The Financial Crimes Enforcement Network (FinCEN) is a new, imposing figure in the world of financial regulatory enforcement.  As originally created, FinCEN served as an information and intelligence support system for other regulatory agencies and federal prosecutors.  That all changed in 2004 when Congress mandated that FinCEN create an Office of Compliance.  Since then, FinCEN’s importance as a regulatory and enforcement agency has grown. The...

In the midst of all this hullabaloo about the FCPA Guidance, an important survey was recently released by Kroll which confirmed my worst fears – despite all of the enforcement actions, all of the FCPA Paparazzi fear mongering, the implementation of the UK Bribery Act, and the global anti-corruption movement, Asian companies are not implementing anti-corruption compliance programs.  In the words of John McEnroe, “You...

The FCPA Guidance could not have been clearer; it could not have offered more incentives and carrots to the business community.  If you adopt and implement an “effective” compliance program, you will receive significant credit for your program which can reduce a penalty, avoid a corporate monitor, or even secure a declination — a free pass — for FCPA violations. The message is clear to...

The US Court of Appeals for the Second Circuit, in a decision issued on December 3, 2012, in United States v. Caronia, threw out a criminal conviction of the defendant Alfred Caronia, a pharmaceutical sales person, for an off-label marketing violation, ruling that the prosecution violated the First Amendment.  (A copy of the decision is here). The Caronia Court ruled in a 2-1 decision that the...

The US Chamber of Commerce “praised” the FCPA Guidance.  The Chamber did not get what it wanted but it had to recognize that the FCPA Guidance was helpful for businesses.  The FPCA Guidance provides important information for compliance, due diligence and other relevant issues. Some industries received a little bit of relief; others did not.  Unfortunately, for the pharmaceutical and medical device industries, the FCPA...

Compliance professionals need to thank DOJ and SEC for the FCPA Guidance discussion on corporate compliance.  DOJ and SEC provide important suggestions for improving compliance but they do so while reaffirming several important compliance principles. First, and most importantly, DOJ and SEC reaffirm the requirement that a single senior manager or group of senior managers must be assigned responsibility for the compliance program, have appropriate...

It is interesting that the most significant advances in compliance program requirements have been developed in the context of criminal prosecutions.  Maybe it is because the stakes are so high and the government’s leverage is at its zenith. The US Sentencing Guidelines’ definition of an “effective compliance program” led to a sea-change in corporate compliance.  The FCPA Guidance is an equally transformative document.  FCPA enforcement...

The FCPA Guidance contains good news and bad news.  When I ask one of my kids which they want to hear first … they inevitably choose bad news first. With that in mind, the FCPA Guidance includes relatively bad news on successor liability.  In leading up to the FCPA Guidance, I thought the DOJ and SEC “teasers” would become a reality.  What was I hoping...

Perhaps I was being overly optimistic.  I thought the Justice Department and the SEC could bring a little clarity to the term “instrumentality” in the definition of a “foreign official” under the FCPA.  It was wishful thinking on my part. In fairness, the Justice Department has a pending appeal before the 11th Circuit on this issue and any statements made could definitely have been used...

The FCPA Guidance is a terrific contribution to FCPA law and policy.  I have the utmost respect and admiration for the DOJ and SEC professionals who enforce this law.  They are true public servants.  A testament to the importance of the FCPA Guidance is the absence of any meaningful or persuasive criticism of the FCPA Guidance.  Of course, the FCPA Paparazzi will try and strike...