As a compliance advisor, we often use the word “essential” when describing elements of a compliance program. One of those “essential” elements is fostering internal reporting and communication. The lifeblood for a Chief Compliance Officer is internal information and reports. The sources of such information can be whistleblowers, employees who want to report an idea or a concern, a hotline or other anonymous report, or...
Let’s add a new industry to the list of FCPA industry sweeps. Is anyone surprised? If I worked at DOJ or the SEC, I would simply take a look at those significant industries entering China and launch an industry-wide inquiry by issuing letters to major companies in that sector. The predicate for an inquiry is satisfied by corruption conditions in China. As I have said...
The Justice Department’s criminal enforcement of antitrust laws is a model of success. DOJ’s criminal program took off in the 1990s with two major developments: (1) adoption of a corporate leniency program which increased self-reporting by cartel members; (2) enforcement against international cartels which had an impact on US consumers. Criminal fines in 2009 exceeded $1 billion, dipped to $555 million in 2010, and then...
The headlines are dominated by FCPA, Roger Clemens and John Edwards. AML enforcement has come back to business attention. There has been a lot of news around the subject of Anti-Money Laundering (AML) laws and the Bank Secrecy Act (BSA) recently. The Office of the Comptroller of the Currency has been flexing some muscle lately in bringing cease and desist actions against banks. Even the Vatican...
It is amusing to listen to companies complain about the burdens of anti-corruption compliance. It is hard to sympathize when you consider the burdens on other industries, particularly the health care industry. If the Chamber of Commerce only knew how burdensome and difficult health care regulations can be, they would quickly drop the FCPA ball and sing a new tune for health care reform —...
Companies complain about the burdens of anti-corruption compliance. They need to put things in perspective. The “greatest” risk of them all may be the False Claims Act (FCA). FCA violations can lead to severe consequences, especially for government contractors. Since the FCA was amended in 1986, more than $30 billion dollars has been recovered in damages, fines and penalties, impacting a wide array of industries...
In the end, what was more pathetic – the government’s prosecution of John Edwards or John Edwards himself? I hate to say it but both sides came out the losers. John Edwards needs to crawl back under the rock from where he came. The sooner the better. His post-trial statement with his daughter and parents at his side and behind him made everyone wince. His...
Chief compliance officers have enough on their plate without having to worry about another risk. The Obama Administration came into power promising to increase enforcement of environmental laws and regulations. On the civil and regulatory side, they have done that and more. The EPA has been aggressive and increased civil enforcement and regulations. Civil penalties increased from $110 million in FY2010 to $168 million in...
Can you imagine the discussions inside Target, The Gap, Levi’s and other global retailers the day after the New York Times story broke? I would love to have been an observer of meetings and conversations among top brass at these companies. Global retailers must be suffering from sleepless nights. Compliance in the global marketplace is extremely difficult, especially in places like Brazil, India, Russia and...
Patrick Kellermann (a regular contributor) and Tom Cohn, both from LeClair Ryan, are guest contributors today and provide an important posting on data privacy, a fast growing and important issue which creates significant risks for all businesses. Patrick and Tom can be reached here and here, respectively. This post, the first in a continuing series, will focus not on crime or corruption, but on compliance...
