance

 Tom  

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