Susan Divers, LRN Senior Advisor, reviews LRN’s 2022 Ethics and Compliance Program Effectiveness Report. LRN conducts an annual Ethics, and Compliance Program Effectiveness Report (“LRN Report”) th (https://pages.lrn.com/2022-pei-report)at is a must-read for business leaders, managers, investors, compliance professionals, and other stakeholders. LRN’s annual report has addressed key issues surrounding the impact of the COVID-19 pandemic on companies and ethics and compliance programs.
Day: February 25, 2022
Our most popular new years resolution won’t get solved by jumping to conclusions. Not only that… Nothing will get solved by jumping to conclusions!
Often we become so invested in our first impressions of a situation we never stop and think about what else could be going on.
In today’s episode, we discuss being curious and considering all the other options in a given situation.
Give it a listen to learn more!
Listen in at: http://www.jasonmefford.com/fireandearth165/.
The Kitchen considers the Directorate of Defense Trade Controls (DDTC) updated guidance to Agreements under ITAR.
Star Wars continues to be the most successful movie franchise in history. The movies are great fun, the story telling is excellent, thoroughly based on the Hero’s Journey and the characters are some of the most beloved in cinema history. Whether your favorite scene is the from jump into hyperspace, the climactic lightsaber duel between Obi Wan Kenobi and Darth Vadar, Vadar intoning “I am your father”, or the destruction of the Death Star they all still resonate today. But what of the science of Star Wars. Are these great scenes and effects even possible? Do they violate the laws of physics and nature as we understand them today? Join Tom Fox and Dr. Ben Locwin, a healthcare executive, who in addition to his medical expertise is a degreed astrophysicist, as the look behind some of the most exciting scenes in Star Wars to look at the portrayal of science in Star Wars. In this concluding Episode 5, they discuss the Death Star. Some of the topics covered are:
1. How is it constructed? Can you build a small planet in space?
2. How would you generate the energy to fully arm the weapon?
3. Why is there no kinetic free lunch in space ?
4. How does the James Webb Telescope apply to the Death Star?
5. What are LaGrange Points and how do they apply to the Death Star?
Derek is 2L at Washington and Lee University with a background in K-9 search and rescue in California. He now balances being a law student, pet owner for a retired working dog, husband, and father. In this episode of Classroom Insiders, Derek discusses misappropriation theory and how it came about.
Justice Powell believed that the idea of equal access to information was not practical in relation to reality. While it may have been the ideal, the disclose-or-abstain rule was not a pragmatic approach to regulating insider trading, as no one would ever have equal access to information across the board. Powell expressed this in his ruling, arguing that if equal access to information was required, there wouldn’t be many people trading.
According to Justice Powell, misappropriation theory was an extension of insider trading regulation that was beyond of the SEC’s authority and the existing understanding of insider trading regulation. Unfortunately, he retires after convincing some of his colleagues to vote against it. As he was no longer on the bench, he could not contribute to the tied 4-4 voting results, so the Second Circuit’s opinion stood by default.
Resources
Karen Woody on LinkedIn
As Russia invades Ukraine, Tom and Jay settle in and are back looking at some of the week’s top compliance and ethics stories this week in the Russia Invades edition.
Stories
- What Russia invasion could mean for corporate governance. Michael Peregrine in Forbes.com. What do sanctions mean for US companies? Jaclyn Jaeger in Compliance Week (sub req’d)
- Why is subculture audits so critical? Vera Cherepanova explains in the FCPA Blog.
- KT Corp. settles FCPA enforcement action. Tom (FCPA Compliance and Ethics Blog) and Mike Volkov (Corruption Crime and Compliance) both have 3-part series. Matt Kelly’s take in Radical Compliance. Tom and Matt in Compliance into the Weeds.
- National Cryptocurrency Enforcement Team and what it means. Kathleen McDermott and Mark Krotoski in CCI. David Smagalla in WSJ Risk and Compliance Journal.
- How Credit Suisse facilitated crime, corruption, and dictators. Jessie Drucker and Ben Hubbard in the New York Times.
- Why diversity on investigation teams matters. Karin Portlock and Jabari Julien in Compliance and Enforcement.
- Could small-cap directors & officers could face ESG liability. Lawrence Heim in practicalESG.
- Global trends in corporate governance for 2022. Richard Fields, Rusty O’Kelley III, and Laura Sanderson, in Harvard Law School Forum on Corporate Governance.
- Roger Ng trial in danger of collapse due to prosecution ‘inexcusable error .’Stewart Bishop in Law360. (sub req’d)
- Using the FCPA to fight the demand side of bribery. Matthew Stephenson in GAB.
Podcasts and More
- In February on The Compliance Life, I visited with Ellen Smith, a former Director of Trade Compliance who recently started her consulting firm. In Part 1, she discussed her academic background and early professional career. In Part 2, Ellen discussed her move in-house. In Part 3, Ellen discusses being a part of the Compliance Dream Team at Weatherford. In Part 4, Ellen moves into the world of consulting.
- On the FCPA Compliance Report, Tom began a 2-part series with Trade Compliance guru Matt Silverman on possible Russia sanction (Part 1) and the corporate response (Part 2). Part 2 posts Monday, February 28.
- CCI releases a new e-book from Mike Volkov, “Compliance Culture Revolution .”Available free from CCI.
- Gwen Hassan has a special 2-part pod series on Hidden Traffic with Jeff Bond, from the Global Fund to End Modern Slavery, on the impact of climate change on modern slavery. Part 1 and Part 2.
- Are you a Star Wars fan? How about an uber-Geek? You will love the 5-part series on Science of Star Wars in the Greeting and Felicitations podcast series on the Compliance Podcast Network if you are either or both. In this series, Tom visits astrophysicist Dr. Ben Locwin on the following topics: Episode 1-Traveling in Hyperspace, Episode 2-Fighting with a Light Saber, Episode 3-Mechanical Prosthetics, Episode 4-Cyborgs, and Robots and Episode 5- Death Star. It is a ton of fun, and you will love it.
Tom Fox is the Voice of Compliance and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.
This week on the FCPA Compliance Report, I began a two-part podcast series on the potential U.S. sanctions if Russia invades Ukraine and what can be done to prepare. The guest and subject matter expert for the podcast was Matt Silverman, Director of Trade Compliance at VIAVI. Now that Russia has invaded Ukraine, I thought the need was even greater to get this information out. This blog post highlights Matt’s thoughts on both topics. I urge to listen to the two podcasts in their entirety to understand what sanctions might be levied and how you can help your company prepare a response.
- What are the potential U.S. sanctions if Russia invades Ukraine?
- Impose a comprehensive or near-complete embargo of Russia.
- Impose additional sectoral sanctions on certain Russian industries.
- Prohibit exports of certain items or technology to Russia.
- Designate Russian entities under the Foreign Direct Product Rule.
- Add specific Russian entities or individuals to OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN”).
- Prohibit Russian entities from accessing the U.S. financial system/using U.S. dollars and/or sanctioning foreign banks that conduct transactions with sanctioned Russian entities.
- Prohibit U.S. persons or entities from investing in Russian companies, requiring divestment, and/or sanctioning foreign entities that buy Russian government bonds.
- Impose “secondary sanctions” on entities or individuals that conduct certain transactions with Russia.
- Freeze Russian assets located in the U.S.
- Ban U.S. financial assistance to Russian entities.
- Withhold U.S. aid to any organizations that assist Russia.
- Prohibit imports and/or impose high tariffs on specific Russian imports.
- S. State-Level Sanctions: States may enact laws that prohibit business with, or require divestment of shares in, firms that conduct certain transactions with Russia.
- What can be done to prepare?
- First, ascertain your exposure and consider how some or all of these actions would impact your business.
- Check your sanctions screening policies and procedures and check your customers and business partners in real time against global sanctions lists.
- Identify all of your contracts with Russian entities or individuals and review your contracts for compliance with law clauses, notice clauses, and termination provisions.
- Know your customer.
- Identify what, if any, items, or technology you are exporting to Russia and any transactions with Russian entities that have ongoing or continuing obligations.
- Take a look at your supply chain to avoid business interruption.
- Identify whether you have any outstanding debts from Russian entities or individuals, and, if so, promptly purse collection activities.
- Identify any procurement or manufacturing activities for goods intended for Russia and consider whether you can safely postpone or delay those activities, especially if you are dealing with specially designed or non-fungible goods (without breaching any contracts or risking failure to meet deadlines).
Resources
Matt Silverman on the potential U.S. sanctions if Russia invades Ukraine. (Part 1)
Matt Silverman on What can be done to prepare your company. (Part 2)
In this episode of the FCPA Compliance Report, I am joined by Matt Silverman, Director of Trade Compliance at VIAVI. In Part 1, we considered the potential U.S. sanctions if Russia invades Ukraine. In this Part 2, we discuss what you can do to prepare for such an eventuality. Highlights in include:
- First, ascertain your exposure and consider how some or all of these actions would impact your business.
- Check your sanctions screening policies and procedures and check your customers and business partners in real time against global sanctions lists.
- Identify all of your contracts with Russian entities or individuals and review your contracts for compliance with law clauses, notice clauses, and termination provisions.
- Know your customer.
- Identify what, if any, items, or technology you are exporting to Russia and any transactions with Russian entities that have ongoing or continuing obligations.
- Take a look at your supply chain to avoid business interruption.
- Identify whether you have any outstanding debts from Russian entities or individuals, and, if so, promptly purse collection activities.
- Identify any procurement or manufacturing activities for goods intended for Russia and consider whether you can safely postpone or delay those activities, especially if you are dealing with specially designed or non-fungible goods (without breaching any contracts or risking failure to meet deadlines).
Resources
Matt Silverman on LinkedIn
