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Innovation in Compliance – America’s Story at 250 by America’s Storyteller, Jeff Gould

Innovation comes in many forms, and compliance professionals need to not only be ready for it but also embrace it. Today, I visited with Jeff Gould, who is America’s storyteller, on his upcoming project for America’s semi-quincentennial birthday celebration in 2026, America’s Story 250.

Jeff Gould is lauded as America’s storyteller. He is honing the story of America at 250 in 2026 through his project, America at 250. Gould’s perspective on American history is one of profound reverence and recognition for the country’s narrative, viewing it as a remarkable tale among governmental histories.

His perspective is heavily influenced by the opportunities he sees for individuals to combat injustice and foster a fairer system, a theme ingrained in his work with America 250. He places substantial emphasis on acknowledging the flaws and mistakes of historical figures yet, concurrently, underscores the potential that the country and its people hold for growth and progress. Through this lens, Gould sees American history as a symbol of hope and freedom, and thus, he constantly challenges individuals to uphold and perpetuate these values for future generations.

Key Highlights:

  • Celebrating America’s 250-year Journey
  • Reviving American Heritage Through America’s Story
  • Democratic Ideals: From Tyranny to Resilience
  • Founding Fathers’ Longevity in Constitutional Design
  • Leaders who have shaped American identity throughout history

Resources:

Jeff Gould on LinkedIn 

I Like That Story

America’s Story 250

Tom Fox

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Facebook

YouTube

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LinkedIn

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Daily Compliance News: March 19, 2024 – The Can’t Post The Bond 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:

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

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Compliance Tip of the Day: Internal Reporting Outside the US, Part 2

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, I conclude a two-part discussion of steps a company needs to consider for internal reporting in jurisdictions outside the US.

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

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Compliance Week 2024 Speaker Preview Podcasts – Elizabeth Simon on More Holistic Risk Assessments

In this episode of the Compliance Week 2024 Speaker Preview Podcasts series, Elizabeth Simon discusses her panel presentation at Compliance Week 2024, “Innovative Approaches to Enterprise Risk Assessments.” Some of the issues she and her colleagues will discuss in this podcast and her presentation are:

  • How compliance can help the entire business mitigate risk
  • How to take a holistic approach to enterprise risk management
  • Seeing old friends, making new ones, and learning about new best practices at Compliance Week 2024

I hope you can join me at Compliance Week 2024. This year’s event will be held April 2-4 at the Westin Washington, DC, Downtown. The line-up is first-rate, with some top ethics and compliance practitioners around.

Gain insights and make connections at the industry’s premier cross-industry national compliance event, offering knowledge-packed, accredited sessions and take-home advice from the most influential leaders in the compliance community. Back for its 19th year, join 500+ compliance, ethics, legal, and audit professionals who gather to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs. Compliance, ethics, legal, and audit professionals will gather safely face-to-face to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs, among many others, to:

  • Network with your peers, including C-suite executives, legal professionals, HR leaders, and ethics and compliance visionaries.
  • Hear from 80+ respected cross-industry practitioners, including CEOs, CCOs, regulators, federal officials, and practitioners, to help inform and shape the strategic direction of your enterprise risk management program.
  • Hear directly from panels on leadership, fraud detection, confronting regulatory change, abiding by cross-border rules and regulations, and the always-favorite fireside chats.
  • Bring actionable takeaways from various session types, including cyber, AI, Compliance, Board obligations, data-driven compliance, and many others, to your program for you to listen, learn, and share.
  • Compliance Week aims to arm you with information, strategy, and tactics to transform your organization and career by connecting ethics to business performance through process augmentation and data visualization.

I hope you can join me at the event. For information on the event, click here. As an extra benefit to listeners of this podcast, Compliance Week is offering a $200 discount on the registration price. Enter the discount code TFOX2024 for $200 off.

The Compliance Podcast Network produces the Compliance Week 2024 Preview Podcast series. Compliance Week sponsors this series.

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The Coming Sanctions Enforcement Storm

Whatever the cause, criminal sanctions enforcement will be an interesting area in 2024. The DOJ’s planned aggressive push against companies and individuals for sanctions violations is about to be unleashed. There is no question that DOJ’s enforcement initiative is coming—it is just a question of when.

We have already seen several examples of what aggressive sanctions enforcement will look like. As the new “FCPA,” we can expect several standard elements:

  • Large Penalties: hundreds of millions, even reaching billions in more egregious cases.
  • Reward for Voluntary Disclosures
  • Criminal Indictments, Deferred or Non-Prosecution Agreements
  • Independent Compliance Monitors
  • Parallel Regulatory Resolutions with OFAC, BIS, and or DDTC
  • Enhanced Compliance Remediation Requirements
  • Individual Criminal Enforcement

In this episode, Michael Volkov reviews the soon-to-arrive sanctions enforcement regime, and steps companies should take to protect against enforcement actions. Hear him discuss:

  • The Department of Justice (DOJ) is signaling a shift towards aggressive corporate sanctions and export control enforcement, particularly focusing on national security issues like sanctions and export controls. 
  • Recent cases, such as the British-American Tobacco and SAP cases, serve as examples of how the DOJ’s sanctions-focused enforcement strategy is likely to unfold, including potential penalties and consequences that companies may face.
  • Companies are facing risks from various sources in the realm of sanctions and export control enforcement, including regulatory referrals from agencies like OFAC, BIS, and DDTC, as well as international intelligence relationships and whistleblowers.
  • Seagate’s blatant violation of Huawei export controls could be a significant indicator of the DOJ’s enforcement initiative in the sanctions arena. This case demonstrates the potential consequences of willful violations and the importance of compliance with export control regulations.
  • Common deficiencies in sanctions compliance programs, including corporate boards’ lack of understanding, failure to address third-party risks, inadequate supply chain audits, weak internal controls, and insufficient training, highlight areas where companies need to improve to ensure compliance with sanctions regulations.

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

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The Hill Country Podcast: The Red Cross in The Hill Country, Preparing for Disasters and Being There in an Emergency

Welcome to the award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth.

In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the most unique area of Texas. This week, Tom visits with Debbie Zabica, Executive Director of the American Red Cross, Hill Country chapter.

Debbie Zabica is the accomplished Executive Director of the Hill Country chapter of the American Red Cross, possessing an extensive background in nonprofit work and disaster preparedness initiatives. Zabica’s perspective on American Red Cross disaster preparedness is strongly influenced by her dedication to educating and preparing communities, especially within the Hill Country region, for potential disasters such as home fires.

Her emphasis lies in ensuring individuals are equipped with essential supplies and knowledge to handle emergencies, be it during winter storms or extreme heat in the summer. She underscores the Red Cross’s critical role in providing immediate assistance and support to communities post-disaster, which includes setting up shelters and offering health services. Drawing from her experiences leading a team of volunteers across 19 counties, Zabica’s perspective highlights the importance of being proactive in disaster readiness and the Red Cross’s commitment to aid and support individuals in times of crisis.

Debbie also discusses the chapter fundraiser, Corks for Compassion, which will be held on Thursday, March 21st, at 6:00 p.m. at Richter Tavern, 153 South Main Street, Boerne, TX 78006.

Key Highlights:

  • Red Cross Home Fire Safety Initiatives
  • Community Support and Health Services Post-Disasters
  • Emergency Support and Preparedness Initiatives by Red Cross

 Resources:

Red Cross in the Hill Country

Corks for Compassion fundraiser

Other Hill Country Focused Podcasts

Hill Country Authors Podcast

Hill Country Artists Podcast

Texas Hill Country Podcast Network

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FCPA Compliance Report – Jonathan Wilson on The NSBU Decision

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 Jonathan Wilson, one of the country’s top experts on the Corporate Transparency Act. We dissect the court decision in the case of the National Small Business Union, which invalidated the CTA and what it might mean for the law going forward.

Jonathan Wilson is a well-respected figure in corporate transparency and has established an impressive body of work around the Corporate Transparency Act. He is the founder of FinCEN Report, a company that helps businesses and others comply with the CTA.

Wilson’s perspective on the Act hinges on his understanding of its legal implications and practical considerations, warning companies that, despite a recent district court decision, they are still required to meet filing obligations. We take a deep dive into the court opinion, how it applied (or misapplied) US law and explain the need for continued compliance with the law.

Even with this court decision, Wilson’s advice is clear, companies must continue with compliance efforts and fulfill their reporting requirements, as delays will not alter the facts or obligations of the Act. The invalidation of the CTA is only applicable to the named plaintiff in the Northern District of Alabama so all others must continue to comply with the law.

Key Highlights:

  • CTA Overturned—Is Interstate Commerce Affected?
  • What is the US National Security Interest?
  • Beneficial Owner Disclosure in Money Laundering
  • Senate Ratification of International Treaties
  • Navigating Legal Compliance in Competitive Business Environment

Resources:

Jonathan Wilson on LinkedIn

FinCEN Report

National Small Business Union decision

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.

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Compliance Tip of the Day: Internal Reporting Outside The US, Part 1

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, I will be having a two-part discussion of steps a company needs to consider for internal reporting in jurisdictions outside the US.

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

Categories

Daily Compliance News: March 18, 2024 – The Mike Lynch Goes on Trial 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:

  • Mike Lynch finally goes on trial. (FT)
  • What does the CTA ruling mean for the registry? (WSJ)
  • More corrupt Kushner deals? (Newsweek)
  • What’s next for Altice? (Bloomberg)

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

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The Gunvor FCPA Enforcement Action: Part 3 – The Discounted Fine

We continue our exploration of the resolution of the FCPA enforcement action involving the Swiss trading firm Gunvor S.A. The enforcement action came in with a $661 million penalty against the company, which has pleaded guilty to bribing Ecuadorian government officials through the 2010s in exchange for intelligence about upcoming business contracts with the state-owned oil company of Ecuador. The matter was resolved via a Plea Agreement. Information detailing the company’s conduct was also issued.

Given the multi-year nature of the bribery scheme, how high it went up in the organization, and the lack of self-disclosure, one might charitably wonder how Gunvor was able to garner a fine that was so low. According to the Plea Agreement,  Gunvor paid over $97 million to corrupt third-party agents, who then made bribes to Ecuadorian officials. Gunvor earned over $384 million in profits from the business obtained through the corrupt scheme. Yet Gunvor received a 25% discount off the 30th percentile of the applicable US Sentencing Guidelines fine range. How did Gunvor achieve this discount?

Extensive Cooperation

The starting point for this analysis is the Plea Agreement. It noted several factors, including, among others, the nature and seriousness of the offense. Gunvor received credit for its cooperation with the department’s investigation, which included: (i) producing documents to the department from multiple foreign countries expeditiously while navigating foreign data privacy and criminal laws; (ii) providing information obtained through its own internal investigation to the department, which allowed the department to preserve and obtain evidence as part of the department’s investigation; (iii) making detailed, factual presentations to the department; (iv) arranging for the interview of an employee based outside the United States; (v) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department, and producing an analysis of trading activity conducted by multiple outside forensic accounting firms retained by Gunvor; (vi) translating foreign language documents to facilitate and expedite review by the department; and (vii) imaging the phones of relevant custodians at the beginning of Gunvor’s internal investigation, thus preserving business communications sent on mobile messaging applications.

The Remediation

The Plea Agreement also included information on the remediation that Gunvor carried out. Gunvor also engaged in timely and appropriate remedial measures, including: (i) eliminating the use of third-party business origination agents; (ii) enhancing its third party due-diligence process; (iii) developing and implementing a control framework for internal business developers and additional layers of review and approval for counterparty payments; (iv) enhancing the independent compliance committee with responsibility for reviewing high-risk transactions; (v) engaging resources to review its compliance program and test the effectiveness of its overall reporting process, its reporting hotline and the effectiveness of the investigation of reports made through the hotline; (vi) evaluating and updating its compensation policy to better incentivize compliance with the law and corporate policies; (vii) hiring additional compliance personnel; (viii) testing and enhancing its compliance program, including by conducting compliance culture reviews, testing new third party due diligence process and payment controls, and evaluating controls around business development activities; and (ix) developing and implementing a risk-based business communications policy that addresses the use of ephemeral and encrypted messaging applications.

Prior Misconduct

The department also considered Gunvor’s history of misconduct. In October 2019, Gunvor resolved with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and Côte d’Ivoire to secure oil contracts obtained between 2009 and 2012. As part of the 2019 Swiss resolution, Gunvor admitted that it lacked sufficient controls to prevent the underlying misconduct and failed to take “all the reasonable organizational measures” required to prevent Gunvor’s employees and agents from engaging in bribery.

Fine Calculation

The explanation from the DOJ answered an open question in the minds of many compliance professionals about recent FCPA enforcement. That question was about how culture and prior misconduct were factored into the fine determination. This case follows the recent SAP enforcement action, where there was a similar analysis. The DOJ is not discounting fines off the low end of a fine range but instead on some point above that low end. In Gunvor’s case, the high end of the fine range (after the full calculation under the Sentencing Guidelines) was $768,328,352, and the low end of the fine range was $384,164,176. With the uplift to the 30th percentile, the final fine was $374,560,071, with an additional forfeiture of $287,138,444. In the SAP enforcement action, the company received a 40% discount off the 10th percentile of the Sentencing Guidelines fine range.

Failure to Self-Disclose

We need to emphasize, once again, that under the Corporate Enforcement Policy, Gunvor’s failure to self-disclose cost it an opportunity of at least 50% and up to a 75% reduction off the low end of the U.S. Sentencing Guidelines: fine range. Moreover, its actions resulted in the company not receiving a reduction of at least 50% and up to 75% from the low end of the U.S.S.G. fine range but rather at the 30th percentile noted above. Gunvor’s failure to self-disclose cost it an estimated $50 million under the Sentencing Guidelines. Its inability to self-disclose and recidivism cost it a potential $150 million in total discounts available under the Corporate Enforcement Policy.

 Once again, the significance is that the DOJ is sending the message that self-disclosure is the single most important thing a company can do in any FCPA investigation or enforcement action. Kenneth Polite said that when announcing the updated Corporate Enforcement Policy in January 2023, the new Monitor Selection Policy was the number one reason for a company not having a monitor required. The DOJ’s message could not be more explicit: self-disclose, self-disclose, self-disclose, self-disclose.

Join us tomorrow as we consider the lessons learned from the Gunvor FCPA enforcement action.