With all due respect to Howard Sklar, the godfather of compliance convergence, the most obvious case for compliance convergence is leveraging anti-money laundering and anti-corruption compliance. Most members of the financial services industry already have an AML program, which is likely to be reasonably rigorous. Let’s start with some obvious overlaps. Risk Assessment: A company’s AML risk assessment approach a company already has in place...

Some may wonder why I regularly report on the Justice Department’s criminal antitrust record and trends. For white collar practitioners, the FCPA and criminal antitrust prosecutions regularly lead to opportunities to represent companies and/or officers. Apart from that, there are important reasons to monitor the Justice Department’s criminal antitrust investigations and prosecutions. First, a criminal antitrust investigation of cartel activity in a specific industry can...

Friday, August 12, 2011 came and went. The world did not explode, the economy is still running, companies are still standing and life went on. The SEC officially opened the doors for its new Whistleblower Office. As far as we know, there was not a line of whistleblowers standing outside the office waiting to file complaints. Surprisingly, the SEC disclosed that there are 20 pending...

Everyone’s 2011 predictions for FCPA enforcement have turned out to be wrong.   It is obvious that 2011 will go down as the year of the FCPA trial.  The previous year, 2010, was the year of record settlements, most of which involved non-US companies, and exceeded $1 billion.  In 2011, the Justice Department’s FCPA resources have been stretched by trials — the DC Sting, Lindsey, Carson,...

With all the writing and blog space filled with anti-corruption focus, companies need to take a deep breath and prioritize their compliance efforts.  Anti-corruption, antitrust and export controls remain at the top of the list.  But companies need to add insider trading compliance programs. The recent high-profile investigations and prosecutions stand as a constant reminder for companies.  The SEC and DOJ have shown they are willing...

Companies who have expanded into China need to be careful.  Call this a profound grasp of the obvious, but the risk of corruption enforcement in China is rapidly increasing, and in the near future could become even more aggressive. The United States and the Chinese governments are working closely together to coordinate anti-bribery enforcement.  The implications of this are far-reaching.  US Representatives from the State, Commerce and...

The link between corruption and human rights is growing stronger.  International organizations have been arguing for years that the causal connections between corruption and human rights abuses are clear. In developing nations and in particular failed states, corruption undermines human rights.  Some argue that the focus of anti-corruption efforts is to ensure that developing countries do not welcome terrorist organizations.  Both positions are correct —...

The government loves to visit subjects and targets of its investigations.  Why?  They get access to individuals and information without counsel’s presence and the ability to ask questions and learn new information. In today’s environment, every company should be prepared.  Every possible occurrence should be anticipated.  The government may approach executives and officers at their home for a 730 am chat, may serve a grand...

The dangers of corruption extend into countries in the Middle East. Everyone likes to talk about Brazil, Russia, India and China, but the Middle east raises real corruption risks, and that risk is growing every day. Everyone likes to think that the events of the Spring with increased desires for democracy would reduce the risk of corruption but there is no evidence that has occurred....

Howard Sklar Last year, the U.S. government imposed record penalties of nearly $2 billion in the FCPA and $1 billion in various penalties for U.S. sanctions and export controls. In some cases, these violations “converged” – meaning they arose from similar deficiencies in a company’s compliance program. For those companies that engage in international business, they need to focus on the FCPA’s prohibitions on the...