Recent regulatory enforcement actions against alleged bribery and sanctions breaches show the rising risks of a failure of due diligence
Alleged compliance breaches have led to combined fines and settlements worth hundreds of millions of dollars in Q2 of 2023. Regulators have taken enforcement action against companies over their activities in jurisdictions spanning four continents. In this blog...
Wolfsberg Principles set the agenda for financial institutions’ compliance
New Wolfsberg Principles warn global banks of the risk factors that require Enhanced Due Diligence on a wide range of data The Wolfsberg Principles are widely regarded as authoritative guidance for how financial institutions should respond to the rising risks...
Barclays record FCA fine highlights need for third party due-diligence
The recent news of Barclays £72 million fine for failing to conduct the appropriate checks on Politically Exposed Persons (PEPs) is a blunt reminder that organisations must make sure due diligence processes are followed by all employees. FCA fines of this nature...
Reputational risks are greater than ever for brands associated with slavery
Amnesty International's recent report about child labour in supply chains demonstrated children as young as seven working in cobalt mines in the Democratic Republic of Congo. Cobalt is used in mobile phone batteries and Amnesty accuses several global electronics...
Managing compliance in high risk industries and countries
Risk management and legal compliance are serious issues for all businesses. A tightening of regulation - and the fear of negative publicity as a consequence of perceived unethical conduct - has placed such issues into sharp focus. Nowhere is this risk more acute...
Paypal issued £5M fine due to inadequate sanctions screening process
The US Treasury Department issued Paypal with a £5M fine after they had allowed payments which violated sanctions and involved links to weapons of mass destruction. Paypal failed to prevent the transactions due to a failed screening process, causing non compliance...
The Perfect Storm: EU's 6th Anti-Money Laundering Directive Raises Regulatory Risk with a Broader Definition of Money Laundering & Extended Criminal Liability
The European Union's Sixth Anti-Money Laundering Directive (6AMLD) came into effect in all EU member states in December 2020, and it must be enforced by all regulated financial institutions by 3rd June 2021. Companies operating in Europe—and multinationals based...
How PESTEL analysis can bring a bigger picture of your firm's external environment
PESTEL (political, economic, social, technological, environmental and legal) analysis is a strategic tool for understanding the macro-environmental factors that companies have to take into consideration when conducting analysis or market research. PESTEL analysis...
Fine time for pharma; why due diligence is important
Since the mid-1990s, regulatory expectations on the due diligence carried out in the pharmaceutical sector have become much more complicated. Drugs firms are subject to regulations laid out in the US Foreign Corrupt Practices Act and by the US Food and Drug Administration...
Nestle Case Study: Human rights due diligence
According to research by Ethical Corporation in 2016, nearly 50% of businesses stated human rights was their number one supply chain issue in the next year. The United Nations Guiding Principles on Business and Human Rights provide the global standard since 2011...
Six principles for bribery prevention
The UK Bribery Act 2010, which came into force on 1st July 2011, replaced legislation dating back to 1889 and affects all businesses operating in the UK. Offences The offences of giving and receiving bribes and bribing foreign public officials apply to all...
Behind Every Flag: Third Party Due Diligence for Shipping
Over the last decade regulatory pressures requiring companies to carry out third party due diligence have primarily focussed on compliance across three areas; anti-bribery and corruption, anti-money laundering, and sanctions regulation. The shipping sector is...
COVID-19 and global risk management: What we can see from the data?
The novel coronavirus, or COVID-19, has already changed society. As governments worldwide struggle to adapt to the new reality, they are introducing measures aimed at preventing the further spread of the virus and increasing the resilience of their public healthcare...