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Daily Compliance News

Daily Compliance News: February 18, 2025, The Huge Mistake 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.

Top stories include:

  • Wells Fargo Consent Decree terminated. (YaHoo!Finance)
  • DOGE actions threaten the safety of ALJs. (Reuters)
  • JPMorgan’s purchase of Frank heads to criminal trial. (FT)
  • Of business plans and tariff changes. (Bloomberg)

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

Check out the FCPA Survival Guide on Amazon.com.

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Hill Country Authors

Hill Country Authors Podcast – Molded: A Journey of Resilience and Recovery with Carol Milberger

Welcome to a new season of the award-winning Hill Country Authors Podcast, sponsored by Stoney Creek Publishing. In this podcast, Hill Country resident Tom Fox visits with authors who live in and write about the Texas Hill Country. In this episode, Tom visits Carol Milberger about her story of loss and resilience through the loss of a home due to toxic mold in her book MOLDed.

Have you ever seen toxic mold in your home and considered the devastating impact of this condition? After listening to this podcast with Carol Milberger, who discovered her home was completely infested with toxic mold, you should probably not, but you should. She recounts the devastating impact toxic mold had on her home and family’s health. Carol discusses the cognitive and physical effects of toxic mold exposure, the challenges of remediation, and the financial and emotional toll on her family. She emphasizes the importance of resilience and gratitude in overcoming such adversities. She also touches on her bookwriting journey, the role of humor in dealing with grief, and her ongoing efforts to educate others about toxic mold’s dangers.

Key highlights:

  • The Mold Discovery and Initial Impact
  • Health and Cognitive Effects of Mold
  • Writing the Memoir and Using Humor
  • Resilience and Family Support

Resources:

Carol Milberger

Website

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MOLDed on Amazon.com

Stoney Creek Publishing

Nancy Huffman Fine Art

Tom Fox

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Innovation in Compliance

Innovation in Compliance – Supporting White Collar Offenders: A Conversation with Jeff Grant

Innovation comes in many forms, and compliance professionals need to be ready for it and embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovative minds, thinkers, and creators in the award-winning Innovation in Compliance podcast. In this episode, host Tom Fox welcomes back Jeff Grant, co-founder of the White Collar Support Group, an initiative of Progressive Prison Ministries.

Jeff shares the evolution of the support group, which now boasts over 1,300 members and focuses on providing spiritual and emotional support to those navigating the white-collar criminal justice system and their families. Jeff discusses the importance of community and the group’s diverse membership, which includes individuals from various backgrounds affected by white-collar crime. He also highlights the group’s expansion into advocacy work, including initiatives for federal pardon and expungement reform and the right to banking for formerly incarcerated individuals. Jeff reflects on his journey through addiction, incarceration, and redemption, emphasizing his commitment to helping others through similar struggles. The episode concludes with ways for listeners to engage with Jeff and support his impactful work.

Key highlights:

  • White Collar Support Group Overview
  • Diversity and Evolution of the Group
  • Family Support and Integration
  • ABA White Collar Conference and Legal Assistance
  • Federal Pardon and Expungement Reform
  • Right to Banking Initiative
  • Personal Journey and Reflections

Resources:

Jeff Grant on LinkedIn

Grant Law

White Collar Support Group

Tom Fox

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Word of the Week

Word of the Week with Kenneth O’Neal – Presidents: Integrity and Leadership – Lessons from Presidents Washington and Lincoln

Each week, Kenneth O’Neal discusses a word that describes a principle or value of the Qualities of Success. We suggest you use the Word of the Week in your thoughts, deeds, and actions. You possess the quality and desire to develop it to a higher level. You could replace a bad habit with a good habit. Write an action step and use it daily to develop the quality in your life.

In this episode, Kenneth discusses Presidents’ Day and the lasting legacies of George Washington and Abraham Lincoln. He highlights the historical origins of the holiday, marking it as a celebration of Washington’s and Lincoln’s birthdays, with interesting trivia about other presidents born in February. Kenneth emphasizes these two leaders’ unparalleled leadership and unwavering integrity, and the hosts explore their contributions to American values and governance. Kenneth relates the anecdotes we all grew up with, such as Lincoln’s honesty and Washington’s refusal to seek power, both setting moral foundations that the country continues to honor today.

Key highlights:

  • History of President’s Day
  • Abraham Lincoln’s Integrity Stories
  • George Washington’s Leadership
  • Reflections on Celebrating Presidents

Resources:

KRONEAL Consulting

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Blog

Upping Your Compliance Game, Part 2 – Compliance, Ethics and Your Supply Chain

The Trump Administration has suspended FCPA enforcement for the foreseeable future. What does that mean for compliance professionals? Hui Chen has suggested this should be seen as an opportunity for compliance, but to do so, “It’s time to up your game . . . Instead of selling insurance for FCPA enforcement, become leaders that help your organizations perform.” Based on this challenge by perhaps the most imminent compliance commentator around, I am going to devote the next several blog posts to ways in which compliance professionals can indeed up their collective game and demonstrate the importance of not simply compliance but ethics and compliance. Today, it is in your Supply Chain.

Have you ever stopped to consider the human rights abuses at the root of the products you use daily? From solar panels to computer screens, the exploitation of the Uyghur minority in China is a painful reality that has been hidden from Western consumers for far too long. Compliance professionals must now confront this issue head-on, ensuring their organizations meet regulatory requirements and uphold ethical business practices.

The global supply chain, long enabled by forced labor and geopolitical complexities, faces a reckoning. The Uyghur Forced Labor Prevention Act (UFLPA), the shifting dynamics of global trade post-COVID-19, and increasing tensions with China all underscore the urgent need for corporations to re-evaluate their sourcing strategies. Let’s explore the key measures compliance professionals must take to mitigate these risks and establish a more ethical and resilient supply chain.

UFLPA represents a turning point in corporate responsibility. This legislation prohibits goods made wholly or partly in Xinjiang from entering the U.S. unless companies can provide clear and convincing evidence that their products are free from forced labor. Given the widespread exploitation in this region, achieving compliance is no small feat.

Xinjiang, home to the oppressed Uyghur population, is a major hub for materials like neon, steel, lithium, and silica, which are critical components in many industries. These industries, controlled by paramilitary organizations, thrive on forced labor, driving down production costs while manipulating global markets.

For compliance professionals, this presents a major challenge. Companies must:

  • Conduct thorough supply chain audits.
  • Require suppliers to provide clear documentation proving ethical sourcing.
  • Leverage technology, such as blockchain, to improve transparency.
  • Engage with third-party investigators to conduct independent assessments.

Taking UFLPA compliance seriously is not just a legal obligation but a moral one. Companies that fail to act risk hefty fines and irreparable reputational damage.

Diversifying the Supply Chain: A Risk Management Necessity

Over-reliance on China has long been a vulnerability, and recent geopolitical tensions have only magnified this risk. A diversified supply chain is an ethical imperative and a strategic advantage. Companies can mitigate supply chain disruptions and regulatory exposure by expanding sourcing beyond China.

Compliance professionals should advocate for:

  • Investment in Southeast Asia. Vietnam, Malaysia, and Cambodia offer alternative sourcing opportunities with fewer ethical concerns and growing industrial capabilities.
  • Nearshoring to North America. Mexico presents an interesting alternative because of its proximity to the U.S. and its established manufacturing sector.
  • Enhanced supplier due diligence. Companies must ensure that alternative suppliers comply with international labor and human rights standards.

The ability to pivot away from forced labor-dependent supply chains will help companies meet compliance requirements and enhance long-term business continuity.

Investing in Alternative Sources of Supply

Beyond geographic diversification, businesses must rethink their sourcing strategies to ensure sustainability and security. Investing in alternative materials and innovative technologies can reduce dependence on high-risk supply chains.

Key actions include:

  • Developing alternative raw material sources. Lithium, silica, and other key materials can be sourced outside of Xinjiang, reducing exposure to forced labor risks.
  • Strengthening partnerships with ethical suppliers. Vetting and fostering long-term relationships with suppliers in ethical jurisdictions ensures compliance and reliability.
  • Investing in R&D for alternative technologies, such as researching new production methods and materials, can help reduce dependence on unethical sources.

Compliance officers must take the lead in integrating these strategies into corporate supply chain policies, ensuring that ethical considerations are embedded in procurement decisions.

Reshoring Manufacturing: Enhancing Security and Compliance

Reshoring, bringing manufacturing back to stable, free-market economies, presents an interesting solution to supply chain vulnerabilities. Companies that invest in domestic or nearshore production benefit from:

  • Greater regulatory oversight and labor protections.
  • Reduced risks of tariffs, sanctions, and trade restrictions.
  • Shorter, more resilient supply chains.

The U.S. and UK, in particular, offer untapped manufacturing potential with over 525,000 underutilized manufacturers in the U.S. alone. Reshoring can help companies mitigate the risks associated with China while bolstering domestic economies.

For compliance professionals, reshoring initiatives should be integrated into long-term corporate strategy discussions. While the initial costs may be higher, the long-term benefits—ethical assurance, reduced risk exposure, and supply chain resilience—far outweigh the challenges.

The Case for Investing in U.S. Manufacturing

Beyond reshoring, direct investment in U.S. manufacturing presents an opportunity to ensure both ethical and economic stability. Compliance professionals should advocate for:

  • Incentives for domestic production. Lobbying for tax incentives and subsidies can help make U.S. manufacturing cost-competitive.
  • Strengthening workforce training programs. Investing in a skilled domestic workforce ensures long-term manufacturing sustainability.
  • Leveraging technology to enhance efficiency. Automation and advanced manufacturing techniques can offset higher labor costs, making U.S. production more viable.

With 525,000 manufacturers in the U.S. currently underutilized, the potential for strengthening domestic supply chains is immense. Businesses willing to make this investment will gain ethical credibility and a long-term competitive advantage.

The Compliance Mandate for Ethical Supply Chains

The Uyghur Forced Labor Prevention Act, geopolitical tensions with China, and the need for supply chain diversification are not just news headlines but corporate compliance imperatives. Companies that fail to address these challenges risk legal consequences, operational disruptions, and reputational harm.

To navigate this evolving landscape, compliance professionals must:

  • Ensure rigorous UFLPA compliance through enhanced audits and documentation requirements.
  • Advocate for supply chain diversification to mitigate reliance on high-risk regions.
  • Invest in alternative sourcing and ethical suppliers to ensure business continuity.
  • Consider reshoring manufacturing to enhance oversight and security.
  • Champion investment in U.S. manufacturing as a long-term compliance and business strategy.

By taking these steps, companies can move beyond reactive compliance and become proactive leaders in ethical business practices. The future of corporate supply chains must be built on transparency, sustainability, and respect for human rights. Compliance professionals are uniquely positioned to drive this change, ensuring regulatory adherence and a more just and equitable global marketplace.

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Compliance Tip of the Day

Compliance Tip of the Day – How Ethics and Compliance Drive ROI

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, we aim to provide 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.

Today, we consider how effective compliance equates to a more efficient business process and greater ROI.

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

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Corruption, Crime and Compliance

Trump Administration Hits Pause on FCPA Enforcement

What happens when an entire era of anti-corruption enforcement is put on pause? Is this a strategic move to bolster American businesses or a dangerous rollback of corporate accountability? In an unprecedented move, the Trump administration has hit the brakes on FCPA enforcement for at least 180 days, citing concerns over U.S. economic competitiveness and national security. In this episode of Corruption, Crime, and Compliance, Michael Volkov breaks down the implications of this game-changing executive order. The executive order claims that FCPA enforcement has been stretched beyond its original intent, harming American businesses while benefiting foreign competitors. With the Department of Justice now ordered to reassess its approach to anti-bribery enforcement, the business and legal communities are left wondering—what happens next? Will companies adjust their compliance strategies, or will global enforcement trends keep them in check?

You’ll hear him discuss:

  • The Trump administration’s rationale for halting FCPA enforcement and why the decision was both surprising and expected
  • The executive order’s directive to the Attorney General to reassess FCPA investigations and enforcement priorities
  • The shift in DOJ focus from corporate bribery cases to prosecuting cartels and transnational criminal organizations
  • The potential impact on global anti-corruption efforts as countries like the UK, France, and Brazil continue enforcing their bribery laws
  • The uncertainty surrounding the DOJ’s forthcoming guidance and what companies should anticipate in the next 180 days
  • The broader implications for corporate compliance programs, risk assessments, and international business strategy
  • The historical context of past efforts to reform the FCPA and why similar arguments were made over a decade ago
  • The potential for companies to seek remedial measures for past FCPA enforcement actions and the challenges in implementing such a policy
  • How this shift in enforcement priorities may affect corporate ethics, internal investigations, and global compliance expectations

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

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Adventures in Compliance

Adventures in Compliance – Institutional Justice and Institutional Fairness Lessons from The Adventure of the Veiled Lodger

In this new season of Adventures in Compliance, host Tom Fox takes a deep dive into Arthur Conan Doyle’s Sherlock Holmes collection, The Case-Book of Sherlock Holmes. It is the final set of twelve Sherlock Holmes short stories, first published in the Strand Magazine between October 1921 and April 1927. In this episode, we consider the story The Adventure of the Veiled Lodger.

Tom emphasizes the importance of fairness and transparency in compliance investigations, accountability without retaliation, encouraging whistleblowers, and addressing systemic failures. The episode also highlights how ethics and compliance must be ingrained in corporate culture, reflecting principles from the Department of Justice’s 2020 and 2024 updates to the Evaluation of Corporate Compliance Programs. Through Holmes’ empathetic approach, compliance professionals can learn the importance of contextual investigations and the pursuit of institutional justice. Tom invites Sherlock Holmes enthusiasts to engage in discussions about the stories and underscores the role of compliance in fostering a fair and ethical workplace.

Highlights include:

  • The Story of the Veiled Lodger
  • Lessons on Institutional Justice and Fairness
  • Lessons for CCOs

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.

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Daily Compliance News

Daily Compliance News: February 17, 2025, The Cancel The Leases 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.

Top stories include:

  • Retaliation? Musk and DOGE want to cancel federal judiciary leases. (Reuters)
  • DOJ guts bringing of corruption cases. (CNN)
  • Barclay faces a money-laundering investigation. (WSJ)
  • Is settling litigation paying a bribe? (WSJ)

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

Check out the FCPA Survival Guide on Amazon.com.

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FCPA Compliance Report

FCPA Compliance Report – National Security and Legal Perspectives with Kevin Carroll

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes Kevin Carroll, now a partner at Fluet Law, to discuss national security issues to date under the Trump Administration.

Kevin Carroll discusses his move to Fluet Law, a national security law firm. He delves into the ongoing chaos in national security, ranging from employees’ concerns over legal processes at the Agency for International Development and the FBI to the unprecedented moves of the Trump administration in reprioritizing enforcement efforts. Kevin emphasizes the criticality of maintaining international alliances and intelligence-sharing, especially amidst controversial DOJ staffing and enforcement decisions. They also touch on the potential ramifications for U.S. companies engaged in foreign trade and anti-corruption enforcement. Don’t miss Kevin’s expert insights on the delicate balance of national security and legal frameworks in uncertain times.

Key highlights:

  • Kevin’s New Professional Chapter
  • National Security Concerns
  • Law Enforcement Priorities
  • International Relations and Security
  • Corporate Legal Risks Abroad
  • USAID and Export Control

Resources:

Kevin Carroll on LinkedIn

Fluet Law

Kevin Carroll on Fluet Law

Tom Fox

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