Q&A With Allison Raley: Defending Against Government Investigations

Q: What are the primary areas of focus in your practice related to government investigations?

A: My practice primarily focuses on defense against enforcement actions brought by regulatory bodies such as the Office of Foreign Assets Control (“OFAC”), the Internal Revenue Service (“IRS”) under Title 31, the New York Department of Financial Services (“NYDFS”), and the Securities and Exchange Commission (“SEC”). Each of these agencies has its unique set of regulations and enforcement mechanisms, and my role involves ensuring that my clients are adequately prepared to address any issues that arise, whether through proactive compliance strategies or reactive defense measures.

Q: How does your experience as a general counsel and chief compliance officer of a financial institution benefit your clients today?

A: Leading a company through government investigations, consent order negotiations, and managing responses to examination findings has given me a comprehensive understanding of regulatory expectations and practical solutions. This background allows me to empathize with my clients, offering strategies that are not only legally sound but also operationally feasible. I can draw from firsthand experience to guide clients through similar situations, ensuring they are well prepared to address regulatory scrutiny and implement effective compliance measures. My role as a former GC and CCO enhances my ability to provide holistic and pragmatic advice, ultimately helping clients navigate complex regulatory landscapes with confidence and success.

Q: How do you assist clients with consent order negotiations and monitorship?

A: Consent orders can be complex and demanding, often requiring substantial changes to a company’s operations and compliance programs. I assist clients by leading them through the negotiation process, ensuring that the terms are as favorable as possible while still satisfying regulatory requirements. Once a consent order is in place, I oversee the internal consent monitorship process to ensure that all elements of the order are properly implemented and closed out. This involves regular assessments, compliance reviews, and liaising with regulatory bodies to confirm that all requirements have been met. My goal is to help clients not only comply with the immediate terms of the consent order but also to strengthen their overall compliance posture to prevent future issues.

Q: Can you elaborate on your experience with enforcement matters from OFAC, Title 31 IRS, NYDFS, and the SEC, and how you represent companies throughout the process?

A: My experience spans across several regulatory bodies and involves a comprehensive approach to enforcement matters. With OFAC, I handle issues related to sanctions and compliance with U.S. economic and trade sanctions programs. This includes helping clients understand and navigate complex regulations, conducting internal investigations, and representing them in enforcement actions. Similarly, Title 31 IRS enforcement focuses on anti-money laundering (“AML”) and related compliance requirements. I assist clients in implementing robust AML programs, conducting risk assessments, and responding to IRS enforcement actions.

For NYDFS and SEC matters, the scope often involves cybersecurity, AML compliance, and other financial regulations specific to New York, as well as securities laws, financial disclosures, and related compliance issues. My role encompasses representing companies from the start of an investigation through examination, consent order negotiation, external communications regarding consent orders, remediations, and closing letters. I conduct thorough assessments of allegations, develop strong defense strategies, and actively engage with regulators to protect my clients’ interests while ensuring they understand and meet their regulatory obligations.

Q: Do you ever support companies in presenting examination or consent order finding to key stakeholders such as the board of directors or investors?

A: This is a critical function in my role as an advocate for a company experiencing a government investigation. Transparency and clarity are paramount when explaining consent orders and enforcement findings to officers, directors, and other critical parties such as banking partners and key merchants or investors. These stakeholders need to understand the implications of regulatory actions and how they impact the company’s operations and compliance posture. I provide detailed, yet accessible explanations of the findings and the steps the company is taking to address them. This involves breaking down complex legal and regulatory language into straightforward terms, addressing any concerns they may have, and outlining the path forward to ensure compliance and mitigate future risks. My aim is to foster confidence and trust among all stakeholders by demonstrating a proactive and comprehensive approach to compliance and enforcement matters.

Q: What do you enjoy doing outside of work?

A: Outside of work, I am a proud mother to twin 7-year-old identical girls who keep me busy and inspired. I was a collegiate golfer and still often play throughout the week with clients and colleagues, enjoying the opportunity to combine professional networking with a sport I love. Additionally, I am an avid ornithologist and serve as an ornithological consultant to several nonprofit naturalist organizations. This passion takes me to various locations nationally and internationally for ornithological research projects. Balancing these activities with my professional responsibilities helps me stay grounded and brings a unique perspective to my work.