Q&As

What are the key financial crime-related risk areas for compliance during the coronavirus (COVID-19) pandemic, and what are the pitfalls to avoid when dealing with those risks?

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Produced in partnership with Emily Lewis and Rubi Palmieri of Fulcrum Chambers
Published on LexisPSL on 21/05/2020

The following Risk & Compliance Q&A produced in partnership with Emily Lewis and Rubi Palmieri of Fulcrum Chambers provides comprehensive and up to date legal information covering:

  • What are the key financial crime-related risk areas for compliance during the coronavirus (COVID-19) pandemic, and what are the pitfalls to avoid when dealing with those risks?
  • Adjusted risk appetites
  • Supply chain due diligence
  • Increased interaction with public bodies/officials
  • Corporate social responsibility (CSR) initiatives
  • Further reading

Within a short period of time, the coronavirus (COVID-19) pandemic has caused extreme disruption in the way we live and work. Companies have to adapt to new market conditions that pose a different set of risks.

The ‘new norm’ imposed by the coronavirus both heightens existing compliance risks for companies, and creates new ones. In this fast-changing environment, companies must be proactive in their approach and adapt to new circumstances while also regularly monitoring key regulatory changes to ensure policies and procedures reflect the changing regulatory landscape.

Some key risk areas in focus as a result of the pandemic are:

  1. adjusted risk appetites

  2. supply chain due diligence

  3. increased interaction with public bodies/officials

  4. corporate social responsibility (CSR) initiatives

Adjusted risk appetites

Companies in financial distress may become less risk averse to keep afloat. However, they must stay alert to how their risk appetites change over time and the implications of such changes on how they do business.

Companies must communicate these adjustments to their employees and ensure any adjustments do not act as an excuse for fraud and misconduct, by reminding employees of their compliance culture and approach to criminal and/or unethical behaviour, and by encouraging them to report immediately any suspected or actual misconduct.

Companies must also be alive to pressures the workforce may feel to continue to deliver at

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