Corruption, Crime & Compliance

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15 May, 2024

EU Enacts New Directive Establishing Criminal Offenses for the Violation of Restrictive Measures

By: Daniela Melendez, Associate at The Volkov Law Group, and Alex Cotoia, Regulatory Compliance Manager. Daniela can be reached at [email protected] and Alex can be reached out at [email protected]. On April 24, 2024, the European Union (“EU”) officially adopted Directive (EU) 2024/1226 on the definition of criminal offenses and penalties for the violation of Union restrictive measures and amending Directive (EU) 2018/1673 (the “Directive”). A copy of the...

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14 May, 2024

DOJ and OFAC Sanctions and Export Control Detection Strategies

In this new aggressive era of sanctions and export controls enforcement, companies need to understand the potential risks that DOJ and/or OFAC may identify a company for sanctions investigation. In a global economy, investigators from various countries have built coordination procedures by which they share intelligence and possible leads among each other. This phenomena has created a complex web of investigators who can identify relevant...

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13 May, 2024

Dancing on the Head of a Pin: Corporate Boards, Committees and Cybersecurity Risk Management

No one was surprised when compliance and risk publications cited cybersecurity as the number one risk that corporations face today. While this is a relatively simplistic and head-line grabbing statement, the truth remains that corporate boards should have cybersecurity in their Top-3 List of corporate risks facing the organization. Like everything in life, it is one thing to identify the risk — it is quite...

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12 May, 2024

Episode 320 — NAVEX 2024 Whistleblower Report

NAVEX continues to produce high-quality compliance reports, many of which are a must-read in the compliance industry. Its annual Whistleblower Report is of particular note — NAVEX is the leading provider of hotline services in the world and its data is invaluable as a source of trends in this industry. This year –2024 — is no exception. NAVEX combed through the data from 3784 organizations...

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10 May, 2024

Checking In on Caremark Cases in Delaware

Over the last ten years, we have seen a marked shift from the Delaware Chancery Court chipping away at corporate board member liability claims. In a number of seminal cases involving Boeing airplane crashes (In re the Boeing Co. Derivative Litig., No. 2019-0907 (Del. Ch. Sept 7, 2021)), and deadly listeria outbreaks from tainted ice cream (Marchand v. Barnhill, 212 A.3d 805 (Del. 2019)), Delaware Courts...

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9 May, 2024

The Power and Reward of Cooperation: Binance Founder CZ Sentenced to 4 Months Imprisonment

Defendants often face a tough choice — challenge the government’s evidence and if convicted, face significant jail time. On the flip side, defendants who plead guilty and cooperate can earn significant sentencing reductions, even avoiding any jail time. The contrast between cooperating and non-cooperating defendants can be very stark. Samuel Bankman-Fried or “SBF” was convicted after a lengthy trial. He was convicted of a massive...

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8 May, 2024

BIS Releases Updated Guidance for Freight Forwarders

On March 28, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) released updated guidance to freight forwarders specifically outlining their responsibilities under the aegis of the Export Administration Regulations (“EAR”). Issued in the wake of BIS’s Update Conference on Export Controls and Policy, the new guidance underscores the critical role freight forwarders play in preventing the flow of illegal exports to...

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7 May, 2024

Quarterly Trade Compliance Update – April 2024

Each quarter, we send many of our clients a quarterly trade compliance update, highlighting important developments over the last few months and summarizing key points for important sanctions programs. Click here to download the quarterly update for April. Below is a summary of events this past quarter: About the document: This handy one-pager is designed to be used by our clients to provide a quick...

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5 May, 2024

Episode 319 — Deep Dive into SCG Plastics $20 Million Settlement with OFAC to Resolve Violations of Iran Sanctions Program

OFAC is capable of extending a long-arm of enforcement, reaching sometimes non-U.S. companies that may “cause” another company to violate U.S. Sanctions laws. If you need to find an example of this long reach, look no further than OFAC’s recent settlement with SCG Plastics (“SCG”), in which SCG, a Thailand company, which sells plastic resins, agreed to pay $20 million for violations of the Iran...

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3 May, 2024

DOJ Charges Ten Individuals for Violating Venezuelan Sanctions

On April 22, 2024, the U.S. Department of Justice announced the indictment of 10 Venezuelan individuals for conspiring to violate the International Economic Emergency Powers Act (“IEEPA”). According to the DOJ, the individuals conspired to decade U.S. sanctions imposed on Petroleos de Venezuela S.A. (“PDVSA”) in January 2019. In April 2024, one of the defendants was arrested upon arrival at Miami’s internal Airport. The Violations...