TheCorporateCounsel.net

Speaking of keeping up with the pace of change, this recent KPMG regulatory alert includes a table detailing what it calls “regulatory signals” of the Trump Administration’s mandate for de-regulation. This table is a really helpful tool for compliance professionals who may be struggling to stay on top of developments. Here are the types of “regulatory signals” identified:

– Executive actions (like Executive Orders)
– The use of the Congressional Review Act
– Workforce and organization changes across the federal government
– Pressure on global regulation
– Agency rule or guidance modifications or withdrawals
– Agency withdrawals from legal actions
– Agencies redefining their enforcement focus

It lists specific examples (and descriptions) for each of these to better understand the current regulatory environment. For example, with respect to agencies redefining their enforcement focus, it cites the following:

– Implementation of the Executive Order pausing investigations and enforcement of the FCPA and directing review/revision of the related guidelines and policies.
– Implementation of the DOJ Memo re-prioritizing enforcement focus of FCPA to foreign bribery that facilitates the criminal operations of Cartels and Transnational Criminal Organizations.
– Increased application/ enforcement under the False Claims Act (e.g., DOJ).
– Focus on the “letter of the law”.
– Flexibility toward innovation and technology, including digital assets/crypto and AI.
– Introduction of a framework to assess self-reporting, cooperation, and remediation in investigations and enforcement actions (e.g., CFTC).
– Determination not to enforce fines/ penalties associated with rulemaking (e.g., FinCEN Beneficial Ownership Information reporting requirements).

What does all this mean (at a high level) for compliance professionals? The memo includes these reminders:

– ‘Deregulation’ is not ‘No Regulation’: Despite new directives, shifts in enforcement intensity and priority, and select rule recissions, existing regulations stand and require ongoing adherence.

– New Rulemaking to Plummet: Expect ongoing withdrawals of proposed rules, modifications to existing regulations, and the increasing use of statements versus guidance.

– Quick Investigation/Enforcement Shifts: Expect enforcement activities to focus on the “letter of the law”, and cases to include those deemed “egregious” under the new Administration’s directives and to be impacted by workforce reductions and mission/enforcement shifts (e.g., FCPA, CTA).

– Global Pressures: Expect the Administration to continue pressure globally to “de-regulate”, including but not limited to technology regulations (e.g., DSA, AI Act).

– Meredith Ervine