CLOSE

Specials

  • Life Science Compliance
  • March
  • Genomics Europe
  • Bioanalytical Services Europe
  • Sustainable Technologies
  • BioTech Startup APAC
  • Life Science Packaging
  • Europe
  • APAC
  • Bioanalytical Services APAC
  • Life Science Analytics
  • Bioanalytical Services
  • September
  • June
  • BioTech Startups

I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

Skip to: Curated Story Group 1
lifesciencesreview
US
APAC
EUROPE
  • Home
  • News
  • Contributors
  • Magazine
  • Conferences
  • Newsletter
  • About

Thank you for Subscribing to Life Science Review Weekly Brief

  • Home
  • Life Science Compliance
  • Contributers

Recommended Insights

The Process And Culture Requirements For...

Greg Bellotti, Vice President IT/CIO, Elementis Global

Making Digital Health A Primary Rather...

Jennifer Briley Christian, Vice President, Clinical...

How Technology Enhances The Effectiveness...

Patrik Florencio, SVP and Chief Compliance & Risk...

How Technology Is Revolutionizing...

Margarita Rivera-Santiago, CISSP, CISM, CRISC, CISA...

The Evolving Internet of Things (IoT) in...

Jerry Power, Executive Director, Institute for...

Aligning IT with the Cadence of your Business

William Leonard, ScD, Chief Information Officer, MPI...

Biopharma Start-Ups and the Development of...

Ulrich Geilinger, Venture Capitalist, HBM Partners AG

Data Governance is Relatively New to the...

William Phillips,SVP & CIO,University Health System

The Process And Culture Requirements For...

Greg Bellotti, Vice President IT/CIO, Elementis Global

Making Digital Health A Primary Rather...

Jennifer Briley Christian, Vice President, Clinical...

How Technology Enhances The Effectiveness...

Patrik Florencio, SVP and Chief Compliance & Risk...

How Technology Is Revolutionizing...

Margarita Rivera-Santiago, CISSP, CISM, CRISC, CISA...

The Evolving Internet of Things (IoT) in...

Jerry Power, Executive Director, Institute for...

Aligning IT with the Cadence of your Business

William Leonard, ScD, Chief Information Officer, MPI...

Biopharma Start-Ups and the Development of...

Ulrich Geilinger, Venture Capitalist, HBM Partners AG

Data Governance is Relatively New to the...

William Phillips,SVP & CIO,University Health System

The Evolving Financial Crime Regulatory Landscape

By Robert WALSH, Deputy CCO, AXA Group
Tweet

For many years financial crime regulations have mainly been a problem for banks and other financial institutions. Those days are over. Is your company at risk because your supply chain includes companies in western China? Do you have customers with operations that extend into sanctioned countries? Are you unwittingly in violation of new strict anti-bribery laws in France? Have you even heard about the UK Modern Slavery Act or the new EU equivalent?


All companies, whether manufacturers or service companies, now have need to deal with these complicated areas of regulation. What’s even harder is that most of these laws have extra-territorial application, meaning that if any part of your operations are in the regulating country then the regulator might assert that their law applies to all of your operations.


That’s the bad news. The good news is that because big banks have been at the bleeding edge of these laws, suffering penalties running into the billions of dollars, they have invested heavily in specialized technologies to prevent these problems. These tools are generally available and are rapidly improving in their effectiveness.


Underlying all of these laws is a regulatory insistence that companies really, really know who they are dealing with. Customers, suppliers, contractors, TPAs, intermediaries, JV partners, directors, employees - none of these parties can be on prohibited lists. So companies must have screening technology to check them against the lists. If any of these parties are companies, you must identify controlling shareholders and make sure those shareholders are not on restricted lists. This is a big job but it can be done: specialized data vendors have emerged that work in concert with these technologies.


Under emerging bribery laws, such as the French Sapin 2 law, companies must assess the corruption risk of the third parties they deal with. The good news is that screening technologies can be used for this purpose as well and, again, specialized data vendors are available, who offer “negative media” lists to help assess the background of counterparties. 


Perhaps the most significant international bribery law is the US Foreign Corrupt Practices Act, which adds a further layer of due diligence, which is whether your counterparty is a government entity or political/public official. All of this can be screened using these tools.


With respect to the supply chain laws, the essential ingredient is to try to determine whether companies in your supply chain are engaged in human rights abuses. This is not wholly solved by screening technology and services, but increasingly dubious suppliers are listed in the negative media screening services.


Unfortunately it doesn’t end there. There is an emerging expectation that, beyond ensuring your customers are not bad guys, you should ensure your customer’s customers are not bad guys (know your customer’s customer or KYCC). This expectation is particularly relevant to manufacturers with international clients. If the car parts your company makes end up in North Korea you may have a serious problem. Once again, new specialized data vendors coupled with customer screening technology can help solve this.


One more point. Apart from the regulatory reasons for engaging in these screening practices, increasingly there is pressure from other directions. If you are a public company, institutional investors now include ESG (Environmental, Social & Governance) factors in their investment decisions, including anti-bribery and supply chain compliance, and bank lenders have started asking diligence questions on these subjects, to meet their KYCC obligations.


These types of regulatory obligations are expanding rapidly. In 2019, for the third year in a row, the US Government blacklisted more entities than it had in any previous year, adding an average of 1,000 names each year—more than twice the annual average under either President Barack Obama or President George W. Bush. Companies would be wise to get the tools in place to manage these risks.


Weekly Brief

loading
Top 10 Life Science Compliance Solution Companies - 2021
> <
  • Life Science Compliance 2021

    Top Vendors

    Current Issue

Read Also

The Evolving Internet of Things (IoT) in Healthcare

Jerry Power, Executive Director, Institute for Communications Technology Management, University of Southern California
The Evolving Internet of Things (IoT) in Healthcare

Biopharma Start-Ups and the Development of New Drugs

Ulrich Geilinger, Venture Capitalist, HBM Partners AG
Biopharma Start-Ups and the Development of New Drugs

Future Predictive Analytics Solutions need the Right Level of Regulatory Governance

Frank Wang, System Vice President, IDN Decision Support Analytics, Health First
Future Predictive Analytics Solutions need the Right Level of Regulatory Governance

Using Technology to Increase R&D Productivity in the Life Sciences Sector

Dr. Jaqui Hodgkinson, VP-Product Development, Pharma & Life Sciences, Elsevier R&D Solutions
Using Technology to Increase R&D Productivity in the Life Sciences Sector
De-risking the Preclinical Phase of Immunotherapy Drug Development

De-risking the Preclinical Phase of Immunotherapy Drug Development

Ralph Gareus, Director Business Development, The Jackson Laboratory
Methods and Models from Healthcare Apply to Other Enterprises as Well

Methods and Models from Healthcare Apply to Other Enterprises as Well

Dr. Chris Stout, VP - Research & Data Analytics, ATI Physical Therapy

Revolutionizing Genome Editing with CRISPR

Mark Behlke, CSO, Integrated DNA Technologies
Revolutionizing Genome Editing with CRISPR

Revamping Workflow in Pharma Industry with Technology

Bozidar Jovicevic, VP, Global Head of Digital Therapeutics, Sanofi [EPA:SAN]
Revamping Workflow in Pharma Industry with Technology
Loading...

Copyright © 2021 Life Science Review . All rights reserved. |  Subscribe follow on linkedin

This content is copyright protected

However, if you would like to share the information in this article, you may use the link below:

https://life-science-compliance.lifesciencesreview.com/cxoinsight/the-evolving-financial-crime-regulatory-landscape-nwid-297.html