Data Governance and Privacy Update
Today on the blog we’re highlighting data governance and privacy. We’ve provided takeaways for your compliance program. We hope you find these helpful. Let us know what you think!
- Data governance is not just a regulatory issue. It also raises various state consumer laws and data breach statutes. Recently, Equifax settled over 300 class action cases for 138 billion USD. This is a good reminder, as you audit, to refresh your perspective on data governance and that cases like this can be worked into your company’s training program. Read a summary of this data breach incident in Security Magazine.
- The FTC recently finalized settlements with 5 companies over allegations that they made false and misleading representations when they stated that they participated in the EU’s Privacy Shield — when they did not. Here’s the FTC Settlement. Be sure to check your company’s website to confirm the statements on it are current and otherwise accurate.
- Investing in data privacy governance is well worth it. According to Cisco’s 2020 data privacy benchmark study, companies that have invested resources in privacy and data compliance have seen positive returns on investment. If you need to request budget allocations, consider using this study as support.
- 2019 was a record year for AML fines and 2020 appears to be keeping that pace. AML and anti-fraud efforts should continue to be a priority in 2020. According to the ACFCS Fincrime Briefing, “As regulators learn that the financial crime risks of Libra and other stablecoins can be managed using techniques like blockchain analytics, they will provide clearer guidance to the market on regulatory requirements to ensure that stablecoin projects can be launched in more parts of the world, in a safe and trusted manner”.
- Austin Gerig was named as the SEC’s new Chief Data Officer: The SEC Press Release covers his resources including a team of data scientists, data engineers, financial economists, and research associates.
- Reminder & Resource: Your independent AML testing should be underway. Check out the ACAMS AML videos for professional development and/or training ideas.
- The SEC recently launched a new advisory committee. In an Opening Statement of the new SEC Asset Management Advisory Committee, Dalia Blass, a Director in the SEC’s Division of Investment Management, stated: “debates surrounding long term trends in the asset management industry, such as the rise of index investing, increased globalization, increased scale and trends in retirement funding, would benefit from thoughtful discussion among experts with diverse viewpoints”.