Category: General

Allianz Global Hit With $6 Billion Fine And Portfolio Manager Indicted in Connection with Million-Dollar Fraud Scheme 

In a blockbuster settlement, DOJ unleashed its full power against Allianz Global and key portfolio managers responsible for a massive, long running fraud scheme involving a series of private investment funds managed by Allianz Global Investors U.S. (AGI).  These funds eventually collapsed as a result of the economic hardships caused by the pandemic, resulting in investor losses of billions of dollars. Gregoire Tournant, Chief investment...

DOJ Criminal Division AAG Underscores Role of CCOs and Announces CCO Certification Requirements

In a homecoming speech, DOJ’s Assistant Attorney General Kenneth Polite gave a rousing speech to a room full of compliance professionals at the annual Compliance Week meeting in Washington, D.C.  AAG Polite, who has served as a CCO himself, embraced the mission of compliance officers as a critical part of corporate governance systems. AAG Polite specifically recognized the importance of the compliance functions and the...

Third-Party Risk Mitigation and Monitoring (Part V of V)

It is easy to be overwhelmed by the overall risk profile of your third-party population.  The best way to tackle the problem is by defining specific problems and risks and then analyzing a subset of third parties as to this specific problem or risk.  On the operational side, the business can guide this inquiry, especially procurement professionals who should be familiar with the direct and...

Identify and Understand Your Third-Party Population (Part IV of V)

It is an initially daunting task — identify all of your third-party partners with whom your company conducts business.  For large global companies, this is no easy issue.  Some companies do not have readily available a list nor an understanding of the size and scope of their third-party population.  That can be an initial hurdle unto itself. The first step usually involves some kind of...

The Upside of Managing Third-Party Risks: Advancing Your Culture (Part III of V)

While I have devoted the first two postings to outlining all the downside risks of third-party management and threats to overall organization resiliency and operations, it is important to consider the positive upside of managing your third party population.  After all, a large number of third parties represent your organization, such as agents, distributors, and resellers, in the marketplace and frequently interact with company customers. ...

Adjusting Your Perspective — Identifying Your Real Third-Party Risks (Part II of V)

Compliance professionals are always looking for ways to collaborate and support internal business partners.  Through the years, compliance professionals have devoted significant energy to building partnerships with the business.  Compliance has and should continue to build a strong relationship with business as a meaningful value-add.  This process has been accelerated by the Covid and Ukraine crises and increasing cyber risks stemming from data breaches and...

Renewing Your Third-Party Risk Management Vows — A Real World Perspective (Part I of V)

When you get on the mailing lists for legal and compliance products, seminars, conferences and general palabra, I usually become transfixed.  Millions of marketing and promotion dollars are being spent in an attempt to distinguish or highlight the subject of third-party risk, position a product or highlight the expertise of a speaker.  Sometimes I take the time to read some of the emails — to...

United States and EU Expand Russian Sanctions and Export Controls

In its continuing ratcheting of sanctions against Russia, the United States and the European Union have announced new sanctions and export controls to target additional industries and government officials.  In a new front, the US and EU included a ban on accounting and business consulting services.  The new US restrictions extend to broad export controls and sanctions focused on Russian banking executives, a weapons manufacturer...

Sanctions Enforcement: “The New FCPA”

Hold onto your hats – while we are on the cusp of more FCPA enforcement actions, the Justice Department and OFAC are gearing up for real and significant sanctions enforcement actions.  The dye is cast, so here we go.  Deputy Attorney General Lisa Monaco was recently quoted stating that sanctions enforcement is the “new FCPA.” This is not so surprising given the global crisis caused...

Gleaning the Inside of the Human Mind and Criminal “Intent”

Prosecuting white collar crimes is a “mind game” in more ways than one.  This is another in my long series of profound grasps of the obvious.  As a former federal prosecutor, the difference between a crime and compliant behavior often turns on the specific mind or intent of the actor.  Unless you are a mind reader (i.e. Kreskin for you boomers), this is often a...