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Accelerating the Pace of Enforcement Actions Across Multiple Agencies

Introduction

In a recent session at the ABA White Collar Crime Conference, key figures from the Department of Justice (DOJ), Securities and Exchange Commission (SEC), U.S. Attorney's Office for the Southern District of New York (SDNY), and the Commodity Futures Trading Commission (CFTC) made it abundantly clear: the tempo of enforcement actions is set to escalate. This article delves into the critical takeaways from this enlightening discussion.

The Imperative of Expediency

Leaders from the SEC, SDNY, and CFTC were unanimous in their emphasis on the need for swifter enforcement actions in the coming year. The panelists indicated that 2023 is poised to be a landmark year for increased enforcement. They also discussed initiatives aimed at fostering a decision-making culture within their respective agencies. The SEC, in particular, is on a hiring spree to bolster its enforcement capabilities.

Data-Driven Enforcement

The DOJ, SEC, and CFTC panelists highlighted the growing importance of data analytics in not only supporting ongoing cases but also in identifying potential future investigations. The role of data in uncovering financial market malfeasance was underscored, signaling a more proactive approach to enforcement.

The Significance of Compliance

Recent governmental actions have been geared towards instilling a proactive culture of corporate compliance. The SEC has ramped up the size of penalties, amassing approximately $4.2 billion in the last year alone, to compel corporations to reevaluate their compliance frameworks. The DOJ is also working on standardizing its approach to self-disclosure and monitoring, aiming for greater predictability for corporations.

National Security & White Collar Crime

The panelists pointed out the increasing confluence between white-collar criminal activities and national security concerns. Both the DOJ and SDNY are allocating more resources to this area, with the Deputy Attorney General soon to announce the appointment of the first-ever Chief Counsel for Corporate Enforcement in the National Security Division.

The Digital Frontier

The SDNY is set to lead enforcement actions in the digital asset space, including cryptocurrencies. All panelists foresee a surge in crypto-related enforcement, focusing on investor protection. The CFTC is particularly keen on tackling cybercrimes, including schemes facilitated through social media platforms.

Conclusion

The key message from the panel was clear: enforcement agencies are gearing up for a faster, more data-driven, and comprehensive approach to regulation and enforcement. Corporations should take heed and proactively bolster their compliance programs to navigate this evolving landscape.