A basic truism is – ethics and compliance reinforce each other. An ethical culture is an effective control against violations of law and a company’s code of conduct. Conversely, legal compliance promotes a company’s commitment to an ethical culture. Larger global companies are more likely to identify reputational risks as its greatest threat. (See Here NAVEX Global Third Party Benchmark Report). My favorite Warren Buffet...
On November 26, 2017, the Justice Department announced adoption of its new FCPA Corporate Enforcement Policy. Deputy Attorney General Rod Rosenstein announced the new policy at an FCPA Conference in Washington, D.C. Under the new policy, corporations that voluntarily disclose potential FCPA violations, fully cooperate with the investigation and implement timely and appropriate remediation will earn a presumptive declination, subject to the absence of aggravating...
Chief compliance officers for financial institutions are going to have a rough May 2018. First, on May 11, 2018, the new CDD Rule for beneficial ownership becomes effective. Two weeks later, on May 25, 2018, the EU’s General Data Protection Regulation becomes effective. FinCEN CDD Rule FinCEN’s new Customer Due Diligence rules will have a significant impact on the collection of beneficial ownership information and...
The Justice Department’s new FCPA Corporate Enforcement Policy has altered the balance between disclosure and non-disclosure of FCPA violations. How is that for a profound grasp of the obvious? All kidding aside, the question is how much has the balance been changed? I am not sure there will be a significant increase in the number of companies deciding to seek the benefits under the new...
I am excited to announce a recent product development launch for our sponsor, NAVEX Global, an innovative leader in the ethics and compliance field. We are proud to work with NAVEX Global, a company that works hard to create products that deliver practical solutions for ethics and compliance professionals. Although third-party risk management is a top concern for many organizations, it is common to hear that...
The Justice Department’s aggressive enforcement program, particularly in the FCPA arena, has been the primary impetus to the growth and empowerment of the corporate compliance function. The Justice Department and SEC’s FCPA Guidance, and the specific Hallmarks of an Effective Compliance and Ethics Program is the most definitive statement on compliance expectations ever released by US prosecutors. Since 2012, the Justice Department has built on...
I have always been struck by the “feel good” advocacy and advice from so-called ethics “experts.” Sure, it is great to talk about moral values, ethical principles, and other high-minded ideas that inspire an audience to embrace the value of an ethical culture. But that is not really the point of promoting an ethical culture as part of a corporate culture. Let’s start with a...
Sanctions compliance is challenging because of the changing nature of sanctions regulations and individuals identified as Specially Designated Nationals. With each new administration, foreign policy priorities are usually played out in a variety of sanctions regimes and policies. This year, however, saw Congress enter the regulatory fray, when it imposed detailed regulatory requirements and procedures designed to constrain the current administration from making major changes...
One consequence of the ongoing Russia investigation against the current administration is increased focus and probable enforcement of the Foreign Agents Registration Act (FARA). For Washington insiders, FARA was a known requirement but strict compliance was never the rule. FARA’s purpose was aimed at encouraging disclosure of hidden relationships with foreign governments that are intended to influence US government officials. With the increased enforcement of...
In a follow-on prosecution and end to a twisted investigation and enforcement path, SBM Offshore agreed to settle an FCPA enforcement matter for $238 million (including a $500,000 criminal fine and $13.2 million forfeiture). Under the agreement, SBM offshore entered into a three-year deferred prosecution agreement (DPA, copy here), and a US subsidiary entered a guilty plea to one count of FCPA conspiracy. The Justice...
