Learning /

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The dynamics of the modern workforce are evolving at unprecedented speed. Global supply chain disruptions, technological acceleration, shifting workforce expectations, and intensifying competition are redefining how organizations think about talent. In this environment, workforce strategies can no longer be built solely on traditional, permanent employment models. To remain agile, competitive, and future-ready, leaders are increasingly turning to Employee Outsourcing — not as a stopgap solution, but as a strategic enabler of business transformation. 

From Transactional to Strategic Workforce Design 

Historically, outsourcing was viewed narrowly — a way to reduce payroll costs or fill temporary gaps in staffing. Today, that perception is outdated. In leading organizations, Employee Outsourcing is embedded into long-term talent strategies, serving as an adaptive layer that complements permanent staff and integrates into the organization’s culture and operating model. 

This strategic shift is being driven by several macro trends: 

  • Volatility and Uncertainty: Market conditions, regulations, and customer demands can change overnight, requiring rapid workforce recalibration. 
  • Specialization and Scarcity: Emerging technologies such as AI, data analytics, and green energy require niche skills that are costly and time-consuming to build in-house. 
  • Operational Efficiency Pressures: Boards and shareholders are demanding leaner structures and faster returns on investment, pushing organizations to rethink talent deployment. 
  • Hybrid and Distributed Work Models: The geography of talent has expanded, making it feasible — and often preferable — to integrate outsourced professionals seamlessly, regardless of location. 
     
     

In this landscape, Employee Outsourcing is not simply a staffing mechanism; it is a way to design organizations for resilience, speed, and capability diversification

The Strategic Benefits of Employee Outsourcing 

1. Agility in Workforce Scaling 
In industries where project timelines and market conditions fluctuate, outsourcing allows leaders to increase or reduce capacity without the delays and sunk costs associated with traditional recruitment cycles. This agility is particularly valuable in sectors undergoing rapid transformation, such as oil & gas, financial services, and technology. 

2. Access to Niche and High-Demand Skills 

The half-life of skills is shrinking. By outsourcing, organizations can tap into expertise in emerging areas — from cybersecurity to sustainable engineering — without committing to long-term headcount increases. This enables faster adoption of new capabilities and accelerates time-to-market for strategic initiatives. 

3. Cost Optimization Without Capability Loss 

Outsourcing transforms fixed HR costs into variable costs, allowing organizations to align workforce spending more closely with revenue cycles. Importantly, when done well, it does not dilute capability — instead, it strengthens operational delivery by matching the right talent to the right role, at the right time. 

4. Compliance and Risk Management 
Employment law, benefits administration, and tax compliance vary across regions and are subject to constant change. A well-structured outsourcing partnership mitigates these risks by ensuring compliance while freeing internal teams to focus on core business priorities. 

5. Accelerated Time-to-Value 
Because outsourced professionals are often pre-vetted and role-ready, they contribute from day one, compressing onboarding timelines and accelerating project milestones. 

Leadership Considerations in an Outsourced Workforce Model 

For Employee Outsourcing to deliver strategic value, leaders must go beyond procurement and focus on integration, alignment, and governance. Key considerations include: 

  • Clarity of Roles and Outcomes: Clearly defined deliverables, performance metrics, and reporting lines are essential to avoid duplication of effort or misaligned priorities. 
  • Communication Protocols: Regular, structured communication ensures outsourced talent is kept in sync with project updates and organizational changes. 
  • Continuous Capability Building: Even outsourced staff benefit from access to targeted learning pathways, ensuring their skills remain relevant and aligned with evolving project needs. 

Conclusion 

Employee Outsourcing is no longer a peripheral HR service; it is a strategic advantage in the modern talent economy. By leveraging outsourcing not just as a cost-control mechanism but as a deliberate workforce design choice, organizations position themselves to respond faster to change, access scarce capabilities, and unlock new opportunities for growth. 

Author

H. Pierson Human Resource Consulting Team


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Organizational transformation is no longer a one-off project but a continuous journey. Whether prompted by digital disruption, competitive pressure, or evolving workforce expectations, companies are constantly rethinking how they are structured and how they work. Amid all the talk about operating models, role clarity, and reporting lines, one element remains central: learning. 

Learning-centered design is the practice of embedding learning and capability development into the very fabric of organizational structure. At H. Pierson Associates Limited, we believe that organizations thrive not just by rearranging boxes on an org chart, but by enabling the people within those boxes to grow, adapt, and lead. 

Why Learning Must Be Embedded in Design Too often, organizations view learning as a follow-up activity — something to roll out after a reorganization. This sequencing leads to lagging adoption, reduced productivity, and talent attrition. When learning is embedded into the design itself, however, employees transition faster, engage more deeply, and contribute more meaningfully. 

Consider the example of a company shifting to a customer-centric structure. Without training in customer journey mapping, data analytics, and cross-functional communication, teams will struggle to deliver on the new mandate. Integrating learning solutions into the redesign process ensures capabilities evolve in lockstep with expectations. 

Structural Alignment with Learning Culture An effective organizational design supports learning as an ongoing process. This means creating flatter structures that encourage knowledge sharing, allocating time for experimentation, and designing roles that blend execution with exploration. 

We work with clients to build systems that support peer learning, mentoring, and continuous improvement. This might include digital learning platforms, microlearning content, or even simple mechanisms like reflective check-ins during team meetings. 

Leadership Development as a Design Imperative As structures evolve, so must leadership. Many redesigns push decision-making closer to the front line, which requires leaders to shift from directive to supportive styles. Our leadership development programs equip current and emerging leaders to thrive in these new contexts. 

From foundational programs on leading through ambiguity to advanced courses on coaching and strategic foresight, our offerings are tailored to support leaders at every stage of the redesign process. 

Supporting Digital and Hybrid Work Environments Modern organizational designs often include distributed teams, hybrid work models, or even fully remote functions. These structures only succeed if employees are equipped with the right digital skills and collaborative mindsets. 

Our digital learning tracks include content on virtual collaboration, digital etiquette, cybersecurity awareness, and effective communication across time zones. These interventions ensure that your structure isn’t just theoretically sound but practically executable. 

Creating a Learning Ecosystem Learning-centered design is not about one-off courses — it’s about creating an ecosystem where growth is continuous. We help organizations build this ecosystem by aligning systems, culture, and processes to support development. 

This could involve integrating learning KPIs into performance management, recognizing informal learning achievements, or creating communities of practice around strategic capabilities. 

Sustaining Transformation Through Capability Building Transformation is not complete until behaviors change. By tying learning outcomes to transformation goals, we help organizations monitor and sustain change. Dashboards, pulse checks, and feedback loops are used to track the application of new skills and inform future learning needs. 

Conclusion Organizational transformation without a learning foundation is like building on sand. H. Pierson Associates Limited brings a learning-centered approach to every design conversation, ensuring that your people can grow into — and beyond — the structure you envision. 

With our Learning Solutions, you’re not just designing the organization for today — you’re preparing it for tomorrow. Let’s build structures that learn, adapt, and lead. 

Author

H. Pierson Human Resource Consulting Team


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In a business landscape defined by disruption, volatility, and rapid technological change, the need for agility within organizational structures has never been more pressing. Companies are redesigning their operating models, hierarchies, and workflows to respond faster and more intelligently to emerging trends. However, one critical component often overlooked in these transformations is the development of the people who must operate within these newly designed systems. 

At H. Pierson Associates Limited, we understand that organizational agility isn’t achieved solely through structural redesign — it’s sustained by a workforce that is well-equipped, forward-thinking, and continuously learning. Learning and development (L&D) is not just a support function in this regard; it is a strategic enabler of organizational agility. 

Bridging Structure with Capability Organizational redesign often focuses on aligning structures with strategy, optimizing workflows, and enhancing decision-making processes. Yet, for these structures to function effectively, the people within them must have the capability to understand, adapt, and thrive in their new roles. That’s where targeted learning pathways come into play. 

H. Pierson’s Learning Solutions work hand-in-hand with transformation teams to identify capability gaps created by new organizational designs. These gaps often include soft skills like change readiness, leadership, and cross-functional collaboration, as well as technical skills such as data analysis, digital fluency, and agile methodologies. 

Customized Learning for Role Readiness When organizational structures shift — whether through decentralization, flattening, or digitization — employees are frequently asked to take on new or expanded roles. Without adequate preparation, this leads to confusion, low morale, and inefficiencies. Through role-specific learning journeys, we ensure employees understand what is expected of them and are equipped with the tools and knowledge to perform. 

These learning paths are customized based on the organization’s objectives and the competencies required for each function. For example, managers moving from command-and-control roles to coaching-based leadership structures receive training in performance dialogue, situational leadership, and emotional intelligence. 

Upskilling for Collaboration and Innovation Modern organizational design emphasizes agility, which in turn relies on seamless collaboration across functions. However, true collaboration doesn’t happen automatically — it needs to be cultivated. Our learning solutions focus on building critical skills such as systems thinking, team dynamics, and innovation facilitation. 

We provide workshops and simulations that replicate real business scenarios, encouraging employees to step outside of silos, co-create solutions, and drive value collectively. By training teams in agile project management and lean principles, we enable faster, smarter decision-making at every level. 

Change Management Readiness Resistance to change is one of the biggest obstacles in any transformation effort. It’s human nature to resist unfamiliar systems, roles, or expectations. Our learning programs address this head-on through change management training. Employees are taught to reframe change as an opportunity rather than a threat. 

We deliver content that enhances psychological safety, builds resilience, and encourages proactive engagement with new processes. Leaders receive additional training in managing change communication and in sustaining momentum throughout the transformation journey. 

Learning as a Strategic Lever Many organizations mistakenly separate their organizational design efforts from their learning strategies. This disconnect often results in beautifully designed structures that fail in execution because the workforce isn’t prepared. H. Pierson bridges this gap by integrating L&D into the design process itself. 

Our consultants work closely with strategy and HR teams to ensure that every structural change has a corresponding learning initiative — one that is measurable, scalable, and aligned with business outcomes. We believe that learning is not an event, but a continuous journey that powers the engine of organizational agility. 

Case in Point Consider a multinational client of ours that was transitioning from a regional structure to a global product-led model. While the reorganization plan was sound, there was significant apprehension among middle managers about reporting lines and accountability. By deploying a targeted learning program focused on matrix leadership, stakeholder engagement, and virtual collaboration, we helped smooth the transition and accelerate performance within the new structure. 

Conclusion In the era of agile business, structural redesign and capability building must go hand in hand. Organizations that invest in learning as a key component of their design journey are better positioned to adapt, innovate, and thrive. 

H. Pierson’s Learning Solutions are built to empower employees, strengthen leaders, and unlock the full potential of organizational agility. We don’t just prepare your teams for change — we equip them to drive it. 

Author

H. Pierson Human Resource Consulting Team


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In an era of relentless disruption—driven by artificial intelligence, climate transition, shifting demographics, and geopolitical shocks—boards of directors in Africa and other emerging markets face a profound challenge: Are we fit for the future? 

Next-generation board composition is not just a governance trend—it’s a strategic necessity. Today’s effective boards are being reimagined to be digital, diverse, and decisive

1. Digital Fluency Is No Longer Optional 

Technology is reshaping every industry. From fintech and e-commerce to AI-enabled operations and cybersecurity threats, digital disruption is already in the boardroom—whether boards are ready or not. 

Yet, many African and emerging market boards remain digitally underpowered. Few have directors with firsthand experience in tech-enabled business models, cybersecurity governance, or data strategy. 

Boards must proactively recruit digital talent, not just rely on internal CIO briefings. This doesn’t mean every director must be a coder—but boards need members who understand how tech is transforming value chains, customer behavior, and risk exposure. 

2. Diversity Unlocks Strategic Perspective 

Diversity—across gender, age, professional background, geography, and ethnicity—is no longer about optics. It is about unlocking better decisions and mitigating groupthink. Diverse boards are proven to outperform on innovation, risk management, and stakeholder alignment. 

In African markets, where youth populations are dominant and informal sectors thrive, boards must reflect the societies and customer bases they serve. 

Ask: 

  • How many board members are under 50? 
  • How many have deep knowledge of local or regional consumer behavior? 
  • Is the board pipeline inclusive and intentional? 

Diverse boards are more adaptive, more relevant, and more resilient. 

3. Decisiveness in an Age of Volatility 

The next-gen board is not only wise—it’s agile. It can make bold decisions amid ambiguity. That means: 

  • Faster responses to crises. 
  • Comfort with scenario planning and uncertainty. 
  • Empowerment of management, balanced with robust challenge. 

Traditional board cultures often favor lengthy deliberation and consensus. But in today’s environment, inaction is a decision—and often the wrong one

Board processes must evolve. Annual reviews are not enough. Real-time dashboards, ad hoc virtual briefings, and rapid convening of risk or strategy committees are now best practice. 

Rethinking Board Composition: A Strategic Exercise 

Leading organizations are using skills matrices and succession roadmaps to ensure their boards align with future strategy—not past credentials. That includes: 

  • Bringing in directors with cybersecurity, digital transformation, or ESG expertise
  • Appointing younger directors or creating advisory boards as digital sounding boards. 
  • Balancing seasoned governance experience with entrepreneurial thinking. 

Key Questions for the Boardroom 

  • Does our board reflect the future of our market, workforce, and customers? 
  • Are we equipped to oversee digital disruption and tech risk? 
  • Do we have the diversity of thought needed to innovate and respond to crisis? 
  • Is our board structure agile enough for today’s pace of change? 

Conclusion: The Time to Reimagine is Now 

Boards that remain traditional in structure, static in membership, and slow in decision-making will find themselves outpaced by more agile competitors. In contrast, next-gen boards—digital, diverse, and decisive—are shaping the future of corporate leadership across Africa and beyond. 

The future doesn’t wait. Neither should your board. 


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The world is in flux. From geopolitical instability and currency shocks to climate disasters, AI-driven disruption, and social unrest, volatility is no longer episodic — it’s structural. For boards of directors in Africa and other emerging markets, this volatile environment presents a pressing challenge: Can we make fast, informed decisions when it matters most? 

Decisiveness at the board level has become a strategic differentiator. Companies with agile, responsive boards are not only better at navigating crises — they’re more likely to emerge stronger. 

Why Decisiveness Matters More Than Ever 

Traditionally, boards have been seen as oversight bodies: deliberate, consensus-driven, and process-focused. While these traits ensure rigor and accountability, they can also slow down action when speed is critical. 

In an era where a single tweet, cyberattack, or policy shift can erase billions in value overnight, inaction is no longer a neutral choice — it’s a liability

Examples of Where Decisiveness Counts 

  • Crisis Response: Boards must quickly authorize emergency funding, operational pivots, or communication strategies. 
  • Strategic Shifts: Entering new markets, divesting underperforming units, or responding to disruptive competitors. 
  • Regulatory & ESG Pressures: Navigating sudden changes in environmental, governance, or human rights expectations. 
  • Talent & Leadership Decisions: Appointing or replacing CEOs, especially during periods of underperformance or scandal. 

Barriers to Decisiveness at the Board Level 

Several cultural and structural factors can inhibit decisive action: 

  • Overemphasis on Consensus: Waiting for every director to agree can delay urgent decisions. 
  • Limited Information Flow: Boards reliant on outdated or overly filtered data struggle to act fast. 
  • Boardroom Hierarchies: Strong voices can dominate discussions, while newer or diverse members stay silent. 
  • Infrequent Meetings: Traditional quarterly cycles are too slow for today’s crises. 

Building a More Decisive Board: Key Practices 

1. Adopt Agile Governance Models 

Use ad hoc committees, virtual meetings, and fast-track approval processes for high-risk or time-sensitive issues. 

2. Empower Subcommittees with Authority 

Give finance, audit, or risk committees pre-delegated authority to act quickly within defined parameters. 

3. Integrate Scenario Planning into Strategy 

Simulate crises and stress-test decisions to build confidence and preparedness before real volatility hits. 

4. Use Real-Time Data 

Invest in dashboards and briefings that give directors timely insights — not just retrospective reports. 

5. Cultivate a Culture of Constructive Dissent 

Diverse, independent-minded boards that encourage challenge and debate are more likely to act boldly — and wisely. 

The Role of the Chair: Catalyst or Bottleneck? 

The board chair plays a pivotal role in shaping the board’s decisiveness. A strong chair: 

  • Knows when to accelerate or slow down decision-making. 
  • Encourages clarity over perfection. 
  • Facilitates rapid consensus when needed, without silencing dissent. 

Three Questions Every Board Should Ask Today 

  1. When was the last time we made a bold, time-sensitive decision? 
  1. Do we have protocols for rapid response in times of crisis? 
  1. Are we too focused on process at the expense of impact? 

Conclusion: Decide to Lead, or Risk Being Left Behind 

In the age of volatility, the most valuable boards are not just wise — they are decisive. They blend judgment with urgency, rigor with speed, and oversight with action. For boards in emerging markets, where uncertainty is often magnified, decisiveness is not just good governance — it’s survival strategy. 

When the next shock hits, will your board be ready to lead — or still debating what to do? 


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Across Nigeria, local governments are being asked to do more — with more control over their budgets, programmes, and direction. Autonomy is no longer theoretical. It’s real. But with it comes a question that many Chairmen are quietly asking: 

Do our people have the skills to deliver on our plans? 

All over the country, strategies are being written and launched. Yet communities see limited change. The truth is, progress doesn’t depend on documents — it depends on the people who carry them out. And that’s where many councils are struggling. 

The Missing Link Is Capacity 

What we see again and again — is that the problem isn’t ambition. It’s ability. Execution requires more than good intentions. It requires practical, everyday skills: planning work, managing teams, tracking results, and adjusting as needed. 

This is not just a Nigerian reality. 

In Ghana, the government launched the District Performance Assessment Tool (DPAT)  a performance-linked grant system for district assemblies. Early on, results were mixed. But when the Ministry of Local Government and its partners introduced structured training programmes on budgeting, procurement, and M&E for district officials, performance improved. More districts met their targets and qualified for additional funding. 

In Bangladesh, under the Local Governance Support Project, Union Parishads (local councils) were given modest discretionary funds but also trained in participatory planning, financial reporting, and service delivery monitoring. The result? A measurable increase in citizen satisfaction and project completion rates across dozens of rural communities. 

In both cases, what changed performance wasn’t just money or mandates. It was skills. 

Where the Gaps Show Up 

In our work across Nigeria, we’ve observed three consistent skill gaps in local government: 

  1. Limited Planning and Execution Ability 
    Officials often struggle to break plans into tasks, assign roles, and monitor follow-through. Projects drift because no one owns the process. 
  1. Weak Data and Tracking Skills 
    Many councils do not track results consistently. Even where data is collected, it’s rarely analysed or used to guide decisions. 
  1. Poor Communication and Collaboration 
    Silos, poor reporting, and unclear team roles slow things down. Many officers haven’t been trained in the basic soft skills required to work across departments. 

How We Support Councils to Build Capability 

At H. Pierson, our Learning Schools are built around the real challenges that Nigerian LGAs face. We help councils build skill, not just awareness with practical, hands-on programmes that reflect their level of maturity. 

Strategy Execution School 

Focused on converting goals into action: planning timelines, assigning tasks, and tracking delivery. 

Leadership & Governance School 

Equips Chairmen and department heads with tools for aligning teams, reviewing progress, and setting a culture of performance. 

Digital Skills School (Tailored for Low-Tech LGAs) 

We train officers to use basic digital tools like Excel, WhatsApp, Google Forms, for data capture, reporting, and internal communication. Nothing complex. Just useful. We can also deliver more advanced knowledge depending on the needs of the Local Government Staff. 

Soft Skills School (Designed for Practical Application) 

We build interpersonal skills like team communication, conflict resolution, accountability, and clear reporting , all essential for daily delivery. 

We combine these with action learning and post-training support helping teams apply their new skills on real assignments and measure results over time. 

Why This Matters Now 

Autonomy only works when backed by capability. If your team doesn’t know how to execute, autonomy won’t lead to impact, only more frustration. But when people are trained and supported, the results speak for themselves: faster projects, better reporting, fewer excuses. 

Final Thought 

Chairman, your leadership sets the tone but it’s your team that drives the results. When they grow in capability, the council grows in credibility. 

And that’s the shift we need: not more plans, but more people who know how to carry them out confidently, competently, and consistently. 


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In today’s governance environment—marked by increased citizen awareness, digital transparency, and economic uncertainty—trust has become one of the most valuable currencies a public institution can hold. But trust is not simply granted; it is earned, consistently, through the deliberate application of ethical leadership.

Unfortunately, across many tiers of government, ethics often takes a back seat to policy urgency and political expediency. The result is a growing deficit of public confidence, with citizens disengaged, development partners wary, and internal accountability structures weakened. From contract awarding and procurement processes to service delivery and citizen engagement, ethical lapses silently erode the effectiveness of government actions, no matter how well-intended.

To reverse this trend, ethical governance must be more than an aspirational value—it must be a practical, strategic focus embedded into institutional culture. This requires more than just codes of conduct. It demands capacity-building programs that help public servants understand not only what is expected of them, but why integrity-driven leadership is key to sustainable progress. Ethics training must be scenario-based, contextualized, and aligned with the realities of everyday government work.

Moreover, systems must be re-engineered to reinforce ethical choices, from clear escalation mechanisms and whistleblower protections to the automation of sensitive processes that reduce discretionary abuse.

As government leaders face growing pressure to show impact and legitimacy, ethical governance is emerging not just as a compliance issue but as a leadership imperative. When institutions operate transparently and with integrity, public trust follows—and with it, the political and social capital needed to drive meaningful reform.

H. Pierson’s Ethical Governance solutions support government leaders in building cultures that uphold public trust, because leadership without integrity is a risk no nation can afford.


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Across Africa—and particularly in Nigeria—the past year has underscored a single, uncomfortable truth: governance without capacity is a broken promise. From the ripple effects of subsidy removal and currency reform, to rising inflation, youth unemployment, and deepening public trust deficits, leaders at all levels are being challenged not only to design better policies—but to deliver them with competence, clarity, and compassion. Add to that the pressures of digital transformation, climate-driven migration, security concerns, and international trade shifts, and it becomes clear: this is a defining moment for the African public sector. But while policy is shaped in documents, impact is shaped in people.

The Silent Challenge: Leadership and Institutional Readiness

Often, the loudest reforms fail not for lack of vision, but due to execution gaps:

-Weak financial controls at the subnational level -Misaligned local development efforts -Ineffective engagement with citizens

-Limited capacity to monitor digital transformation

-Ethical lapses that erode public confidence

In the background of every major reform or geopolitical shift lies a crucial question: are public servants equipped to carry the weight of national change?

The Opportunity: A Different Kind of Investment

Nation-building doesn’t just happen in parliaments—it happens in meeting rooms, classrooms, and council chambers, where government officials make thousands of small decisions that shape lives.

To ensure those decisions reflect vision, resilience, and strategy, there must be ongoing investment in capacity building—not just for technical skills, but for leadership, ethics, digital literacy, public finance, and stakeholder engagement.

This is not about ticking boxes. It’s about building a public sector that can hold the line under pressure, adapt quickly, and lead with credibility.

As Africa stands at the intersection of reform and renaissance, the quality of our governance will determine whether our institutions can deliver stability, inclusion, and sustainable growth.

Capacity must come before complexity.

It’s not only the right thing to do; it may be the most strategic investment of our time. Are you interested in exploring public sector leadership, financial accountability, or governance readiness? Let’s have a conversation.

learningsolutions@hpierson.com


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Oct 10 – Canada’s TD Bank (TD.TO), agreed to pay a combined $3 billion in penalties on Thursday as part of a settlement with U.S. authorities over charges it failed to monitor and prevent money laundering.
The issue highlights a recurring challenge in the financial industry. Intermediaries like banks are required to prevent the flow of funds for illicit activities, but in some cases, they have failed to detect crimes because of inadequate compliance systems or huge transaction volumes.
 

Here is an overview of some of the largest penalties imposed by U.S. regulators to resolve money laundering probes in the last decade:

BINANCE:
Binance chief Changpeng Zhao stepped down in November 2023 and pled guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement resolving a years-long probe into the world’s largest crypto exchange.
 
DANSKE BANK (DANSKE.CO)
Denmark’s Danske Bank (DANSKE.CO), opens new tab agreed to pay more than $2 billion in January 2023 to end probes into anti-money laundering failures as part of a guilty plea. The payout was divided between the U.S. government and Danish authorities.
 
SOCIETE GENERALE (SOGN.PA), 
France’s Societe Generale committed to pay $1.4 billion in 2018 to settle investigations into its handling of dollar transactions in violation of U.S. sanctions against Cuba and other countries, and a separate dispute over anti-money laundering regulations.
 
GOLDMAN SACHS (GS.N)
Goldman Sachs agreed to pay $2.9 billion over its role in Malaysia’s 1MDB corruption scandal in 2020. The settlement with the U.S. Department of Justice and other U.S. and overseas regulators resolved a probe into the role its bankers played in helping steal cash from the Malaysian state fund, which Goldman helped raise.
 
STANDARD CHARTERED (STAN.L)
Standard Chartered settled on paying $1.1 billion to U.S. and British authorities in 2019 for conducting illegal financial transactions that violated sanctions against Iran and other countries.
The bank also paid U.S. authorities $667 million in 2012 for illegally moving millions of dollars through the U.S. financial system on behalf of customers in Iran, Sudan, Libya and Myanmar.
 
DEUTSCHE BANK (DBKGn.DE), 
Deutsche Bank agreed to pay $630 million in fines to U.S. and UK regulators in 2017, for failing to prevent around $10 billion in suspicious trades being laundered out of Russia.
COMMERZBANK (CBKG.DE),
Commerzbank agreed to pay U.S. authorities $1.45 billion in 2015 to resolve an investigation of its dealings with Iran and other sanctioned countries as well as a separate probe of its money laundering controls.
 
Source: Reuters.com

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It comes with encouraging news and a note of caution: Overall dollar losses are down $9 billion from the previous study year, but two decades of studying identity fraud show that the ups and downs require financial services providers and consumers’ ongoing vigilance to protect personally identifiable information.

The report sponsors share Javelin’s commitment to fraud prevention and education. Sponsors are AARP, Equifax, and FIS at the platinum level; TransUnion at the gold level; and BioCatch at the silver level. Javelin maintains independence in its data collection, analysis, and reporting.

The downward movement of the loss figures is a testament to the relentless efforts of the financial services industry to keep criminals at bay. However, criminals continually adjust their tactics, so much work remains to dramatically reduce the impact of identity fraud across the industry.

“Describing the current state of identity fraud trends as the butterfly effect is fitting,” said John Buzzard, Javelin’s lead fraud and security analyst and the report’s author. “Even minor occurrences can set off a chain reaction that has a significant impact on the daily lives and habits of identity fraud victims who may also be feeling ambivalent in the wake of a handful of recent bank failures such as Silicon Valley Bank.”

Highlights From This Year’s Report:

  • Total identity fraud losses were $43 billion. That’s down from $52 billion the year before, a decline of 17%.
  • Identity fraud scams victimized fewer people. Javelin credits this to consumer outreach by financial services and consumer advocacy groups, and stronger fraud prevention tactics at banks and credit unions. The decline in number of victims was 2 million, even as significant challenges persist in the overall battle against identity fraud and scams.
  • Identity fraud has a disproportionately severe impact on non-white households. Exposure to data breaches affects 27% of Hispanic households and 26% of Black households—a considerable difference from White households—and the gap widens when compared with Asian households. The report describes the heavy toll identity fraud exacts on its victims, explores several contributing factors, and provides recommendations based on these findings.
  • Significant reduction in new-account fraud. This is an indication that financial service providers are focusing more intently on identity and authentication practices through the use of fraud detection technology.

This year, for the first time, the report gathered victim impact statements, putting a human face to crimes that often shatter confidence, shred credit, and harm long-term financial well-being.

“It’s devastating to read impact statements from identity fraud victims, especially people who say things like, ‘After my identity fraud experience, my accounts were overdrawn, and I couldn’t pay my utility bills or buy food,’” added Buzzard.

This year’s report includes a 20th-anniversary retrospective that illustrates how technical innovations, societal changes, and economic indicators have influenced the past two decades of identity fraud activity and Javelin’s subsequent research.


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