Category: General

12 Aug, 2019

OFAC Announces $1.7 Million Settlement with Truck Manufacturer for Violations of Iran Sanctions Program

In yet another enforcement action, OFAC announced a $1.709 million settlement with PACCAR, Inc., for 63 apparent violations of the Iran Sanctions Program by DAF Trucks, a wholly-owned subsidiary based in Eindhoven, Netherlands. (Here). On three separate occasions, between October 2013 and February 2015, DAF sold or supplied 63 trucks to customers in Europe that it knew or had reason to know were ultimately intended...

General

12 Aug, 2019

New Podcast: Tom Fox and Michael Volkov — Why a Duck? Into the Compliance Soup with Tom Fox and Michael Volkov

I am proud to announce the launch of a new podcast with my friend and colleague, Tom Fox. In recognition of our mutual appreciation for the Marx Brothers and compliance, Tom and I decided to create a new podcast — Why a Duck? Into the Compliance Soup with Tom Fox and Michael Volkov. The first two episodes are available Here. In the first episode, Tom...

General

7 Aug, 2019

Antitrust Division Launches Broad Investigation of High-Tech Industry

When it comes to the Justice Department and reading the tea leaves, I often rely on a very obvious point – DOJ tells you in advance what it is planning and then executes its plan. This has been true in the FCPA arena, prosecution of the opioid cases, targeting health care fraud and a history of initiatives. DOJ is fairly transparent on its priorities. Recently,...

General

6 Aug, 2019

Board Members Should Take Note — Delaware Supreme Court Issues Important Decision on Caremark Compliance Standard

I have long predicted that corporate board members are in for a rude awakening. (See posts here and here and ebook here) Corporate boards have to improve their ability and knowledge surrounding supervision and monitoring of a company’s ethics and compliance program. Most corporate boards have little to no knowledge about what compliance is, how it works, and what their precise obligations are as part...

General

5 Aug, 2019

OFAC’s New §501.604 Reporting Requirement: A Small Change with a Big Impact

Matt Stankiewicz, Senior Associate, and Jessica Sanderson, Of Counsel, both at The Volkov Law Group, rejoin us for an interesting posting on a new OFAC reporting requirement. Matt can be contacted at [email protected], and Jessica can be contacted at [email protected]. On June 21, 2019, OFAC changed its requirements for reporting on blocked or rejected transactions under 31 C.F.R. §501.604. With little fanfare, the interim rule...

General / Podcasts

4 Aug, 2019

Episode 102 — The Future of Compliance

Compliance has come a long way over the last 10 years. But it still has a ways to go until it is firmly embedded into the corporate governance landscape. In this episode, Michael Volkov examines current issues surrounding compliance programs, including the state of the compliance profession, technology and new frameworks; government enforcement trends and predictions; and congressional mandates for compliance.

General

1 Aug, 2019

Digging into High-Risk Distributors (Part II of II)

Compliance professionals are implementing their own monitoring and auditing strategies. Internal audit does not have the resources nor the time to assume responsibility for this function. If possible, internal audit may support, advise and assist in the monitoring and auditing functions. Frankly, a partnership between compliance and internal audit in this area is ideal but compliance cannot wait for internal audit to join the mission. ...

General

31 Jul, 2019

Managing High-Risk Distributor Risks (Part I of II)

Companies will often rely on a network of distributors to help sell their products in emerging markets. From a business economics standpoint, engaging a distributor is often more cost efficient than investing in a sales force in a new market. As a result, companies may enter a new market by relying on distributors, and if successful, may invest in the future by establishing its own...

General

30 Jul, 2019

Five Common Weaknesses in OFAC Sanctions Compliance Programs

As companies elevate their “game” in sanctions compliance, it is important that compliance officers critically examine the strengths and weaknesses of their compliance programs. Many companies already have a screening technology but little else beyond a basic screening process. From my vantage point, I have observed some common weaknesses: Segregation of Duties and Control Process: Many companies maintain a screening program and assign the responsibility...

General

29 Jul, 2019

Corrupt Intent and Bribery

In my showcase of profound but obvious points, let me add to my collection – an illegal bribe often turns on the actor’s state of mind. Did he or she act with corrupt intent? The actor’s state of mind is a common element to many criminal offenses. In most cases, the government has strong evidence of such corrupt intent. In some cases, the government is...