This blog post was co-authored by Daniela Melendez, an Associate with The Volkov Law Group. On June 14, 2024, U.S. Department of Commerce Assistant Secretary for Export Enforcement, Matthew Axelrod, officially issued an order activating the suspended portion of a civil penalty that was imposed on U.S-based freight forwarder USGoBuy, LLC (“USGoBuy”) for repeated, seemingly flagrant, violations of the Export Administration Regulations (“EAR”). USGoBuy—a package...

Organizations with operations in California are reminded of the upcoming July 1, 2024 deadline to comply with the provisions of S.B. 553—a bill that was signed into law by Governor Gavin Newsom on September 20, 2023, following swift passage by both houses of the California State Legislature earlier in the same month.  Among other things, S.B. 553 officially amends the California Labor Code (“Labor Code”)...

On June 17, 2024, the U.S. Commodity Futures Trading Commission (CFTC) announced that trading giant Trafigura had agreed to pay a $55 million fine to settle charges of fraud and manipulation. The conduct at issue allegedly took place between 2014 and 2020, and included offenses such as trading on non-public information, benchmark manipulation, and impeding whistleblower communications. The high-flying commodities trading industry, through which an...

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...

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...

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...

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...

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  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...

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...