Expert Analysis

• AI And AML: Governance Plays Critical Role In Innovation

  

  Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.

• Intersecting Investigation Risks Loom In Next Congress

  

  Taken together, two July D.C. Circuit decisions and a recent U.S. Department of Justice opinion on executive privilege may affect the procedural defenses and privilege protections available to targets of oversight in the upcoming Congress, and companies should begin preparing now, say attorneys at WilmerHale.

• Lessons For Banks When A Fintech Partner Fails

  

  Recent fintech bankruptcies highlight best practices for how banks can strengthen third-party oversight, data-access rights, wind-down planning and customer communications to limit regulatory exposure and consumer harm when a fintech partner collapses, say attorneys at Barack Ferrazzano.

• Attorneys Using AI May Have Ethical Duty To Redact Docs

  

  The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.

• Compliance Lessons From Agriculture Co. Mexican Bribe DPA

  

  Agricultural company Scoular’s recently announced deferred prosecution agreement over alleged Foreign Corrupt Practices Act violations at the U.S.-Mexico border reinforces the U.S. Department of Justice’s focus on cartels, and companies must accordingly ensure they address risks associated with the use of customs brokers, says Adam Safwat at Foley Hoag.

• OpenAI Deal Highlights AI Hiring Risks In PERM Process

  

  The U.S. Department of Justice's recent settlement of allegations that OpenAI discriminated against U.S. applicants for positions connected to the permanent labor certification process underscores that employers providing or using artificial intelligence must align their recruitment practices with their overlapping compliance obligations, say attorneys at Duane Morris.

• 5 Practice Tips After DOJ's Healthcare Fraud Declination

  

  In light of the U.S. Department of Justice's decision to not prosecute Campus Eye Management under the agency's new corporate enforcement and voluntary self-disclosure policy, healthcare companies should keep several considerations in mind when weighing their risk and self-disclosure strategy, including the distinctions between reporting to the DOJ versus other government agencies, say attorneys at Haynes Boone.

• What Bulk-Power Gear Import EO Means For US Energy Cos.

  

  Though President Donald Trump's recent executive order restricting imports of foreign-produced bulk-power system electrical equipment imposes no immediate obligations on private parties, stakeholders can take near-term steps to mitigate supply chain and contractual risks, as much of the order's ultimate impact will depend on implementing regulations, say attorneys at Orrick.

• State AI Safety Laws Raise New Liabilities For Healthcare Cos.

  

  Healthcare and life science companies using third-party artificial intelligence tools should pay particular attention to the changing state-level legal landscape, where the rollout of multiple AI safety laws is introducing both new compliance obligations and potential consumer protection liabilities, say attorneys at McDermott.

• AI And AML: Rulemakings Lean Into Responsible Innovation

  

  Recent federal rulemaking increasingly supports deployment of artificial intelligence tools for anti-money laundering compliance purposes, and institutions that build clear use and governance frameworks will be best positioned to defend programs when AI systems err, say attorneys at Paul Hastings.

• Series

  Juggling And Unicycling Make Me A Better Lawyer

  

  Because I juggle (sometimes with fire) and ride the unicycle, friends and family used to joke that I should join the circus, but I pursued the practice of law instead and learned that my hobbies benefit my profession in several important ways, says Morgan Eddy at Smith Currie.

• Unpacking Texas' New Grid Reliability Rules For Data Centers

  

  The Electric Reliability Council of Texas’ recently effective technical and compliance obligations, designed to prevent data centers and other large energy customers from causing cascading outages when they go offline, will challenge facilities to develop equipment and protocols to help protect the grid, says Casey Bell at Balch & Bingham.

• How Quantum Risk Could Reshape Legal Obligations

  

  As federal policy, National Institute of Standards and Technology standards, and major market practice converge around postquantum cryptography, companies may need to safeguard their data now to prove they took reasonable measures to protect trade secrets from quantum computers that do not exist yet, say attorneys at MoFo.

• AI Note-Taking Suits May Fill Gap In Privacy Law Structure

  

  A recent class action against Granola joins other pending lawsuits against AI note-taking providers, highlighting the legal uncertainty surrounding these tools, but there are practical steps companies using "invisible" AI services can take to mitigate risk, including conducting inventories and reviewing access permissions, say attorneys at Barnes & Thornburg.

• The Future Of DOL Judge Removal Challenges After Slaughter

  

  The U.S. Supreme Court's recent ruling in Trump v. Slaughter calls into question whether U.S. Department of Labor administrative law judges exercising significant governmental authority remain insulated from presidential removal, but the answer depends on the governing statute, its severability provisions and other factors, says Mark Ishu at Conn Maciel.