Corruption, Crime & Compliance

Featured Articles:

28 Jul, 2019

Five Lessons for Third-Party Distributor Risk Management from Microsoft FCPA Settlement (Part III of III)

The Microsoft FCPA settlement, while not significant in the total penalty of approximately $25 million, provides some important instructions concerning distributor and re-seller risks and mitigation strategies. Here are five important lessons learned: Discount Controls and Customer/End User Pricing: Microsoft agreed to provide significant discounts based on false justifications. Microsoft failed to confirm the justification for the discounts that permitted the bad actors to create...

Podcasts

28 Jul, 2019

Episode 101 — The Antitrust Division Announces New Credit for Compliance Programs

In yet another major compliance development, the Justice Department announced the adoption of a new policy to credit effective compliance programs in resolving criminal cartel prosecutions against corporations. Since the 1990s, the Antitrust Division’s policy regarding corporate compliance programs was generally fixed given the ability of companies to seek benefits under the leniency program. As part of its new policy, the Antitrust Division released its own...

General

25 Jul, 2019

Microsoft FCPA Settlement Underscores Third-Party Risks (Part II of III)

Microsoft’s bribery and controls violations reflect significant risks facing companies that rely on distributor and reseller networks to sell their products. Companies often enter and operate in emerging markets through complex networks of third parties. Such distribution systems create significant anti-corruption risks that have to be managed and mitigated. It is worth taking the time to examine the precise outlines of the conduct at issue...

General

25 Jul, 2019

Microsoft Pays DOJ and SEC $25 Million to Resolve FCPA Violations (Part I of III)

Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct in Hungary. Even with the tailored settlement agreement, DOJ and the SEC reiterated robust expectations surrounding third-party distributor networks, particularly in the software industry. To resolve a lengthy six and one-half year investigation, Microsoft entered into a non-prosecution agreement...

General

23 Jul, 2019

Data, Data and Data – How to Collect and Measure Data for Your Compliance Program?

As compliance strategies evolve and improve, more attention is being paid to data and measurement of a compliance program. Like every task associated with compliance, professionals have to be smart when it comes to this issue. A compliance program generates (or has access to) a vast amount of data and it is easy to get lost in the morass of data without any appreciable benefit....

General

22 Jul, 2019

The Overwhelmed CCO

Chief compliance officers have a hard job. CCOs know that fact and them fully embrace the challenges of their positions. At the same time, CCOs have extraordinary expectations placed on their shoulders – they are rarely complemented about their programs while the company avoids any major controversies, but they are one of the first to be questioned when a compliance breakdown occurs. CCOs are always...

Podcasts

21 Jul, 2019

Episode 100 — Interview of Tom Fox, the Compliance Evangelist

In celebration of the 100th episode of Corruption Crime and Compliance, Tom Fox, the Compliance Evangelist and Leader, is our guest. Tom and Mike discuss Tom Fox’s current Compliance Podcast Network, his entertaining Star Trek summer compliance podcast series, his perspective on the recent government compliance guidance, his insights into the compliance profession, technology developments and the future of compliance. As always, Tom’s perspective on...

General

18 Jul, 2019

Five Important Mandates from OFAC Compliance Framework

Based on its aggressive enforcement program and its recently issued Framework for Sanctions Compliance Programs, OFAC has established a new era in sanctions compliance. Trade compliance is often siloed into its own operation, sometimes in, and other times outside of, the compliance function. Over the next five years, we will witness a sea-change in sanctions compliance programs (or at least we better witness such a...

General

17 Jul, 2019

Ethical Culture Begins with Senior Management

I tend to repeat myself and when it comes to corporate cultured and ethics, I admit it. A company without an ethical culture, or at least a commitment to an ethical culture, will be unable to achieve an effective ethics and compliance program. NAVEX Global’s recent benchmarking report was an important confirmation that successful compliance programs often have two strong characteristics – senior level buy...

General

16 Jul, 2019

DOJ’s Antitrust Division Issues New Guidance for Evaluation of Corporate Compliance Programs (Part II of II)

As part of its new corporate compliance credit program, the Justice Department’ Antitrust Division issued, for the first time in its history, guidance to assist prosecutors in the evaluation of compliance programs at the charging and sentencing stages of investigations. (Here). The Antitrust Division’s new guidance joins DOJ’s Criminal Division Guidance (Here) and the Treasury Department’s Office of Foreign Asset Control’s (OFAC) Framework for Sanctions...