Aetna 2015 Annual Report Download - page 47

Annual Report- Page 41
Consumer Protection Laws
Our consumer business which began serving members on January 1, 2016 and certain of our other businesses
participate in direct-to-consumer activities, and we increasingly offer mobile and web-based solutions to our
members and to other consumers. We are therefore subject to federal and state regulations applicable to electronic
communications and to other general consumer protection laws and regulations. In particular, the FTC is
aggressively exercising its enforcement authority in the areas of consumer privacy and data security with a focus on
web-based, mobile products and “big data.” As a result of the widely-reported large scale U.S. commercial data
breaches during 2014 and 2015, the FTC and state regulators have increased their enforcement activity in these
regimes. These enforcement developments will impact the design, management and operation of our businesses,
including our consumer business, our privacy and security strategy and our web-based and mobile assets.
International Regulation
We expect to continue to expand our Health Care operations in foreign countries through both organic growth and
acquisitions. We currently have insurance licenses in several foreign jurisdictions and do business directly or
through local affiliations in numerous countries around the world. These international operations are subject to
different, and sometimes more stringent, legal and regulatory requirements, which vary widely by jurisdiction,
including anti-corruption laws; economic sanctions laws; various privacy, insurance, tax, tariff and trade laws and
regulations; corporate governance, privacy, data protection, data mining, data transfer, labor and employment,
intellectual property, consumer protection and investment laws and regulations; discriminatory licensing
procedures; compulsory cessions of reinsurance; required localization of records and funds; higher premium and
income taxes; limitations on dividends and repatriation of capital; and requirements for local participation in an
insurer’s ownership. In addition, the expansion of our operations into foreign countries increases our exposure to
the anti-bribery, anti-corruption and anti-money laundering provisions of U.S. law, including the FCPA, and
corresponding foreign laws, including the U.K. Bribery Act 2010 (the “UK Bribery Act”).
The FCPA prohibits offering, promising or authorizing others to give anything of value to a foreign government
official to obtain or retain business or otherwise secure a business advantage. We also are subject to applicable anti-
corruption laws of the jurisdictions in which we operate. In many countries outside the U.S., health care
professionals are employed by the government. Therefore, our dealings with them are subject to regulation under
the FCPA. Violations of the FCPA and other anti-corruption laws may result in severe criminal and civil sanctions
as well as other penalties, and the SEC and the DOJ have increased their enforcement activities with respect to the
FCPA. The UK Bribery Act is an anti-corruption law that is broader in scope than the FCPA and applies to all
companies with a nexus to the United Kingdom. Disclosures of FCPA violations may be shared with the UK
authorities, thus potentially exposing companies to liability and potential penalties in multiple jurisdictions. We
have internal control policies and procedures and conduct training and compliance programs for our employees to
deter prohibited practices. However, if our employees or agents fail to comply with applicable laws governing our
international operations, we may face investigations, prosecutions and other legal proceedings and actions which
could result in civil penalties, administrative remedies and criminal sanctions. See “As we expand our international
operations, we will increasingly face political, legal and compliance, operational, regulatory, economic and other
risks that we do not face or are more significant than in our domestic operations. Our exposure to these risks is
expected to increase” beginning on page 78 for a discussion of the risks related to operating globally.
Anti-Money Laundering Regulations
Certain of our lines of business are subject to Treasury anti-money laundering regulations. Those lines of business
have implemented anti-money laundering policies designed to insure their compliance with the regulations. We also
may be subject to anti-money laundering laws in non-U.S. jurisdictions where we operate.
Office of Foreign Assets Control
We also are subject to regulation by OFAC. OFAC administers and enforces economic and trade sanctions based on
U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists,
international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass
destruction, and other threats to the national security, foreign policy or economy of the United States. In addition,
we may be subject to similar regulations in the non-U.S. jurisdictions in which we operate.