After a lengthy investigation (yes, 8 years), Walmart agreed to settle its FCPA violations and paid approximately $282 million , divided as follows: (1) $138 combined criminal penalty under the terms of a three-year non-prosecution agreement; and (2) $144 million disgorgement pursuant to an agreement with the SEC. Walmart’s Brazil subsidiary entered a guilty plea to one count of violating books and records in the Eastern...
In yesterday’s posting, I examined the General Factors identified by OFAC to determine whether to initiate a civil penalty proceeding and the amount of any civil monetary penalty. After analyzing these factors, OFAC determines the base penalty using a formula that depends on whether (a) the company voluntarily disclosed the matter; and (b) whether the violations are “egregious” or “non-egregious.” 1. Egregious case. OFAC determines whether...
The Treasury Department’s Office of Foreign Asset Control is an enforcement agency – it is not a regulatory agency. That sounds like a lot of bureaucratic speak but it does have some real significance. OFAC staff view themselves and act like an enforcement agency. Yes, they regulate in the sense that they authorize general and specific licenses and provide guidance. OFAC guidance is sometimes provided...
This is a tough posting – frankly, there are so many lessons learned from the Walmart case that they could fill a book, or an e-book at least. I will focus on some of the big issues. Walmart should breathe a sigh of relief. The compliance cloud hanging over its heard for so long is now gone, except with one big caveat – Walmart has...
Rescheduled Webinar: Achieving an Effective Compliance Program: DOJ and OFAC Guidance, Best Practices and Industry Trends July 10, 2019, 12 Noon EST Sign Up Here The compliance industry is evolving. Recent DOJ and OFAC Guidance are just one influence. At the same technology and innovative strategies using data analytics are quickly eclipsing government guidance, especially in the area of compliance program monitoring, testing and auditing....
The Walmart case, from a big picture standpoint, represents a serious warning to all global companies committed to rapid international growth. In the absence of a significant and sustained commitment to compliance, rapid international growth is bound to end up in a compliance breakdown, thereby threatening the ultimate success of any international business strategy. Walmart is Exhibit A in the explanation of how a successful...
Our long national nightmare is over – President Gerald Ford, August 9, 1974 So, $900 million and roughly 8 years later, DOJ and the SEC announced the end of the Walmart FCPA enforcement action. (DOJ Here and SEC Here). The Walmart scandal, which was first reported in the New York Times, was a watershed moment in anti-corruption enforcement. It marked a real turning point in...
The California Consumer Privacy Act of 2018 (the “Act”) was signed into law by California Governor Jerry Brown on June 28, 2018, after being hastily introduced in the California Legislature just a few days prior. The Act is effective January 1, 2020. In this episode, Michael Volkov interviews Teresa Troester-Falk, Chief Global Privacy Strategist at Nymity, concerning the Act and the compliance implications for businesses. ...
Sometimes what folks label a “new idea” is not so much of a new idea as the application of an old solution to a new discipline. I do not mean to be cryptic, but I am going to explain my point by referring to an area where I have had lots of experience – criminal law enforcement. In the wake of the terrible tragedy of...
This may be another in my series of profound grasps of the obvious – the compliance profession, research, technology and innovation are rapidly improving. We all hear about innovative compliance approaches, new use of data analytics, application of behavioral sciences in program design and incentives, and sophisticated measurement programs. As compliance tools become more affordable (e.g. blockchain), CCOs will have access to new technologies and...
