ReleaseWire Connect

The US Government has laid out plans to fill the regulatory compliance gap in the USA, in particular focusing on areas such as deficiencies in the U.S. anti-money laundering regime. In December last year, the administration revealed the Strategy on Countering Corruption, which is essentially the delivery mechanism for the Anti-Corruption Initiative. The strategy is going to make use of tools such as data analytics across government agencies, as well as improving and enforcing specific anti-money laundering laws and regulations, fostering interagency collaboration to do better when it comes to compliance.

The financial outlook for the legal sector has been seriously challenged by the pandemic and several years ago did not look positive. However, despite the shadows of downsizing and insolvency, 2021 saw the legal sector completely turn things around. In the first nine months of the year revenues were up 14% on average, compared to 6.3% in 2019. Plus, a number of AM 100 firms experienced a spike in profits per partner that equated to an all-time high.

The legal sector is becoming an increasingly innovative environment, especially given the momentum provided by more sophisticated technology. Automation has been a growing trend in the commercial world for years but has not been picked up by many legal teams. However, the pandemic has caused a significant shift in attitudes towards what technology can be used to do and how, and where, it is most relevant.

We continue to see many examples of action being taken against organizations and institutions that fall short where regulatory compliance is concerned. One of the most recent is Mashreqbank, which is based in the United Arab Emirates. The bank was fined $100 million by the New York State Department of Financial Services for violating sanctions regulations and also for not having an adequate compliance program in place. Thousands of payments were flagged by the New York State Department of Financial Services as being problematic.

Times have been lean for everyone at moments over the past year but, as we come round to the bonus season once again, it seems like there is a much more positive outcome to look forward to. Tight talent markets in locations such as New York and London have meant that firms are introducing discretionary special bonuses that are designed to act as an incentive to keep hold of those who might otherwise be looking elsewhere for great benefits and higher salaries. Paul Weiss has already announced that it intends to pay these discretionary special bonuses, which will be received by those lucky enough to deserve them, on top of the regular bonuses for the end of the year.

A new minimum global corporate tax rate of 15% is currently in the process of being approved by 136 countries around the world. US Treasury Secretary Janet Yellen has said that she feels confident Congress is going to approve the legislation required to implement the tax rate minimum. She said that it's likely the steps that are necessary to bring America into compliance with this global minimum are going to be parceled up in the so-called reconciliation budget bill, which is the infrastructure for President Biden's spending initiatives.

The US government has recently carried out a full review of the economic and financial sanctions that are currently being used by the Treasury and made a number of new recommendations. These recommendations are designed to help adapt and modernize the approach that is taken to the effectiveness of such sanctions and how they can be used to support key objectives.

The conversation over the past year seems to have been dominated by the pandemic. However, for those in legal counsel jobs USA - and corporate legal departments generally - there are other issues on the table. The most recent In-House Legal Benchmarking Report from Exterro reveals many of the concerns and strategies that are being applied to current challenges.

Legal recruitment suffered like many other areas of the economy during the pandemic. However, the mid-to-latter part of 2021 has seen a resurgence in opportunities for professionals across the industry. Data released earlier this year showed that the demand for lawyers was increasing significantly with a multitude of new roles available for individuals looking to find a new position.

Phaidon International recently revealed the launch of Larson Maddox – a specialist subsidiary talent partner for the Regulatory and Legal market. Adding to the group portfolio, Larson Maddox sharpens the award-winning firm's service offering and provides a platform for exponential growth.