Sometimes the legal profession reminds me of the medieval guild system – a profession which is motivated more by self-preservation than change. You can always count on lawyers who cling to an outmoded perspective to try to stall inevitable change. Make no mistake about the current trend in compliance – companies are now embracing change to empower chief compliance officers and create independent lines of...
Compliance professionals have a lot of demands on their time. By definition, they are spread thin across a number of competing demands. As a result, companies do not spend much time on “tone-at-the-top.” In reality, compliance officers are relieved when they get the support of the CEO, and the ability to cite the CEO’s commitment to compliance. Often the CEO’s support translates into resources and...
Try to imagine what DaVinci said to himself when he painted his last brush stroke on the Mona Lisa. Or consider what Tolstoy muttered to himself when he put down his pen after writing the last word of War and Peace. Consider the same scenario when a Chief Compliance Officer and his/her team have designed and implemented their third-party due diligence system. Beginning with a...
Hospitals are under intense scrutiny. The federal government knows that one sure way to reduce healthcare costs is to get hospitals to lower their costs. Hospitals feel the pinch given the need to generate revenue but know that the federal government is looking over their shoulders to make sure everything is done right. Hospitals have a significant number of risks. You have to sympathize with...
Contrary to former candidate Romney’s view of the world (“Corporations are people”), you cannot put a company in jail. Try as you might, it just can’t be done. How to treat corporations in our criminal justice system is an interesting issue. Some have even taken the position that corporate criminal liability is misdirected since shareholders are the ones who bear the brunt of any punishment...
It is time for everyone to take a deep breath. The DOJ/SEC Guidance could not have been clearer. The message to companies – stop devoting so much time to building, tinkering with, and monitoring their policies governing gifts, meals and entertainment. The Guidance reminded everyone that the government has never prosecuted any company for a single violation, or even a number of violations. Instead, DOJ...
When you catch someone (e.g. a child, friend or business associate) in the wrong, it is interesting to watch their reactions. (Notice I left out spouse or relationship partner – we all know our spouse or relationship partner is never in the wrong – just ask them). I always look at their eyes and their mouth for tell-tale signs of guilt and remorse. When confronted,...
You remember the corny song – “People who need people are the luckiest people in the world.” For a Chief Compliance Officer that saying is particularly important when it comes to third party risks. CCOs need their internal auditors. This relationship is even more important when it comes to third party risks. Internal auditors are important to third party risks at two important stages of...
It sounds easy on paper. A company announces that it has banned all facilitation payments. It is a worthy goal. It sounds admirable. The FCPA permits facilitation payments. The UK Bribery Act prohibits facilitation payments. International anti-corruption treaties also ban facilitation payments. The enforcement of the UK Bribery Act remains a twisted mess while the SFO suffers from political oversight, scandals relating to departure/severance payments,...
FCPA enforcement in 2013 will result in some significant enforcement actions. Trust me. You can take this prediction to the bank. Chuck Duross, head of the FCPA Unit in the Justice Department, confirmed this position. In his recent statement, Chuck indicated that 2013 will include some big settlements which are in the pipeline. That makes sense. FCPA prosecutors were busy last year with trials and...
