State Street Corporation


Industry: Banking & Finance
Underlying Misconduct: Securities Fraud, Wire Fraud
Matter Type: DOJ Criminal
Relevant Jurisdiction(s): US District Court for the District of Massachusetts
Penalties: Fine
Fine Amount: $32,300,000
Reporting Agencies: Department of Justice Fraud Section
Resolution Form: Deferred Prosecution Agreement
Agreement Date: January 17, 2017
Monitor Reference Term: Independent Compliance Monitor
Monitor Identity: Unknown
Monitorship Term: 3 Years
Monitor Selection Process:

Host Organization to provide names of candidates, from which Reporting Agency will select Monitor. DOJ Policy.

Time to Propose Monitors: Promptly
Time to Engage Monitor: Promptly
Time to First Report: 9 mos
Reporting Frequency: Annually
Monitor Required Qualifications:

Demonstrated expertise with respect to United States criminal fraud laws and regulations; demonstrated expertise with respect to corporate compliance and ethics within the financial services industry, including experience counseling financial service companies with international operations on these issues; experience designing and/or reviewing corporate compliance policies, procedures, and internal controls; the ability to access and deploy resources; sufficient independence from the Host Organization.

Summary of Monitor's Scope:

Primary responsibility is to assess and monitor the Host Organization's compliance with the terms of the Agreement. Review and evaluate the effectiveness of the compliance controls and business ethics as they pertain to the applicable fraud laws and make recommendations to comply with Agreement.

Summary of Monitor's Activities:

Review and provide recommendations for improving the compliance and ethics programs, as well as implementation and enhancement of the compliance and ethics programs. In doing so, Monitor will: a) review and monitor current and ongoing compliance with Agreement; review, evaluate and monitor compliance and business ethics policies and procedures to ensure they are generally effective in preventing and detecting fraudulent conduct ("misconduct") by any director, officer, employee, or agent, including an assessment of Compliance functions and/or Audit Committee for further action regarding policies and procedures; review, evaluate, and monitor compliance and business ethics programs, including but not limited to any applicable surveillance systems, risk management systems, conflicts of interest identification and mitigation, relevant management information or systems, compliance training, business ethics training, internal auditing information or systems, compliance data management systems, internal investigation procedures, and information retention and production; review, evaluate and monitor compliance and business ethics structure, compositions, and resources, including but not limited to compliance and ethics personnel compensation, compliance and ethics personnel recruitment programs, and compliance and ethics training to ensure appropriate authority, structure, and resources to be generally effective; review, evaluate and monitor compliance and ethics policies, procedures, and practices, including but not limited to any trader recruitment, training, compensation, and evaluation process; review and assess senior management's commitment to and effective implementation of the corporate compliance and business ethics programs.

Monitor's Restrictions:

No business with Host Organization for at least 2 years after the expiration of the Monitorship.

Documents Uploaded: State-Street-DOJ-DPA-17Jan2017.pdf