Today, IAWatch revisited the case of Thomas Haider, a former CCO at MoneyGram, who was assessed a $1 million civil money penalty by FinCEN. In 2012 MoneyGram paid a $100 million dollar fine for fraud against its customers. In 2014, “FinCEN assessed a $1 million civil monetary penalty against Haider based on his alleged willful failure to ensure that MoneyGram (1) implemented and maintained an effective AML, and (2) filed timely SARs.” This was the first time the government has tried to hold a Chief Compliance Officer personally responsible for their employer’s failings. Haider’s attorneys tried to have the case dismissed but the judge threw aside the arguments and the case is going to trial.

This case illustrates that there is a regulatory expectation for Chief Compliance Officers to make a concerted effort to oversee all aspects of a firm’s business and take appropriate steps to develop and maintain effective compliance programs. One way to help ensure that your internal controls are adequate is to have an independent firm conduct a mock SEC examination. Our clients find this extremely beneficial, particularly for reviewing complex compliance processes. JLG’s team has years of experience in conducting mock SEC examinations. Our goal is to identify gaps and provide guidance on how to enhance areas within the compliance program, and particularly those which regulatory authorities focus on. For more information please contact Jacko Law Group, PC at info@jackolg.com or 619.298.2880.