Compliance

Expert Analysis

• How Emotionally Intelligent AI Could Assist With E-Discovery

  

  While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

• FinCEN 'Travel Rule' Update Sets Challenges For Crypto Cos.

  

  It is unclear how the virtual currency sector will find a practical way to comply with the recent expansion of the Financial Crimes Enforcement Network regulation known as the travel rule, but any solution is likely to have both unintended consequences and unintended benefits, say attorneys with King & Spalding.

• Sports Gambling Compliance: Big Money Worth The Wager

  

  As America teeters on the edge of a sports betting revolution, both prudent betting operators and the banks they use should roll out tailored compliance programs that effectively manage reputational, regulatory and business risks to avoid civil or criminal penalties, say attorneys at Cadwalader.

• PayPal Case Illustrates Difficulty Of Avoiding CMA Penalties

  

  The U.K. Competition and Markets Authority's recent fine against PayPal for violating U.K. merger control rules — despite the company's attempts to put safeguards in place — demonstrates how rigid the CMA can be when it comes to initial enforcement orders, say attorneys at Fried Frank.

• Revising Cloud Contracts In Light Of Capital One Cyberattack

  

  In 2019, there have been 3,494 cyberattacks against financial institutions, including, most notably, Capital One. Until regulatory action is taken, financial institutions, which are on their own when it comes to addressing potential cloud service risks, should incorporate liability and security provisions into cloud service contracts, say Nicholas Smith and Rita Ganguli of Milbank.

• Unpacking The Harvard Admissions Ruling And What's Next

  

  While a Massachusetts federal judge's decision last week in Students for Fair Admissions v. Harvard is a welcome development for institutions that rely on race-conscious admission practices, it also illustrates the exhaustive steps needed to justify what are often modest uses of race, say Scott Schneider and Paige Duggins-Clay at Husch Blackwell.

• Preventable Risks Your Law Firm May Be Overlooking

  

  Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

• Data Privacy Compliance Best Practices For Asset Managers

  

  An asset manager can more nimbly engage with the nuances of new data privacy legislation by following a best practices model, developed through universal protocols, that can more readily be adapted to comply with a variety of laws, say attorneys at Ropes & Gray.

• 6 Ethics Tips For Attorneys Making Lateral Transfers

  

  With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

• CFPB Abusiveness Claims Aren't Dead Yet

  

  Initially, it appeared that Consumer Financial Protection Bureau Director Kathy Kraninger would avoid abusiveness claims, but a recent supervisory finding and an enforcement action alleging a mortgage relief services provider misled consumers suggest that Kraninger will not be shy about using the agency’s abusiveness authority, says Ori Lev at Mayer Brown.

• Options For Calif. Franchisors After New Contractor Standards

  

  Recent judicial and legislative developments in California that make it harder to classify workers as independent contractors have left franchisors with lots of questions, but some safeguards may lessen the risk of liability when franchisees fail to comply with labor laws, say Jonathan Solish and Glenn Plattner at Bryan Cave.

• Fraud As An Operational Risk For Banks

  

  For banks, an effective approach to preventing, detecting and resolving fraud is one that focuses on the objectives of recent publications from the Office of the Comptroller of the Currency and is appropriately integrated into the bank’s risk management system, say Neil Bloomfield and Kristina Whittaker at Moore & Van Allen.

• Philadelphia Is Emerging As A Leader On Workplace Regs

  

  Following a minimum wage increase and new pay equity and ban the box laws enacted over the last few years, the Philadelphia City Council recently passed two more workplace statutes, demonstrating a trend that has thrust the city to the forefront of municipalities instituting worker protections, say Rick Grimaldi and Samantha Bononno at Fisher Phillips.

• New CFC Rules Too Narrow To Fix Tax Overhaul Misfire

  

  Recently issued tax rules don’t go far enough to remedy an unintended consequence of the Tax Cuts and Jobs Act that has resulted in U.S. affiliates of foreign parent companies being taxed as controlled foreign corporations, say attorneys at Sidley.

• The Ins And Outs Of SEC's Expanded 'Test The Waters' Rule

  

  The U.S. Securities and Exchange Commission’s recent expansion of permissible prefiling communications between issuers and certain potential investors may allow issuers to be in a better position to gauge interest in the market in a cost-effective manner, say attorneys at Debevoise.