In the last few years, the tension between chief compliance officers and general counsels appears to have subsided.  The issue of separating CCOs from legal departments is not as important as it used to be.  Why? I would like to think that CCOs have gained independence, authority and line of sight across their organizations.  General counsels have acknowledged the importance of this change and accepted...

Abbott and Costello’s famous routine — Who’s on First, What’s on Second — puts cryptocurrency regulation and enforcement risks in perspective.  Here is the classic comedy routine. When new technologies appear on the scene, Washington regulation is sure to follow.  The exact configuration can take years to sort out, especially when it comes to financial products, given the labyrinth of regulatory bodies seeking to lay...

We always hear about the importance of tone-at-the-top.  Corporate leaders are very familiar with how to say the right things about ethics and compliance and the company’s culture.  But we all know that words are cheap – it is conduct that matters, and it is behavior that ultimately builds trust in an organization. In large corporations, however, the tone-at-the-top can only go so far.  No...

Matt Stankiewicz, an Associate at The Volkov Law Group, rejoins us as a guest contributor for another posting on cryptocurrencies.  Matt can be reached at [email protected]. A few days ago, Congress released its 2018 Joint Economic Report.  As many of you know, the Joint Economic Committee prepares this report as a national assessment of the country’s economic status.  The report often assesses the implications of a...

Last week, the Justice Department announced its first FCPA enforcement action in 2018 – a follow-on settlement from prior FCPA enforcement actions centering on a bribery scheme involving a Russian government official from a subsidiary of Russia’s State Atomic Energy Corporation.  Three individuals have been charged in connection with the bribery scheme. Transport Logistics International, a Maryland company, entered into a deferred prosecution agreement and...

No one needs to be reminded about the importance of anti-corruption compliance.  For global companies, anti-corruption risks are amongst the top 3 risks identified by corporate leaders. Global companies face a growing network of international anti-corruption law enforcement agents and prosecutors who are coordinating and sharing intelligence.  The globalization of anti-corruption enforcement has increased significantly the risk of detection and prosecution.  While the Justice Department...

Companies are getting on the bandwagon – corporate culture matters.  Business ethics is important.  My worry is whether this new acknowledgement is viewed as a short-cut for compliance investment. CEOs and the board are troubled by (and even resisting) the resources needed to implement an effective compliance program.  Unfortunately, this attitude reflects a fundamental misunderstanding of the importance of an ethical culture and robust compliance...

Chief compliance officers have to work closely with the chief legal officer or general counsel on a number of important issues.  In certain circumstances, CCOs  have to be mindful of the importance of the company’s ability to assert the attorney-client privilege.  While CCOs tend to lean in favor of disclosure and transparency as an important principle in promoting a company’s compliance program, there are a...

A chief compliance officer needs to be independent and have adequate authority within the organization.  But do not get confused by the concept of independence.  Compliance depends on collaborative relationships with other corporate functions. Most importantly, a compliance program’s success depends on its ability to embrace the company’s business.  To do so, the compliance staff has to learn and understand the company’s business inside and...