Mar. 27, 2024

The DOJ Announces Intention to Launch Whistleblower Program: What Will It Look Like?

Unlisted U.S. companies must modify their voluntary self-disclosure calculations in 2024, when a new pilot program to reward whistleblowers increases the likelihood that the DOJ will uncover violations first. Earlier this month, Deputy Attorney General Lisa Monaco revealed the start of a “90-day sprint to develop and implement a pilot program.” Nicole Argentieri, now Principal Deputy Assistant Attorney General, said the program will reward providers of “original, nonpublic, truthful information.” The Anti-Corruption Report spoke with experts at Whistleblower Partners, Miller & Chevalier, Akin, Holland & Knight, Phillips & Cohen and Manatt to understand how the pilot program will change the whistleblowing landscape. This first article of a two-part series examines how the program will work at the governmental level. Part two will discuss what it means for whistleblowers, including who will be eligible to receive awards – and how big they could be. See “SEC and CFTC Received Record Number of Whistleblower Tips and Made a Record Award in 2022” (Feb. 15, 2023). 

New Russia Restrictions: International Cooperation and Risk Mitigation

U.S. agencies teamed up to impose new restrictions on hundreds of entities associated with Russia on February 23, 2024. As a result, American companies with possible exposure face rising due-diligence needs. This second article of a two-part series summarizes our discussion with several experts in the field, focusing on how cooperation among jurisdictions increases risks and what compliance steps companies should be taking to mitigate those risks. Part one explored the agencies’ latest measures and collaborative approach, targeted industries, and the U.S.’s focus on other countries. See our three-part sanctions 101 series: “How Sanctions Regimes Work” (Aug. 3, 2022), “Their Impact on Private Fund Investors and Investments” (Aug. 17, 2022), and “How to Comply With Them” (Sep. 14, 2022).

Money Laundering, Bank Secrecy and Sanctions Regulators Expand Remits

U.S. government agencies are expanding their remits, crossing traditional dividing lines, collaborating and even competing as they pursue anti-money laundering, Bank Secrecy Act and sanctions issues, judging by 2023's developments. The year saw executive enforcers turning to Congress for more power, and an executive order that made foreign financial institutions liable for certain transactions related to export-control, even without a U.S. nexus. This article distills those and other related policy and enforcement insights shared during a recent Gibson Dunn webinar. See “Knowing Your Customer’s Customer? Sanctions and Tri-Seal Guidance Heighten Expectations on Companies” (Nov. 8, 2023).

Fostering Collaboration and Communication Between Security and Compliance

The most successful chief information security officers (CISOs) and their teams tend to work closely with their compliance counterparts. Among other benefits, collaboration can help avoid overlaps and redundancies, but some CISOs never talk to their CCOs – or worse, have an adverse relationship with them. To help CCOs and CISOs bridge those gaps, this article synthesizes insights from Shubha Lakshmanan, senior director of compliance and privacy at Waud Capital Partners, and Jessica Sanderson, founder of The Sanderson Law Firm, on key communication gaps between compliance and security, how to foster collaboration and where enhanced collaboration will pay the biggest dividends. See “Navigating SEC Cybersecurity Enforcement in a Post-SolarWinds World” (Jan. 3, 2024).

ACA Regulatory Outlook for 2024

“The SEC remains aggressive on rules, on exams, on enforcement,” but the pace of rulemaking has slowed somewhat due to legal challenges, said ACA Group (ACA) global advisory leader Carlo di Florio at the firm’s recent 2024 Regulatory Outlook program. Di Florio and his ACA colleagues covered top-of-mind regulatory issues for investment advisers and broker-dealers, including the new private fund rules; artificial intelligence; custody; off-channel communications; anti-money laundering compliance; Regulation Best Interest and other compliance concerns for broker-dealers; new regulatory requirements affecting registrants; cybersecurity; marketing; ESG investment factors; U.K. developments; and compliance technology. This article synthesizes the key takeaways from the program. See “No Longer a Slap on the Wrist: SEC Penalties and Sentences on the Rise” (Jan. 18, 2023).

Regulatory Compliance Leader Joins Oliver Wyman As Partner in New York

Global management consultancy Oliver Wyman has welcomed Emma Bredin as a partner in the firm’s finance & risk practice and head of its regulatory compliance practice for the Americas. She will be based in the New York office.

PCAOB Names Director of Internal Oversight and Performance Assurance

The Public Company Accounting Oversight Board (PCAOB) has announced the appointment of Michael Weigand as Director of its Office of Internal Oversight and Performance Assurance (IOPA). Under his leadership, the IOPA considers the efficiency, effectiveness, and integrity of PCAOB programs and operations. He is based in Washington, D.C.