Categories
Riskology

Riskology by Infortal Episode 21: Due Diligence & Geopolitical Risk

As the global economic landscape broadens, companies find themselves navigating complex and challenging terrain that can profoundly affect their operations and financial standing.

On today’s episode of ‘Due Diligence & Geopolitical Risk,’ join Chris Mason and Ian Oxnevad as they discuss the pivotal role ‘Geopolitical Risk Intelligence’ plays in corporate strategy. 

This conversation dives into a thorough examination of local developments, political shifts, and global trends, exploring how they are intricately woven together and impact various business activities. Discussion points also cover an inside look at how this unique form of intelligence works to safeguard against potential threats while accentuating valuable business opportunities.

Stay tuned to learn how to successfully deploy geopolitical risk intelligence, tap into lucrative prospects, and fortify your corporate standing.

On a more pragmatic application level, our speakers share insights on the structured and analytical process behind geopolitical risk intelligence. They delve into the intricacies of understanding international affairs and market dynamics, vetting potential employees and investment opportunities, and avoiding potential legal entanglements and reputational damage.

The episode provides a comprehensive outlook on maintaining a fountainhead of geopolitical analysis, making it possible for corporations to stay prepared for any impending changes in the business landscape.

Resources:

Infortal Worldwide

Email

Dr. Ian Oxnevad on LinkedIn

Chris Mason on LinkedIn

Categories
Corruption, Crime and Compliance

Deep Dive into The Gunvor FCPA Settlement

You have to give the Justice Department credit: after two slow enforcement years, DOJ is starting off 2024 with a relative “bang;” First, DOJ reached a large settlement with SAP in January, and now, DOJ has reached a blockbuster settlement with Gunvor S.A. for $661 million. Gunvor is one of the world’s largest commodities trading companies.

DOJ’s settlement represents a “return” to its long-standing aggressive approach to FCPA enforcement. The DOJ did not permit Gunvor to enter into a deferred or non-prosecution agreement. Instead, the DOJ required Gunvor to plead guilty to one count of FCPA conspiracy. Following the plea agreement, the court sentenced Gunvor to pay a criminal monetary penalty of $374,560,071 and to forfeit $287,138,444 in ill-gotten gains.

The sentence includes credits of up to one-quarter of the criminal fine each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorean authorities into the same misconduct so long as the payments are made within one year. The Office of the Attorney General of Switzerland simultaneously announced a parallel resolution of its investigation into Gunvor’s misconduct that involved the payment of approximately $98 million by Gunvor to Swiss authorities.

Gunvor’s conduct stretched over nearly a decade and involved systemic bribery payments to officials of the Ecuadorian Ministry of Hydrocarbons and Petroecuador, the Ecuadorian state-owned oil company, in exchange for valuable contracts to acquire oil products.

In total, Gunvor earned more than $384 million in profits from the business it corruptly obtained related to Petroecuador. In this episode, Michael Volkov reviews the Gunvor FCPA settlement.

  • Gunvor’s recent $661 million FCPA settlement with DOJ for bribery in Ecuador signifies a return to aggressive enforcement. The plea agreement and forfeiture highlight the consequences of anti-corruption violations for global companies.
  • Prior individual enforcement actions preceded Gunvor’s corporate resolution, showcasing a pattern in FCPA cases. The company’s cooperation, including document production and internal investigation, played a crucial role in the resolution.
  • Gunvor’s implementation of remedial measures for the for the post-bribery scheme reflects a commitment to compliance. Enhancements to ethics programs and controls demonstrate a proactive approach to mitigating risks and ensuring regulatory compliance.
  • The bribery scheme involving corrupt third parties and shell companies underscores the importance of robust monitoring and due diligence. Gunvor’s delayed response to red flags highlights the need for swift action in high-risk activities.
  • Gunvor’s cooperation with the investigation, including sharing facts and facilitating interviews, showcases a commitment to transparency and accountability. Collaboration with authorities is essential to resolving compliance issues and maintaining credibility.

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Categories
All Things Investigations

All Things Investigations: Constitutional Challenge to Corporate Transparency Act with Thomas Lee

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation.

In this podcast, we’re joined by Hughes Hubbard Special Counsel, Thomas Lee, to discuss the recent decision declaring unconstitutional the Corporate Transparency Act (CTA) in the case of NSBA vs. Yellen.

Thomas Lee specializes in appellate law and constitutional issues. With nearly a decade of tenure at the firm and an impressive 21 years of teaching constitutional law at Fordham Law School, Lee is highly respected in his field. Lee and the Hughes Hubbard team brought the lawsuit on behalf of the National Small Business Association, arguing the CTA was a constitutional overreach as it mandated the reporting of beneficial ownership data to combat money laundering and criminal activities.

The constitutional claims included no Congressional authority for this regulation, privacy concerns, and the lack of a foreign treaty ratified by Congress requiring the law. Drawing from his extensive background in constitutional law, they successfully argued that this federal regulation challenges traditional state regulation of entity formation and exceeds governmental power.

This decision in the National Small Business Association case is a landmark case that has now been appealed to the 11th Circuit Court of Appeals and appears headed to the US Supreme Court.

Key Highlights:

  • Beneficial Ownership Reporting Requirements for Entities
  • Constitutional Challenges in Corporate Transparency Legislation
  • Court Proceedings of the Corporate Transparency Act
  • Efficient Negotiations and Potential Supreme Court Involvement

 Resources:

Hughes Hubbard & Reed website

Thomas Lee

Categories
FCPA Compliance Report

FCPA Compliance Report: Mary Inman on DOJ Whistleblower Bounty Program

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this edition of the FCPA Compliance Report, Tom welcomes back Mary Inman, partner at the newly formed Whistleblower Partners LLP. They talk about the new Department of Justice (DOJ) initiative to pay a bounty to whistleblowers.

Mary Inman is a well-recognized authority in the realm of whistleblowing programs. In this episode, she focuses on DOJ whistleblower program. Her perspective on the program is cautiously optimistic, acknowledging the potential gains in encouraging whistleblowers to disclose information about financial crimes and corruption. However, she has expressed concerns about certain aspects of the program’s design, such as excluding culpable whistleblowers and limiting the type of information that can be provided.

These viewpoints stem from her extensive experience and deep understanding of the complexities involved in implementing effective whistleblower programs. Drawing from her expertise, Inman also emphasizes the need for confidentiality and anonymity for whistleblowers, similar to the SEC program, suggesting that while the DOJ program is a positive step, careful consideration and potential revisions are required to ensure its effectiveness and fairness.

Key Highlights:

  • Financial Crime Whistleblower Reward Initiative
  • Promoting Transparency Through Compliance Officer Resignations
  • Whistleblower Protection for Mental Well-being

Resources:

Mary Inman on LinkedIn

Whistleblower Partner LLP

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

Categories
Compliance Tip of the Day

Compliance Tip of the Day: Preparing for An Investigation

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In this episode, we look at some of the key steps you should take in preparing for an internal investigation.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

Categories
Adventures in Compliance

The Return of Sherlock Holmes: Ethical Lessons from The Adventure of Charles Augustus Milverton

Welcome to a review of all the Sherlock Holmes stories that are collected in the work “The Return of Sherlock Holmes.“. It is a collection of thirteen detective stories written by Sir Arthur Conan Doyle, marking the reappearance of the brilliant detective Sherlock Holmes after his apparent death in “The Final Problem.” The collection spans various intriguing cases and mysteries that Holmes and his loyal friend Dr. John Watson tackle.

Today we consider some ethical lessons from The Adventure of Charles Augustus Milverton.

Sherlock Holmes, the iconic character created by Arthur Conan Doyle, is not only a detective par excellence but also a complex character entangled in ethical dilemmas. These moral conundrums, as depicted in the 8th story of the Return of Sherlock Holmes series, offer valuable lessons on justice, professional integrity, and privacy rights through the interactions of Holmes, Watson, and the king of blackmailers, Charles Augustus Milverton.

The story emphasizes the importance of these topics. Inspired by Holmes’ strict adherence to confidentiality, moral code, and his considerations of ethical implications, Fox underlines the detective’s willingness to bend the law to uphold justice. Fox sees in Sherlock Holmes a role model for compliance professionals to navigate complex ethical challenges while staying true to principles of justice and truth.

 

Key Ethical Lessons:

  • Respect for Privacy: This story highlights the importance of respecting individuals’ privacy rights.
  • Confidentiality: Holmes maintains strict confidentiality regarding his clients and the information they share with him.
  • The Right to Justice: While Holmes and Watson are not averse to bending the law in pursuit of justice, they ultimately work to bring Milverton to justice through legal means. They recognize that everyone, regardless of their actions or character, is entitled to a fair trial and due process.
  • Ethical Dilemmas: The story presents ethical dilemmas concerning the balance between the greater good and individual rights.
  • Professional Integrity: Despite the morally ambiguous nature of some of his methods, Holmes maintains professional integrity in his work.
  • Consequences of Actions: The story underscores the importance of considering the ethical implications and potential consequences of one’s actions.

Resources:

The New Annotated Sherlock Holmes

Sherlock Holmes FAQ

Categories
Daily Compliance News

Daily Compliance News: March 25, 2024 – The Neurodiverse Talent Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you 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.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • EY promotes neurodiverse talent. (BBC)
  • Boeing prepares for closer FAA scrutiny.  (NYT)
  • A MoD report on UK corruption vis-à-vis Saudi Arabia was found in the public archive. (The Guardian)
  • MLB to investigate Ohtani’s translator’s scandal. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

Categories
Culture Crafters

Culture Crafters: Assessing Your Culture Through The Culture Audit™

It is always interesting to see the regulators catch up to the business world. That is what has happened around corporate culture. The Department of Justice is now assessing corporate culture for any company under investigation. Yet more than simply complying with this mandate, companies should strive to foster the best culture they can. The reason is deceptively simple: the better the culture, the better the company. But many business executives and even compliance professionals do not know how to craft a culture that allows your employees and, thereby, your organization to implement such strategies. How can you unlock the power of a thriving workplace culture?

In this podcast series, Sam Silverstein, the most trusted voice in America on accountability  and Tom Fox, the Voice of Compliance, look at the ways companies can elevate their culture to new heights.  In this inaugural episode, they discuss how to assess your culture through the Culture Audit™.

The concept of a culture audit is a transformative tool that assesses an organization’s critical areas such as ethics, engagement, accountability, and diversity, offering valuable insights for improvement and fostering a high-performance work culture.

Tom posits that the culture audit not only measures these critical areas but also guides action plans for improvement, emphasizing continual assessment and prioritization of key cultural drivers for genuine change.

Similarly, Sam Silverstein underscores the necessity of conducting a culture audit to discern an organization’s cultural strengths and weaknesses. He asserts that culture directly affects an organization’s bottom line, citing instances where cultural improvements have significantly boosted performance, profits, and employee retention. For Silverstein, a comprehensive culture audit from the boardroom to the shop floor is fundamental for developing a positive and high-performing work environment.

Key Highlights:

  • Enhancing Organizational Culture for High Performance
  • Cultivating Accountability and Excellence for Success
  • Enhancing Workplace Culture through Detailed Assessment
  • Transparent and Traceable Culture Audit Findings
  • High-Performance Culture: Driving Financial Success

Resources:

Sam Silverstein

Sam Silverstein on LinkedIn

Sam Silverstein

The Culture Audit™

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Blog

Auditing Culture

Why should you audit your culture? A compliance professional can utilize a comprehensive approach to evaluate various aspects of a company’s culture, including ethics, engagement, accountability, and diversity. Tom Fox and Sam Silverstein took up this topic in the inaugural episode of the Culture Crafters podcast. Silverstein emphasized the pivotal role of a high-performance culture in attracting and retaining top-tier talent, ultimately leading to improved company performance and profitability. According to Silverstein, the shortest and quickest path to organizational transformation is through culture, as it forms the core of all change.

Beginning with the speech by Deputy Attorney General Lisa Monaco in October 2021, they recognized the need for companies to assess, manage, monitor, and improve their corporate culture. This was memorialized in the 2023 Evaluation of Corporate Compliance Programs (ECCP) update, announced in January 2023. In the ECCP, the DOJ asks the following questions: how often and how does a company measure a culture of compliance? What are your hiring and incentive structures around compliance? What steps have you taken in response to your measurements of compliance?

All these questions posed by the DOJ lead to the requirement that every company assess its culture because the DOJ will take any enforcement action or review. However, it can be done using the same current compliance processes, as culture is just like any other risk. As a risk, it can be assessed. This is why a culture audit is a necessary first step in determining where your culture is, what needs improvement, and how to do so.

As important as it is to meet these DOJ expectations, the real power is to create a high-performing culture to allow your organization to grow to its potential. Focusing on a high-performance culture can lead to an 80% increase in performance, profits, and employee retention, fostering a productive work environment and driving overall success. The bottom line is that a high-performance culture is essential for attracting and retaining top-tier talent and can significantly improve a company’s performance and profitability.

Every compliance professional understands that you must first assess your risks in risk management. When you have assessed a risk, you can start to put together a risk management strategy. The same is true for corporate culture. You must first assess where your culture is and then move forward to improvement through culture and a culture management strategy. With your culture strategy in place, you can train your employees and monitor their performance, determining the results. From there, you can improve your culture strategy as needed. But it all starts with a culture audit.

The steps are familiar to every compliance professional.

  1. Assess Every Level. To gain a comprehensive understanding of the company’s culture, you must assess everyone in the organization, not just senior leadership.
  1. Continuous Improvement. After conducting the culture audit, organizations must receive a detailed Culture Audit Report, which includes responses and action plans. This report serves as a roadmap for companies to focus on key drivers, enhance alignment, and continuously improve their workplace culture.
  1. Sustain High Performance. Focus on building a high-performance culture can yield remarkable results, including an 80% increase in performance, profits, and employee retention. Creating a culture that inspires individuals to excel and be accountable is essential for long-term success.

To facilitate this, Silverstein created Culture Audit™. The Culture Audit is a software solution that assesses critical areas of a company’s culture, such as ethics, engagement, accountability, and diversity, providing actionable insights for improvement. Available in over 20 languages, it aids in transforming a company’s culture for sustainable high performance. A high-performance culture is essential for attracting and retaining top-tier talent and can significantly improve a company’s performance and profitability. The Culture Audit Report, a detailed document with responses and action plans, enables organizations to enhance their workplace culture effectively. The audit results are auditable, ensuring accurate conclusions and data traceability, adding credibility to the process. Focusing on a high-performance culture can lead to an 80% increase in performance, profits, and employee retention, fostering a productive work environment and driving overall success.

Silverstein encapsulates the essence of culture transformation: “The shortest, quickest path to seeing transformation in an organization is always through the culture because that’s at the core of all transformation.” Every business is incumbent upon preparing a comprehensive document that takes a deep dive into its culture assessment results and guides it on the path to improvement. This report is a foundation for implementing educational initiatives, training programs, and organizational transformation.

In conclusion, the culture audit is not a one-time fix but a continuous process that requires regular assessment and improvement. By prioritizing a high-performance culture, companies can create a productive work environment, attract top talent, and drive overall success.