Foreign companies with U.S. operations are struggling to navigate the landscape of sanctions compliance.  OFAC has expressed its concern that foreign companies need to deploy U.S. based expertise and resources to ensure compliance with sanctions. OFAC’s concern was expressed in the context of its settlement with Murad LLC, a U.S. cosmetics company.  Over an eight-year period ending in 2018, Murad illegally exported goods and services...

Global companies face significant risks in their supply chains of compliance with OFAC’s economic sanctions regime.  OFAC has emphasized the importance of conducting supply chain risk assessments and audits.  A supply chain audit (akin to UFLPA and conflict minerals) is essential to assess, monitor and manage risks.  Even though parties are not in direct privity, a company that sources materials from a prohibited party or...

“This is a very complicated case, Maude. You know, a lotta ins, a lotta outs, a lotta what-have-yous. And, uh, a lotta strands to keep in my head, man. Lotta strands in old Duder’s head.” — The Big Lebowski We are all familiar with — over and over — third-party risks and FCPA risks.  It is drilled in our collective heads — third-party risks and...

We are pleased to announce that Certa has agreed to sponsor Corruption Crime & Compliance.  We look forward to collaborating with Certa and its incredible team of professionals and thought leaders. Certa is a pioneer and innovative provider of a third-party risk management solution, which empowers Fortune 500 firms with advanced AI-driven solutions for global compliance, risk and management and ESG. Certa’s innovative platform blends...

The Deere case is an important reminder for companies to devote proper attention to ensuring robust integration planning for acquired companies.  DOJ has provided important guidance on acquisition practices and the need to integrate acquired companies into the acquiring company’s ethics and compliance program and internal controls.  Deere made little effort to integrate Wirtgen into its ethics and compliance program and control environment.  As a...

The SEC’s recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls.  Deere’s bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit”...

Federal whistleblowers have been exposing health care fraud for years.  The False Claims Act (“FCA”) contains robust whistleblower provisions and protections that reward whistleblowers with financial payouts. The process for whistleblower submissions is well-established, and the Justice Department has a robust investigative function to sift through the whistleblower complaints.  If the Justice Department decides to intervene in support of the whistleblower’s claim, nearly 100 percent...

We have seen an explosion in the attention paid to legal, compliance and operational risks companies face in supply chain operations.  Depending on the industry, companies have to address a wide-swath of supply chain risks, identify those issues that need to be mitigated and promote transparency and management of supply chain functions.  Legal and compliance risks have increased with heightened focus on due diligence, export...

The U.S. Securities and Exchange Commission (“SEC”) recently instituted proceedings against Deere & Company (“John Deere”), a leading global manufacturer of agricultural and heavy machinery, for multiple violations of the Foreign Corrupt Practices Act (“FCPA”). These violations arose from improper activities undertaken by its wholly owned subsidiary, Wirtgen Thailand. The underlying misconduct—which occurred between late 2017 and 2020—included the provision of illicit payments and other...