Category: General

5 Jun, 2024

AI Compliance Programs: Filling in the Gaps and Mitigating Risks (Part II of II)

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...

General

4 Jun, 2024

Emerging AI Risk and Compliance Frameworks (Part I of II)

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...

General

30 May, 2024

DXC Technology Company Settles Sanctions and Export Control Violations

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...

General

29 May, 2024

Congress Extends Sanctions Statute of Limitations And Addresses Other National Security Issues

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...

General

28 May, 2024

Life Sciences Company Escapes Criminal Charges for Employee’s Illegal Export Scheme

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...

General

27 May, 2024

DOJ Antitrust Division Launches New Task Force on Health Care Monopolies and Collusion

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...

General

24 May, 2024

The Magnificent Seven: Important Ways to Mitigate Your Third-Party Sanctions Risks (Part IV of IV)

It may seem like a Herculean task — but it can be done. I regularly opine that mitigating sanctions risks for your third-party population is an easier task than doing so for your anti-corruption risks. One big reason — geography is an important limiter on sanctions risks. The ability to evade sanctions has to be financially practicable — for example, it makes no sense to...

General

22 May, 2024

Supply Chain and Sanctions Compliance (Part III of IV)

While OFAC’s enforcement actions and guidance points to important steps exporters must take when relying on third-party distributors and other intermediaries, the “reason to know” and affirmative obligations to monitor resale and distribution of products to ultimate users does not appear to be unreasonable or impractical. In terms of best practices, these are issues that need to be addressed. The supply chain and third-party risk...

General

21 May, 2024

Distribution Chains and Sanctions Compliance (Part II of IV)

Companies rely on robust distribution chains as an efficient mechanism to enter new markets without requiring a significant investment. Additionally, companies may maintain parallel sales activities in markets between their own sales staff and third-party distributors, agents, resellers and dealers. It is interesting how certain industries have evolved and relied on different models for use of third parties with the intent of reaching customers in...

General

20 May, 2024

The Same Old Song with a Different Meaning — Third-Party Risks and Sanctions Compliance (Part I of IV)

Sorry to start a four-part series with a reference to music from our long-ago past. The Four Tops sang the “Same Old Song, with a Different Meaning” (released in 1965 — Video Here). So, how does that relate to third-party risks? Well, bear with me here for a little. Legal and Compliance bloggers, compliance vendors, prognosticators, Compliance Podcasters, and everyone in the Paparazzi have written,...

Category: General

AI Compliance Programs: Filling in the Gaps and Mitigating Risks (Part II of II)

Emerging AI Risk and Compliance Frameworks (Part I of II)

DXC Technology Company Settles Sanctions and Export Control Violations

Congress Extends Sanctions Statute of Limitations And Addresses Other National Security Issues

Life Sciences Company Escapes Criminal Charges for Employee’s Illegal Export Scheme

DOJ Antitrust Division Launches New Task Force on Health Care Monopolies and Collusion

The Magnificent Seven: Important Ways to Mitigate Your Third-Party Sanctions Risks (Part IV of IV)

Supply Chain and Sanctions Compliance (Part III of IV)

Distribution Chains and Sanctions Compliance (Part II of IV)

The Same Old Song with a Different Meaning — Third-Party Risks and Sanctions Compliance (Part I of IV)

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