Compliance Perspectives

By Adam Turteltaub

Eric Grogg, Chief Compliance Officer for Orthobanc, comes to compliance and ethics with a different perspective than most, having enjoyed a background in training. That experience keeps him focused on communicating from the listener’s perspective and being aware that employees, like consumers, want to know “what’s in it for me.”

Rather than focusing on tone at the top, he advocates for recognizing that workers can be cynical towards management.  This, in turn, argues for developing a compliance program that employees feel that they own.

How do you get there?  In this podcast, he explains that it starts with having a team of employees help develop the code of conduct.

Listen in to learn more about this intriguing approach to compliance management.

By Adam Turteltaub

For financial services firms understanding who the Ultimate Beneficial Owner (UBO) of a corporation is has become a central compliance task.

As Ellen Lafferty explains in this podcast and in the new edition of The Complete Compliance and Ethics Manual, financial institutions must have procedures to determine both control and ownership.  Each natural person who owns 25% or more of the legal entity must be identified.  So, too, at least one individual who controls the organization must be found.  That information then must be verified using a risk-based procedure.

The verification must be obtained at the time new account are open, but there are exceptions.  These are for entities whose ownership and management are available via other means:  financial institutions regulated by a federal regulator, banks regulated by a state, and publicly traded companies since the ownership and control information can already be found easily.

She goes on to explain that when it comes to UBO, there are a number of areas that compliance teams need to be sensitive to.  First, is whether or not to take the prospective customer at his or her word.  It’s okay to take a risk-based approach, but there should be well-documented policies and procedures.  There is also a need for an escalation procedure when the customer isn’t providing the information you need.

Listen in to learn more, or get a copy of The Complete Compliance and Ethics Manual.

By Adam Turteltaub

“Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 prohibits the Federal Government from procuring or obtaining, or extending or renewing a contract to procure or obtain, ‘any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.”

As Jonathan Aronie, partner at the law firm Sheppard Mullin explains, in practice that means the Federal Government is precluded from purchasing goods and services using technology from Huawei and four other companies.

While the issue may seem distant, it’s far closer for companies than many realize.

There are two parts of the legislation, Jonathan explains.  Part A already applies to regulations covering any technology from these companies in a product sold to the government and in a service performed for the government.  In August 2020, Part B kick in.  That covers the use of technology even if not in performance of a government contract.  It affects everything from laptops to phones to thermostats, even lab equipment and medical devices.

Government contractors are likely to bear a substantial burden, but so too will higher education, IT and telecommunications, as well as healthcare and financial services.

Listen in to learn more about the risk and what your organization should begin doing to comply with the regulation.

By Adam Turteltaub

Heidi Rudolph, Managing Director at Morae Global, has spent a great deal of time considering technology’s role, risks and rewards for compliance teams.  She contributed an article on the subject to the newly released The Complete Compliance and Ethics Manual, and also spent some time talking about it on this podcast.

As we all know technology holds great promise for compliance.  It can help automate tasks, provide audit trails and train the workforce.  But not every organization needs the same technology solutions or can afford them.

For smaller firms, Heidi recommends beginning with a helpline, case management tool, and elearning.  These typically come from outside vendors but should be supplemented with internal resources such as a good intranet site and online code of conduct.

For larger companies, and those with more advanced programs she has a somewhat surprising recommendation:  start focusing on your graphics and design to ensure that your compliance communications look as professional as the rest of the company’s efforts.  In addition, she recommends taking advantage of tools for managing gifts and entertainment, conflicts of interest, policy management, and more.

But no matter what the size of your program, also learn about the technology the rest of your organization is using.  There is potential risk there, especially when consumer data is collected.

Listen in here, and if you’re interested in learning more, check out the latest edition of The Complete Compliance and Ethics Manual.

By Adam Turteltaub

Mark Lanterman, Chief Technology Officer of Computer Forensic Services lives technology at its most terrifying, helping organizations manage the risks of the IT we all use constantly.

Recently he authored an article for the newest edition of The Complete Compliance and Ethics Manual and also sat down to share his knowledge with us via a podcast.

In an insight-filled conversation he addresses a wide range of cyber issues, including:

* The need to set both reactive and proactive strategies

* The importance of having a plan and sticking to it no matter what

* Who should be on your company’s cyber response team, and who should not be

* The important of PR in a crisis

* The value of password audits

The conversation is filled with valuable wisdom for companies large and small.  In fact, one thing he notes is that smaller companies, who think they are too far below the radar to be targets, often are targets just for that reason.

Listen in, and be prepared to take notes., especially if you don’t have the full article in The Complete Compliance and Ethics Manual.

By Adam Turteltaub

The next HCCA Managed Care Compliance Conference is set to take place January 26-29, 2020 in Lake Buena Vista, Florida.  To get a better understanding of what will be discussed we sat down with HCCA Board Member Jenny O’Brien, who is also the Chief Compliance Officer for UnitedHealthcare.

As she explains, the conference will cover the bread and butter, day-to-day issues for plan sponsors and the entire managed care community.  It will also cover hot topics such as:

* Telehealth: Is it replacing in-person visits or just adding more visits?  Can it truly help with rural access issues?

* Supplemental benefits: Are providers ensuring that they have an adequate network to deliver what they promise?

* Opioids: Are the edits now in place truly ensuring those who need opioids receive them and those who don’t, do not?  And what to do about physicians who overprescribe?

Listen in to learn more about hot topics in managed care and what to expect at the 2020 Managed Care Compliance Conference.

By Adam Turteltaub

Matthew Friedman is the CEO of The Mekong Club, an organization supporting the private sector in the fight against modern slavery.  Previously he worked for the United Nations Inter-Agency Project on Human Trafficking and US Agency for International Development.  He has also been a valuable resource for our Report on Supply Chain Compliance.

As he explains in the podcast, there are 16 million people in slavery in the private sector globally.  It’s a problem that is ugly and persistent.

For companies looking at their supply chains, this horrendous problem occurs in a wide range of industries, including fishing, construction, and even medical supplies.

To ensure your organization does not end up using vendors who rely on forced labor, he recommends several steps, including;

* Determining if the workforce is indebted

* Reviewing the contracts that employees have been asked to sign to make sure that they are legal

* Assessing whether the payroll is sufficient to pay the workers properly

He also recommends ongoing auditing and monitoring.

Listen in to learn more about how you can protect your organization from being caught up in human trafficking and modern slavery.

By Adam Turteltaub

In April 2019 the Criminal Division at the US Department of Justice issued a document outlining how prosecutors should evaluate compliance programs.  It has since proven to be a useful tool, helping compliance teams focus their efforts and demonstrating to management that the government takes compliance programs seriously, and has high expectations.

Marsha Ershaghi Hames, Managing Director, Strategy & Development at LRN, reports in the latest Compliance Perspectives podcast that she has already seen an impact on compliance programs as a result of the DOJ’s work.  Compliance officers are taking a more comprehensive and proactive approach.

One area of particular scrutiny has been the role of management, and how leaders are working to support the program and ensure policies are being put into practice.  Other areas include the role of the board (and what it does and doesn’t know) and the actions of front-line managers.

Looking to the future, she sees a greater embrace of transparency and increased emphasis on stakeholder engagement.

Listen in to learn more about how compliance teams are turning the DOJ’s words into actions.

By Adam Turteltaub

At one point earlier this year some people in the compliance and anti-corruption community started worrying that US enforcement of the Foreign Corrupt Practices Act (FCPA) had slowed down.  But, Michael Hershman, President and CEO of the Fairfax Group, points out in this podcast that the 2019 and 2018 figures are remarkably similar, and there’s even a chance that 2019 will surpass the previous year.

The US continues to lead in the prosecution of foreign bribery, and, he notes that of the 44 OECD signatory countries, 21 have not yet concluded a foreign bribery enforcement action.  However, there are some signs of increased activity.  The UK, Brazil, and Germany have all been active, and, in the wake of the 1MDB scandal, so too has Malaysia.  In addition, cooperation among prosecutors from OECD countries has been increasing.

What does the future likely hold?  Michael sees continued difficulties as the European General Data Protection Regulation (GDPR) put restrictions on the ability to conduct investigations of both companies and individuals.  Encrypted communication apps and employees using their own mobile phones will make it harder for businesses to meet their record-keeping requirements.  Increased anti-money laundering enforcement and vigilance is pushing corrupt payments into alternative currencies and even sparking bribery with equity

Listen in as he outlines the challenge and what businesses can do to meet these new and emerging challenges.

By Adam Turteltaub

Alexander Stein doesn’t approach compliance in a typical way.  Instead, as the Founder of Dolus Advisors and Principal in The Boswell Group, he sees it through the lens of his Ph.D. in psychoanalysis.

In this podcast, he uses his perspective to cast a different light on the subject of compliance management.  For him, it’s not a question of “what were they thinking” when they do something wrong but “Why do you assume that they were thinking?”  He explains that we often operate in a reflex mode and don’t really consider our decisions thoroughly.

Listen in as he discusses:

* The belief that there are rogue employees

* The limits of trying to control behavior

* The weaknesses of controls in general

* The importance of root cause analysis

* The limits of hiring screening

* The good and bad in all of us