Category: General

19 May, 2016

The McDonnell Case: Supreme Court Weighs Limiting Bribery Statute

We all suffer from a little myopia. Following FCPA enforcement and compliance issues makes a lot of sense in today’s enforcement environment. However, there is plenty of domestic enforcement of bribery laws – the New York corruption investigations and prosecutions and the recent high-profile prosecution of Virginia Governor McDonnell are just a few of the high profile domestic prosecutions. The Supreme Court recently heard argument...

General

17 May, 2016

The Evolving Due Diligence Standards and Beneficial Ownership

In case you are not following all the latest scandals – Unaoil and the Panama Papers being two significant ones – we are seeing an evolution and possibly a revolution in due diligence expectations. No matter what context or what your specific concern may be, the need for every compliance department to identify the beneficial owners of joint venture partners, third party intermediaries, distributors, agents...

General

16 May, 2016

Teaching the Board How to Oversee and Monitor the Compliance Function

I have never let my schooling interfere with my education – Mark Twain (unverified). Everything has its limit–iron ore cannot be educated into gold. – Mark Twain (verified) Board members believe they know what they need to know. That is why they were asked to serve on the board. Unfortunately, like many issues today, confidence does not mean competency. Corporate boards are increasing their focus...

General

15 May, 2016

Trust and Integrity: The Value of a Company’s Reputation

Warren Buffet, the Oracle of Omaha, understands the importance of corporate culture and adhering to a code of ethics. He has been quoted: Lose money and I will forgive you. Lose even a shred of reputation and I will be ruthless. …… Wealth can always be recreated, but reputation takes a lifetime to build and often only a moment to destroy. Buffet’s implicit message is unmistakable – culture, reputation and...

General

11 May, 2016

The Legacy of Michigan Senator Levin and Offshore Taxation Issues

When Senator Levin, the Democrat from Michigan, announced his retirement from the Senate in 2014, you could hear a collective sigh of relief from the corporate business community. Senator Levin had dedicated himself to investigating our tax system and how corporations were able to avoid taxes through offshore accounts. With the recent release of the Panama Papers, Senator Levin would have found even more evidence...

General

10 May, 2016

Getting Back to Basics: CCOs and Independence

Chief compliance officers continue to enjoy these heady days – salaries are up and new opportunities are popping up in the corporate world. CCOs have to keep their eye on the ball. It is well and good to get a good salary, a nice office, and a title, but there is an important requirement that cannot be overlooked – independence. The trend over the last...

General

9 May, 2016

Fixing a Sour Corporate Culture: Valeant Pharmaceuticals Faces an Uphill Challenge

Like the Greek mythology character Sisyphus, Valeant Pharmaceutical is attempting to atone for its sins and turn its corporate culture around. I am not usually a cynic but when I see these transparent attempts to reverse a company’s culture, I have a degree of suspicion. In recent weeks, Valeant took the following steps: Hired a new CEO Joseph Papa Removed five directors from its board...

General

8 May, 2016

Panama Papers: Prosecutors Launch Investigations

When a scandal hits the media like the Panama Papers leak of 11.5 million confidential legal records, we all know what to expect. Criminal investigations, regulatory responses, and of course, congressional hearings of some sort so that everyone gets a piece of the scandal pie. The International Consortium of Investigative Journalists (“ICIJ”) reported the leak of 11.5 million confidential legal records designed to expose shell...

General

5 May, 2016

Private Equity and the Och-Ziff Enforcement Action

Since 2010, the Justice Department and the SEC have been “investigating” a number of private equity and hedge funds for FCPA violations. The launch of the inquiries was a big deal with lots of fanfare and focus on private equity corruption risks. In time, nothing happened. Well, that is about to change. DOJ and the SEC are getting close to announcing a large settlement with...

General

3 May, 2016

Revisiting FinCEN’s Proposed Regulations on Beneficial Ownership

You don’t need a weatherman to know which way the wind blows. – Bob Dylan, Subterranean Homesick Blues Political winds are important for a number of reasons. When working in the government, you have to seize the political opportunities to advance practical proposals. When it comes to requiring banks and financial institutions to collect beneficial ownership information from account holders and customers, the Panama Papers...