Category: General

12 Feb, 2020

NAVEX Global Webinar: Third-Party Risk Management & Effective Controls

February 18, 2020 1 PM EST/10 AM PST Sign Up HERE A comprehensive third party risk management program integrates with ethics and compliance activities across the enterprise to provide an accurate and actionable view of risk exposure. Implementing a holistic approach to due diligence extends beyond third party screening and monitoring. Effective risk management programs integrate with risk profiles across the organization, breaking down silos...

General

11 Feb, 2020

Why a Duck – Episode 10, A Night at the Opera, Part 2 and 2019 FCPA Enforcement Year in Review

In this episode Mike Volkov and Tom Fox — the second episode — discuss the movie A Night at the Opera and how it informs the 2019 in Compliance, FCPA enforcement actions and Compliance into 2020 and beyond. The Episode is available HERE.

General

10 Feb, 2020

Keeping Your Eye on the Risk Ball

Compliance officers face almost an infinite number of risks – not to be trite, but CCOs can drive themselves crazy identifying every plausible legal and compliance risk a company faces. I am exaggerating a little bit to make a point. Perhaps the most overused phrase in compliance is – companies should not implement a one-size-fits-all compliance program. Add this to the long list of profound...

General

6 Feb, 2020

Airbus Systemic Bribery and Export Violations: Understanding How a Company’s Compliance Program and Culture Failed (Part IV of IV)

When reviewing a major enforcement case, I always ask two basic questions: What was the role of Board and senior management in the failure, and how did they fail to exercise proper oversight and ensure compliance? What was the company’s culture and what steps did the Board and senior management take to implement and monitor an effective ethical culture? After reading the Airbus’ factual proffer,...

General

5 Feb, 2020

Airbus ITAR Settlement: Review of Airbus ITAR Violations (Part III of IV)

The Justice Department has brought only a few enforcement actions that focus on FCPA and export control violations. Last year, Quad Graphics earned a declination for FCPA and OFAC violations. In 2013, Weatherford settled FCPA and export control violations for $252.6 million. In a major case in 2011, BAE Systems paid $400 million for making a false statement arising for underlying conduct of bribery and...

General

4 Feb, 2020

Airbus FCPA Settlement: Review of Airbus Bribery Scheme (Part II of IV)

Almost every FCPA enforcement action contains important lessons learned in unraveling a bribery scheme. Airbus has three broad divisions: (1) Commercial Division; (2) Defense & Space Division; and (3) Helicopters Division. The bribery scheme involved China, three Chinese government entities (GE-1, GE-2, and GE-3), and three consultants: Consultant 1, an agent who received payments from Airbus during 2013 to 2015 that were intended for bribes...

General

3 Feb, 2020

Airbus Agrees to Pay $4 Billion in Global Settlement of Foreign Bribery and ITAR Violations (Part I of IV)

In a blockbuster case, the Justice Department announced a global settlement with Airbus SE, a manufacturer of civilian and military aircraft, under which Airbus agreed to pay over $4 billion (yes, with a “B”) to resolve charges with the United States, France, and the United Kingdom for its role in a bribery scheme, and to resolve Airbus’ violation of the International Trade in Arms Regulations...

General

30 Jan, 2020

OFAC Issues First Two Enforcement Actions of 2020

OFAC had a big year in 2019 and 2020 looks like a continuation. In the last week, OFAC issued two enforcement actions — Eagle Shipping (here) and Park Strategies (here). Eagle Shipping Eagle Shipping, a Marshall Islands company, headquartered in Stamford, Connecticut, agreed to pay OFAC $1.125 million to settle liability for 36 violations of the Burmese Sanctions program. Specifically Eagle Shipping dealt with Myawaddy...

General

29 Jan, 2020

DOJ Announces Voluntary Disclosure Program for Criminal Export and Sanctions Violations

The Justice Department is often criticized for its lack of transparency. But when it comes to policy changes or initiatives, DOJ is more than transparent – DOJ always tells the public what it plans to do and then does it. When people act surprised about a policy initiative or a DOJ announcement or speech on a subject, they simply failed to read DOJ’s statements or...

General

28 Jan, 2020

OCC Settles Penalty Action with Former Wells Fargo CEO for $17.5 Million and Issues Penalty Notices Against Five Former Wells Fargo Officials

The Office of the Comptroller of Currency (OCC) announced a $17.5 million settlement with former Wells Fargo Bank CEO John Stumpf’s role in the sales practices misconduct scandal. In addition, the OCC announced settlements with two other Wells Fargo officials: (1) Hope Hardison, former Chief Administrative Officer and Director of Human Resources, Cease and Desist Order and $2.25 million civil money penalty; and (2) Michael...