Category: General

27 Feb, 2022

President Biden Announces Broad Coordinated Set of Sanctions and Export Controls Against Russia

The Biden Administration announced a robust set of trade sanctions and export controls against Russia in response to the Russian invasion of Ukraine. The Treasury Department’s Office of Foreign Asset Control (“OFAC”) and the Department of Commerce’s Bureau of Industry and Security (“BIS”) issued broad sanctions and export controls respectively, designed to impose severe economic costs on Russia. The United States, along with its Allies,...

General

24 Feb, 2022

Lessons Learned from the KT Corp. SEC FCPA Settlement (Part III of III)

Even though the size of the KT Corp. SEC enforcement action is relatively small, the underlying misconduct provides a number of important lessons learned. Let’s look at some of the most significant lessons learned: C-Suite Misconduct: KT’s slush fund was executed by a High-Level executive at KT Corp. and was funded through inflated bonus payments made to executives. Each executive returned the over-payment to the...

General

23 Feb, 2022

KT Corp’s Bribery Schemes (Part II of III)

When you look under the hood of FCPA enforcement actions, the schemes employed by corporate actors can be shocking. The “creativity” of bad actors can provide important lessons learned and help future investigators when trying to unearth bribery schemes. At the root of most schemes is brazen arrogance and rationalization of otherwise improper behavior. South Korea From 2009 to 2017, KT high-level executives maintained slush...

General

22 Feb, 2022

President Biden Announces Additional Sanctions Against Russia: Even More to Come

In a one-two punch, President Biden announced additional sanctions against Russia in response to Russia’s initial invasion of Ukraine’s regions in Donetsk and Luhansk (hereinafter “DNR” and “LNR”). Yesterday, on February 21, 2022, President Biden issued a new Executive Order targeting the DNR and LNR regions of Ukraine. These sanctions imposed an embargo similar to that imposed against the region of Crimea in 2014. Today,...

General

22 Feb, 2022

United States Announces Initial Sanctions in Response to Russia’s Invasion of Two Ukraine Regions

In response to Russia’s invasion of Ukraine territories, the so-called Donetsk and Luhansk People’s Republics, respectively, (hereinafter “DNR” and “LNR”), yesterday, on February 21, 2022, President Biden issued a new Executive Order targeting the DNR and LNR regions of Ukraine with comprehensive sanctions.[1] In practical effect, the new sanctions impose an embargo similar to that imposed against the Region of Crimea after Russia annexed the...

General

21 Feb, 2022

KT Corp. Settles SEC FCPA Case for $6.3 Million (Part I of III)

The SEC announced its first FCPA enforcement action in 2022. South Korean telecommunications company, KT Corporation, agreed to pay $6.3 million to settle FCPA violations. As part of the settlement, KT Corp. agreed to pay $3.5 million in civil penalties and $2.8 million in disgorgement. KT Corp. is South Korea’s largest telecommunications company. KT Corp. American Depositary Shares are traded on the New York Stock...

General

17 Feb, 2022

DOJ FCPA Opinion Letter Draws Lines Regarding “Corrupt Intent” and the “Business Purpose” Test

Even with the absence of any major DOJ FCPA enforcement actions, DOJ issued an interesting FCPA Opinion Letter last week addressing application of the FCPA in circumstances where organizations face imminent serious bodily harm. While the situation may appear to be unique, it is a factual scenario that occurs more often than DOJ recognizes. In October 2021, a Requestor submitted an Opinion Letter application that...

General

17 Feb, 2022

Prosecutors Embrace Criminal AML Charges in Corruption Cases

Federal prosecutors enjoy flipping through the United States Criminal Code, 18 U.S.C. §§ 1 et seq., to pick out tools to charge defendants. Over the last ten years, DOJ’s reliance on criminal charges in FCPA cases has evolved. The FCPA only punishes the bribe-givers and not the bribe-takers. The Biden Administration is proposing to amend the FCPA to fill in this gap. To fill in...

General

16 Feb, 2022

The Current Trade Sanctions Landscape Against China

While everyone watches Russia’s President Putin for signs that he plans to order an invasion of its neighbor Ukraine, it may be helpful to take stock of where we are with the ever-changing maze of trade sanctions compliance. The Biden Administration has elevated international trade sanctions and export controls as a top priority. In contrast to the Trump strategy, Biden has dedicated more effort to...

General

14 Feb, 2022

Michael Volkov’s New Book: Making Money is Not a Mission: 10 Essays on the Compliance Culture Revolution

I am pleased to announce the release by Corporate Compliance Insights of my new book: Making Money is Not A Mission: 10 Essays on the Compliance Culture Revolution. Thank you to CCI for its continuing support. CCI continues its position as the leading forum for compliance thought leadership. My new book is available for download HERE. Thank you to everyone for your support, friendship and...