?? This Week in GRC: Tick Tock, TikTok
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Welcome to Issue 57 of This Week in GRC, MBK Search's weekly digest of the news and views in the world of governance, risk, and compliance.
?? This Week’s Opening Bell
There are 98 days until the start of the 2024 Paris Olympics
There's also 193 days until the 2024 Presidential Election
And TikTok has nine months to find a buyer for its U.S. business that satisfies Federal authorities, or the app is goneburger.
That sound is Mark Zuckerberg rubbing his hands together, or training for MMA, it's hard to tell the difference at this stage.
And remember, This Week in GRC is moving from LinkedIn. From May 2024, we'll be delivering you a more comprehensive and thoughtful version of This Week in GRC on CovertKit.
??? This Week’s Issue
?? The FTC ditches non-competes
?? What TikTok needs to do to stay in the U.S.
?? Combating elder financial exploitation
??? From the MBK Search editorial team
Original content from the team at MBK Search
The FTC's rule on non-competes: What you need to know
The FTC issued a final rule that alters the landscape for non-compete agreements in the USA. Here's MBK Search's guide to the new rule.?
What does the FTC rule say?
Under this new rule, employers can no longer impose non-compete clauses on workers, except for a narrow category defined as “senior executives.” For these high-ranking officials, whose roles and compensation thresholds align with the detailed criteria set by the FTC, existing non-compete agreements can still be enforced.
What will the impact be on hiring and recruitment?
The impact will be huge. Here are some of the?key?effects and adjustments we might expect:
1. Expanded Talent Pool: With the restriction on non-compete clauses, companies will have access to a broader talent pool. Employees previously bound by non-compete agreements will now be free to switch employers more easily.?This?can increase opportunities for companies to attract experienced professionals from competitors and other sectors.
2. Increased Competition for Talent: Companies will face stiffer competition for top talent. This could drive up demand for skilled workers, potentially leading to better compensation packages and benefits to attract and retain the best employees.
3. Enhanced Employee Mobility: The rule will likely encourage employee mobility. Workers will have greater freedom to move between jobs to pursue better opportunities, higher salaries, or more favorable working conditions without fearing legal repercussions.
4. Shift in Recruitment Strategies: Companies may need to adjust their recruitment strategies. Instead of relying on non-competes to retain talent, employers might focus more on creating attractive working environments and career development opportunities to attract and keep their employees.
5. Focus on Culture and Retention: There may be a greater emphasis on building a positive organizational culture and employee engagement as?key?strategies for talent retention. Companies must invest in training, development, and recognition programs contributing to job satisfaction and employee loyalty.
6. Re-evaluation of Employment Offers: Businesses might reevaluate what they include in employment offers. This could mean focusing more on immediate benefits and long-term career opportunities rather than restrictive clauses that bind employees to the company.
7. Legal and Compliance Adjustments: Recruitment processes will need to incorporate legal and compliance checks to ensure that all new hiring practices align with the updated regulatory environment and avoid any legal pitfalls that could arise from the misuse of restrictive clauses.
·????? What is the definition of “senior executive”?
·????? What other tools companies can use besides non-competes?
·????? Will the rule be challenged in court?
·????? What should GRC professionals do now?
?How TikTok could still operate in the U.S. if ban becomes law
The U.S. government has given TikTok months to divest itself from its Chinese-owned parent company ByteDance, otherwise it will face a nationwide ban.
We published this guide in March where looked at what options would be available to TikTok.
Key Provisions of the Bill:
1. Prohibition of Foreign Adversary-Controlled Applications
The bill makes it unlawful for entities to distribute, maintain, or update foreign adversary-controlled applications within the United States. This prohibition applies to providing services enabling the distribution or maintenance of such apps, including online application stores and internet hosting services.
2. Timeframe for Compliance
For apps that meet the definition of a foreign adversary-controlled application, the prohibition will take effect 180 days after the bill’s enactment or after the President determines a significant threat to national security.
3. Data and Information Portability
Before the prohibition takes effect, entities that own or control foreign adversary-controlled applications must allow users within the United States to request and obtain their account data in a machine-readable format.
4. Enforcement and Penalties
The Attorney General will investigate potential violations and pursue enforcement actions. Civil penalties of up to $5,000 per violation may be imposed for distributing or maintaining foreign adversary-controlled apps and up to $500 for failing to provide data portability to users.
How could the app demonstrate sufficient compliance to stay in business? Read our full thoughts here.
Combating Elder Financial Exploitation
Elder financial exploitation (EFE) has emerged as a significant threat, with the?Financial Crimes Enforcement Network (FinCEN) receiving reports of over $27 billion?in suspicious activity between June 2022 and June 2023. As the population ages, this issue becomes increasingly pressing for financial institutions, regulators, and society.
MBK Search explores FinCEN’s latest EFE analysis and has pulled out these key points from the report:
领英推荐
??? This Week’s GRC Headlines
The stories that made headlines this week
FCA Issues Guidance on Upcoming Anti-Greenwashing Rule
The U.K. Financial Conduct Authority (FCA) has released new guidance on compliance with its forthcoming anti-greenwashing rule, effective May 31, to protect consumers by ensuring accurate descriptions of sustainable products and services.
The regulation package, adopted last year, includes two sets of rules and an investment labels regime, all set to take effect in 2024.
The anti-greenwashing rule applies to firms making sustainability-related claims about their products and services, with the FCA scrutinizing the use of terms like "ESG," "green," and "sustainable" in marketing to ensure claims are fair, transparent, and not misleading.
The guidance provides examples of problematic claims and best practices, emphasizing the need for clear, understandable, accurate, and substantiated information.
The FCA can take further action if a firm makes misleading claims?on?products, services, and sustainability practices.
Investment labels will be available to firms in disclosures starting July 31 to help consumers navigate the investment product landscape and differentiate between sustainability objectives.
OFAC Sanctions Israeli Entities Funding Extremist Violence in West Bank
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has sanctioned two Israeli entities for fundraising on behalf of extremists.?
Mount Hebron Fund and Shlom Asiraich generated $140,000 and $31,000, respectively, for Yinon Levi and David Chai Chasdai. Levi and Chasdai were previously designated for allegedly leading a riot that killed a Palestinian civilian.
Deputy Secretary of the Treasury Wally Adeyemo emphasized the entities' role in financing extremists responsible for violence against Palestinians. The State Department also designated?Ben Zion?Gopstein, leader of Lehava, whose members have engaged in destabilizing violence in the West Bank.
The U.S. has called on Israel to prevent attacks by violent extremist settlers and hold those responsible accountable. Additional steps to promote accountability may be taken, if necessary, as tensions rise over possible sanctions against the Israel Defense Force (IDF) for rights violations in the West Bank.
U.S. Arrests Samourai Wallet Co-founders for Alleged Money Laundering
Federal prosecutors have targeted another cryptocurrency mixer, accusing the two co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, of money laundering and operating an unlicensed money-transmitting business. Prosecutors allege Samourai executed more than $2 billion in unlawful transactions and helped launder over $100 million of illicit funds from dark web markets.
Rodriguez, 35, was arrested in Pennsylvania, while Hill, 65, was arrested in Portugal. U.S. law enforcement is seeking Hill's extradition to stand trial in the U.S. Both face up to 25 years in prison.
Prosecutors allege Rodriguez and Hill knew a large portion of the money Samourai processed were proceeds from criminal activity despite marketing their platform as a mixer enabling users to exchange cryptocurrencies with relative anonymity. Samourai offered users features to conceal the sources of their funds, earning at least $4.5 million in fees from these services.
The arrests come as U.S. authorities crack down on crypto mixers, with the Biden administration designating international crypto mixers as primary money-laundering hubs threatening national security.
?? This Week’s GRC opinions
?Hot takes and analysis from those in governance, risk, and compliance
Heloise Aboulker asks, “Why do you think some companies find it harder than others to combine sustainability with profitability?”
Richard Chambers calls on Internal Audit to “protect, not just detect” when it comes to fraud. ?
Dr Mariola Mazouk asks, “Are you a player in the AML Blame Game”?
Patrick Healey argues that an underrated aspect of good governance involves something particularly boring. ?
?? This Week’s GRC Must-Watch/Listen
GRC podcasts to watch and treat your ears to.
How can a Chief Sustainability Officer role become more influential? In the latest episode of the LSEG Sustainable Growth podcast, Alison Taylor, Clinical Associate Professor at NYU Stern School of Business, discusses the four key changes needed for the role of the Chief Sustainability Officer (CSO), avoiding siloed thinking around sustainability and common mistakes companies are making around ESG.
????? This Week’s Hottest GRC Jobs
Make your next career step with MBK Search.
Senior Audit Manager - Internal Audit US Finance and Corporate Treasury
A leading bank is looking for a Senior Audit Manager - Internal Audit US Finance and Corporate Treasury, to join their growing team.
Compliance Officer (Leading FinTech)
Our client, a Copenhagen based FinTech, is seeking a Compliance Officer to join their growing team.
Global Head of Commercial and Healthcare Compliance (Leading Biotech)
Our client, a Leading Biotech, is seeking a Global Head of Commercial and Healthcare Compliance to join their growing team.
Retail Banking Center Distribution Strategy and Analytics Manager
Our Client, a Leading Bank, is looking for a Retail Banking Center Distribution Strategy and Analytics Manager to join their growing team.
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