Tagged: internal controls

30 Nov, 2020

Citigroup Fined $400 Million by Banking Regulators for Risk and Compliance Control Deficiencies

Banking regulators, the Office of Comptroller of the Currency and the Federal Reserve, recently collected a $400 million civil penalty against Citigroup for long-standing deficiencies in its enterprise risk management, compliance controls and overall banking practices. The Consent Order is Here. The aggressive enforcement action was the result of Citigroup’s continuing deficiencies in its operations, risk oversight and management practices. The OCC cited Citigroup for...

DOJ Cryptocurrency Guidance Outlines Enforcement Partnerships (Part II of II)

General

3 Nov, 2020

DOJ Cryptocurrency Guidance Outlines Enforcement Partnerships (Part II of II)

Matt Stankiewicz continues with this two-part posting on DOJ’s cryptocurrency guidance. Matt can be reached at [email protected]. DOJ’s Cyber Digital Task Force’s report, “Cryptocurrency: An Enforcement Framework,” provides a comprehensive on the growing partnerships between DOJ and other offices within the executive branch. We’ve seen the expansion of these partnerships in other legal areas, and the continued advancement of these relationships continues to build an impressive...

Lessons Learned from the Goldman Sachs FCPA Enforcement Settlement (Part III of III)

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27 Oct, 2020

Lessons Learned from the Goldman Sachs FCPA Enforcement Settlement (Part III of III)

Goldman Sachs has a new leadership role – unfortunately, it is for corruption. It would be a serious mistake to characterize or describe the Goldman corruption scheme as the result of a few, bad actors. Instead, Goldman suffered this scandal because of a culture and a weak set of controls crafted to promote business with little regard for compliance. The lessons learned from this massive...

Goldman Sachs’ Lucrative and Wide-Ranging Corrupt Scheme (Part II of III)

General

26 Oct, 2020

Goldman Sachs’ Lucrative and Wide-Ranging Corrupt Scheme (Part II of III)

Goldman Sachs now sits atop all charts with the largest US FCPA bribery penalty, totaling approximately $2.9 billion. The second largest is Ericsson’s 2019 FCPA settlement for $1 billion. There is a reason that Goldman “earned” this distinction. The bribery scheme and controls and compliance failures are repugnant and pervasive. Goldman’s corruption scheme was built on stealing funds from the 1MDB account that was intended...

Revised FCPA Guidance: Effective Compliance Program and Internal Controls (Part V of V)

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16 Jul, 2020

Revised FCPA Guidance: Effective Compliance Program and Internal Controls (Part V of V)

The initial FCPA Guidance included valuable compliance program guidance keyed to the heading, “Hallmarks of an Effective Compliance Program.” Issued in 2012, the outline of an effective compliance program was an important statement of policy. The Revised FCPA Guidance includes additional information, some of which reflect recent changes made to the Evaluation of Corporate Compliance Programs. The Revised FCPA Guidance includes important statements on internal...

Cardinal Health Pays SEC $8.8 Million for FCPA Violations

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3 Mar, 2020

Cardinal Health Pays SEC $8.8 Million for FCPA Violations

Cardinal Health (“Cardinal”) agreed to pay the SEC $8.8 million for FCPA violations in China relating to its internal controls and books and records. (SEC Order Here). Cardinal acknowledged facts relating to internal controls deficiencies and its handling of marketing accounts that it supervised for its distributors. In particular, while Cardinal mitigated its corruption risks by terminating many of these accounts, Cardinal inaccurately assessed the...

OFAC Framework for Sanctions Compliance Programs – Risk Assessment and Internal Controls (Part II of IV)

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9 May, 2019

OFAC Framework for Sanctions Compliance Programs – Risk Assessment and Internal Controls (Part II of IV)

The Volkov Law Group has scheduled a free webinar to review OFAC’s new Framework for Sanctions Compliance Programs for May 22, 2019, at 12 Noon EST. Sign Up Here. OFAC’s Framework for Sanctions Controls Program is a heightening of the importance of ethics and compliance program and reflects significant expectations for implementing effective compliance strategies. Risk Assessment In Risk Assessment, OFAC recommends that organizations conduct...

Lessons Learned and Trends from MTS FCPA Enforcement Action and Criminal Indictment of Karimova and Akhmedov (Part III of III)

General

13 Mar, 2019

Lessons Learned and Trends from MTS FCPA Enforcement Action and Criminal Indictment of Karimova and Akhmedov (Part III of III)

The MTS FCPA enforcement action stands as one of several significant prosecutions in FCPA history. The breadth and depth of MTS’ corruption scheme stands as another example of systemic bribery cultures. The details of the enforcement action underscore several important trends and enforcement policies. Let’s review some of the more significant lessons learned and trends. Application of FCPA Corporate Enforcement Policy: MTS was not able...

General

2 Apr, 2018

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...

DOJ Settles Follow-On FCPA Case: Transport Logistics Pays $2 Million Penalty

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20 Mar, 2018

DOJ Settles Follow-On FCPA Case: Transport Logistics Pays $2 Million Penalty

Last week, the Justice Department announced its first FCPA enforcement action in 2018 – a follow-on settlement from prior FCPA enforcement actions centering on a bribery scheme involving a Russian government official from a subsidiary of Russia’s State Atomic Energy Corporation. Three individuals have been charged in connection with the bribery scheme. Transport Logistics International, a Maryland company, entered into a deferred prosecution agreement and...