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Inside Compliance (Oct 9th, 2019)

1. The United Kingdom released its no-deal Brexit report Tuesday, which predicts dire economic and logistical consequences, including no economic growth for 2020 and 2021. Even without a deal, the border between Northern Ireland and Ireland would remain open for the movement of people, and European Union citizens working in the UK could remain in the country. But the movement of goods is more complicated. Importers and exporters will face tariffs, which would exceed 50 percent on some meat products. And the flow of data between the UK and EU would be imperiled until the UK passes laws compliant with the EU's general data protection regulation- THE GUARDIAN

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2. Education Secretary Betsy Devos could face sanctions, including jail time, for not complying with a June order to stop collecting debt from students for the now-bankrupt for-profit Corinthian Colleges. Instead of refunding the students their tuitions, as ordered by the Obama administration after Corinthian filed for bankruptcy in 2015, Devos's Department of Education instead has been seizing students' tax refunds and wages. “At best it is gross negligence, at worst it’s an intentional flouting of my order," said U.S. Magistrate Judge Sallie Kim. A Department of Education lawyer said, "We will bring ourselves into full compliance." - BLOOMBERG

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3. The European Union agreed Monday to new rules protecting whistleblowers that will be rolled out over the next two years. The rules establish clear channels for reporting within companies and to law enforcement, while protecting whistleblowers from dismissal and other retaliation. Currently, only ten EU countries have such laws in place. “Whistleblowers should not be punished for doing the right thing. Our new, EU-wide rules will make sure they can report in a safe way on breaches of EU law in many areas," said EU Commissioner for Justice, Consumers and Gender Equality Věra Jourová. - COMPLIANCE WEEK

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4. The German cabinet on Wednesday passed a bill that would see a deep cut in greenhouse gas emissions that is expected to become law later this year with the approval of Chancellor Angela Merkel. The changes, which include raising taxes to invest in green energy, are intended to cut the country's emissions to 55 percent of the 1990 level by 2030. “As of today, all ministries are environment ministries,” Environment Minister Svenja Schulze. “The time when the environment minister had to run around and beg for compliance by stomping on others’ feet is over.” But critics say that the measures fall short and won't significantly help Germany reach its stated goal of becoming emissions-neutral by 2050. - REUTERS

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5. Nissan has limited the role of Hari Nada, senior vice president in charge of legal affairs, after reports emerged that he received overcompensation. Nada was one of the key company executives who led the purge of former CEO Carlos Ghosn, who is now facing a criminal trial for being overcompensated himself. “It became a major risk for Nissan because it creates an image of immorality at Nissan,” said a source familiar with the board meeting this week that prompted Nada's removal as head of legal affairs. Nada will retain his senior vice president status. - WALL STREET JOURNAL

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6. Facebook CEO Mark Zuckerberg will testify before the House Financial Services Committee this month on the company's forthcoming cryptocurrency project, Libra. The hearing is scheduled for Oct. 23. Numerous international oversight bodies have raised concerns about Libra and one original backer, Paypal, has backed out of partnering with Facebook on the project. Meanwhile, Facebook is facing several antitrust investigations involving its competitive practices as regulators increasingly scrutinize tech behemoths, including Amazon, Alphabet and Apple. - CNBC

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7. The Federal Bureau of Investigation's surveillance violated Americans' privacy rights, a secret court has ruled. The October 2018 ruling by the Foreign Intelligence Surveillance Court, first reported Tuesday, found that in certain cases the FBI's electronic monitoring intended to target foreign suspects had been used to target Americans, thereby violating the Fourth Amendment. After the ruling, the FBI agreed to new procedures, including retaining information on its searches, which would better ensure compliance with laws meant to protect Americans. Sen. Ron Wyden of Oregon, a Democrat critical of mass surveillance, said the ruling underscored "the need for the government to seek a warrant before searching through mountains of private data on Americans.” - WALL STREET JOURNAL

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8. Haliburton has agreed to pay $275,000 to settle a discrimination lawsuit involving two Muslim oilfield workers. According to the lawsuit brought by the Equal Employment Opportunity Commission, Hassan Snoubar, of Syrian origin, and Mir Ali, of Indian origin, were subjected to taunts, including being accused of working with ISIS. Snoubar complained to management and was fired. In addition to compensation, the company agreed to provide training on religious and national origin discrimination to managers and human resource employees. - JD SUPRA

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9. Square seeks a compliance transaction monitoring analyst to work at the company's Oakland headquarters. The analyst will perform anti-money laundering monitoring and verify merchant information. Previous AML experience preferred.

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10. Credit Suisse seeks a compliance analyst for its New York office. The analyst will work in investment banking and keep bankers abreast of regulatory requirements. Candidates should have between two to six years of relevant experience.

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Paul Wachter is a California-based journalist who has written for The New York Times Magazine, Harper's, ESPN, and other publications. 

Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).

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