Category: General

Five Practical Steps to Elevate Your Sanctions Compliance Program (Part III of III)

Even with the current focus on sanctions compliance, many companies have done little to assess and enhance their existing sanctions compliance program.  Instead, a number of companies have stitched together a basic sanctions compliance program that centers on a screening tool and little beyond that.  Such a limited program provides just a  false comfort of compliance.  Many companies are not even conducting the mandated basic...

Refreshing and Elevating Your Sanctions Compliance Program (Part II of III)

Let’s move beyond the headline – trade compliance is the new FCPA.  We get it.  The next step is to do something about it.  The Justice Department has repeated this refrain – it is one of its greatest hits.  In addition, DOJ, OFAC and the Bureau of Industry and Security have sent a loud message — $629 million from British American Tobacco and $300 million...

Corporate Crime and National Security – The Confluence of Prosecution and Foreign Policy (Part I of III)

To restate the obvious – DOJ has prioritized prosecution of national security crimes.  For the business world, every company touches the international economy.  Even a domestic company might sell products or services outside the United States, or such companies depend on foreign products or services in their supply chain.  It is rare indeed to find a company that is not dependent on one way or...

Fasten Your Seatbelt: An Important Message on Proactive Compliance

Jessica Sanderson, a Partner at The Volkov Law Group, re-joins us for a posting on her perspective on proactive compliance strategies. Jessica can be reached at [email protected]. I’m old enough to remember when seat belts were optional. And I remember people up in arms when seatbelt laws first passed. But now, my young adult children and their friends simply get in the car and buckle...

Frank’s International Pays SEC $8 Million to Resolve FCPA Violations In Angola

Franks International (“Frank’s”) settled FCPA charges with the SEC for $8 million stemming from operations in Angola during the period 2008 to 2014.  The Justice Department declined to prosecute Frank’s for the same events. Frank’s was a global provider of engineered tubular services, tubular fabrication, and specialty well construction and well intervention solutions to the oil and gas industry, incorporated in the Netherlands.  On October...

A Five Step Program for Every Company to Address the New Enforcement Threats

Companies have to demand a new focus from their CEOs, senior executives and legal compliance team in response to the new DOJ and regulatory initiatives.  These steps are not just suggestions nor items that can be prioritized based on resources.  Instead, these are essential and basic requirements that will inevitably result in significant benefits across the company.  Step 1: Define, Embed and Monitor Corporate Culture...

Corporate Governance Challenges in an Evolving Risk Era

We are living in a rapidly changing economic landscape. Companies are under the gun to navigate “traditional issues,” such as challenging economic conditions ranging from inflation, and a predicted recession, to supply chain disruptions.  It has been a long and difficult path in responding to two significant crises – first the pandemic in 2020 and then Russia’s invasion of Ukraine and the resulting global sanctions...

Cryptocurrency Firm, Poloniex, Reaches Settlement with OFAC and Pays $7.5 Million for Sanctions Violations

The cryptocurrency industry has a target on its back – and perhaps justifiably so.  The SEC, CFTC and OFAC have been bringing a number of regulatory enforcement actions, including against Bittrex, Inc. ($24,280,829.20 in settlements with OFAC and FinCEN) and Payward, Inc. d/b/a Kraken ($362,158 settlement with OFAC).  Yet, the cryptocurrency has lots to worry about when it comes to compliance – fraud, cybersecurity, and...

DOJ Suffers Rule 29 Dismissal of Criminal Antirust No-Poach Case in Aerospace Industry

The Department of Justice’s Antitrust Division has suffered setbacks in its precedent-setting criminal prosecution of no-poach agreements in labor markets.  The latest and perhaps most surprising defeat occurred when the trial judge in Connecticut granted the defense motion for judgment of acquittal after the Antitrust Division prosecutors completed the government’s case. In a written decision, the court granted the defense’s motions for judgement of acquittal,...

British American Tobacco’s Financial Scheme to Avoid Sanctions Detection (Part II of II)

British American Tobacco’s deceit and elevation of business over compliance permeates its recent blockbuster settlement for $629 million with the Department of Justice and Office of Foreign Asset Control.  Importantly, the BAT settlement confirms DOJ’s new, aggressive approach to sanctions and export enforcement, and OFAC’s imposition of a penalty equal to the statutory maximum. For compliance professionals, the BAT scheme is interesting to review because...