Day: August 2, 2022

Scott Garland – From Computer Science to Law

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Post date August 2, 2022
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The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What skills does a CCO need to navigate the compliance waters in any company successfully? What are some of the top challenges CCOs have faced, and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, I am joined by Scott Garland, Managing Director at AMI. Scott came to AMI from the DOJ, where he held the role of Professional Responsibility Officer. As he described, it was akin to a CCO role for the US Attorney’s Office for Massachusetts.

Garland’s Bachelor’s Degree was more analytical than most CCO types as he entered MIT to major in software engineering and graduated with a B.Sc. in Economics. After college, he worked as a statistical research associate at a consulting company. He decided he wanted to bridge analysis to policy, so he went to the University of Michigan Law School for his law school degree. He then held a federal judicial clerkship and worked at two mid-sized law firms, practicing white-collar criminal defense and some litigation, including constitutional law.

Resources

Scott Garland’s Profile on AMI

Tags AMI, Scott Garland, University of Michigan Law School

Greetings and Felicitations

Winnie the Pooh Explains Compliance: Part 2 – Kanga, Roo and the Compliance Ombudsman

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Post date August 2, 2022
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This week I am exploring a five-part series on compliance as seen through the lens of Winnie the Pooh and the characters who live in the Hundred Acre Woods: Pooh, Eeyore, Tigger, Kanga & Roo, and Piglet. Winnie-the-Pooh, also called Pooh Bear and Pooh was created by English author A. A. Milne. Yesterday, we introduced Tigger and the sales function’s role in compliance. In this episode, we focus on Kanga and her son, Roo, and the Corporate Ombudsman’s role in compliance.

Kanga is a female kangaroo and the doting mother of Roo. They live near the Sandy Pit in the northwestern part of the Hundred Acre Wood. Kanga is the only female character to appear in the books. Kanga is kind-hearted, calm, patient, sensible and down to earth. She likes to keep things clean and organized and offers motherly advice and food to anyone who asks her. She is protective over Roo and treats him with kind words and gentle discipline. She also has a sense of humor, as revealed in chapter seven of Winnie-the-Pooh when Rabbit connives to kidnap Roo, leaving Piglet in his place; Kanga pretends not to notice that Piglet is not Roo and proceeds to give him Roo’s usual bath, much to Piglet’s dismay.

Roo is Kanga’s cheerful, playful, energetic son, who moved to the Hundred Acre Wood with her. His best friends are Tigger and a young Heffalump named Lumpy, who loves to play with him. Roo is the youngest of the main characters. When Kanga and Roo first come to the Hundred Acre Wood, everyone thinks Kanga is a fierce animal, but discover this untrue and become friends with her. In the book, when Tigger comes to the forest, she welcomes him into her home, attempts to find him food he likes and allows him to live with her and Roo. After this, Kanga treats him like she does her son. I want to use Kanga and Roo to consider another role in compliance. It is the creation of an ombudsman for employees to help facilitate compliance.

Kanga is the most trusted soul in the Hundred Acre Woods. She would be an ideal ombudsman and an example that the “success of these programs depends partly on getting the right person for the role. A good ombudsman is a superb listener who establishes trust in people at all levels.” They need to have the skills to think through solutions to problems. Kanga certainly has such skills. A great example is the arrival of Tigger in the Hundred Acre Woods. While Tigger claims to like everything to eat for breakfast, it is quickly proven he does not like honey, acorns, thistles, or most of the contents of Kanga’s larder. However, he discovers what Tigger likes best is the extract of malt, which Kanga has on hand because she gives it to Roo as “strengthening medicine”. This is another key trait of an ombudsman; the person must also respect senior executives and be comfortable taking issues to the Chief Executive Officer (CEO) or the Board if necessary. Understanding the corporate culture and who has influence is also important – which is why many capable people in this role are promoted from inside the company. The same can be said for Kanga in the Hundred Acre Wood.

Join me tomorrow when I consider Eeyore and the role of corporate legal in compliance.

Tags CCO, compliance, Compliance Ombudsman, HR, Hundred Acre Woods, Kanga and Roo, Winnie the Pooh

The Corruption Files

The Bribery Trilogy in Telecom with Tom Fox and Michael DeBernardis

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Post date August 2, 2022
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Tom Fox and Michael DeBernardis go in-depth about the bribery scandals of three big names in telecom, MTS, VimpelCom, and Telia; Ericsson’s shady deals in multiple countries, how knowing high-risk countries and the beneficiaries of companies can save you from trouble, and the importance of visibility for compliance professionals.

▶️ The Bribery Trilogy in Telecom with Tom Fox and Michael DeBernardis

Key points discussed in the episode:

✔️ Tom Fox gives a brief background on the VimpelCom case. He points out how the company, including MTS and Telia, were all tied up with the schemes of Gulnara Karimova, the daughter of a former president in Uzbekistan.

✔️ The DOJ and the SEC are confident in tackling companies taking advantage of “shell companies” and getting involved with corrupt government officials. There was malicious intent on the companies’ sides regardless of the rank of the person involved.

✔️ Tom Fox describes the Telia case. Michael DeBernardis points out that the difference between the outcomes of Telia, MTS, and VimpelCom’s cases was the penalties. Cooperation from Telia and Vimpelcom garnered significant reductions.

✔️ Tom Fox lays out the MTS case. Even when violations were found in Kolorit’s purchase, MTS higher-ups presented excuses that the compliance team failed to argue. The control environment for transparency has since improved post-prosecution.

✔️ Michael DeBernardis emphasizes the risk behind unidentified beneficial owners. VimpelCom, Telia, and MTS had full knowledge of their schemes. But the story is a lot more muddied and complex to the ears of the board and compliance professionals.

✔️ Tom Fox retells the Ericsson case, illustrating it as not just a corrupt third-party, paid-for entertainment, or donations. The imagination only limits the depths where companies explore in weaving the most intricate schemes. Michael DeBernardis attributes this to enterprise-wide failure.

✔️ Knowing the high-risk countries can save your company from trouble. Once you start paying bribes, you’re stuck. The receiving party already has claws on you and will threaten to report to US authorities if you attempt to exit. Michael DeBernardis adds that despite these cases being beyond US soil, companies won’t be able to challenge them.

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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.

Tags Bribery Trilogy, Ericsson, MTS, Telecom, Telia, VimpelCom

Innovation in Compliance

The Accelerated Transformation of Compliance with Samantha Regan

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Post date August 2, 2022
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Accenture provides top-notch services in strategy & consulting, and operations for its clients. Samantha Regan is Managing Director and Global Lead for the Regulatory Remediation & Compliance Transformation group within Accenture’s Finance & Risk practice. Tom Fox welcomes her to this week’s show to talk about the Accenture Compliance Risk Study Report.

Accenture’s Compliance Risk Study

Tom asks Samantha about the origin of the report. Samantha responds that each year, the team at Accenture gets together to observe and record what’s happening in the world of compliance. They seek to discover the key issues and concerns for compliance officers across various organizations. Developing a framework, conducting a survey and collating the data are the next steps. This is followed by “synthesizing those results and looking for the insights from the information that’s been provided and then developing the report off the back of that,” Samantha tells Tom.

Primary Compliance Risks In 2022

Tom asks Samantha to discuss the primary risks that they identified through the study. She replies that the biggest area of focus for compliance folk in 2022 is cybersecurity, ESG, and privacy. Tom asks her to identify some challenges compliance professionals face when responding to and managing these risks. New pressures are constantly being placed on compliance professionals, Samantha explains. “Compliance functions continue to evolve at a speed and scale and force the compliance function to change from being reactive to what was going on in the environment, to needing to be more proactive, building a function that is able to adapt.” She believes that by using data, compliance officers can “build a future-ready and risk-proof compliance function”.

Looking Ahead

Tom asks Samantha how she thinks compliance professionals should respond to risks in 2025. Would the trends highlighted in the study be accelerated? “I think the warp speed at which companies are operating is going to require compliance functions to have accurate and complete visibility into risks and mitigating controls across the business,” she comments. Data from the study suggests that most of the issues compliance officials have can be attributed to the lack of data; there needs to be enough information available to assess risk exposure. She mentions that there is increasing concern surrounding third-party risk. Samantha believes that with the increasing speed and evolution of risks, “the compressed transformation of organizations and industries is just going to put increasing pressure on compliance functions to continue the transition.”

Resources

Samantha Regan | LinkedIn

Accenture | Compliance Risk Study – 2022