American Subsidiary Reflects Japan Parent’s Sense of Ethics

Ben DiPietro – WSJ Risk & Compliance Journal – August 31, 2016

Kasey Ingram, general counsel and chief compliance officer for biosciences and chemicals company ISK Americas, a subsidiary of Japan-based Ishihara Sangyo Kaisha Ltd., discusses how Japanese culture helps drive compliance at the company and why the company maintains its compliance function within its legal department. The U.S. part of the company has 75 employees and three main businesses: agricultural chemicals, wood preservatives and titanium dioxide, a white pigment used in toothpaste, sunscreen and other products.

Why does ISK combine the general counsel and compliance officer roles?

Mr. Ingram: I am a big believer in “Compliance 2.0”–the separation of compliance and legal–but sometimes it’s just not practical. We are not big enough to support two separate functions within the company. I have a group of consultants that I have developed relationships with, so when an issue comes up with legal and compliance I pick the side I am going to do and outsource the other side.

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Read this article on The Wall Street Journal.

Are compliance officers at financial institutions now in the hot seat for fines?

Stanley Foodman – The Yucatan Times – August 16, 2016

Otherwise reputable financial institutions continue being sanctioned for regulatory non-compliance.  Well known “household” names continue receiving fines for failing to establish and implement adequate Anti-Money Laundering (AML) procedures.  The Financial Industry Regulatory Authority (FINRA) recently fined Raymond James & Associates and Raymond James Financial Services $17MM.  According to FINRA, the two firms failed to prevent, detect, investigate, and report suspicious activity for several years. Apparently, compliance officers and other individuals (partners, directors, officers or employees) can bear personal responsibility for failures to enforce Bank Secrecy Act/Anti Money Laundering standards; the AML Compliance Officer was also personally fined $25 thousand, and suspended for three years. Brad Bennett, FINRAs chief of enforcement, said: “This case demonstrates that when there are broad-based failures within specific areas of responsibility, we will seek individual liability where appropriate.”

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Read this article on the Yucatan Times.

A Trip to the Dentist for Some Compliance Insight

Thomas Fox – JD Supra – August 10, 2016

I had to go to the dentist yesterday. I went for what I thought was filling repair but I had somehow forgotten that it was a wisdom tooth removal and a filling repair. I know you are thinking either (1) why does someone his age still have wisdom teeth and (2) how could he ‘forget’ he was having said wisdom tooth removed? All I can do is channel my inner-Laura Petrolino and say as improbable as it sounds, both can and do occur, at least with me.

While I was letting the anesthesia kick in for the wisdom tooth removal, my dentist, Dr. Shan Batiste, was talking non-stop to the newly hired dental tech. Since I was both under anesthesia or had dental tools in my mouth, I could not stop to ask any follow up questions and simply listened to their dialogue. I am not sure if it was his first day or just the first time that he had worked with my dentist but she was imparting to him what it was in his interview that led her to offer the position to him. Rather amazingly, I found my dentist had some very interesting insights about the compliance function.

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Read this article on JD Supra.