Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence Thomson Reuters

Today we’re joined by Klaus Moosmayer, Chief Ethics, Risk and Compliance Officer for Novartis, the Swiss pharmaceutical giant.

Klaus has had a distinguished career. He joined Novartis in 2018 after serving 18 years at Siemens where he was Chief Compliance Officer. He began his career as a lawyer in Germany, specializing in white collar crime, business law and litigation.

His views on compliance, ethics and risk are widely sought after and we first got to know him years ago when Klaus took part in a Regulatory Intelligence conference. The focus at the time was on how the financial industry might learn how other industries deal with issues of misconduct and culture.

We're here today to discuss a new article by Klaus, entitled ETHICS AND INTEGRATED ASSURANCE: THE CHALLENGE OF BUILDING ‘TRUST’. The article argues for a new organizational model for compliance.

Here is a link to the article: https://riskandcompliancemagazine.com/ethics-and-integrated-assurance-the-challenge-of-building-trust-apr24-open


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the second episode of Season 11 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Jacob Denman for a wide-ranging discussion on the growing trend of elder financial exploitation.

Jacob Denman is with Thomson Reuters Risk and Fraud Solutions and Partnerships and Alliances. Prior to joining Thomson Reuters, Jacob worked in law enforcement and then for several large banks in their financial crimes and special investigations departments. Jacob is on the Board of Directors of the Minneapolis St. Paul chapter of the Association of Certified Fraud Examiners (ACFE). He is also a Certified Anti-Money Laundering Specialist with ACAMS.

In the past few weeks, the Financial Industry Regulatory Authority (FINRA), the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), and the non-profit organization AARP (formerly known as the American Association of Retired Persons) have all issued crucial warnings and guidance on the pressing issue of elder financial crime.

Denman sheds light on the alarming surge in scams and frauds targeting the elderly. He attributes this rise to two key factors: the rapid advancements in technology and the isolation experienced by the elderly during the Coronavirus pandemic, which led to a shift in their financial management from in-person to technology-based methods.

For more information on the podcast and additional resources, see the links below.

Links:

FINRA Threat Guidance: www.finra.org/rules-guidance/key-topics/senior-investors/tip-protecting-vulnerable-adult-senior-investors

FinCEN Elder Financial Exploitation Alert: www.fincen.gov/news/news-releases/fincen-issues-analysis-elder-financial-exploitation

Thomson Reuters Special Report on the soaring number of SARs filings: www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2023/06/Suspicious-Activity-Reports-2023.pdf

AARP Report: https://press.aarp.org/2024-05-08-AARP-Report-Elevated-Risks-of-Fraud-Are-Pervasive-in-America

Todd Ehret LinkedIn: linkedin.com/in/todd-ehret-91827264/
Jacob Denman LinkedIn: linkedin.com/in/jacob-denman/

Thomson Reuters Regulatory Intelligence content: regintel-content.thomsonreuters.com/


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the first episode of Season 11, Lindsey Rogerson, senior editor, is joined by Rachel Wolcott, senior editor in London and Todd Ehret, senior regulatory expert in
New York to discuss the growing impact of finfluencers – financial influencers – on the public’s investment decision-making.

According to research from the CFA Institute, some found that 37% of Gen-Z investors in the United States and 38% in the United Kingdom cited social media influencers
as a major factor in their decisions to invest.

But who are these people?

They are not just celebrities like Kim Kardashian or Tom Brady, but also bloggers sitting in their bedrooms.

The discussion moves on to discuss how regulators are attempting to clamp down. And the limitations on what regulators can be expected to achieve.

Links:
FCA finfluencer infographic: https://www.fca.org.uk/multimedia/fca-and-asa-team-warn-finfluencers-risks-promoting-illegal-get-rich-quick-schemes

European Securities and Markets Authority finfluencer research: https://www.esma.europa.eu/sites/default/files/2024-02/ESMA74-1103241886-912_Warnings_on_Social_Media_and_Investment_Recommendations.pdf

FINRA M1 Finance fine:
https://www.finra.org/media-center/newsreleases/2024/finra-fines-m1-finance-850000-violations-regarding-use-social-media

CFA Institute research:
https://rpc.cfainstitute.org/en/research/reports/2024/finfluencer-appeal

Off message: EU and UK approaches to social media promotions and finfluencers
Paywall: http://go-ri.tr.com/jSgT5b
Openweb: https://regintel-content.thomsonreuters.com/document/I12480010110211EF9891F1C9B4067FAC/Off-message:-EU-and-UK-approaches-to-social-media-promotions-and-finfluencers-15-05-2024

UK-registered cryptos still advertise with non-compliant UK affiliate marketer; FCA has not issued new warnings: https://regintel-content.thomsonreuters.com/document/IBF8E49A00D5111EF8367C78DC6A8BA08/UK-registered-cryptos-still-advertise-with-non-compliant-UK-affiliate-marketer-FCA-has-not-issued-new-warnings-09-05-2024


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson, senior editor, is joined by Trond Vagen, senior editor for European Financial Markets Regulation, to discuss the mounting sustainability-related workload for bank and investment compliance officers.

Trond discusses the European Central Bank’s (ECB) expectations for banks to accurately assess the climate and environmental risks on their balance sheets. With just nine months remaining before the deadline and the possibility of daily fines, increased capital requirements and a fit and proper assessment for institutions that get it wrong, time is running out.

Lindsey runs through the additions to sustainability legislation made in the last few weeks. The EU parliament’s five-year term is drawing to an end and there has been a wave of regulations and directives in the sustainability space that will impact the work of compliance officers for years to come.

There has also been some tinkering with regulations that have already passed as politicians seeking re-election strive to appease some of their more vocal voters.


Links:
Frank Elderson speech: https://www.bankingsupervision.europa.eu/press/speeches/speaker/vice-chair/html/index.en.html


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Rachel Wolcott, senior editor, welcomes special guest Justine Walker to the podcast. Justine is the Association of Certified Anti-Money Laundering Specialists' (ACAMS) global head–sanctions, compliance, and risk and its vice-president for thought leadership. She is an expert on sanctions, counterterrorism, and financial crime she has held specialist positions within the UK's Financial Conduct Authority, HM Treasury, the United Nations Office on Drugs and Crime and UK Finance.

Russia's invasion of Ukraine in 2022 ushered in a new set of unprecedented sanctions, including the imposition of a novel oil price cap, meant to stop Russia selling oil above $60 a barrel. But Russia seems to be able to get everything it needs to keep the war going. Justine expects enforcement action to unfold as the year progresses.

"We're entering into a much more aggressive phase regarding the price cap, we've got new price capacitation requirements, we've had a flurry of new guidance. We're probably going to see this play out in terms of more enforcement, and I think this year is going to be pretty informative in terms of how the oil price cap will end up being in terms of a longer-term tool," Justine told Compliance Clarified.

Justine emphasized the importance of Executive Order 14114, signed last year by President Biden, which ratchets up secondary sanction risk for non-U.S. financial institutions which give direct support to Russia's military-industrial base but also for indirect assistance, such as facilitating customers' dealings or providing services to customer transactions related to Russia's military-industrial base.

Justine explained the convergence of export controls with anti-money laundering (AML) and sanctions compliance. She emphasized the need for financial institutions to be proactive in identifying sensitive technologies and strategic trade, which are increasingly becoming a focus for the Group of Seven governments.

"One of the big challenges is this merger between export control requirements, AML and sanctions. There's been more of a nexus between AML and sanctions, but the nexus with export controls has not been there to what we're now seeing is being asked. We're seeing much greater expectations from governments, that financial institutions will become more proactive in their thinking around their role in sensitive technology, strategic trade, export control, and that is a whole area of speciality in itself" Justine said.

Links:
ACAMS's Global Threat Report: https://www.acamstoday.org/global-afc-threats-report/

INSIGHT: Latest U.S. warnings to foreign banks doing significant Russia business may herald sanctions
enforcement action
Inside Paywall: http://go-ri.tr.com/3ZIw6B
Outside Paywall: https://regintel-content.thomsonreuters.com/document/I899083B0DCA811EE925AD4411E508A2D/INSIGHT:-Latest-U.S.-warnings-to-foreign-banks-doing-significant-Russia-business-may-herald-sanctions-enforcement-action-07-03-2024

U.S. targets Russian "malign activities" linked to Wagner Group in Central African Republic: https://regintel-content.thomsonreuters.com/document/I87D16B80DD8D11EE985CDDFFB3F5522A/U.S.-targets-Russian-'malign-activities'-linked-to-Wagner-Group-in-Central-African-Republic-11-03-2024

EU sanctions: new rules to crack down on violations | News | European Parliament: https://www.europarl.europa.eu/news/en/press-room/20240308IPR19002/eu-sanctions-new-rules-to-crack-down-on-violations

Previous episodes:
Season 10, Episode 5: How Mekong region organized crime built a global cryptocurrency money laundering network: https://podcasts.apple.com/gb/podcast/season-10-episode-5-how-mekong-region-organized-crime/id1548510826?i=1000646371712
Season 9, Episode 8: Hamas, terrorist financing and the U.S. response to the 7 October attack: https://podcasts.apple.com/gb/podcast/season-9-episode-8-hamas-terrorist-financing-and-the-u/id1548510826?i=1000635015943
Series 9, Episode 3: North Korea, Russia, crypto and changing

Welcome to Compliance Clarified's 100th episode!

This week Rachel Wolcott, senior editor and Lindsey Rogerson, senior editor in London speak to a special
guest Ann Francke Chief Executive of the Chartered Management Institute in London, a professional body for management and leadership. This International Women's Day podcast looks at the backlash that's hit efforts to get women into the workplace and on an equal footing. We focus on financial services, but this is an issue that reverberates throughout society. In financial services, there has been a backlash against environment, social and governance (ESG) initiatives and despite a lot of talk about diversity and inclusion, such efforts have stalled. Fear of ESG and D&I has been conflated into an anti-woke and in some places, anti-woman agenda and with some politicians and pundits describing measures to tackle climate change and inequality as a societal risk. Equality initiatives are also some of the first to get cut when things get tough.
The Chartered Management Institute, for example, found that one in three male managers (31%) think that too much effort is going into ensuring workplace gender balance. So, how do companies, financial services firms and regulators who want to take D&I or ESG forward stand up to the political and societal backlash?

More on Ann:
She started her career at Procter & Gamble and has held senior executive positions at Mars, Boots, Yell and BSI. In 2020, Ann was awarded an OBE for services to workplace equality. Ann is an expert on gender balance in the workplace and speaks frequently in the media and conferences on this and other management topics. Her book (https://amzn.eu/d/bCRewdP) on gender balance - Create a Gender-balanced Workplace, published in September 2019.

Links to previous International Women's Day podcasts:
2023 Season 7, Episode 7: International Women’s Day special: How to ensure diversity and inclusion initiatives deliver meaningful outcomes - https://podcasts.apple.com/gb/podcast/season-7-episode-7-international-womens-day-special/id1548510826?i=1000603262524
2022 Season 4, Episode 6: Celebrating International Women's Day -https://podcasts.apple.com/gb/podcast/season-4-episode-6-celebrating-international-womens-day/id1548510826?i=1000553278776

Contact us
rachel.wolcott@thomsonreuters.com
lindsey.rogerson@thomsonreuters.com

More information about Thomson Reuters Regulatory Intelligence: https://legal.thomsonreuters.com/en/products/regulatory-intelligence


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.