Organizational Compliance Failures Quickly Become a Legal Problem

Bruce Ortwine, General Counsel, Americas, Sumitomo Mitsui Trust Bank, Limited, USA

Legal and compliance are two essential functions in any contemporary organizational structure. The specific relationship between these two functions, including reporting lines and division of responsibilities, may well vary depending on the particular organization, but effective communication, coordination and cooperation (the “Three C’s”) between the two functions in all cases are essential. Additionally, legal must be heavily involved in helping compliance develop an effective organizational compliance framework. A failure to develop and maintain the Three C’s increases the prospect of a failure or breakdown in the organizational compliance framework. Once that failure occurs, legal must, by necessity, become heavily involved in attempting to mitigate the damages that have already resulted. Constant enforcement of the Three C’s can help prevent a compliance failure or mitigate the risks to the organization if it does occur.

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USA Compliance Banking & Finance February 2017 Vol.10, No. 38, Winter 2017

Bruce Ortwine

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General Counsel, Americas, Advisor, Global Legal and Compliance and Senior Executive Vice President for Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

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SMTB is the largest trust bank in Asia and a major international bank with offices throughout Asia, Europe and the U.S..

USA Compliance Banking & Finance February 2017 Vol.10, No. 38, Winter 2017