Category: General

“Person” of the Year: Technology and the Challenges for Ethics and Compliance

“Person” of the Year: Technology and the Challenges for Ethics and Compliance

I always enjoy retrospective “year in review” postings to start off the new year.  For years, I have sought to identify and capture important compliance trends, typically focused on specific professionals in the compliance arena.  This year, however,  is a little different.  Compliance is at an important inflection point.  Corporate business headlines have been dominated by technology issues.  I am not convinced that these headlines...

2023 Sanctions Year in Review and Predictions

2023 Sanctions Year in Review and Predictions

As always, I tend to repeat myself.  However, one important point needs to be repeated — DOJ is in the midst of launching an aggressive sanctions and export control program against corporations and individuals.  DOJ has warned everyone, repeated this message in various speeches and, most importantly, assigned the resources — 25 new federal prosecutors to enforce sanctions and export controls — to back up...

A Recap of Significant Export Control Enforcement Efforts from 2023

A Recap of Significant Export Control Enforcement Efforts from 2023

Alexander J. Cotoia currently serves as the Regulatory Compliance Manager at The Volkov Law Group, where he regularly advises the firm and its clients on the latest developments implicating trade compliance concerns. He may be reached at [email protected]; As global political tensions continued to escalate on multiple fronts, the 2023 calendar year saw a noticeable increase in the number of enforcement actions initiated by the U.S....

Lessons Learned from the SAP Enforcement Action — DOJ Changes Tack on FCPA Enforcement While SEC Digs into Third-Party Controls (Part III of III)

Lessons Learned from the SAP Enforcement Action — DOJ Changes Tack on FCPA Enforcement While SEC Digs into Third-Party Controls (Part III of III)

A careful reading of the DOJ and SEC settlement documents for the SAP case will puzzle you.  I know I am scratching my head trying to make sense of the whole picture here.  There are a number of significant indicators of a change in DOJ’s tack, along with SEC’s aggressive push on third-party controls.  DOJ’s position is even more difficult to understand as explained below....

SAP’s Bribery Schemes — Systemic Corruption Around the Globe (Part II of III)

SAP’s Bribery Schemes — Systemic Corruption Around the Globe (Part II of III)

When it comes to FCPA enforcement and expectations, DOJ has moved the goalposts.  Some would argue that DOJ has been consistent all along.  The truth, like most issues, lies somewhere between the extremes.  With lots of fanfare, DOJ implemented a new Corporate Enforcement Program to udnerscore its intent to examine the criminal and civil enforcement history of corporate defendants when considering an appropriate penalty.  This...

SAP Returns to U.S. Enforcement Scene: Pays DOJ and SEC Over $220 Million to Resolve FCPA Violations (Part I of III)

SAP Returns to U.S. Enforcement Scene: Pays DOJ and SEC Over $220 Million to Resolve FCPA Violations (Part I of III)

Life is always filled with surprises.  Just when we thought 2023 was a “slow” FCPA enforcement year, DOJ and SEC announced a large enforcement action against SAP for approximately $220 million for FCPA violations in South Africa, and Indonesia.  The SEC’s enforcement action for $98 million includes SAP FCPA violations in Greater Africa and Azerbaijan. SAP is no stranger to U.S, enforcement agencies.  In 2021,...

Freepoint FCPA Settlement: Incendiary Mix of Commodities Trading and Third-Party Risks (Part II of II)

Freepoint FCPA Settlement: Incendiary Mix of Commodities Trading and Third-Party Risks (Part II of II)

Perhaps it is fitting to end this unusual FCPA enforcement year with another in a series of compliance reminders — the quickest way to experience a bribery scandal is to ignore third-party risks.  This has been a continuing theme this year and Freepoint is yet another example of why managing third-party risks is so important to any anti-bribery compliance program. The relevant facts underlying the...

DOJ and CFTC Close Out Slow FCPA Enforcement Year with $98 Million Resolution with Freepoint Commodities LLC (Part I of II)

DOJ and CFTC Close Out Slow FCPA Enforcement Year with $98 Million Resolution with Freepoint Commodities LLC (Part I of II)

The Justice Department’s FCPA enforcement record for 2024 was slow.  This  trend was unexpected, contrary to my own predictions and of various other prognosticators.  It is hard to explain why this slowdown occurred. DOJ’s record is hard to square against DOJ official speeches, statements and policy changes, which all were premised on an expectation of increased enforcement over prior years.  In its last FCPA enforcement...

Top Compliance Reminders from 2023 FCPA Enforcement

Top Compliance Reminders from 2023 FCPA Enforcement

While 2023 was a relatively slow year in FCPA enforcement, the DOJ and SEC settlements announced throughout the year set out a list of important ethics and compliance reminders. While these may seem obvious to everyone, I hope they stimulate further reflection and analysis to inform FCPA compliance practitioners as they prepare for the next year. Third-Party Risk Management:  DOJ and the SEC FCPA enforcement...

2023 FCPA Year in Review — Questioning the Tea Leaves and Trends

2023 FCPA Year in Review — Questioning the Tea Leaves and Trends

FCPA trends often are relatively easy to describe and often overblown as a marketing technique by the usual cast of paparazzi suspects.  (Self-proclaimed prognosticators that often push incorrect themes to promote business, or those that restate profound grasps of the obvious).  2023 has been a strange year in a number of respects — socially, politically and even in the small universe of DOJ enforcement and...