The Hong Kong Office of the Privacy Commissioner for Personal Data (the “Hong Kong Data Privacy Commissioner”) has recently published compliance guidance on the upcoming GDPR to raise awareness in Hong Kong companies about the potential effects and reforms needed in order to comply with the new GDPR requirements. (more…)
On April 3, 2018, the Financial Crimes Enforcement Network (FinCEN) issued new frequently asked questions (FAQs) regarding its customer due diligence rule (CDD Rule).
The CDD Rule applies to banks, broker-dealers in securities, mutual funds, futures commission merchants and introducing brokers in commodities (collectively, covered financial institutions or CFIs).
The CDD Rule includes four core elements of customer due diligence, each of which should be included in the anti-money-laundering (AML) program of a CFI: (1) customer identification and verification, (2) beneficial ownership identification and verification, (3) understanding the nature and purpose of customer relationships to develop a customer risk profile and (4) ongoing monitoring for reporting of suspicious transactions and, on a risk basis, maintaining and updating customer information. The second element — the beneficial ownership requirement — is new. FinCEN has described the other elements as preexisting AML program requirements for CFIs, although the third and fourth prongs were, at most, implicit requirements.
FinCEN issued new FAQs on the CDD Rule on July 19, 2016. These FAQs are timely because the May 11, 2018 compliance date for the CDD rule is fast approaching.
Here, we summarize several key takeaways regarding the beneficial owner requirement from the new FAQs.
On 28 February 2018, the Belgian Commission for the Protection of Privacy (the “Privacy Commission”) published a recommendation setting out its approach to Data Protection Impact Assessments (“DPIAs”), and in doing so published a “White List” and a “Black List” of processing operations, pursuant to the General Data Protection Regulation (“GDPR”). Organisations subject to the GDPR are required to assess whether they need to undertake a DPIA when undertaking new processing operations. However under the GDPR, member state data protection authorities:
- are required to publish a “Black List” of processing operations which are always subject to the requirement to undertake a DPIA; and
- are permitted to publish a “White List” of processing operations which are not subject to the requirement to undertake a DPIA.
Sidley hosted the firm’s fourth annual Privacy and Cybersecurity Roundtable in the DC office on Monday, March 26, 2018.
Following an introduction by Sidley partner Alan Raul, Giovanni Buttarelli, European Data Protection Supervisor, and Helen Dixon, Data Protection Commissioner for Ireland, discussed the EU General Data Protection Regulation which will go into effect on May 25, 2018. Both Helen Dixon and Giovanni Buttarelli shared their insights on preparation for, and life after May 25. Following their remarks, Sidley Partner and Privacy practice Co-Leader, Ed McNicholas (D.C.) moderated a lively discussion that included Cam Kerry, Senior Counsel (D.C./Boston) and new Sidley Partner, Wim Nauwelaerts (Brussels). (more…)
On March 21, Governor Daugaard of South Dakota signed SB 62, making South Dakota the 49th state to enact a data breach notification statute (leaving only Alabama without a state data breach law). South Dakota’s attorney general issued a statement after the law was signed, observing that the connected economy comes with “an increased risk of theft and fraud,” and “we need the tools to combat these breaches and thefts of our personal information.” (more…)
On March 6, 2018, Singapore announced that it has joined the APEC Cross-Border Privacy Rules (CBPR) system as well as the APEC Privacy Recognition for Processors (PRP) program. Singapore is the sixth member of the CBPR system, which includes Canada, Japan, Korea, Mexico and the United States, and is the second member of the PRP program after the US. (more…)
On February 21, 2018, the U.S. Securities and Exchange Commission issued interpretive guidance (the Guidance) to assist public companies in drafting their cybersecuritydisclosures in SEC filings. See 83 FR 8166 (Feb. 26, 2018). In his public statement accompanying the issuance of this guidance, SEC Chairman Jay Clayton said he believed that “providing the Commission’s views on these matters will promote clearer and more robust disclosure by companies about cybersecurity risks and incidents, resulting in more complete information being available to investors.”1 In this new guidance, the SEC is likely intending to signal how it may focus future enforcement concerning the cybersecurity disclosure obligations of public companies, and their underlying disclosure controls, procedures and certifications. (more…)
On February 7, 2018, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released its 2018 National Exam Program Examination Priorities (2018 Exam Priorities) and, once again, identified cybersecurity as one of its main areas of focus. According to OCIE, each of its examination programs will prioritize cybersecurity. The 2018 Exam Priorities include five main focus areas: (1) cybersecurity; (2) compliance and risks in critical market infrastructure; (3) matters of importance to retail investors, including seniors and those saving for retirement; (4) oversight of the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB); and (5) anti-money laundering programs. For an in-depth discussion regarding the entirety of the 2018 Exam Priorities, see Sidley’s previous analysis here. (more…)
On February 7, 2018, the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (the Commission) released its annual National Exam Program Examination Priorities (Exam Priorities).1 As has been widely reported, the Exam Priorities’ general focus areas include:
- retail investors
- compliance and risks in critical market infrastructure
- oversight of the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB)
- anti-money laundering (AML) programs
The majority of these Exam Priorities are not surprising because they reflect the Commission’s continued focus on retail investors, conflicts of interest, fee disclosure, cybersecurity, cryptocurrency and AML programs.2 The Exam Priorities can serve as a roadmap for firms to assess their policies, procedures and compliance programs, and to prepare for OCIE exams. This post outlines and elaborates on each of the Exam Priorities. (more…)