Categories
Corruption, Crime and Compliance

How to Conduct an Internal Compliance Site Visit and Review

How can companies ensure that their compliance programs are robust enough to handle today’s complex ethical challenges?

In this episode, Michael Volkov dives into the critical components of conducting an internal compliance site visit and review. He highlights the significance of these visits in understanding operational risks and compliance culture. With real-world examples, Michael emphasizes the need for a proactive approach to compliance, ensuring that organizations are not only following regulations but also fostering an ethical environment.

Listen in as Michael talks about:

  • Conducting personal interviews with key staff to assess the compliance culture and operational challenges.
  • Reviewing and testing transactions across various vendor categories to ensure compliance with protocols.
  • Evaluating the effectiveness of training programs and employee understanding of ethical standards and compliance awareness.
  • Verifying compliance with internal policies and conduct due diligence on charitable contributions.
  • Assessing the compliance processes surrounding sponsorships and their alignment with company policies.
  • Implementing thorough due diligence practices for third-party vendors to mitigate risks.
  • Reviewing employee expense reports to ensure proper documentation and compliance with gift, meals, entertainment, and hospitality policies.

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Categories
Adventures in Compliance

The Casebook of Sherlock Holmes – Investigative Lessons from The Adventure of The Mazarin Stone

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

Fox explores how the investigative brilliance of Sherlock Holmes can be applied to modern corporate compliance. Fox translates Holmes’ detective methods into valuable compliance strategies. He discusses how creative investigative techniques, effective witness handling, and quick resolution tactics from Holmes’ era can benefit today’s compliance professionals. With reference to the 2024 updates to the DOJ Whistleblower Financial Incentive Program, Fox emphasizes the importance of timely action, collaboration with external authorities, and attention to detail.

Highlights Include:

  • Holmes’ Clever Tactics and the Jewel Thief
  • Internal Investigative Lessons for Compliance Professionals
  • Maintaining Control in Tense Situations
  • Staying Focused on Objectives
  • Gathering Evidence Discreetly
  • Handling Key Witnesses

Resources:

The New Annotated Sherlock Holmes

Sherlock Holmes FAQ by Dave Thompson

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

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Categories
Daily Compliance News

Daily Compliance News: October 28, 2024 – The Lights on in South Africa 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:

  • No corruption = lights on in South Africa. (Bloomberg)
  • Yet another judge says that NLRB is constitutional. (Reuters)
  • Modern slavery stopped on the Scottish trawler. (BBC)
  • What went wrong at Boeing? (WSJ)

Categories
FCPA Compliance Report

FCPA Compliance Report: Navigating Global Compliance and Risk – Lessons from The Pager Attacks

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this edition of the FCPA Compliance Report, Tom Fox visits with Dr. Ian Oxnevad and Chris Mason from Infortal Worldwide about the Israeli attack on Hezbollah through its pagers and explores what all of this means for the compliance professional.

The podcast explores the compliance and supply chain ramifications stemming from pagers licensed by a Taiwanese company to a Hungarian firm which were subsequently used to disrupt Hezbollah’s operations. This incident serves as a springboard for discussing the broader implications for global businesses, emphasizing the essential role of due diligence in complex supply chains. The episode offers insightful commentary on how Hezbollah’s lack of scrutiny over their suppliers led to vulnerabilities that were exploited by Israel, acting as a cautionary tale for organizations everywhere. Key topics include the unexpected ways legitimate companies can be compromised, the pervasive nature of risk management, and the importance of vetting and verifying partners across all industries to maintain business integrity and reputation.

Highlights in this Episode:

  • Attack on Hezbollah
  • Compliance and Supply Chain Issues
  • Payment Anomalies and Red Flags
  • Lessons Learned and Risk Management
  • The Importance of Knowing Your Risk Profile
  • Unintended Consequences and Risk Management
  • Final Thoughts on Supply Chain Vulnerabilities

Resources:

Infortal Worldwide

Dr. Ian Oxnevad on LinkedIn

Chris Mason on LinkedIn

Tom Fox

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Categories
Blog

Supporting Whistleblowers: Lessons from Lon Chaney’s The Wolfman

Ed. Note: This week, leading up to Halloween, I will examine lessons for compliance professionals through the lens of the great Universal Movie Monsters: Frankenstein, Wolfman, Dracula, and The Mummy. Today, we use Lon Chaney’s original film version of The Wolfman. 

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Of all the great Universal movie monsters, my favorite is found in the 1941 film The Wolfman. Lon Chaney’s portrayal of Larry Talbot offers more than just a classic horror story about a man who becomes a werewolf. It’s a tale of isolation, fear, and a struggle for survival in the face of an overwhelming and terrifying transformation. In short, it is the most psychological of all the Universal movie monsters. Much like a corporate whistleblower, Talbot finds himself caught in a situation where the truth is a burden, and no one wants to listen. Instead of being understood and supported, he is feared, rejected, and left to fend for himself.

For compliance professionals, The Wolfman provides a vivid metaphor for the journey of whistleblowers. Whistleblowers often find themselves isolated, facing potential retaliation, and struggling to navigate the consequences of their decision to report wrongdoing. In this post, we’ll explore how to create a culture that encourages whistleblowers to come forward, keeps them informed throughout the process, and protects them from retaliation, all through the lens of The Wolfman. We will also assess the 2024 Evaluation of Corporate Compliance Programs (2024 ECCP) and Nicole Argentieri’s commentary on these issues.

Creating a Safe Space: Encouraging Whistleblowers to Come Forward

In The Wolfman, Larry Talbot is plagued by the knowledge of his transformation, but he finds no one willing to help or believe him. He is trapped in his new reality, just as whistleblowers can feel trapped by the knowledge of corporate misconduct. The first step in supporting whistleblowers is creating an environment where they feel safe and encouraged to speak up.

The 2024 ECCP underscores the importance of building a culture where employees feel empowered to raise concerns without fear. It emphasizes the need for companies to proactively encourage internal reporting mechanisms, making it clear that the company values integrity and transparency. Compliance professionals must ensure that reporting channels are available, actively promoted, and trusted.

In her commentary on the 2024 ECCP, Nicole Argentieri highlights that one key element in encouraging whistleblowers is leadership’s tone from the top. Executives and senior management must demonstrate a commitment to ethical behavior, ensuring that whistleblowing is accepted and valued. Whistleblowers need to know that their reports will be taken seriously and their concerns will be addressed.

Talbot’s cries for help go unheard in The Wolfman, leading to disastrous consequences. In the corporate world, businesses must avoid this fate by ensuring whistleblowers are not ignored or dismissed. The 2024 ECCP recommends that companies provide multiple, accessible channels for reporting, including anonymous options so that employees feel comfortable coming forward regardless of their circumstances.

Transparency Throughout the Process: Keeping Whistleblowers Informed

Just as Larry Talbot struggles with the unknown and is left in the dark about his fate, whistleblowers often find themselves cut off after making a report. They may need clarification about what’s happening with their complaint, whether it’s being investigated, and the next steps. This lack of communication can discourage future whistleblowers and lead to feelings of abandonment.

The 2024 ECCP stresses the importance of maintaining open lines of communication with whistleblowers throughout the investigation process. Once a report has been made, it is critical to keep whistleblowers informed about the status of their complaint. This does not mean sharing sensitive investigation details but providing regular updates so that the whistleblower knows their concerns are being taken seriously.

Argentieri has echoed this sentiment, noting that one of the most common frustrations whistleblowers face is a lack of transparency after they come forward. She argues that compliance teams must ensure whistleblowers are not wondering what will happen next. A well-managed whistleblower program includes clear communication protocols that keep whistleblowers engaged and reassured.

In The Wolfman, Talbot’s inability to find answers drives him to despair. Businesses must avoid this by ensuring whistleblowers feel supported and heard throughout the process. Compliance officers should regularly touch base with whistleblowers, letting them know that their concerns are being addressed, that their identity is being protected and that appropriate actions are being taken.

Protection from Retaliation: Safeguarding Whistleblowers

One of the central themes in The Wolfman is Larry Talbot’s fear of being hunted and rejected. Similarly, whistleblowers often fear retaliation, whether in the form of termination, demotion, or ostracization. Protecting whistleblowers from retaliation is a legal obligation and a moral imperative that helps foster a culture of compliance and trust.

The 2024 ECCP strongly emphasizes retaliation protections. It advises that companies must have robust policies to prevent retaliation and provide clear avenues for whistleblowers to report any retaliatory behavior. This means more than just having a policy on paper—compliance teams must actively enforce these protections and monitor for any signs of retaliation.

Nicole Argentieri has weighed in on this issue, noting that while many companies claim anti-retaliation policies, enforcement can be lacking. She emphasizes the need for companies to create a system of checks and balances to ensure that retaliation does not occur, particularly in the form of subtle, indirect actions that might otherwise go unnoticed. Retaliation doesn’t always come as a formal firing—it can be a change in duties, exclusion from meetings, or a negative shift in workplace relationships.

In The Wolfman, Talbot becomes a hunted figure, chased down by those who fear and misunderstand him. In the corporate world, whistleblowers must never feel like they are being hunted or targeted for their decision to report misconduct. The ECCP advises companies to protect whistleblowers and offer additional support services, such as counseling, if needed, to help them navigate the emotional strain of coming forward.

Building a Culture of Trust and Integrity

The most important lesson from The Wolfman is the need for trust. Larry Talbot finds himself abandoned and isolated because the people around him refuse to trust his warnings. A strong compliance program must avoid this trap by building a culture of trust and integrity. Employees need to believe that they will be treated fairly, protected, and supported if they come forward with a report.

The 2024 ECCP highlights that trust is the foundation of a successful compliance program. Companies must work to build an environment where whistleblowers are seen as vital contributors to the company’s ethical health. This includes recognizing the courage it takes to come forward and offering praise or acknowledgment for whistleblowers who help protect the company from greater risks.

Argentieri has noted that companies should integrate their whistleblower programs into the broader corporate culture, making whistleblowing a routine and accepted part of the business rather than an extraordinary act of bravery. This normalization of whistleblowing helps to remove the stigma and encourages more employees to speak up when they see something wrong.

Creating a Supportive Whistleblower Program

The Wolfman offers us a powerful analogy for the journey of whistleblowers within a company. Like Larry Talbot, whistleblowers often face fear, isolation, and a lack of support. However, the lessons from The Wolfman, coupled with the guidance from the 2024 ECCP and Nicole Argentieri’s commentary, provide a roadmap for how companies can create a more supportive environment for whistleblowers.

Encouraging whistleblowers starts with creating a culture where employees feel safe and empowered to report misconduct. Keeping them informed throughout the process is essential for maintaining their trust and confidence. Finally, protecting whistleblowers from retaliation ensures that they—and others—continue to feel comfortable raising concerns.

By building a robust and transparent whistleblower program, compliance professionals can help their organizations navigate the complexities of corporate risk, protect their employees, and safeguard the company’s reputation. In doing so, they avoid the tragic fate of The Wolfman and create an environment where the truth is not a burden but a pathway to a stronger, more ethical company.

Join us tomorrow for our final consideration of compliance through the classic Universal Movie Monsters lens as we consider corporate culture and Boris Karloff’s version of The Mummy.

Categories
Compliance Tip of the Day

Compliance Tip of the Day: Compliance Lessons from Boris Karloff’s Frankenstein

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.

How does the Boris Karloff version of Frankenstein inform your compliance program?

Categories
Sunday Book Review

Sunday Book Review: October 27, 2024 The New Business Books Edition

In the Sunday Book Review, Tom Fox considers books that would interest the compliance professional, the business executive, or anyone who might be curious. It could be books about business, compliance, history, leadership, current events, or anything else that might interest me.

In today’s edition of the Sunday Book Review, we look at four top new business books for October.

  1. Analytics by John Thompson and Shawn Rogers
  2. Unspoken by Ella Washington
  3. Glad We Met by Stephen Rogelberg
  4. Exactly by Simon Winchester

Resources:

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

Categories
10 For 10

10 For 10: Top Compliance Stories For The Week Ending October 26, 2024

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of 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.

  • Former A&F CEO arrested for sex trafficking. (WSJ)
  • Peru’s ex-President gets 20 years for corruption. (NPR)
  • Charges dropped against Tigran Gambaryan in Nigeria.  (Wired)
  • The Quid Pro Quo-Judge Aileen Cannon on Trump’s short list to be AG. (ABC)
  • FinCEN fines CA Casino over AML violations.  (WSJ)
  • Harris looking at crypto friendly types to head SEC. (Unchained)
  • EY fires staff who took multiple online training courses at the same time.  (FT)
  • Preventing bad behavior at work. (FT)
  • Extreme forum shopping. (CoinDesk)
  • An analysis of Supreme Court’s legalization of corruption.     (NYT)

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Categories
Because That's What Heroes Do

Deep Space 9: Episode 15 – Trials and Tribble – ations: Homage, Innovation, and Time Travel Intrigue

Get ready for an exciting new season of Because That’s What Heroes Do. In this season, they take a deep dive into their favorite 15 episodes of Deep Space 9. In this exploration, Tom and Megan are joined by Star Trek maven, Alex Murphy, (Murphy) from Montreal, who is a local historian, cinema and tv fan with a love for weird foreign films, all things horror, and obscure media. He has been watching Trek since he was a tiny punk, and it’s been a lifelong love. In this episode, the team reviews the DS9 tribute episode for Star Trek, the Original Series, Trials and Tribble-ations.

Celebrating the 25th anniversary of ‘The Original Series,’ this episode masterfully blends nostalgic references with technical innovations. Our hosts walk you through the recreation of the TOS aesthetic using 60s lenses, the seamless integration of DS9 characters into classic scenes, and amusing character interactions, such as Dax’s enthusiasm for the time period and Worf’s Tribble troubles. We also delve into in-universe explanations for changing Klingon appearances and highlight various Easter eggs honoring TOS (and more), like the Mulder and Scully and Dax’s admiration for Spock. Amidst the nostalgia, we touch on significant plot mechanics, including the Orb of Time and its implications for the DS9 universe, reflecting on the political intrigue and alliances with the Federation. Through engaging anecdotes and behind-the-scenes stories, we celebrate the joyful craft and love that define this special episode while hinting at deeper topics in upcoming discussions.

Key Highlights:

  • Technical Marvels and Behind-the-Scenes Insights
  • The Story Behind the Episode’s Creation
  • Easter Eggs and Fun References
  • Megan’s Thoughts on the Temporal Police
  • The Klingon Appearance Mystery
  • The Orb of Time and Cardassians

Resources:

Megan Dougherty 

LinkedIn

One Stone Creative

Tom 

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Facebook

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LinkedIn

Categories
Compliance Tip of the Day

Compliance Tip of the Day: TD Bank Lessons Learned – The Penalty of Growth Restrictions

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.

The OCC not only put on a growth restriction on TD Bank but will further increase the penalty if the Bank fails to meet compliance obligations.