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Compliance Tip of the Day

Compliance Tip of the Day – Compliance Lessons from Shell

Welcome to “Compliance Tip of the Day,” the podcast that brings 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 goal is to provide you with bite-sized, actionable tips to help you stay ahead in your compliance efforts. 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.

This week, we begin a look at how companies are using AI in their business operations and draw compliance lessons from this use for compliance professionals. Today, we continue with lessons from Shell Oil Company.

For more information on this topic, refer to The Compliance Handbook: A Guide to Operationalizing Your Compliance Program, 6th edition, recently released by LexisNexis. It is available here.

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AI Today in 5

AI Today in 5: October 7, 2025, The AI for HR Edition

Welcome to AI Today in 5, the newest edition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 stories about AI, so start your day, sit back, enjoy a cup of morning coffee, and listen in to the AI Today In 5, all from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest related to AI.

Top AI stories include:

  • AI rules for HR across the country. (SHRM)
  • AI in global packaging compliance? (Recycling Today)
  • OpenAI is now partnering with AMD to make and use chips. (WSJ)
  • Anthropic and Deloitte to partner on AI solution for regulated industries. (PYMNTS)
  • Deloitte has to repay Australia for using AI in a report. (ColombiaOne)

For more information on the use of AI in Compliance programs, my new book, Upping Your Game. You can purchase a copy of the book on Amazon.com.

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Blog

The Prosecutor’s Blueprint: What FCPA Trials Can Teach Compliance Officers

The U.S. Department of Justice (DOJ) has long recognized that trying Foreign Corrupt Practices Act (FCPA) cases before juries can be a challenging endeavor. Unlike fraud schemes that hit close to home, such as Medicare fraud, securities fraud, or insider trading, origin bribery can feel distant, abstract, and even irrelevant to the average juror. Yet in 2024, the DOJ secured three high-profile FCPA trial convictions, each time leaning heavily on four central themes that resonate deeply with juries: local impact, abuse of power, financial motive, and concealment. James Koukios recently looked at these cases in a Law360 article titled “Expect DOJ To Repeat 4 Themes From 2024’s FCPA Trials.” His article is highly instructive for compliance professionals.

For compliance professionals, these prosecutorial themes are more than courtroom rhetoric. They provide a roadmap of how the DOJ will frame corruption and why companies must align their compliance strategies to both mitigate risk and reinforce ethical culture. As we head into another round of trials in 2025 and 2026, including U.S. v. ZaglinU.S. v. Bautista, and U.S. v. Hobson, compliance officers should expect the DOJ to repeat these themes. More importantly, they should recognize the lessons embedded in them.

Local Impact: Bringing Foreign Bribery Home

One of the DOJ’s perennial challenges is convincing jurors that foreign bribery matters in their own communities. In the Polit trial, prosecutors hammered home the point with the refrain: “Here in Miami.” Over and over again, jurors were reminded that more than $10 million in bribe money was not just siphoned off in Ecuador; it was laundered into Miami real estate deals and commercial properties.

The Aguilar trial leaned on a similar approach in Brooklyn. While the bribery schemes involved Ecuador and Mexico, prosecutors pointed out that the contracts were negotiated “by lawyers right here in New York” and that some of the incriminating recordings were made “right here in Brooklyn.” Even in Oztemel, where the links were weaker, the government still stressed connections to Connecticut-based companies.

For compliance professionals, this theme underscores the importance of localizing the impact of compliance risk. Anti-bribery isn’t just about preventing corruption “out there” in some far-off jurisdiction. It’s about controlling the flow of illicit funds into our banks, real estate markets, and financial systems. It’s about recognizing that corruption abroad has ripple effects at home.

Compliance takeaway: In training and communications, draw a clear connection between global corruption and its local consequences. Employees must understand that misconduct overseas can lead to reputational harm, regulatory exposure, and even economic implications in the communities where they live and work.

Abuse of Power: Betrayal of Public Trust

The second theme, abuse of power, may be the DOJ’s most powerful narrative device. Jurors instinctively recoil at the idea of officials betraying their duty for personal gain. In Polit, prosecutors emphasized that as Ecuador’s comptroller general, the defendant was responsible for ensuring government funds were used correctly. Instead, he monetized his office, lifting fines and manipulating audits in exchange for bribes.

Similarly, Aguilar was portrayed as inducing officials who “held positions of influence and public trust” to sell that trust in return for contracts. In Oztemel, the DOJ framed the case as Petrobras officials betraying their fiduciary duties to Brazil by steering deals outside competitive bidding.

This framing does more than persuade jurors; it dovetails neatly with the statutory elements of the FCPA, which requires proof that defendants induced foreign officials to misuse their authority. By showing jurors that bribery equals betrayal, prosecutors tap into a deep well of civic values.

Compliance takeaway: Abuse of power is not just a courtroom theme; it is a significant corporate compliance risk: train leaders, managers, and employees on how the misuse of authority erodes trust. Ensure your compliance program monitors for conflicts of interest, undue influence, and improper discretionary decisions. And remind employees that even the perception of selling influence can damage both individual careers and the organization’s reputation.

Financial Motive: Greed as Intent

Greed is a straightforward concept for juries to understand. It is also one of the DOJ’s preferred tools for establishing criminal intent. In the Polit case, prosecutors highlighted the defendant’s Coral Gables mansion and Coral Way office building as tangible evidence of bribe proceeds. In Aguilar, they emphasized that when Vitol made money, it was because Vitol made money. His salary, bonuses, and equity increased significantly as the scheme expanded, with his stake rising from $6.2 million to $75.5 million.

In Oztemel, jurors were told that his compensation was directly tied to closing deals with Petrobras, deals secured through bribes. The message was clear: these weren’t noble businesspeople operating in gray areas; they were greedy actors lining their own pockets at the expense of others.

Compliance takeaway: Incentives matter. If your compensation structure encourages employees to “win at all costs,” you’re creating fertile ground for misconduct. Compliance professionals should partner with HR and leadership to ensure that performance metrics and reward systems don’t encourage employees to make unethical choices. Align financial incentives with compliance values, reward transparency, ethical decision-making, and adherence to policy, not just revenue and deal volume.

Concealment: Proof of Guilt

The fourth theme is concealment. The DOJ doesn’t just show jurors the bribes; it shows them the elaborate measures defendants took to hide them. These concealment tactics serve as both evidence of guilt and reinforcement of money laundering charges.

In Polit, prosecutors mapped the circuitous route of the bribe funds through Panama shell companies, loan agreements, and ultimately to Miami real estate. They showcased fake invoices and nominee ownership structures as evidence of deliberate deception. In Aguilar, they exposed “007” alias email accounts, sham consulting contracts, and layered transfers. In Oztemel, prosecutors emphasized fake consulting agreements, intermediaries, and disguised bank transfers.

The DOJ’s message: honest people do not create sham entities, falsify invoices, or route payments through multiple jurisdictions. Concealment equals consciousness of guilt.

Compliance takeaway: Transparency is your best defense. Encourage employees to document decisions, keep accurate records, and avoid the appearance of concealment. Utilize technology to monitor transactions for potential red flags, such as payments routed through unnecessary intermediaries or suspiciously complex transfers. When your systems detect unusual patterns, treat them as opportunities for early intervention.

Why These Themes Matter for Compliance

Taken together, Koukios explained that the DOJ’s four trial themes provide a simple but powerful compliance roadmap. Each theme cuts through the complexity of international finance and corporate structures to tell a story jurors can understand and compliance professionals can apply.

  • Local impact reminds us to connect global risk to local consequences.
  • Abuse of power highlights the dangers of unchecked authority.
  • Financial motive underscores the need for ethical incentives.
  • Concealment warns against opacity and poor record-keeping.

As prosecutors prepare for upcoming trials, ZaglinBautista, and Hobson can be expected to revisit these themes. And as compliance professionals, we should expect regulators to measure our programs by how well we anticipate and address these very risks.

Conclusion: Preparing for What’s Next

The DOJ’s FCPA trial playbook is no secret. Prosecutors know what resonates with jurors, and they’ll continue to use those narratives until they stop working. The real question is whether companies are learning the same lessons. Compliance officers have an opportunity to get ahead of the curve by internalizing these themes. Train employees on the local consequences of bribery and corruption. Build a culture that rejects the abuse of authority. Align incentives with ethics. And create systems that promote transparency over concealment.

By doing so, you not only prepare for the possibility of DOJ scrutiny but also build a compliance program that protects your organization, strengthens its culture, and reinforces trust with stakeholders. That is the true lesson of the DOJ’s four FCPA trial themes: corruption may be global, but its impact, its motives, and its cover-ups are universal. And compliance professionals are on the front lines of preventing them.

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Innovation in Compliance

Innovation in Compliance: Mastering Compliance Branding on LinkedIn: Insights from Carol Kaemmerer

Innovation comes in many areas, 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, Tom Fox is joined by returning guest Carol Kaemmerer, author of ‘LinkedIn for the Savvy Executive.’

Carol shares valuable insights on how compliance professionals can leverage LinkedIn to build their personal brand and gain credibility with senior management. She introduces her Brilliance Framework, which includes strategies such as leading with authenticity, utilizing the rule of three for memorable branding, maximizing digital real estate, and emphasizing the importance of engagement. Tune in to enhance your LinkedIn strategy and make a lasting impression in your career.

Key highlights:

  • Building a Compliance Professional’s Brand
  • Reframing Compliance Communication
  • Introducing the LinkedIn Brilliance Framework
  • Maximizing LinkedIn’s Digital Real Estate
  • The Importance of Visuals on LinkedIn
  • Engagement: The Gold of LinkedIn

Resources:

Carol Kaemmerer on LinkedIn

Carol Kaemmerer Website

LinkedIn for the Savvy Executive Second Edition

The LinkedIn Brilliance Framework™: Amplify Your Professional Presence

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Red Flags Rising

Red Flags Rising: S01 E29: Affiliates Rule Aftermath – Finding the Right Path Forward

Mike and Brent take an even deeper dive into the “Affiliates” or “50%” Rule announced by the Bureau of Industry & Security (BIS) on September 29, 2025. They identify several misperceptions in the public discussion, explain why they are misperceptions, and identify the pitfalls of operating under those misperceptions—especially in response to inquiries by BIS about pre-rule due diligence on affiliates of entities on the entity list. Specifically, they discuss why the Affiliates Rule is a close cousin to the Office of Foreign Assets Control’s own 50% rule, but why and how BIS’s Affiliates Rule serves different national security objectives and operates a bit differently (02:42); whether the Affiliates Rule brings new compliance burdens and, if so, risk-based due diligence strategies and likely questions from BIS regarding why (10:26); why in the current geopolitical context the benefit of local, boots-on-the-ground compliance might be overstated—or significantly discounted by the U.S. government—and what to do about it (16:18); why it would be a mistake to think that BIS is not today able to bring enforcement actions based on the Affiliate Rule, especially given their ability to bring enforcement actions on the “full” definition of knowledge to include “an awareness of a high probability” (19:26); and why it is dangerous to think of “knowledge” as only “actual knowledge,” and thereby misperceiving that the new Affiliates Rule—by reminding everyone that the catch-all provision under which the Entity List is promulgated is a strict-liability regulation, even as to awareness—has someone taken away a previously available “absence of actual knowledge” defense (23:00).

Mike and Brent then offer practical tips for applying for the license available under the Affiliates Rule for situations where the exporter, reexporter, or transferor is aware of “red flags” as to ownership that it cannot resolve through risk-based due diligence (28:20).

Mike and Brent then conclude with a special edition of Brent Carlson’s “Managing Up,” in which Brent offers some valuable self-reflection (34:58).

Resources:

More about Brent: www.redflagsrising.com

Contact Brent: brent@redflagsrising.com

Mike: https://www.linkedin.com/in/mhuneke/https://www.morganlewis.com/bios/michaelhuneke

Contact Mike: michael.huneke@morganlewis.com

BIS’s “Export Control Decision Tree”

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Compliance Tip of the Day

Compliance Tip of the Day – Compliance Lessons Uber

Welcome to “Compliance Tip of the Day,” the podcast that brings 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 goal is to provide you with bite-sized, actionable tips to help you stay ahead in your compliance efforts. 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.

This week, we begin a look at how companies are utilizing AI in their business operations and draw compliance lessons from this use for compliance professionals. Today, we start with lessons from Uber.

For more information on this topic, refer to The Compliance Handbook: A Guide to Operationalizing Your Compliance Program, 6th edition, recently released by LexisNexis. It is available here.

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Daily Compliance News

Daily Compliance News: October 6, 2025, The Corny Capitalism 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, including compliance, ethics, risk management, leadership, or general interest, relevant to the compliance professional.

Top stories include:

  • Saudi mega-construction project under ABC investigation. (Semafor)
  • PE and the ethics of drug research. (NYT)
  • $100MM wine fraud in NYC. (Bloomberg)
  • Crony capitalism and corruption. (NPR)
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FCPA Compliance Report

FCPA Compliance Report – Pat Poitevin on Transforming Corporate Compliance: Leveraging AI and Building Ethical Cultures

Join Tom Fox as he welcomes Pat Poitevin, a compliance veteran with extensive experience in enforcement, consulting, and academia. Pat shares his professional journey, beginning with his work at the Royal Canadian Mounted Police (RCMP), and discusses the importance of establishing strong ethics and compliance cultures within organizations. He emphasizes the role of AI in transforming compliance functions and enhancing the effectiveness of risk management. Pat also touches on the future of compliance, talent acquisition, and the impact of technology on business ethics. The conversation offers valuable insights for compliance professionals looking to refine their programs and align them with business strategies for sustained growth.

Key highlights:

  • Current Projects and Focus Areas
  • Building a Strong Ethics and Compliance Culture
  • Leveraging AI in Compliance
  • Compliance Strategies for Geopolitical and Technological Changes
  • Balancing Policies and Human Behavior
  • Future of Compliance and Technology

Resources 

Pat Poitevin

🔸 LinkedIn: Pat Poitevin

🔸 Consulting Firm: Active Compliance and Ethics Group (ACEG)

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

For more information on the use of AI in Compliance programs, my new book, Upping Your Game. You can purchase a copy of the book on Amazon.com

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AI Today in 5

AI Today in 5: October 6, 2025, The DOE Edition

Welcome to AI Today in 5, the newest edition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 stories about AI, so start your day, sit back, enjoy a cup of morning coffee, and listen in to the AI Today In 5, all from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest related to AI.

Top AI stories include:

For more information on the use of AI in Compliance programs, my new book, Upping Your Game, is available. You can purchase a copy of the book on Amazon.com.

Categories
Blog

Courageous Leadership in an Era of Disruption: Compliance Lessons from Brené Brown

The New York Times (NYT) recently published an interview with Brené Brown, best known for her TEDx Talk on “The Power of Vulnerability.”  Her TEDx Talk focused on individuals. Brown is now using those concepts as a basis for work in the corporate world. Many of the concepts she discussed in this interview directly apply to a Chief Compliance Officer (CCO) and corporate compliance function. In this article, I will summarize the key themes of Brown’s discussion and draw out five critical lessons for compliance professionals navigating today’s turbulent environment.

The world of corporate compliance does not exist in a vacuum. Every day, compliance professionals work within organizations facing extraordinary pressures: disruptive technologies, geopolitical instability, shifting marketplaces, and evolving workforce expectations. Against this backdrop, Brené Brown, renowned researcher on shame, vulnerability, and courage, has turned her attention to leadership in corporate, nonprofit, and even military contexts. Her latest reflections provide timely insights not just for executives, but for compliance professionals tasked with guiding organizations through uncertainty.

Brown’s message is clear: in moments of disruption, the quality of leadership matters more than ever. She challenges us to think about courage, vulnerability, and clarity not as “soft skills,” but as the very foundation of sustainable organizational performance. For the compliance professional, her work resonates deeply. After all, compliance is fundamentally about behavior, how people act under pressure, how they respond to risk, and how organizations foster cultures of accountability and trust.

The Pace of Change and the Trap of Fear

Brown describes today’s business climate as a “supercycle” of unprecedented change. Artificial intelligence, geopolitical instability, and economic volatility create a sense of scarcity, a nagging feeling that organizations lack sufficient time, resources, or talent to keep up. For compliance leaders, this context should feel familiar. When regulations shift overnight or enforcement priorities change, fear and reactive decision-making often follow.

Brown cautions against “action over impact,” where leaders rush to act without pausing to assess whether their actions are aligned with strategy. For compliance, this is the difference between a carefully calibrated monitoring program and a scattershot set of controls that look good on paper but fail in practice. Strategic urgency, not blind urgency, must guide the compliance function.

Courage, Accountability, and Human Leadership

At the heart of Brown’s research is the idea that courage, not technical expertise alone, is the limiting factor in organizational performance. Across industries, she found leaders struggling to have hard conversations, to hold others accountable, and to resist blame and shame.

For compliance, this insight hits home. We have all seen organizations where misconduct festers because leaders fear confrontation, or where accountability is deflected onto “bad apples” instead of being addressed systemically. Brown reminds us that courage means leaning into discomfort, whether that’s delivering difficult feedback, shutting down toxic behavior, or confronting senior leaders when ethical lines are at risk of being crossed.

Communication as a Compliance Tool

Brown describes good communication as rooted in clarity, discipline, and accountability. It requires vulnerability, honesty, and a willingness to tolerate discomfort. In her words, “A brave life is basically 15 hard conversations a day.” Compliance professionals should take note. Too often, compliance messages are dulled by legal jargon or buried in training modules that merely check the box without creating a genuine understanding. Effective compliance communication is not about volume, but clarity — stating expectations plainly, reinforcing them consistently, and holding both leaders and employees accountable when those expectations are not met.

When compliance officers avoid difficult conversations, whether with business leaders, employees, or regulators, they fail in their role as stewards of integrity.

Generational Shifts and the “Why” Question

Another theme Brown highlights is the growing demand from younger generations to understand the “why” behind organizational decisions. Gen Z, in particular, tends to resist following orders blindly. They ask questions, challenge assumptions, and expect transparency.

For compliance, this is an opportunity, not a threat. When employees ask “why,” they create space for dialogue about risk, ethics, and accountability. If handled well, these conversations can strengthen the compliance culture. If dismissed or ignored, however, they can morph into conflict and disengagement. Compliance professionals must equip themselves and their organizations with the skills to turn task conflict into innovation, rather than emotional conflict that fractures teams.

The Decline of Fear-Based Leadership

Brown pushes back against the notion that fear-driven leadership, exemplified by mass layoffs or authoritarian management, produces sustainable performance. Fear may yield quick results, but its shelf life is short. To maintain fear as a motivator, leaders must repeatedly demonstrate cruelty, which corrodes trust and drives talent away.

Compliance programs grounded in fear face the same limitation. Employees may comply out of fear of punishment in the short term, but over time, they disengage, seek ways to evade controls, or leave the organization entirely. Sustainable compliance requires trust, fairness, and accountability, not periodic shows of cruelty.

Five Key Takeaways for the Compliance Professional

1. Strategic Urgency Over Panic

In times of disruption, resist “chicken with your head cut off” urgency. Compliance programs must prioritize thoughtful, strategic action over quick fixes that create the illusion of progress without real impact.

2. Courage as the Compliance Differentiator

Having hard conversations, holding people accountable, and confronting uncomfortable truths are the core of both leadership and compliance. Technical expertise matters, but courage drives results.

3. Communication Builds Trust

Effective compliance communication requires clarity, discipline, and accountability. Don’t hide behind jargon or check-the-box training. Say what needs to be said, even when it’s uncomfortable.

4. Harness the Power of ‘Why’

Younger employees demand transparency and reasoning. Use this as a lever to build stronger compliance cultures. Equip leaders to turn questions into opportunities for education, engagement, and innovation.

5. Reject Fear-Based Models

Fear is a short-term motivator with long-term costs. Compliance programs grounded in trust, fairness, and respect will outperform those that rely on punishment and intimidation.

Compliance Lessons in Courage

Brené Brown’s reflections on leadership are not abstract musings. They speak directly to the challenges compliance professionals face in guiding organizations through uncertainty, disruption, and cultural change. At its core, compliance is about shaping behavior and building cultures of integrity. That work requires courage, clarity, and compassion, which are precisely the traits Brown identifies as the hallmarks of effective leadership.

As we look ahead to the next wave of regulatory change, technological disruption, and workforce transformation, compliance officers must resist the temptation to react out of fear. Instead, we must embrace courageous leadership that aligns action with impact, values clarity over noise, and treats people with humanity even in moments of adversity.

Brown’s work reminds us that compliance is not just about preventing wrongdoing; it is also about promoting ethical behavior. It is about cultivating courage and clarity in organizations so that, when disruption hits, leaders and employees alike know how to “settle the ball,” take a breath, and make the right play.