Day: December 5, 2022

Categories
Corruption, Crime and Compliance

A Deep Dive into the Oracle FCPA SEC Settlement

Oracle Corporation settled its second FCPA case in ten years. It agreed to pay the SEC $23 million to resolve allegations that its subsidiaries in Turkey, India and the United Arab Emirates maintained slush funds to bribe foreign officials. Ten years ago in 2012, Oracle paid the SEC $2 million for creating millions of dollars in off-the-books accounts at its India subsidiary. Join Michael Volkov as he takes a deep dive in the Oracle case and provides valuable lessons for managing third-party corruption risks.

  • In the SEC’s mind, Oracle is a recidivist, having its second enforcement action case in 10 years.
  • The settlement for $23 million underscored the power of the FCPA provisions, which mandate effective internal controls and accurate books and records, and can be applied to a wide range of conduct beyond foreign bribery, Michael remarks. 
  • The controls that Oracle put in place to prevent improper use of discounts and marketing reimbursements were not effective because there was a lack of compliance culture within the business.
  • The Oracle case is one that should be studied by compliance professionals, Michael believes. It reminds you to look at your own controls that surround discounting and ensure that the necessary documentation is carried out. “No matter what controls you have in place, they still have to be adhered to with a true culture of compliance underneath it as a foundation,” he adds.

 

Resources

SEC Oracle Case

Email Michael: mvolkov@volkovlaw.com

Categories
The ESG Report

The Role of Digital Solutions for ESG with Page Motes

Tom Fox welcomes Page Motes to this episode of the ESG Report. Page is the Head of Global Sustainability at Dell Technologies. In this conversation, Page and Tom talk about sustainability, how Dell oversees it, and where sustainability may go in the future.

The Role of Sustainability 

Tom asks Page to elaborate on what role sustainability plays at Dell. “The way we define the sustainability role and purview at our company is around all things environmental and then an aspect of social, really the human rights piece,” Page says. Human capital management, diversity, equity, and inclusion are also part of how Dell defines sustainability. 

 

Moving from Compliance to Sustainability and ESG 

There are skills that compliance professionals have that individuals in the field of sustainability can develop. Page specifically points to the ability to understand ambiguity, especially when dealing with the ethics side of ESG and sustainability. On the ethics side, there are more gray areas, so you have to have a set form of values and morals to help you navigate them. In sustainability, not everything is regulated, so you have to understand what works. “You’re working on a global scale. You’re having to understand all aspects of the company and the business. You have to understand the balance between what the business needs for business acceleration and growth,” Page stresses. 

 

Sustainability of The Future

Tom asks Page where she sees sustainability going in the corporate world. Page expresses that companies, as well as Dell, are thinking about how the solutions they offer their user and customer base can help them achieve their goals. “How can technology be used to create systems of change? How can we decarbonize our technology?” These are questions companies are thinking about intently. Currently, ESG and sustainability are more focused on structures and programs to meet regulatory requirements, but Page hopes that in the future, they will be more focused on innovation and collaboration.  

 

Resources

Page Motes | LinkedIn 

Dell Technologies

Categories
FCPA Compliance Report

FTX and Risk: Part 1 – Financial Institutions

Welcome to the award-winning FCPA Compliance Report, the most senior podcast in compliance. In this episode, I begin a 2-part series on the subjects of FTX and risk. I am joined by Gilbert Paiz and Andrew Gay, principals in the Texas Hill Country Advisors. In Part 1, we consider risk and risk management through the lens of US domiciled financial institutions and how their risk management protocols help to not only assess risk, but manage risk throughout the life cycle of a banking customer relationship. In Part 2, we will consider individual risk in investing and what type of background information, questions and due diligence individuals should engage in and how these questions and background investigations apply equally to larger investments made by sophisticated investors, hedge funds  and institutional investors; who should have made them before investing in FTX but they all failed to do so.

Some of the highlights include:

·      How do banks think of risk?

·      What internal processes or controls are in place to help a bank manage its risks?

·      What types of oversight do banks and financial institutions use to help manage risk?

·      Why are levels of review so critical?

·      How do banks think about customers in terms of risk?

·      Who decides how much risk to allow a customer to engage in with a banks money, whether through loans or other capital?

·      Do bank employees receive ongoing training on risk management issues?

·      What tech is in place to facilitate the management of risk?

 Resources

Texas Hill Country Advisors

Categories
Daily Compliance News

December 5, 2022 the Crazy Like a Fox Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All, from the Compliance Podcast Network.

Stories we are following in today’s edition of Daily Compliance News:

  • SBF media strategy: Crazy or crazy like a Fox. (WSJ)
  • Bribery as contract defense: Nigeria tried to ditch $11bn award. (Reuters)
  • Hwang says prosecutorial misconduct requires dismissal. (Reuters)
  • Who cheated in chess? (NYT)