Innovative Legal Services’ Post

The CFPB has warned businesses about potential legal challenges from using AI and algorithmic tools to monitor employees. The new guidance clarifies that the Fair Credit Reporting Act extends to these technologies, giving workers rights to consent, transparency, and dispute inaccurate data. This highlights the importance of fair practices as AI-driven tools become more common in tracking productivity, social media activity, and even unionization risk. Companies are urged to review their practices to stay compliant and protect employee rights. Are you in compliance? #CFPB #WorkerRights #AI #Compliance #dennisgierula

🔍 AI-Based Worker Monitoring and FCRA Compliance: What Employers Need to Know 🔍 The Consumer Financial Protection Bureau (CFPB) recently issued guidance urging employers to exercise caution when using AI and algorithmic scoring systems for monitoring and evaluating workers. While these tools can enhance productivity and streamline processes, they must be compliant with the Fair Credit Reporting Act (FCRA) to protect worker rights. Key considerations for employers include: ✅ Ensuring transparency in how monitoring tools are used ✅ Protecting employees’ privacy rights ✅ Avoiding potential biases in algorithmic decision-making ✅ Adhering to FCRA regulations, including proper disclosure and employee consent Using AI responsibly not only keeps businesses in regulatory compliance but also fosters a trustworthy workplace environment where employees feel respected and valued. #AI #WorkerRights #FCRA #EmployeeMonitoring #CFPB #EthicalAI #EmployerCompliance #TrionStaffingSolutions

The balance between employers protecting their investment in employees and protecting their employees’ privacy is delicate. Privacy by Design and Default seeks win-win solutions, for example - productivity and privacy. Privacy professionals can help ensure the pendulum does not swing too far to laissez-faire or draconian extremes. #PrivacyPros #Privacy #HR

The Consumer Financial Protection Bureau is extending compliance dates for the 2023 final rule, allowing covered financial institutions more time to collect data. Covered financial institutions will have an additional 290 days to begin collecting data. #regulatory #compliance #AI

SARS is indiscriminately cracking down on non-compliant taxpayers, with a keen focus on wealthy individuals through its specialised High Wealth Individual (HWI) unit. Using AI and data driven insights, SARS is able to detect any and all non-compliance, potentially holding both taxpayers and their advisors accountable. Wealthy taxpayers must maintain meticulous records and proactively obtain the correct legal guidance to avoid falling into the scope of SARS’ compliance crackdown. As featured in Polity and Daily Investor. To learn more read the full article: https://bit.ly/3YbIais #AI #SARS #TaxCompliance #TaxAudit #TaxSeason

🚨 Are firms on track to meet regulatory expectations surrounding #AI? What alterations need to be made to accommodate the changes to #PEPs? How should firms monitor an increasingly challenging #payments landscape with multiple payment rails? We ask all the essential questions, and our regulatory affairs team answers them. Discover insights into these questions in our on-demand webinar: 'The State of Financial Crime: What To Expect in 2024'. https://okt.to/9bzTuq

SAS' Ellen Roberson explains that #GenAI will enable banks to detect suspicious financial transactions, help government agencies automate processes to combat tax fraud, and assist procurement officers in managing risks and costs. However, there are challenges to overcome first, such as identifying the best applications and proving its value. #AI Learn more ➡️ http://2.sas.com/6041YW00z

In the latest Consumer Protection Dispatch, Shruti Bhutani Arora, Jeewon K. Serrato and Gabby Torres recap the latest regulatory developments regarding data and #AI from the U.S. Department of Commerce, the #CFPB and the SEC.

SAS' Ellen Roberson writes that #GenAI will help banks spot suspicious financial transactions, government agencies automate manual processes in fighting tax fraud, and procurement officers manage risks and costs. But they need to get over a few humps first - including finding the best uses and demonstrating value. #AI http://2.sas.com/6043jRVyx

THIS JUST IN: (8/12) CFPB Comments on the Risks of AI in the Financial Services Sector The Consumer Financial Protect Bureau (CFPB) believes that AI innovations need not be at odds with compliance with federal consumer protection laws. They understand that innovation doesn't require waiving consumer protections. Past "sandbox" programs often favored single firms without broader benefits. The CFPB now focuses on fostering innovation that truly helps consumers by: ·        Clarifying that new technology must follow consumer protection laws ·        Ensuring regulations don't stifle competition or favor incumbents ·        Treating similar products consistently under the law ·        Combating anticompetitive practices The aim is to create a level playing field where financial services firms compete based on product quality and consumer benefit, rather than through regulatory loopholes or data hoarding. They're monitoring firms' banking services in virtual worlds and tracking potential AI-enabled fraud for compliance. Would it be of value to talk with a compliance industry expert to learn more about AI in the Financial Services sector? #fraudavoidance #riskmitigation