Despite our political dialogue and the often-heard charges of fake news and lying, telling the truth still matters in a variety of contexts.  For example, Special Counsel Mueller has made various characters in the Russia investigation plead guilty to the crime of making false statements. The US Department of Commerce recently announced that Zhongxing Telecommunications Equipment Corporation of Shenzen China and ZTE Kangxun Telecommunications Ltd....

When a company learns that the government is investigating the company’s activities, a company has to move quickly to respond to the government and engage prosecutors about the investigation.  Depending on how the company learns about the government investigation, the company’s strategy and immediate steps may differ. Once the company learns it is under investigation, the company has to collect information about the activity and business...

Joint ventures pose a unique constellation of anti-corruption risks.  Like third-party risks, companies that enter into joint ventures face significant anti-corruption risks, especially in those situations where a state-owned entity is the joint venture partner. By definition, companies do not have the same authority over third parties and joint venture partners as they can when it comes to their own employees. A company faces two...

Third-party risk dominates the anti-corruption compliance landscape.  And for good reason – companies do not exercise significant control over their third parties, at least in comparison to company employees.  I know this is obvious but from a theoretical standpoint a company has greater legal authority over the conduct of its employees in contrast to its third parties. Relying on third parties is a two-edge sword. ...

The laundry list of companies that have been prosecuted for FCPA violations surrounding gifts, meals, entertainment and travel expenditures is lengthy. Consider just two examples: In SEC v. Diageo (2011) (copy Here), Diageo agreed to a $16 million settlement for a variety of illegal bribe payments and GMET expenses, including $64,184 spent on rice cakes and other gifts for the South Korean military over a four-year...

Compliance officers are trained to spot risks.  They have an eagle eye and keen sensitivity.  In some cases they have to overcome inaccurate designations – my favorite is a “PEP,” a politically exposed person.  I sometimes hear the compliance equivalent of an “Oh, no, we can’t do business with him or her – he or she is a PEP.”  Of course, we all know that...

Any fool can know.  The point is to understand. – Albert Einstein Two things are infinite: the universe and human stupidity; and I’m not sure about the universe. – Albert Einstein This week I am posting a five-part series on FCPA compliance issues.  While there have been many advances in the anti-corruption ethics and compliance field, there is still more work to do to advance...

In the early part of 2018, the Justice Department brought two significant AML criminal enforcement actions against US Bancorp and Rabobank, respectively. These two cases, coupled with the new beneficial ownership regulations effective May 11, 2018, raise significant changes in the AML compliance and enforcement landscape.  In addition, the SEC and FINRA brought AML enforcement actions against Aegis Corporation and three individuals, two of whom were...

Global banks have been the focus of enforcement actions, focusing on AML and sanctions violations.  With the new beneficial ownership regulations effective May 11, 2018, we are about to see a significant transformation in AML compliance and enforcement. I have scheduled a free webinar, The New Era of AML Compliance: The Need to Refresh Your AML Compliance Program, May 15, 2018, at 12 Noon EST. ...

The New Era of AML Compliance: The Need to Refresh Your AML Compliance Program May 15, 2018, 12 Noon EST SIGN UP HERE Anti-Money Laundering compliance programs are evolving to take into account new government expectations and regulations, including FinCEN’s new beneficial ownership regulations and recent enforcement actions. Recent AML enforcement have raised important issues for financial institutions as well. Join Michael Volkov, CEO of...