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FCPA Compliance Report

FCPA Compliance Report – Understanding the Corporate Transparency Act with Frank Tumminello

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this edition, Tom Fox welcomes Frank Tumminello for an in-depth discussion on the Corporate Transparency Act (CTA) and its business implications.

They delve into the reasons behind the CTA, a law established under the Anti-Money Laundering Act of 2020, and its importance in enhancing transparency and preventing criminal activities like tax evasion and money laundering. Despite being in effect for nearly a year, there needs to be more awareness, with only 15% of the 40 million affected companies having complied. Frank explains the Beneficial Ownership Information (BOI) report, its requirements, and the challenges businesses might face in staying compliant. They also touch upon the misconceptions and legal difficulties surrounding the CTA, as well as the efforts of FinCEN to facilitate compliance, including the potential for extended deadlines in hurricane-affected FEMA zones. Lastly, Frank introduces ‘File Forms,’ a platform designed to streamline BOI reporting, highlighting its features, success stories, and support to businesses navigating these new requirements.

Highlights in this episode:

  • Overview of the Corporate Transparency Act
  • Purpose and Misconceptions of the CTA
  • Beneficial Ownership Information Reporting
  • Constitutionality and Legal Challenges
  • FinCEN Updates and Compliance Efforts
  • File Forms: Features and Benefits

 Resources:

Frank Tumminello on LinkedIn

FileForms

Tom Fox

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For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

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Adventures in Compliance

The Case-Book of Sherlock Holmes – Compliance Leadership Lessons in ‘The Adventure of the Sussex Vampire’

In this new season of Adventures in Compliance, host Tom Fox delves into the Sherlock Holmes collection The Case-Book of Sherlock Holmes by Arthur Conan Doyle. It is the final set of twelve Sherlock Holmes short stories by Arthur Conan Doyle, first published in the Strand Magazine between October 1921 and April 1927. This episode considers the short story, The Adventure of the Sussex Vampire. In this story, Sherlock Holmes investigates a case involving a master jewel thief and Holmes’s investigative techniques. This story provides several valuable leadership lessons for the 21st-century compliance professional.

Tom examines Conan Doyle’s short story through the lens of business ethics and corporate compliance. The tale, which initially suggests a supernatural element, is revealed to be a case of jealousy and attempted murder using poison darts. Fox draws several compliance lessons from Holmes’ approach: avoiding hasty conclusions, valuing investigation integrity, adopting holistic views, and maintaining clarity in communication. This episode is packed with insights for compliance professionals navigating complex ethical landscapes.

Highlights include:

  • The Sussex Vampire Story Unfolds
  • Business Leadership Lessons from the Sussex Vampire
  • Enhancing Compliance Leadership.

Resources:

The New Annotated Sherlock Holmes

Sherlock Holmes FAQ by Dave Thompson

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

Check out the full 3-book series, The Compliance Kids, on Amazon.com.

For an audio/video version of the Compliance Kids book, Speaking Up is AWESOME, contact Tom Fox.

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Daily Compliance News

Daily Compliance News: November 18, 2024 – The Top Wall Street Cop 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 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.

  • The new administration has massive corruption. (The New Republic)
  • Jay Clayton was picked to head SDNY. (FT)
  • Founder of Crypto mixer sentenced to 3 years in prison. (WSJ)
  • US says Bill Hwang should get 21 years.  (Reuters)

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

Check out the full 3-book series, The Compliance Kids, on Amazon.com.

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Blog

FT Business Book of the Year, Alison Taylor and Higher Ground

The Financial Times (FT) and Schroders Business Book of the Year Award is the most prestigious accolade in business publishing, recognizing exceptional insight, research, and storytelling in books addressing current business, economic, and financial issues.  The FT Business Book of the Year Award highlights books that significantly impact the understanding of global business issues, often bringing complex topics like economic theory, corporate culture, innovation, and ethics to a wider audience. It serves as a quality benchmark in business publishing, with many past winners going on to influence policy, business practices, and public discourse.

The Financial Times’ reputation ensures that nominated books are taken seriously by readers, reviewers, and business leaders worldwide.  The FT Business Book of the Year Award draws attention to emerging trends and thought leadership in business, with topics often reflecting current global challenges. For example, recent winners have focused on climate change, economic inequality, corporate responsibility, and technology’s impact on society. Ultimately, the FT Business Book of the Year Award plays a significant role in shaping the business conversation by identifying the most relevant and impactful works that capture the challenges and dynamics of modern commerce. To make the Long List of nominees, a book was among 16 selected out of over 600 entries.

If you are in the compliance field, you are probably lucky enough to know one of this year’s Long List nominees–Alison Taylor, whose book, Higher Ground-How Business Can do the Right Thing in a Turbulent World, has provided a fresh dialogue on the evolving role of business ethics in corporate governance. Alison once gave me the moniker The Rock and Roll Compliance Blogger. But even more importantly, Alison has long contributed to and, in many ways, led the ongoing dialogue in the corporate compliance community on compliance and ethics and sustainability and ESG on the other. Her central thesis questions why these two fields, both concerned with promoting responsible corporate behavior, remain siloed and isolated. Higher Ground bridges this gap, providing corporate leaders a roadmap for fostering a more integrated approach to ethical business practices.

Taylor opens *Higher Ground* with a case study on Starbucks—a company widely regarded as a leader in corporate responsibility. Known for benefits like health insurance for part-time employees, Starbucks has long been a model of progressive labor practices. But recently, the coffee giant has faced substantial backlash over labor rights issues as employees pushed for unionization, highlighting a disconnect between corporate policies and ground-level employee sentiment.

This disconnect between corporate identity and stakeholder perception illustrates a significant point for Starbucks: being a “good” business isn’t a shield against reputational risks. Despite its robust ESG credentials, Starbucks has been mired in controversy, underscoring that even the most well-intentioned corporations may face criticism if stakeholders perceive a misalignment between professed values and on-the-ground realities. Taylor’s analysis reminds compliance professionals that reputation and stakeholder trust can be fragile and influenced by factors beyond traditional ESG metrics.

Overcoming the Trap of Overpromising in Corporate Purpose

Taylor’s argument extends to the challenge of corporate overpromising, a pitfall many organizations find themselves in when attempting to cater to the demands of diverse stakeholders. As she points out, recent trends have created a polarized landscape where companies are criticized from both sides—either for being too focused on social responsibility (often labeled as “woke” by critics) or for not doing enough. Navigating this space requires corporate leaders to communicate clearly and make decisions based on what is realistically achievable.

In Higher Ground, Taylor encourages leaders to avoid becoming trapped by unsustainable promises. Instead, she advocates for identifying one to three critical issues that align with the company’s long-term strategic goals. Prioritizing these issues allows organizations to make meaningful progress while maintaining their efforts across many fronts. For compliance professionals, this approach emphasizes the need to set realistic, measurable goals in alignment with an organization’s core values.

Moving from Rules-Based to Principles-Based Compliance

One of the most resonant themes in Higher Ground for compliance officers is Taylor’s call to shift from a rules-based to a principles-based approach to compliance. While rules and regulations are fundamental to compliance programs, they can fall short when organizations face nuanced ethical dilemmas. Principles-based compliance, which emphasizes ethical judgment and a strong moral compass, allows organizations to respond more effectively to complex situations that cannot be anticipated by rules alone.

Taylor argues that fostering an ethical culture requires more than drafting policies and procedures. It involves setting up systems where employees feel empowered to speak up and exercise sound judgment. Compliance leaders should aim to cultivate an environment where employees are encouraged to use their ethical instincts and are rewarded.

Addressing the Generational Shift in Corporate Expectations

As Taylor observes, today’s workforce spans five generations, each with its values, priorities, and expectations from corporate leadership. Millennials and GenZers highly value authenticity, transparency, and social impact. They are also more inclined to speak up on climate change and diversity, often pushing their employers to take public stances.

This shift presents both challenges and opportunities for compliance leaders. Younger generations’ desire for accountability and transparency aligns well with the goals of modern compliance programs, which are increasingly centered around creating ethical, transparent workplaces. However, the push for corporate responsibility requires careful management to ensure that public commitments align with internal practices. Taylor emphasizes the need for open communication, a willingness to address employee concerns, and a commitment to genuine stakeholder engagement.

Balancing Impact and Purpose

Taylor posits that a meaningful corporate purpose is inseparable from measurable impact. While “purpose” has become a popular corporate buzzword, she cautions that it remains little more than marketing rhetoric without concrete actions and results. For companies to build true stakeholder trust, they must put impact at the core of their purpose, recognizing both their operations’ positive and negative effects on society.

This perspective offers valuable guidance for compliance leaders. Compliance programs must go beyond box-ticking exercises and contribute meaningfully to the organization’s ethical culture. By making decisions based on their actual impact on employees, customers, and the broader community, compliance teams can help build a more resilient and trustworthy corporate reputation.

Practical Steps for Building an Ethical, Responsible Organization

Higher Ground provides practical insights for organizations seeking to improve their ethical culture and align with evolving stakeholder expectations. Some actionable steps for compliance professionals include:

  1. Set Priorities. Instead of meeting every stakeholder’s demand, focus on one to three key issues where the organization can make a meaningful impact.
  2. Encourage Open Dialogue. Foster a culture of transparency where employees feel comfortable voicing ethical concerns, even when these concerns challenge leadership decisions.
  3. Embrace a Principles-Based Approach. Shift the focus from strict rule adherence to fostering ethical judgment and principled decision-making across the organization.
  4. Align Corporate Promises with Impact. Ensure public commitments are backed by actionable, measurable goals reflecting the organization’s values and capabilities.
  5. Engage Multiple Generations. Recognize each generation’s unique values in the workforce and create an inclusive environment that respects diverse perspectives on social and environmental issues.

In Higher Ground, Alison Taylor offers a comprehensive exploration of how businesses can bridge the gap between ethics and sustainability, building trust and integrity. By examining the role of corporations through the lens of stakeholder expectations, she challenges leaders to redefine success beyond shareholder value. Her call for a more nuanced approach to business ethics resonates strongly in today’s rapidly evolving regulatory and social landscape.

For compliance professionals, Taylor’s work is a timely reminder of the importance of staying connected to the broader organizational mission and ensuring that ethics programs are integrated into every facet of the business. Whether setting clear priorities, encouraging open dialogue, or embracing principles-based compliance, Higher Ground provides a roadmap for leaders committed to building ethical organizations in the 21st century.

If you want to explore these themes in more depth, please check out Higher Ground and join the thoughtful conversation that Taylor has started. Given the advent of the second Trump Administration, these discussions have taken on a new urgency.

Categories
Sunday Book Review

Sunday Book Review: November 17, 2024 – The Books on Due Diligence Edition

In the Sunday Book Review, Tom Fox considers books that interest the compliance professional, the business executive, or anyone curious. These could be books about business, compliance, history, leadership, current events, or anything else that might interest Tom. In today’s Sunday Book Review edition, Tom Fox looks at four top books on due diligence for the compliance professional in November 2024.

  1. OSINT: The Authoritative Guide to Due Diligence by Cynthia Hetherington
  2. Due Diligence and Corporate Governance by Linda Spedding
  3. Business Due Diligence Strategies
  4. The Art of M&A Due Diligence, Second Edition: Navigating Critical Steps and Uncovering Crucial Data by Alexandra Lajoux & Charles Elson

 

Resources:

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

For more information on the first Annual Compliance Podcast Network Agora Awards for Excellent in Podcasting and to register, click here. There is no charge for this event.

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10 For 10

10 For 10: Top Compliance Stories For the Week Ending November 16, 2024

Welcome to 10 For 10, the podcast that brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance, brings you the compliance professional and the compliance stories you need to know to end your busy week. Sit back, and in 10 minutes, hear the stories every compliance professional should know from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • Meta fined $840MM in EU for anti-trust violations. (NYT)
  • SBF LT. Builds fraud detection tool for DOJ. (Reuters)
  • Shell wins appeal in landmark climate case. (NYT)
  • ADM CCO steps down amid probe.  (Bloomberg)
  • End of ESG and crypt initiatives at SEC. (WSJ)
  • What science reveals about corruption. (El Pais)
  • Telefónica Venezuela settles FCPA action. (WSJ)
  • Handling a difficult employee with health issues. (NYT)
  • Hidden cost of textile and apparel non-compliance. (Homeland Security Today)
  • NetEase execs arrested for bribery and money laundering.  (biz)

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

You can check out the Daily Compliance News for four curated compliance and ethics-related stories each day here.

Check out the full 3-book series, The Compliance Kids, on Amazon.com.

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Kerrville Weekly News Roundup

Kerrville Weekly News Roundup: November 16, 2024

Welcome to the Kerrville Weekly News Roundup. Each week, veteran podcaster Tom Fox and his colleagues Andrew Gay and Gilbert Paiz get together to go over a couple of their favorite stories from the past week from Kerrville and the greater Hill Country. Sit back, enjoy a cup of morning coffee and listen in to get a wrap up of the Kerrville Weekly News. We each consider two of our favorite stories and talk about the upcoming weekend’s events which will enjoy or participate in this weekend.

In this episode, the Dream Team returns as Tom, Gilbert and Andrew are back to look at some of the which caught their attention over the past week.

Stories Include

  • Heart of the Hills Heritage Center breaks ground
  • Tivy Antlers begin playoff run
  • New exhibit with Jason Scully and Noe Perez at Museum of Western Art
  • New Murals in Kerrville
  • Corey Edmonson leaves Peterson
  • UT v. Arkansas

Resources

Tom Fox on LinkedIn

Gilbert Paiz on LinkedIn

Andrew Gay on LinkedIn

Texas Hill Country Podcast Network

The Lead

Kerrville Daily Times

Categories
Career Can D0

Leadership in the Hybrid Working Era with Megan Billnoske

What makes a leader truly unforgettable—the kind who energizes you, makes you want to get up in the morning, and has a real impact, not just on you, but everyone around you? In this episode of Career Can Do, Mary Ann Faremouth and Megan Billnoske dig into the heart of leading with purpose, compassion, and authenticity.

Megan is the founder of Inspire and the current president of the National Speakers Association (NSA) Houston. With over a decade of experience across different industries and continents, Megan talks about her journey from corporate life to becoming a voice for impactful leadership. She discusses the importance of authenticity and compassion in leadership, emphasizing that today’s leaders must be dynamic and inclusive. With the rise of virtual and hybrid work, she explains how understanding the unique needs of each team member can foster stronger connections and drive success. Megan also touches on how NSA Houston has embraced hybrid events, providing new opportunities for leaders to connect, share knowledge, and grow together in a changing world.

Resources:

Megan Billnoske on Web I LinkedIn I Email – megan@meganbillnoske.com

Mary Ann Faremouth on Web I X (Twitter)

Referenced: Emotional Intelligence by Daniel Goleman,  Dare to Lead by Brene Brown

Categories
2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 41 – The Where Are We Headed Edition

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

Stories This Week Include:

  • End of ESG and crypt initiatives at SEC.  (WSJ)
  • What science reveals about corruption. (El Pais)
  • FinCEN, corruption, and the real estate industry.  (Reuters)
  • Would you trust Mattel to list your website?   (NYT)
  • Fat Leonard was sentenced. (NYT)
  • 10 Compliance Lessons Learned from the Telefónica Venezolana FCPA Enforcement Action (JDSUPRA)
  • DOJ has received 200 tips since launching the whistleblower program (LEGALDIVE)
  • Retaliation – The Reality From passive policy to a data-driven active anti-retaliation program (IDEAS & ANSWERS)
  • Connect With One Old Colleague or Boss (WSJ)
  • A quick guide to rekindling a business relationship gone dormant—and why it’s important to do it  
  • Ex-Disney Employee Accused of Hacking Disney World Menus, Changing Font to Wingdings (404 MEDIA)

 

Register for the First Annual Compliance Podcast Network, Agora Awards for Excellence in Podcasting. Our inaugural winners are Mary Shirely and Lisa Fine for co-founding Great Women in Compliance. The event is free on Tuesday, November 19, from 12-3 PM ET. Registration and Information here.

Resources:

Kristy Grant-Hart on LinkedIn

Spark Consulting

Prove Your Worth

Tom

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Reel Creators of the Texas Hill Country

Reel Creators of the Texas Hill Country: Season 1: Derek Meier on Authentic Late Victorian Set Design in Sherlock Holmes-Mare of the Night

Welcome to Reel Creators of the Texas Hill Country, where we dive deep into the heart of filmmaking in one of America’s most unique and captivating landscapes. From rolling hills and rustic towns to thriving cities and hidden gems, the Texas Hill Country offers endless inspiration for filmmakers, and we’re here to uncover every aspect. In this podcast, we’ll meet the passionate directors, cinematographers, screenwriters, and crews who bring their creative visions to life in this storied region. Join us as we explore the challenges, rewards, and unique stories that make filmmaking here an art of its own. Whether you’re a seasoned pro or simply curious about the world behind the camera, Reel Creators of the Texas Hill Country promises to be your all-access pass to the vibrant filmmaking community of the Hill Country and beyond.

In this Season One, we will feature the production of the film Sherlock Holmes –  Mare of the Night, a TriGoodwyn production, headed by film-maker CJ Goodwyn. We will visit with Goodwyn, members of his crew, cast and production team. In this Episode 3, I visit with Derek Meier the Production designer who has made a significant impact on the film industry, Sherlock Holmes-Mare of the Night.

Meier discusses the varied roles he played on the set including Head of Wardrobe, Sound Operator, and Set Constructor. With a background in mechanics and extensive experience in home building and remodeling, Meier brought a practical and hands-on approach to his production design work. His dedication to authenticity and uniqueness is evident in his meticulous research and exploration of historical references, such as paintings and catalogs, to accurately capture the late Victorian style, avoiding more fantastical interpretations like steampunk. Meier’s comprehensive understanding of visual storytelling was shown through his strategic planning for set continuity and future scenes, ensuring a cohesive and immersive experience for audiences.

Key highlights:

  • Authentic Late Victorian Set Design in Film
  • Unveiling the Psychological Depths of Sherlock Holmes
  • Set Production Designer: Crafting Visual Continuity Onset
  • Balancing Fan Expectations in Sherlock Holmes Adaptation

Resources:

Sherlock Holmes-Mare of the Night

On Facebook

TriGoodwyn Productions

Texas Hill Country Podcast Network