Category: General

2 Oct, 2024

Commerce Department Updated its Voluntary Self-Disclosure Policy for Export Controls Violations

The Commerce Department’s Bureau of Industry and Security (“DOC-BIS”) is adopting procedures to generate voluntary self-disclosures for violations of export controls laws. Companies have to weigh carefully the risks when deciding whether to make such a disclosure. The Justice Department and DOC-BIS are building joint prosecutions — criminal and civil — against companies for export control violations. This new era is coming and companies have...

General

1 Oct, 2024

DOJ Updates Evaluation of Corporate Compliance Programs

The Justice Department announced yet another version of its Evaluation of Corporate Compliance Programs. As everyone knows, the Justice Department’s guidance carries talismanic significance — it is an important document that provides valuable direction on the design and implementation of an effective compliance program. DOJ understands the importance of this document. In recognition of evolving technology and compliance program innovations, DOJ updated its guidance to...

General

30 Sep, 2024

G7 Announces Joint Initiative to Combat Russian Sanctions and Export Control Evasion

The Group of Seven (“G7”) has taken a critical step in bolstering its collective enforcement of export controls and sanctions against the Russian Federation by issuing a historic joint industry guidance document. This move is not merely a procedural update; it represents a concerted effort by the G7—comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom—to address the sophisticated evasion tactics...

General

26 Sep, 2024

OFAC’s Stated Concern About Foreign Companies and Domestic Sanctions Compliance and Post-Acquisition Compliance (Party IV of IV)

Foreign companies with U.S. operations are struggling to navigate the landscape of sanctions compliance. OFAC has expressed its concern that foreign companies need to deploy U.S. based expertise and resources to ensure compliance with sanctions. OFAC’s concern was expressed in the context of its settlement with Murad LLC, a U.S. cosmetics company. Over an eight-year period ending in 2018, Murad illegally exported goods and services...

General

26 Sep, 2024

Supply Chain Sanctions Liability — The Importance of Supply Chain Audits (Part III of IV)

Global companies face significant risks in their supply chains of compliance with OFAC’s economic sanctions regime. OFAC has emphasized the importance of conducting supply chain risk assessments and audits. A supply chain audit (akin to UFLPA and conflict minerals) is essential to assess, monitor and manage risks. Even though parties are not in direct privity, a company that sources materials from a prohibited party or...

General

25 Sep, 2024

“The New FCPA”: The Future Landscape of Sanctions Enforcement (Part II of IV)

“This is a very complicated case, Maude. You know, a lotta ins, a lotta outs, a lotta what-have-yous. And, uh, a lotta strands to keep in my head, man. Lotta strands in old Duder’s head.” — The Big Lebowski We are all familiar with — over and over — third-party risks and FCPA risks. It is drilled in our collective heads — third-party risks and...

General

24 Sep, 2024

The Four Sanctions Compliance Cases that Everyone Should Know (Part I of IV)

The Justice Department has repeated on several occasions that it intends to aggressively prosecute corporations for sanctions and export controls violations. The “New FCPA” is how the Justice Department characterizes its plan. To execute the strategy, DOJ has assigned 25 new prosecutors. This is the most important fact — unleashing 25 new prosecutors with the goal of bringing criminal cases against corporations and individuals will...

General

20 Sep, 2024

Welcome to New Sponsor — Certa, the AI-First Third Party Operating System

We are pleased to announce that Certa has agreed to sponsor Corruption Crime & Compliance. We look forward to collaborating with Certa and its incredible team of professionals and thought leaders. Certa is a pioneer and innovative provider of a third-party risk management solution, which empowers Fortune 500 firms with advanced AI-driven solutions for global compliance, risk and management and ESG. Certa’s innovative platform blends...

General

20 Sep, 2024

Deere’s Bribery Schemes — Circumventing Expense Controls (Part II of II)

The Deere case is an important reminder for companies to devote proper attention to ensuring robust integration planning for acquired companies. DOJ has provided important guidance on acquisition practices and the need to integrate acquired companies into the acquiring company’s ethics and compliance program and internal controls. Deere made little effort to integrate Wirtgen into its ethics and compliance program and control environment. As a...

General

19 Sep, 2024

The Deere SEC FCPA Settlement: A Textbook Case of Expense Abuse (Part I of II)

The SEC’s recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls. Deere’s bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit”...