Corruption, Crime & Compliance

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29 Apr, 2018

Episode 36 – How to Respond to a Government Investigation

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...

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26 Apr, 2018

FCPA Compliance: Navigating Joint Venture Risks (Part V of V)

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...

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25 Apr, 2018

FCPA Compliance: Automate and Audit Third Parties (Part IV of V)

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. ...

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25 Apr, 2018

FCPA Compliance: Automation and Mitigating Gifts, Meals, Entertainment and Travel Expenditures Risks (Part III of V)

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...

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23 Apr, 2018

FCPA Compliance: When a Foreign Official is a Third-Party (Part II of V)

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...

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22 Apr, 2018

FCPA Compliance: The Importance of Relativity to Risk Ranking (Part I of V)

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...

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22 Apr, 2018

Episode 35 –Update on AML Compliance from Recent AML Enforcement Actions

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...

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19 Apr, 2018

AML Compliance Lessons Learned from US Bancorp and Rabobank Enforcement Actions

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. ...

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18 Apr, 2018

Webinar: The New Era of AML Compliance — The Need to Refresh Your AML Compliance Program

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...

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17 Apr, 2018

CCOs and Compromising Positions

The chief compliances officer is the guardian of a company’s most important intangible asset – its culture. Everyone at a company is responsible for a company’s culture; the board of directors, CEO, senior executives play an important leadership role and have to exercise responsibility for preserving and promoting a company’s culture. CCOs, however, are responsible for a company’s ethics and compliance program. I have regularly...