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...

We are at an important inflection point — AI technologies are rapidly developing; we are witnessing a historic metamorphosis in the technology, the impact on businesses and society and important steps being taken to regulate AI and develop appropriate risk management strategies.  We have experienced important inflection points throughout our history — however, AI technology is evolving at such a rapid pace, it is difficult...

The new compliance cottage industry surrounds artificial intelligence.  We are at such an early stage of AI development — companies are still figuring out how they can employ the technology.  Some industries, such as financial institutions, however, have been using AI for fraud detection and other issues.  I expect financial institutions will set the tone for much of compliance practices around AI. There is no...

On May 17, 2024, Nevada-based DXC Technology Company (“DXC”)—a global IT services provider—officially filed its required annual 10-K Form with the U.S. Securities and Exchange Commission (“SEC”) indicating that previously-disclosed proceedings involving both the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) and U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) had been resolved. According to the SEC filing, DXC officially...

On April 24, 2024, President Biden signed into law a sweeping national security legislative package that included the 21st Century Peace Through Strength Act, which includes measures to promote sanctions and export controls enforcement and focuses on China trade. The Act: The Act amends the statute of limitations for International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) to ten...

Sigma-Aldrich, Inc., d/b/a MilliporeSigma (“MilliporeSigma”), a U.S. life sciences company based in Massachusetts, escaped criminal charges for export control violations, despite a former sales person’s scheme to illegally export products to China.  DOJ cited the favorable resolution as proof of the National Security Division’s commitment to its voluntary disclosure program.  MilliporeSigma was the first company to resolve an investigation for export control violations under DOJ/NSD’s...

The U.S. Department of Justice’s Antitrust Division has intensified its scrutiny of healthcare platforms that integrate doctors with insurers, data, and other assets. Assistant Attorney General Jonathan Kanter described this trend as an “alarming” concentration of resources. In a significant move, the DOJ announced the establishment of the Task Force on Health Care Monopolies and Collusion. Kanter emphasized during a Washington Post Live event that...