Tagged: financial controls

Where Has All the Money Gone? Longtime Passing, Oh Where Has it Gone?

Compliance officers have enough challenges.  Most compliance officers, if you ask them, will candidly admit they are constantly putting out fires.  It is just part of the profession and comes with the territory. I hate to add to their burden but here goes anyway – companies face serious financial risks: I do not mean in the profitability way but in the fact that employee misconduct...

A Compliance Priority — Watching Where Your Money Goes

His money is twice tainted: taint yours and taint mine – Mark Twain In a number of enforcement contexts, I am always struck by a common theme – crooks are able to obtain access to corporate money for improper purposes.  You never hear about a crook who uses his own money to pay bribes or secure any illegal advantage. Companies have to maintain vigilant financial...

The Vital Role of Internal Audit to Compliance

A chief compliance officer can only succeed with the support of other important compliance partners.  Another way to put it – in the words of Blanche Dubois from A Streetcar Named Desire, “I have always depended on the kindness of strangers.”  This observation, while dramatic in license, applies to the place of the compliance officer in the corporate governance world. A key partner for compliance...

Kinross Gold Mining FCPA Settlement: SEC Continues Internal Controls Focus

The SEC continues to exercise its powerful enforcement tool – internal controls violations – in FCPA enforcement actions against public companies.  Kinross Gold Corporation is the latest company to enter into an FCPA settlement. Kinross agreed to pay $950,000 for inadequate internal controls and books and records violations centered on the activities of two mining companies Kinross acquired.  The SEC cited no evidence of any...

Financial Controls and Contract Management Systems

Compliance officers understand that a company’s greatest risks surround access to and use of money. A CCO has to understand a company’s financial controls, and in a perfect world, should have a seat at the table in the crafting and enforcement of such controls. A company faces serious harms, enforcement risks and collateral consequences from deficiencies in its financial controls. Sarbanes-Oxley requires public companies to...

Bridging the Gap: Uniting Compliance and Financial Controls (Part II of IV)

A Chief Compliance Officer has a number of important relationships to attend to in the corporate governance landscape. A critical relationship needed to “operationalize” a compliance program is a partnership between a CCO and the Chief Financial Officer and its key constituents, including the Internal Auditor and Comptroller. Unfortunately, a recent survey (Here) revealed that only 37 percent of CFOs actively participate in their company’s...

Lessons Learned from Embraer $205 Million FCPA Settlement (Part II of II)

The Embraer FCPA settlement action contains a number of important lessons learned and compliance reminders. In several significant respects, the Embraer case confirms in several areas why proactive compliance programs are important to prevent and detect possible bribery schemes. Given the length of the Embraer investigation, we can only hope that many compliance programs have moved beyond the deficiencies highlighted in the case.   Nonetheless, there...

Misconduct in the C-Suite: SEC Settles FCPA Case with CEO

The SEC is setting its sights on individual prosecutions. Both the Justice Department and the SEC have reiterated the importance of prosecuting individuals. DOJ’s Yates Memorandum promises to deliver an increase in civil and criminal prosecutions. The SEC is delivering on its stated goal of increasing individual prosecutions. In a busy FCPA enforcement week, the SEC settled the SciClone Pharmaceuticals case and a separate prosecution...