Tagged: due diligence

Individual Criminal Prosecutions and Deterrence

The issue of deterrence is easy to boil down – a company pays a fine of $500 million for illegal conduct and continues on its merry way. If the same company pays the same fine of $500 million and three of its top executives are prosecuted, convicted, and sent to jail, then the value of deterrence has increased significantly. Common sense tells us that deterrence...

The Force Awakens: Vimpelcom’s FCPA Settlement and the Wreckage Left Behind (Part II of II)

The Vimpelcom FCPA enforcement action is stunning in its breadth and the brazen nature of the bribery scheme. It is hard to accept that such conduct stretched into 2011 to 2013, given the significant emphasis placed on anti-corruption enforcement in the corporate governance world. It is easy to ask but hard to imagine how many other major companies are operating with such flimsy attention to...

Return of the Jedi (DOJ): The Vimpelcom Enforcement Action (Part I of II)

Welcome back to the Department of Justice and FCPA enforcement. After a lengthy hiatus, DOJ returned to the FCPA enforcement scene with a demonstration of its full capability, assuming certain individuals are prosecuted criminally out of the case. (I know technically they reappeared with the PTC non-prosecution agreement but give me a little literary license). Overview In a top-10 worthy enforcement action, DOJ and the...

The Modern UK Slavery Act: Supply Chain Risk Management

The United Kingdom has a number of interesting ideas and policy initiatives. The UK Bribery Act was a strong statement against corruption, but remains unenforced. The United Kingdom has enacted the Modern Slavery Act, which imposes a number of new requirements on global companies. The Modern Slavery Act is modeled after California’s Transparency in Supply Chains Act, but is much broader in application. The Modern...

Focusing on Internal Investigations

A speak up culture is an important component of a company’s commitment to organizational justice. All of the pieces of an internal justice system have to fit together and are interdependent. When one part does not work, the whole system does not work. A robust internal investigation system is a critical component of organizational justice. Companies often pull together the basic components of an internal...

Learning from Schlumberger’s Mistakes: Doing Business Under Iran General License H

Lauren Connell, Managing Associate at The Volkov Law Group, rejoins us for a posting on sanctions compliance.  She can be reached at lconnell@volkovlaw.com. Implementation Day has been hailed as a new stage in Iran-US relations. There has been significant media coverage of how sanctions are being lifted, with various outlets suggesting that Iran is now “open for business.” In reality, that is far from true....

Beneficial Ownership: Sanctions and FCPA Compliance

Financial institutions have been pushing back hard on FinCEN’s proposal to require banks, investment banks and other financial institutions to identify beneficial owners of account holders. As time goes on the impact of FinCEN’s proposal is diminishing. Why? In general, businesses have other reasons to secure beneficial ownership information. One key concern is sanctions compliance. To the extent an account holder engages in international transactions,...

The Changes to Iran Sanctions and Compliance Challenges

Putting aside the politics surrounding the Iran Nuclear Deal, the exchange of prisoners and other hot button political issues surrounding Implementation Day and the change in US-Iran relations, the new Iran sanctions create a new set of challenges for trade compliance officers. Talk about a headache — all you have to do is look at the new guidance, Frequently Asked Questions, and related documentation (Here)....

Due Diligence and Beyond — Balancing Competing Priorities

DOJ’s compliance counsel, Hui Chen, pronounced this year as the compliance year of third party due diligence. This has been a good year for compliance, but I would not characterize this year as limited to third party due diligence. I am not sure why Ms. Chen focused on third party due diligence but frankly there have been a number of significant developments in compliance, including...

Win-Wins: Looking for Business and Compliance Success

A Chief Compliance Officer who lacks working relationships with the business side of a company is like a day without sunshine. No matter how strong or finely tuned a compliance program is on paper – in practice, the success of a compliance program depends on acceptance and embrace by the business. I am always reminded of meeting a business manager in a company who told...