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...

In a long-anticipated and major enforcement action, the Justice Department and the Commodities and Futures Trading Commission resolved a sprawling investigation with Glencore International A.G. and Glencore Ltd, a Swiss-based commodity trading and mining company. Glencore entered guilty pleas for FCPA violations and a commodity price manipulation scheme. Glencore paid over $1.1 billion to resolve these two major investigations. The resolution in the U.S. was part of...

In a long-anticipated and major enforcement action, the Justice Department and the Commodities and Futures Trading Commission resolved a sprawling investigation with Glencore  International A.G. and Glencore Ltd, a Swiss-based commodity trading and mining company. Glencore entered guilty pleas for FCPA violations and a commodity price manipulation scheme.  Glencore paid over $1.1 billion to resolve these two major investigations. The resolution in the U.S. was...

The evolution in the global economy is raising challenges for anti-corruption compliance.  In response to economic dislocations and disruptions stemming from the COVID-19 pandemic and Russian invasion of Ukraine, businesses encounter situations where supply chain delays and disruptions inevitably increases bribery demands and pressures. A perfect example of such a situation was the delay in export of essential goods from China to the United States...

In a blockbuster settlement, DOJ unleashed its full power against Allianz Global and key portfolio managers responsible for a massive, long running fraud scheme involving a series of private investment funds managed by Allianz Global Investors U.S. (AGI).  These funds eventually collapsed as a result of the economic hardships caused by the pandemic, resulting in investor losses of billions of dollars. Gregoire Tournant, Chief investment...

In a homecoming speech, DOJ’s Assistant Attorney General Kenneth Polite gave a rousing speech to a room full of compliance professionals at the annual Compliance Week meeting in Washington, D.C.  AAG Polite, who has served as a CCO himself, embraced the mission of compliance officers as a critical part of corporate governance systems. AAG Polite specifically recognized the importance of the compliance functions and the...

The global economy has suffered two significant shocks — first, the pandemic sent shockwaves through every organization, and second, the war in Ukraine. Both of these events exposed the importance of risk management, especially with regard to supply chain and distribution operations. Hence, the renewed focus on third-party risk management and the repetitive description of “holistic” third-party risk management.  Reality has a way of forcing change and...

It is easy to be overwhelmed by the overall risk profile of your third-party population.  The best way to tackle the problem is by defining specific problems and risks and then analyzing a subset of third parties as to this specific problem or risk.  On the operational side, the business can guide this inquiry, especially procurement professionals who should be familiar with the direct and...

It is an initially daunting task — identify all of your third-party partners with whom your company conducts business.  For large global companies, this is no easy issue.  Some companies do not have readily available a list nor an understanding of the size and scope of their third-party population.  That can be an initial hurdle unto itself. The first step usually involves some kind of...

While I have devoted the first two postings to outlining all the downside risks of third-party management and threats to overall organization resiliency and operations, it is important to consider the positive upside of managing your third party population.  After all, a large number of third parties represent your organization, such as agents, distributors, and resellers, in the marketplace and frequently interact with company customers. ...