Dear HR,

Dear Mr. Compliance

The word “compliance” is associated with rules and regulations; however, companies that decide to not administer compliance provisions have reasons why.

Producing those conditions of compliance is usually very time-consuming and costly. So private companies that emphasize profits won’t stand a chance against their competitors if they use up all of their funds to generate those requirements.

Here are three instances in where institutions violated compliances and what consequences they had:

1) In 2014, The New York Presbyterian Hospital and Columbia University consented to render a $4,800,000 fine due to a matter in 2010 that led to health records of 6,800 patients being able to be found online. As a result, this was a violation of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which manages how covered entities oversee and allocate their patient’s data.

2) Financial organizations are prone to a wide range of compliance provisions to not only protect the financial security of citizens and national economies, but also make sure they are prohibiting deals in connection to money launderers, drug dealers, terrorists, and other criminals. In 2017, Germany’s Deutsche Bank was fined £163 million by the United Kingdom’s Financial Conduct Authority for disclosing the United Kingdom’s financial composition and putting them at risk to monetary harm when it couldn’t successfully superintend the formation of new client relationships.

3) With the subprime mortgage crisis that resulted in a crash of the United States’ financial composition and sparked a worldwide recession, the situation essentially led to substantial fines towards the organizations that produced and vended the financial instruments during the peak of the situation. Citigroup was fined $285,000,000 for its responsibility in the crisis while Goldman Sachs was fined $550,000,000.