US compliance enforcement landscapeThe US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) continue to raise expectations with respect to compliance programmes through their enforcement actions, enforcement policies and public statements from their leadership. The need to fully implement compliance policiesFrom an enforcement perspective, establishing a compliance programme is a necessary step, but certainly not a sufficient one. Proper scaling of compliance programmes in international expansionAggressive international expansion, including through acquisition of foreign entities, can significantly heighten companies’ compliance risks and increase the government’s expectations as to companies’ compliance controls. Reporting on compliance to enforcement authoritiesIn light of the above-mentioned incentives for timely and appropriate remediation, including implementation of a compliance programme that has been tested and shown to be effective, companies often consider a more proactive approach to compliance enhancements in dialogue with enforcement authorities. Post-settlement compliance enforcementUS authorities’ compliance enforcement does not stop with a negotiated resolution.

Source: Wall Street Journal October 12, 2023 09:00 UTC