NAVEX recently released its annual Hotline and Incident Management Report. Given NAVEX’s strong position in the hotline service market, NAVEX has access to a large volume of reporting data. As a result, its annual report is always interesting and a must-read ethics and compliance report. NAVEX’s report revealed several important trends: A larger number of employees are willing to report misconduct. Overt the last ten...
The SEC announced another FCPA settlement in 2022. FCPA enforcement, in general, is picking up. Tenaris, a global supplier of steel pipes and related services for the energy industry agreed to pay the SEC $78 million to resolve FCPA violations that occurred in Brazil. The US Department of Justice closed its investigation without bringing charges. In this Episode, Michael Volkov reviews the SEC settlement.
Alex Cotoia, Regulatory Manager and Compliance Consultant, rejoins us for a timely posting on compliance overkill in this era of aggressive sanctions enforcement. Alex can be reached at [email protected]. The uptick in recent sanctions activity caused in large part by the Russian Federation’s unprovoked and unilateral invasion of Ukraine has caused absolute pandemonium in many compliance circles. While the U.S. Department of Justice (and the...
The Treasury Department’s Office of Foreign Asset Control (“OFAC”) is a busy enforcement agency. OFAC has implemented the comprehensive Russia Sanctions Program in response to Russia’s invasion of the Ukraine. The scope and pace of this process has been unprecedented. Along the way, OFAC is continuing a steady pace of sanctions enforcement actions. In a recent action, Banco Popular de Puerto Rico (“Banco Popular”), a...
In following the Justice Department and the Securities Exchange Commission FCPA enforcement actions, I am always reminded of the popular phrase — “reading the tea leaves.” (or “tasseography,” a fortune-telling method based on tea leave patterns in tea sediments). Despite a slow initial year in 2021, the Biden Administration’s stamp and push on FCPA enforcement is becoming clear. Keep in mind, DOJ and SEC officials...
The SEC announced another FCPA settlement in 2022. FCPA enforcement, in general, is picking up. Tenaris, a global supplier of steel pipes and related services for the energy industry, agreed to pay the SEC $78 million to resolve FCPA violations. The US Department of Justice closed its investigation without bringing charges. The resolution of Tenaris’ case is interesting because of Tenaris’ recidivist status. In 2011,...
The Justice Department has resumed FCPA enforcement with a bang. The new enforcement approach has been unveiled and the message for CCOs and corporate business leaders is clear — anti-corruption compliance should be a critical compliance priority. Companies that fail to do so will be severely punished. The new DOJ approach stands as one of the most important events elevating the importance of corporate compliance...
Glencore’s settlement with DOJ and the CFTC revealed a plethora of manipulative, deceptive and corrupt conduct, which spanned from at least 2007 to 2018 and occurred in the United States and global oil markets, including manipulation of four U.S. based S&P Global Platts physical oil benchmarks and related futures and swaps. From 2007 to 2018, Glencore sought to increase profits from physical and derivative oil...
The broad and pervasive scope of Glencore’s bribery conduct is obvious. The scope of its misconduct reflects Glencore’s fatal culture and commitment to profits at any and all cost. Glencore’s board and senior executive team forgot the basic equation — ethical companies are more profitable in the long run. Instead, Glencore embraced immediate gratification, circumventing controls and adhering to a culture of lawlessness. Glencore’s bribery...
The Justice Department has been promising a new, more aggressive approach to FCPA enforcement. DOJ officials have made statements to that effect on numerous occasions. The Biden Administration touted its elevation of the battle against corruption as a national security issue and it issued its Strategy Against Corruption, which included numerous promises, initiatives and proposed policy changes. Along with these events, DOJ has repeatedly touted...
