Morgan Stanley’s Noah Perlman: Better Data Needed to Track Financial Compliance

Populism and authoritarianism are spreading in the increasingly globalized world, changing the environment for cross-border regulation, fraud investigation, money laundering, and sanctions enforcement. We recently talked with Noah Perlman, global head of financial crimes atMorgan Stanley, where he specializes in money laundering and sanctions, on how these developments and shifting technology are affecting the way companies manage their operations.

Hear more from Perlman at the 2018 Bloomberg Law Leadership Forum on May 23 in New York, where corporate counsel from Fortune 500 businesses and leaders from top law firms will gather to discuss trends in trade, regulation, and technology.

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What is the most significant impact of changing technology on enforcement of anti-money laundering statutes and compliance with economic sanctions?

We’re always looking at ways to use technology to improve our ability to prevent and detect financial crimes. With advances in technology, there are increasing regulatory expectations for firms to collect, maintain, and analyze large amounts of detailed data. In practice, at large corporations this information is often housed in multiple systems and managed by different stakeholders in a variety of jurisdictions. The challenge is putting all of the pieces together.

How do the latest changes in technology facilitate, or impede, a time-critical response to an investigative or discovery matter?

Without a doubt, improvements in technology facilitate quicker responses. Whether it’s faster data collection or even just improved communication around the globe, technology naturally creates efficiencies. However, speed is not the only goal. Accuracy and completeness are also critical. Changes in technology can help there too, but there is no substitute for the judgment of the people on the ground closest to the matter at hand.

In light of growing global trends of populism and authoritarianism, how would you advise corporate clients about the relative attractiveness of major geographic areas or primary countries for expanding or pulling back on operations?

We find ourselves facing a challenging and complicated global environment—politically, economically, and culturally. One obvious example is Brexit, which has had and will continue to have a significant impact on our clients. Another challenge is the rapid and continuing use of sanctions as an instrument of foreign policy. The threat of future sanctions creates uncertainty and it is critical to maintain a thoughtful approach to doing business in jurisdictions where sanctions may be imposed. We’re focused on helping our clients navigate these changes because putting clients first is one of our core values. We go where our clients need us, and we’ll continue to do so as the global landscape evolves.

For the 4th year, theBloomberg Law Leadership Forumis the premier event for legal industry leaders to gain insights and discuss how global economic and regulatory changes impact their business.

The 2018 Forum features an update on current regulatory priorities, a look at where corporate risk is rising, and an exploration of the technology and management tools legal counsel need to respond effectively.

Click here to request an invitation to the 2018 Bloomberg Law Leadership Forum.

Leadership Forum Speakers Include:

• Chairman Jay Clayton , U.S. Securities and Exchange Commission

• Deputy Attorney General Rod Rosenstein , U.S. Department of Justice

• Marcy Cohen , Managing Director and Chief Legal Officer, ING Americas

• Karen Yen, Global Head of Litigation, UBS Group AG

• Katherine Choo , Chief Investigative & Anti-Corruption Counsel, GE