“The need to establish a robust compliance program, backed by a workplace culture that prioritizes de-risking and integrity, has become increasingly important for businesses today as policy and regulation continue to evolve.”
– Brad Wilson, Managing Partner & CEO, StoneTurn
This week, get insights from compliance leaders on how to navigate compliance challenges in the digital age. Learn how more companies voluntarily disclose possible corporate wrongdoing and how regulators continue to focus on cracking down on off-channel communications. Finally, consider why investing in a culture of compliance in an economic downturn is a good business decision.
Navigating Compliance Challenges in the Digital Age: Insights from Industry Leaders
Compliance leaders from the financial, energy trading, and pharmaceutical industries recently gathered on a webinar hosted by Fairwords to discuss compliance challenges in the digital age. The key themes that emerged from the discussion include the ongoing impact of COVID-19 on corporate compliance, the influence of the DOJ’s new communication guidelines, challenges and strategies in managing digital communications, leveraging emerging communication channels, mitigating risks associated with mobile devices and messaging apps, and the role of transparency and accountability in compliance. To ensure effective compliance programs, organizations must strike a balance by leveraging technology, maintaining transparency, promoting accountability, and fostering collaboration and trust across departments.
DOJ Says More Companies Are Voluntarily Disclosing Possible Wrongdoing
Companies are increasingly choosing to self-report potential criminal misconduct to the DOJ following the department’s enhanced incentives. Assistant Attorney General Kenneth Polite Jr. revealed that the department has already witnessed a shift in the number of corporate disclosures since the announcement of the expanded self-disclosure policy. Under this policy, companies that disclose wrongdoing, cooperate fully, and rectify underlying issues can receive discounts on financial penalties or even avoid prosecution. The DOJ’s criminal division is also focusing on increasing transparency in its enforcement actions and exploring ways to measure the effectiveness of the updated voluntary disclosure policy.
Off-Channel Communication Legal Violations and Policies
Off-channel communications (OCC) pose significant challenges for financial services firms and related businesses in monitoring and preserving employee communications. Despite the remote work trend declining, the persistent use of personal devices and platforms for business communications increases the risk of OCC, making it an ongoing concern for general counsel. Recent regulatory scrutiny and fines imposed on financial services firms by the SEC and CFTC highlight the importance of addressing OCC proactively. The SEC has published amendments to recordkeeping rules, while the DOJ’s “Monaco Memorandum” expands OCC preservation considerations to all corporations. Conducting internal reviews, implementing effective policies and procedures, and finding the right technology solutions are essential for general counsel. Regulators are expected to continue focusing on OCC and enforcement actions related to recordkeeping failures, emphasizing the need for companies to stay vigilant and adapt to new communication technologies.
Investing in a Culture of Compliance During an Economic Downturn
Compliance leaders must stress their significance to management in a challenging economic climate with layoffs and heightened risk. Prioritizing compliance is vital for protecting businesses and the broader economy. The DOJ emphasizes policy-driven strategies to hold organizations accountable and urges business leaders to recognize compliance’s role in strengthening financial markets and national security. Compliance leaders should highlight the value of robust compliance programs that assess and mitigate risks, striking a balance with other leadership teams. Establishing a workplace compliance culture involves all employees, with top-down implementation of policies. The evolving role of compliance officers includes personal accountability and data-driven approaches. Compliance should be seen as a business driver, with leadership teams leveraging it for successful operations.
