At the outset, if you have a headache after reading my first two posts on the beneficial ownership issue, I apologize. The issues twist and turn depending on whether the situation involves OFAC sanctions or corruption risks, and reflects the variety of ownership situations that occur. Given the overwhelming nature of the burden of a beneficial ownership risk mitigation strategy, we have to return to...
When discussing the importance of beneficial ownership with compliance professionals, there is often a disconnect between the theory and reality. Everyone understands the legal and compliance risks and how they apply to third-parties, vendors and suppliers. But when a compliance officer considers the burden of uncovering beneficial ownership interests, they quickly resist the need for such an analyses across the population. And for good reason....
We repeatedly hear about the importance of beneficial ownership, and the requirement that companies confirm beneficial ownership of its third-parties, vendors and suppliers. At the same time, there is increasing pressure from regulators and law enforcement to identify and unravel beneficial ownership when dealing with business partners. There is no question that beneficial ownership is a critical issue. I have frequently stated (i.e. repeated myself)...
The Covid-19 pandemic has had a devastating impact. Businesses have had to adjust rapidly to a new world, filled with significant healthy and safety risks, along with business survival and continuity issues. Companies have reacted with crisis management strategies. As part of this response, companies have to implement a new risk profile and allocate resources accordingly. In this episode, Michael Volkov reviews the new risk...
The Supreme Court continued its clear commitment to trimming aggressive criminal prosecutions in high-profile cases by issuing a unanimous decision reversing the criminal convictions of two Bridgegate convictions in the New Jersey prosecutions of then-Governor Chris Christie’s Administration. The case grew out of former Governor Chris Christie’s 2013 re-election campaign. Bridget Kelly, Christie’s Deputy Chief of Staff, and William Baroni, the Deputy Executive Director of...
The Justice Department’s Antitrust Division recently announced a $100 million settlement with Florida Cancer Specialists & Research Institute (“FCS”) for an illegal conspiracy to allocate cancer patients in Southwest Florida. FCS conspired with various competitors to allocate medical and radiation oncology treatments. The $100 million criminal penalty is the statutory maximum under Section 1 of the Sherman Act. FCS also reached a settlement with Florida...
OFAC announced a $257k settlement with Biomin America, Inc. (“Biomin”), an animal nutrition company based in Overland, Kansas, to settle violations of the Cuban Sanctions Program. OFAC recently issued guidance suggesting that organizations may re-allocate or reduce sanctions compliance operations based on the impact of the pandemic on an organization’s business activities. Notwithstanding this guidance, OFAC announced this enforcement action, the first in several months,...
In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks. Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes. Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to the problem. In the first episode, Michael Volkov discusses beneficial ownership risks and...
In a two-part series, Michael Volkov examines the continuing problem of identifying and mitigating beneficial ownership risks. Money launderers and corrupt individuals continue to rely on corporate structures to disguise their ownership interests to further illicit schemes. Companies have to develop strategies that practically address the risks without dedicating disproportionate resources to the problem. In the first episode, Michael Volkov discusses beneficial ownership risks and...
The global pandemic has created unique risks for handling employees’ exposure to, or positive testing for, COVID-19. To ensure a safe workplace, companies have to address delicate issues surrounding employee safety. The United States does not have a federal privacy law to address this specific situation (unlike Europe and Canada) and the treatment of employees personal information. Interestingly, the HIPAA laws do not cover employers...
