Day: August 28, 2023

Categories
All Things Investigations

All Things Investigations: The FCPA Unit in the DOJ with Laura Perkins

In this episode of All Things Investigations, Tom Fox and Laura Perkins delve into the workings of the FCPA unit within the fraud section of the Department of Justice. This unit, pivotal in investigating and prosecuting Foreign Corrupt Practices Act violations, operates within a robust hierarchy and collaborates extensively with other agencies.

Laura Perkins is a Hughes Hubbard partner whose practice focuses on representing clients in Foreign Corrupt Practices Act and white collar criminal investigations. She also advises clients on issues related to the FCPA, the federal securities laws, the False Claims Act, and other federal statutes. 

 

You’ll hear Tom and Laura discuss:

  • There was a recent transition in leadership within the DOJ’s FCPA unit, with an acting head taking the reins. Such changes can potentially shift the direction or focus of the unit.
  • The FCPA unit maintains a collaborative approach, liaising closely with other agencies such as the IRS, FBI, and the Department of State, ensuring a holistic investigative process.
  • Despite being two distinct units, the DOJ’s FCPA and the SEC’s FCPA work closely during parallel investigations. However, certain limitations arise from grand jury issues, preventing complete sharing.
  • Operating within the fraud section, this unit plays an instrumental role in evaluating corporate compliance programs, selecting compliance monitors, and contributing to policy developments and department-wide initiatives.
  • The Corporate Enforcement, Compliance, and Policy Unit has the task of handling FOIA requests, underscoring its role in promoting transparency and information access.
  • The relationship between the chief of the FCPA unit and the head of the fraud section is important as their interactions can potentially influence the direction and outcome of cases.
  • The fraud section provides weekly case summaries to the Deputy Assistant Attorney General’s office. This demonstrates the department’s diligent and ongoing monitoring and reporting system.
  • The FCPA unit doesn’t operate in isolation; it partakes in international collaborations on bribery issues, highlighting its commitment to global anti-corruption efforts.

 

KEY QUOTES

“[In] the FCPA unit, prosecutors and supervisors handle investigations and cases involving Foreign Corrupt Practices Act or potential Foreign Corrupt Practices Act violations.” – Laura Perkins

 

“[The DOJ and SEC have] a very close relationship, and often cases are worked in parallel, not necessarily jointly, because there are potential discovery issues that can be created if it’s a joint investigation.” – Laura Perkins

 

“The [Corporate Enforcement, Compliance and Policy Unit] has a major role in assisting prosecutors in evaluating corporate compliance programs as well as overseeing any compliance monitors that are put in place.” – Laura Perkins

 

Resources

Hughes Hubbard & Reed website 

Laura Perkins on LinkedIn

Categories
Daily Compliance News

Daily Compliance News: August 28, 2023 – The Spanish Kiss Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • 3M settles FCPA action? (WSJ)
  • Imprisoned Kazakh tycoon may be released. (RFE/RL)
  • Do you really need incentives to operate safely? (Reuters)
  • FIFA suspends head of Spanish football. (FT)
Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program: Day 20 – Gap Analysis for HR

Join Tom Fox in this episode of the 31 Days to a More Effective Compliance Program podcast to delve deeper into the significant role of HR in implementing compliance programs. Hopefully you now understand that many of the traditional functions of Human Resources (HR) can be seen as compliance internal controls. At every touchpoint in the lifecycle of the employment relationship there is a HR touchpoint. Fulfilling those touchpoints can be controls for compliance. If you think of multiple HR functions as compliance internal controls, one of the questions becomes how can you determine if HR is meeting the standards of a best practices compliance program? One place to start is with a gap analysis to determine what HR has in place that can facilitate your company’s compliance program.

The role of HR in implementing compliance programs is a critical aspect of maintaining best practices within an organization. Traditional HR functions can serve as compliance internal controls, and that every touch point in the employment relationship can serve as a control for compliance. Fox’s insights are derived from his extensive experience and deep understanding of the compliance and HR environment. He emphasizes the importance of conducting a comprehensive gap analysis and fostering collaboration between HR and business units to enhance the compliance program.

Finally, work with HR to create a consolidated Human Resources Compliance Audit Checklist that can be used to audit (and document) the company’s HR Compliance Program. The key to compliance, in my opinion, is having the proper structure to identify the issues, implement policies and procedures to address the issues, audit for compliance and “Document, Document, and Document”.

 Three key takeaways:

  1. A gap analysis is a key component in the risk assessment process.
  2. The ultimate responsibility should lie with the business units and functional discipline to fully operationalize compliance.
  3. The role of the compliance department is to oversee, provide subject matter expertise and coordinate.

 

For more information, check out The Compliance Handbook, 4th edition, here.

Categories
Adventures in Compliance

Adventures in Compliance – Leadership Lessons from The Adventure of the Engineer’s Thumb

Welcome to a review of all the Sherlock Holmes stories which are collected in the work, “The Adventures of Sherlock Holmes.” The appeared in the Strand Magazine from July 1891 to June 1892. Over 12 episodes, I will be reviewing each story and mine them for leadership, compliance and ethical lessons.  In this episode, I consider story of “The Adventure of the Engineer’s Thumb” which was originally published in the Strand Magazine in March 1892 and is a part of the collection ‘The Adventures of Sherlock Holmes’.

Summary

Hatherley visits Holmes with a peculiar tale. He recounts his recent experience where he was hired by a man named Colonel Lysander Stark to repair a hydraulic press at his country house. However, things take an alarming turn when Hatherley discovers that the press is not being used for its intended purpose but rather to manufacture counterfeit coins.

Realizing the danger he is in, Hatherley attempts to escape, but he is caught by Stark and his accomplice. In a struggle, Hatherley manages to free himself, but not before his thumb is severed by Stark with a cleaver. Bleeding and desperate, Hatherley seeks assistance from Holmes to bring the criminals to justice and recover his thumb.

Holmes and his trusted associate Dr. John Watson investigate the matter. They discover that Stark is a member of a criminal gang involved in counterfeiting coins. With Holmes’ guidance, Hatherley’s thumb is reattached, and the detectives devise a plan to expose Stark and his operation.

Disguised as potential investors, Holmes and Watson visit Stark’s house. They gather evidence, unravel the gang’s secrets, and narrowly escape a dangerous confrontation. In the end, the authorities apprehend Stark and his gang members, putting an end to their counterfeiting activities.

“The Adventure of the Engineer’s Thumb” showcases Holmes’ deductive reasoning and quick thinking as he helps Victor Hatherley navigate a dangerous situation. The story highlights the detective’s ability to solve complex cases and bring criminals to justice while also emphasizing the importance of the thumb as a key piece of evidence in unraveling the mystery.

Leadership Lessons

1.         Attention to detail: Sherlock Holmes is known for his attention to detail, and this is evident in “The Adventure of the Engineer’s Thumb.” He is able to solve the mystery by paying close attention to small details that others have overlooked. Compliance professionals can learn from this by focusing on the details and not overlooking anything that could be important.

2.         Problem-solving skills: Holmes is a master of problem-solving, and this is demonstrated in the story as he unravels the mystery of the engineer’s thumb. Compliance professionals can learn from this by developing their problem-solving skills and approaching challenges with a creative and analytical mindset.

3.         Teamwork: Although Holmes is the main detective in the story, he works with others, including Dr. John Watson, to solve the case. Leaders in business can learn from this by recognizing the importance of teamwork and building strong relationships with their colleagues.

4.         Adaptability: Throughout the story, Holmes demonstrates his ability to adapt to changing circumstances and adjust his approach as needed. Compliance professionals can learn from this by being flexible and open-minded, and by recognizing that there may be multiple solutions to a problem.

5.         Communication skills: Throughout the story, Holmes effectively communicates with others to gather information and solve the case. Compliance professionals can learn from this by developing their communication skills and being clear and concise in their interactions with others.

6.         Risk management: in the story, the engineer’s thumb is a result of a failed business deal. Compliance professionals can learn from this by recognizing the importance of risk management and by taking steps to minimize potential risks in their operations.

Resource

The New Annotated Sherlock Holmes

Categories
FCPA Compliance Report

FCPA Compliance Report – Jason Patel on Leveraging and Protecting Data

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this episode, Tom Fox welcomes Jason Patel as they delve into the critical aspects of go-to-market security, market intelligence security, and customer privacy enforcement in today’s digital world.

 They discuss the importance of protecting businesses and customers’ experiences, leveraging data for security and marketing strategies, and ensuring compliance with privacy legislation like GDPR and CCPA. They highlight the services offered by Cheq.ai, a company specializing in go-to-market security, and stress the need for real-time compliance and a transparent approach involving various stakeholders. The conversation also explores the risks of relying solely on vendors for compliance and the impact of opt-in and opt-out strategies in data privacy. Looking ahead, they predict data privacy to be a leading issue, emphasizing the need for clear and explicit internet regulations to protect businesses and consumers.

 Key Highlights

·      Check: Go-to-Market Security and Customer Privacy Enforcement

·      Designing GDPR-compliant controls

·      Real-time compliance in data tracking

·      The Impact of Opt-In vs Opt-Out Strategies

·      The Future of Internet Regulations

Resources

Cheq.ai

Tom Fox

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Twitter

LinkedIn

Categories
The Ethics Experts

Episode 156 – Virginia MacSuibhne

In this episode of The Ethics Experts, Nick welcomes Virginia MacSuibhne.
Virginia MacSuibhne (pronounced mock-swiv-na) is the VP, Global Chief Compliance Officer at Agilent Technologies in Santa Clara, California where she is responsible for managing and directing all aspects of the organization’s compliance and data protection and privacy program and related infrastructure. In addition to expertise building and managing key ethics and compliance programs, Virginia is experienced and skilled in cybersecurity, data governance, investigative processes, employment law, and ethics and compliance risk assessment and crisis management activities.
https://www.linkedin.com/in/virginia-macsuibhne-jd-ccep-599a927

Categories
Corruption, Crime and Compliance

Board Oversight and Monitoring of AI Risks

As companies rapidly adopt artificial intelligence (AI), it becomes paramount to have robust governance frameworks in place. Not only can AI bring about vast business benefits, but it also carries significant risks—such as spreading disinformation, racial discrimination, and potential privacy invasions. In this episode of Corruption, Crime and Compliance, Michael Volkov dives deep into the urgent need for corporate boards to monitor, address, and incorporate AI into their compliance programs, and the many facets that this entails.

You’ll hear Michael talk about:

  • AI is spreading like wildfire across industries, and with it comes a whole new set of risks. Many boards don’t fully understand these risks. It’s important to make sure that boards are educated about the potential and pitfalls of AI, and that they actively oversee the risks. This includes understanding their obligations under Caremark, which requires them to exercise diligent oversight and monitoring.
  • AI is a tantalizing prospect for businesses: faster, more accurate processes that can revolutionize operations. But with great power comes great responsibility. AI also comes with risks, like disinformation, bias, privacy invasion, and even mass layoffs. It’s a delicate balancing act that businesses need to get right.
  • Companies can’t just use AI, they have to be ready for it. That means adjusting their compliance policies and procedures to their specific AI risk profile, actively identifying and assessing those risks, and staying up-to-date on potential regulatory changes related to AI. As AI grows, the need for strong risk mitigation strategies before implementation becomes even more important.
  • The Caremark framework requires corporate boards to ensure that their companies comply with AI regulations. Recent cases, such as the Boeing safety oversight, demonstrate the severity of the consequences when boards fail to fulfill their responsibilities. As a result, boards must be proactive: ensure that board members have the technical expertise necessary, brief them on AI deployments, designate senior executives to be responsible for AI compliance, and ensure that there are clear channels for individuals to report issues.

 

KEY QUOTES

“Board members usually ask the Chief Information Security Officer or whoever is responsible for technology [at board meetings], ‘Are we doing okay?’ They don’t want to hear or get into all of the details, and then they move on. That model has got to change.”

 

“In this uncertain environment, stakeholders are quickly discovering the real and significant risks generated by artificial intelligence, and companies have to develop risk mitigation strategies before implementing artificial intelligence tools and solutions.”

 

“Board members should be briefed on existing and planned artificial intelligence deployments to support the company’s business and or support functions. In other words, they’ve got to be notified, brought along that this is going to be a new tool that we’re using, ‘Here are the risks, here are the mitigation techniques.’”

 

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group