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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 3

What happens when two top compliance commentators get together? They talk compliance, of course. Join Kristy Grant-Hart and Tom Fox for their new podcast, 2 Gurus Talk Compliance! But it is not simply Kristy and Tom talking about compliance. In this podcast series, Kristy and Tom also review other top commentators in compliance. In this podcast, we discuss the recent jail time for a Wells Fargo executive, the UK government’s plan to enforcement of anti-corruption and AML violations, due diligence before acquiring a company, and the recent charges against the co-founder of FTX. They also touch on the shift towards valuing a healthier relationship with work and the potential of the Metaverse in the compliance industry. Tune in to hear Tom and Kristy break down the latest compliance news and provide valuable insight into the industry that will keep you ahead of the curve.

 Highlights Include

·      Corporate Ethics and Compliance

·      The Wells Fargo Scandal and Criminal Accountability

·      Uncertainty surrounding CCO certification

·      UK Government’s Fight Against Corporate Crimes

·      COVID and the Future of Work

·      The Importance of Due Diligence in Acquisitions

·      Move into the compliance profession

·      Indictment of Samuel Bankman Fried

 Notable Quotes

1.      “If you buy a company engaging in bribery corruption, you’re not responsible for that. But when you take title and ownership, they are not engaging in broader corruption. It is you are engaging in broader corruption.”

2.     “I just think that flat banning of CHAT GPD is taking away hugely useful business tools to the Italian business sector.”

3.     “It is incredibly rare for a bank officer to be held criminally accountable.

4.     I think we’ll start to see that now move from becoming an extraordinary practice to a best practice to a regular practice to table stakes.

Resources 

1.     Italy Bans ChatGPT

2.     Why have workers given up the office

3.     CCO certifications

4.     Getting your first job in compliance

5.     SBF and the FCPA

6.     Carrie Tolstedt pleads guilty

7.     UK to invest in economic crime enforcement

8.     What is happening to the Metaverse

9.     Flutter settles FCPA enforcement action

Connect with Kristy Grant-Hart on LinkedIn

Spark Consulting

Connect with Tom Fox on Linkedin

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Daily Compliance News

April 7, 2023 – The Good Friday/Passover 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.

Stories we are following in today’s edition of Daily Compliance News:

  • DFS shut Signature Bank for liquidity reasons, not crypto reasons. (WSJ)
  • When Elon yaps? (Reuters)
  • China has nothing to do with TikTok except defend it. (NYT)
  • Steinmetz blames George Soros for losing the appeal. (FT)
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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program for 3rd Parties – Questionnaire

The next step in the five-step process is the questionnaire. The term ‘questionnaire’ is mentioned several times in the 2020 FCPA Resource Guide. It is generally recognized as one of the tools that a company should complete in its investigation to understand better with whom it is doing business. The questionnaire should be mandatory for any third party that desires to work with your company as it mandates the proposed business partner commit to the required information in writing before beginning the due diligence process. Remember, if a third party does not want to fill out the questionnaire or will not fill it out completely, you should not walk but run away from doing business with such a party.

One of the key requirements of any successful compliance program is that a company must make an initial assessment of a proposed third party. The size of a company does not matter, as small businesses can face significant risks and will need more extensive procedures than other businesses facing limited threats. The level of risk that companies face will also vary with the type and nature of the third parties with which they may have business relationships. For example, a company that appropriately assesses that there is no risk of bribery on the part of one group of its third parties will require nothing in the way of procedures to prevent corruption in the context of those relationships. By the same token, the bribery risks associated with reliance on a third-party agent representing a company in negotiations with foreign government officials may be assessed as significant and, accordingly, requires much more in the way of procedures to mitigate those risks.
The questionnaire fills several vital roles in your overall management of third parties. It provides key information you need to know about who you are doing business with and whether they can fulfill your commercial needs. Just as important is what is said if the questionnaire is not completed or is only partially completed, such as the lack of awareness of the FCPA, U.K. Bribery Act, or anti-corruption/anti-bribery programs generally. Lastly, the information provided (or not provided) in the questionnaire will assist you in determining what level of due diligence to perform.

Three key takeaways:

  1. You must have enough information to fully identify the owners, UBOs, and related parties to determine if there is foreign official involvement.
  2. All commentary on best practices compliance programs requires questionnaires.
  3. If a third party refuses to fully respond to your questionnaire, run and don’t walk away from the proposed relationship.
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Compliance Man Chooses the Target

Compliance Man Takes a EuroTrip – Tim Moves to The Netherlands

Compliance Man is back for a new season! Get ready for a EuroTrip with Tom Fox and Tim Khasanov-Batirov on their hit podcast, Compliance Man! In the latest season, the dynamic duo will give you an exclusive look into Europe’s top 5 areas of compliance perspective, featuring GDPR compliance as a priority. Want to join the podcast? Be an active listener and pay close attention! The hosts break down the key challenges faced by compliance professionals in Europe and the US, including anti-corruption, ethical business practices, ESG frameworks, and much more! Don’t miss the chance to engage in a global conversation on ethics and compliance. Tune in now to Compliance Man!

 Key Highlights

·      Tim Moves to The Netherlands

·      Compliance in Europe

·      Top Compliance Priorities in Europe and US

·      Ethical Business Conduct and ESG

·      European Businesses’ ESG Prioritization

 Notable Quotes

“In this season of Compliance Man, we entitled EuroTrip, and we’re going to focus on hot topics for Europe from the compliance practitioner point of view.

“You probably can think of the following as the most important pieces of legislation or compliance areas from the European perspective.”

“Pay big attention to data privacy.”

“In the EU, we have almost regulatory-driven ESG.”

Resources

Tim Khasanov-Batirov on LinkedIn

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Pawtastic Friends - The Paw Talk

Pawtastic Friends – The Paw Talk, Giving Dogs Hope & Fur-ever Families

Welcome to the newest addition to the network, Pawtastic Friends-The Paw Talk. In this podcast, host Tom Fox will visit with Michael and Melissa Novelli, co-founders of Pawtastic Friends as well as those who work with them at Pawtastic Friends. Michael and Melissa are dedicated to helping shelter and rescue dogs in the Las Vegas area become more adaptable, through enrichment training and activities such as yoga and aquatics training, as well as obedience and agility. This podcast is sure to tug on your heart strings, just listen to how sweet this one dog is! Tune in now to hear more from Michael and Melissa Novelli as they discuss their passion for helping pups in need.

Key Highlights

·      Training for Dogs in Need at the Pawtastic Friends Rescue Center [00:05:03]

·      Impact of Dog Training Programs on Rescue Dogs [00:09:17]

·      Sponsorship for Dog Rescues [00:12:46]

·      The Healing Power of Animals [00:16:16]

Quotes

1. “Rescue dogs aren’t broken.”

2. “It takes a village to help the animals, and we need it now more than ever.”

3. “Without this program, these dogs just sit in boarding unless, you know, somebody comes and gets them out to walking.”

4. “It’s life changing for them and for the people that adopt them.”

Resources

Pawtastic Friends

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The Night Sky

Karen Taylor – The Eclipse is Coming to Kerr County

Welcome to The Night Sky: A Podcast on the Eclipses Comes to Kerrville, a podcast that celebrates that for two days over the next 18 months, Kerrville, TX, will be the Eclipse Capitol of the World. This podcast, hosted by Andrew Gay and Tom Fox, will celebrate these two eclipses and discuss how Kerrville will prepare for an influx of a quarter million (or more) visitors. The Texas Hill Country Podcast Network produces this podcast.

Get ready for an exciting episode of The Night Sky as hosts Tom Fox and Andrew Gay welcome Karen Taylor, Executive Director of the West Kerr County Chamber of Commerce, to discuss the upcoming solar eclipse event expected to attract thousands of tourists to the area. Karen shares insights on the limited hotel availability and the local businesses’ preparations for the expected influx. Tom and Andrew discuss the efforts made by the West Kerr County Chamber of Commerce to educate its members on the traffic, safety concerns, and preparations for the event. Listen in as they share locals’ thoughts on the event and how the Ingram School District provides eclipse glasses to all students. Exciting silent and live auction items, including a G Harvey painting and concert ticket packages, are up for bid. Don’t miss the special guest speaker Jeff Stone, who provides information on safety issues related to the eclipse. Join the conversation, check the website for upcoming events, and prepare for a night sky full of stars!

Key Highlights 

·       Preparing for Eclipse Tourism in Kerr County

·       Preparing for Total Eclipse Tourism in Kerr County

·       Potential Traffic and Safety Issues for Eclipse Event

·       Solar Eclipse Preparations and Celebrations in Ingram School District

·       Upcoming auction items and donors for a charity event

·       Chamber Events and Eclipse T-Shirts

Notable Quotes

“The chamber should promote and network and bring our businesses together.”

“ It’s well worth it just to hear him talk in addition to everything else.”

“We still have tables for sale, and we also have individual tickets. The Total Eclipse tables are $1500; the Annular clips tables are $1000, and individual tickets are $60.”

“It is a big deal. And We’re not talking about 150000 people. We’re talking about 150000 people that live for this stuff.”

Resources

West Kerr County Chamber of Commerce

Andrew Gay on LinkedIn

Tom Fox on LinkedIn

Categories
Presidential Leadership Lessons for the Business Executive

Leadership Lessons from Presidents of the Republic of Texas – Anson Jones and Annexation

Presidential Leadership Lessons is a podcast hosted by Tom Fox. This continues a four-part series on leadership lessons not from US Presidents but from Presidents from the Republic of Texas, from 1836 to 1845. In this series, Tom is joined by Don Frazier, head of the Texas Center at Schreiner University in Kerrville TX to discuss the four Presidents who led Texas when it was a country. In this fifth and final episode, Tom and Don discuss the short term of Anson Jones.

Be transported to the 1840s Texas with Presidential Leadership Lessons podcast hosted by Tom Fox and featuring special guest Don Frazier. Through exploring the fascinating history of the state of Texas during this time, they discuss the successes and challenges of President Anson Jones and his progressive views of Republicanism. They delve into his support of the Sam Houston faction and the implications of the Texas annexation officially becoming official in January 1846. Don Frazier explains the controversies related to the doctor certifications; the differences between the traditional immigrants and the Germans coming into places like New Braunfels and Fredericksburg. They then review the relationship between Mexico and Texas in the larger context of Republicanism. Tune in to discover the illuminating lessons and groundbreaking perspectives provided by Tom Fox and Don Frazier!

Key Highlights

Hanson Jones and the Annexation of Texas [00:26]

The Ethics of Doctor Certification in Texas: Exploring the Controversy [04:20]

U.S.-Mexico Relations Under a Small-R Republicanism Perspective [07:46]

Notable Quotes

  2. “And all he has to do is keep his hand on the tiller and steady the boat, sail the craft that Sam Houston has created. And he does it and he does it very, very well.”
  3. What can you say about his desire to have secondary education in the state of Texas? Well, the largest ball rolling with all the school kids and then kinda leapfrogs over to disseminating knowledge to the general public.”
  4. “The other thing I found interesting was he continued his medical practice throughout this time, and he actually set up medical standards throughout the state. He did. So it can’t just be quackery. I mean, there’s absolutely standards that are gonna come in.”
  5. “Immigration that comes in right after annexation essentially swaps everybody else and that’s immigration from the deep out?”

Resources:

Don Frazier, Director The Texas Center

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Daily Compliance News

April 6, 2023 – The Façade of Compliance 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.

Stories we are following in today’s edition of Daily Compliance News:

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program for 3rd Parties-Business Justification

The 2023 Evaluation of Corporate Compliance Programs stated, “Prosecutors should also assess whether the company knows the business rationale for needing the third party in the transaction, and the risks posed by third-party partners, including the third-party partners’ reputations and relationships, if any, with foreign officials.” This standard articulates one of the most basic tools to operationalize your compliance program and should form the basis of your third-party risk management process. Indeed, this is viewed as an internal control with the 2023 ECCP going on to pose the following question, “How does the company ensure there is an appropriate business rationale for the use of third parties?”

What should go into your business justification? At the most basic level, you should craft a document, which works for both you as the compliance practitioner and the business folks in your company, that details some basic concepts which includes the following: 1) The name and contact information for both the Relationship Manager and the proposed third party; 2) How the Relationship Manager came to know about the third party because it is a red flag if a customer or government representative points you towards a specific third party; 3) What services the third party will perform for your company, the length of time and compensation rate for the third party; and 4) An explanation of why this specific third party should be used as opposed to an existing or other third party, if such were considered. All this information should be documented and then signed by the Relationship Manager.

Remember, the purpose of the business rationale is to document the satisfactoriness of the business case to retain a third party. The business rationale should be included in the compliance review file assembled on every third party at the time of initial certification and again if the third-party relationship is renewed. This means “Document, Document, and Document.”

 Three key takeaways:

1. You should always have a business reason for using a third party which is articulated by the business folks, not compliance.

2. A Relationship Manager is the key going forward in operationalizing your compliance program through the life of the third-party relationship with your company.

3. Always remember to “Document, Document, and Document”.

Categories
FCPA Compliance Report

Maria D’Avanzo on the 2023 ECCP

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. In this special edition, sponsored by Traliant, I visit with Maria D’Avanzo Chief Evangelist Officer at Traliant to discuss the 2023 Evaluation of Corporate Compliance Programs. We discuss the DOJ’s guidance on financial incentive programs and highlight the importance of cross-functional collaboration in establishing effective compliance programs. What are some of the challenges of implementing clawbacks for employees who engage in misconduct? We consider some of the risks involved when a company decides to file a lawsuit against an executive for clawback. Finally, they touch on the need for proper communication of the compliance message beyond legal and compliance departments. Join Tom Fox and Maria D’Avanzo as they dive deep into the future of corporate compliance programs. Don’t miss this informative and eye-opening episode.

 Key Highlights

·      Evaluating Corporate Compliance Incentive Programs

·      Establishing Compliance Programs in Companies Facing DOJ Allegations

·      Incorporating Compliance Ethics and Clawbacks in Business

·      Lawsuit Consequences for Companies & Executives

·      DOJ Elevating Corporate Compliance Programs

·      Effective Communication for CCOs

 Notable Quotes

“Certainly the timing of any type of any attempt to claw back the compensation, the board needs to be concerned about what’s the right time? What’s the right process? And are we going to open ourselves up?”

“There’s also language about non-financial incentives. And here, once again, nothing really new that companies are supposed to take doing business ethically.”

“I’m not quite sure why a company without resolving the loss, the investigation, either internally or especially with the DOJ, would file a lawsuit against an executive in order to claw back the compensation.”

“Is your investigation completed? Or is it ongoing. I’m not sure how you would win in a litigation if you have not established the basis for the breach of contract.

Resources

Maria D’Avanzo on LinkedIn

Traliant

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn