Featured Articles:

European Council Officially Adopts New AML/CFT Package

This blog post was co-authored by Daniela Melendez, an Associate with The Volkov Law Group. On May 30, 2024, following passage by the European Parliament in late April, the European Council officially adopted a set of rules that modernizes and harmonizes money laundering and terrorist financing (“AML/CFT”) regulations across the various EU Member States. The new AML/CFT regulations consists of three (3) primary components: the EU Single Rulebook...

Is Your Sanctions Compliance Program Compliant? — A Quick Five-Question Quiz

Checklists can be handy — by simplifying and focusing on specific issues, a checklist can organize thinking and prioritize tasks. Here are five (5) questions that are fairly simple but revealing as to whether a company’s Sanctions Compliance Program (“SCP”) is effective.  This is not an exhaustive list but it is my top 5. Question 1 — Does the Company conduct annual sanctions compliance training...

Episode 325 — AI Risk and Compliance Frameworks

The new compliance cottage industry surrounds artificial intelligence.  We are at such an early stage of AI development — companies are still figuring out how they can employ the technology.  Some industries, such as financial institutions, however, have been using AI for fraud detection and other issues.  I expect financial institutions will set the tone for much of compliance practices around AI. There is no...

Sanctions Enforcement on the Outer Edges of Trade Activity (Part II of II)

We all know what a “core” sanctions violation looks like.  The heartland of such misconduct has been described on numerous occasions in OFAC enforcement actions and settlements.  In this environment, however, companies have to be aware of conduct that may still violate the law but is not necessarily in the “heartland” of misconduct. DOJ, OFAC and BIS are well aware of the broad reach of...

Sanctions Compliance: Understanding the Red Lines of Enforcement (Part I of II)

In this new era of aggressive sanctions enforcement, companies have to understand the red lines that define where criminal and civil enforcement risk increase.  In contrast to the history of FCPA enforcement, DOJ and OFAC have provided helpful guidance to alert companies where risks are likely to increase. Sanctions enforcement involves an off mix of civil and criminal line drawing.  On the civil side, OFAC...

BIS Announces Settlement of Antiboycott Violations with Airbus Space and Defense Subsidiary

On June 3, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced the resolution of an administrative enforcement action brought against Airbus DS Government Solutions (“Airbus DSGS”)—a subsidiary of defense giant Airbus U.S. Space & Defense—for multiple violations of longstanding antiboycott regulations that effectively prohibit U.S. Persons from engaging in any activity that would constitute the support of unauthorized foreign boycotts. ...

LRN’s Call to Action: 5 Steps Every Company Should Take to Promote an Ethical Culture (Part II of II)

LRN’s  research consistently paints a picture that every board member, senior executive and middle manager should view — corporate culture is an organization’s most valuable intangible asset and is a significant determinant of success in the marketplace. Corporate leaders know how to mouth the words to express their commitment to ethical values, principles and culture.  The disconnect between words and action is easy to spot...

Episode 324 — Third-Party Risks and Sanctions Compliance

With the beginning of the era of the “New FCPA,” as coined by DOJ’s Deputy Attorney General Lisa Monaco, we now need to focus on third-party risk and sanctions enforcement.  The law, the practice and the risks are important and not just the same as FCPA legal requirements.  As we embark on a new criminal enforcement era surrounding sanctions violations, companies have to address this...

LRN Report Highlights (Again) the Importance of Ethical Culture (Part I of II)

in its latest report, The 2024 Benchmark of Ethical Culture Report, LRN has focused on the critical issue of corporate culture.  LRN is a pacesetter and the leader in reliable studies on complex ethics and compliance issues.  If not properly promoted or maintained, a defective culture can lead to serious misconduct, government investigation, reputational damage and collateral harm.  on the other hand, a positive and...

AI Compliance Programs: Filling in the Gaps and Mitigating Risks (Part II of II)

We are at an important inflection point — AI technologies are rapidly developing; we are witnessing a historic metamorphosis in the technology, the impact on businesses and society and important steps being taken to regulate AI and develop appropriate risk management strategies.  We have experienced important inflection points throughout our history — however, AI technology is evolving at such a rapid pace, it is difficult...