Categories
This Week in FCPA

Episode 183 – the We’re No. 2 edition

Ericsson settles a long running FCPA enforcement action, coming at No. 2 on the all-time list. Tom lectures Jay about the need for his Patriots to stop cheating (again). They also other of this week’s top compliance and ethics stories which caught their collective eyes.

  1. Ericsson settles the second largest FCPA enforcement action of all time.
  2. Ericsson comes in the FCPA Blog’s all-time Top Ten FCPA Enforcements and also Number 2 on the all-time Disgorgement List.
  3. Jay Clayton backs off his threat to cap SEC whistleblower awards.
  4. Director of Treasury’s anti-money-laundering watchdog calls for Congress to pass corporate transparency legislation.
  5. Jay looks at the birth of the corporate integrity monitor.
  6. Did they look at petty cash? €84MM goes missing from Football Association of Ireland. Jonathan Rausch.
  7. Does better corp governance leader to better corporate agility? Kenneth Lehn.
  8. How and why should you manage your corp culture? Jim DeLoach
  9. CFIUS report to Congress. Lawyers from Simpson Thatcher.
  10. How to manage risk when the BOD is overconfident? Matt Kelly.
  11. Patriots caught cheating again. Do they even care? Max Kellerman.
  12. On the Compliance Podcast Network, Tom had a five part podcast series on the Hughes Hubbard 2019 FCPA and Anti-Bribery Alert. In Part 1, Kevin Abikoff provides and overview of the Alert and explains this year’s theme; in Part 2, Laura Perkins on the year in FCPA; in Part 3, Bryan Sallaman on developments from France; in Part 4 Mark DeBernardis on MDBs and anti-courrption enforcement and in Part 5, Salim Saud on developments in Brazil.

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com. For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.

Categories
Creativity and Compliance

Garin Bergman On Improving Access to Information

Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network to explore these issues. Today’s episode is about creative ways to improve accessibility of your compliance program. Our guest is Garin Bergman, is the former CCO at IDEX Corp. He is the founder of the PalmTree Compliance Application which is “Compliance in the Palm of Your Hand”.
Some of the highlights include:

  • Bergman’s journey from CCO to product innovator.
  • How can you improve accessibility of compliance training?
  • How can you get training to offline employee populations?
  • How can you improve response rates to training?
  • Why is it important to deliver training not only in a convenient mechanism but also where employees want to receive it?
  • How can compliance communications be proactive?
  • What the difference is between an App and being mobile friendly?

Resources:
Garin Bergman
LinkedIn Profile
PalmTree Website
 
Ronnie Feldman
Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)
Learnings & Entertainments (Website)
60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.
Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.
Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.

Categories
Daily Compliance News

December 13, 2019, the BoJo Is In edition

In today’s edition of Daily Compliance News:

  • Tories win landslide in UK. End of SFO? (FT)
  • Did Mike Lynch tell ‘lie after lie”? (Is that a question or statement?). (Bloomberg)
  • Even Mexico stunned by top cop arrest for corruption. (NYT)
  • Fed lifts Consent Orders against JPMorgan and BancCorp. (NYT)
Categories
Compliance Man Chooses the Target

Special Christmas Edition

Welcome to Compliance Man Chooses the Target with Tim Khasanov-Batirov series. Today we a have a special Christmas podcast. Our goal is to highlight matters that should be on agenda of practitioners that deploy compliance programs in industries or countries of active FCPA enforcement. We target three specific matters that you might like to address in the course of implementation of your compliance program. Today we will focus on classical but evergreen topic of gifts giving.
Target #1: How to kill your corporate gifts policy?
If you work at the HQ of an international corporation and believes that all questions with gifts giving in your company are already settled many years ago you might be wrong. The most unpleasant news could be that the reason of this problem are not necessarily rogue managers in the fields, who deliberately violate rules. Look at your global gifts policy and if it says something like “gifts of nominal value are allowed” there is big chance that the problem is already there. Assume that in some countries at which your company operates per local legislation (or updates in the legislation) gifts giving to state officials are prohibited as such or this process is a subject to certain limitations. In ideal case your global policy is adopted in each jurisdiction by local compliance team. We recommend checking out if it is really so as most likely you don’t have compliance folks in each jurisdiction of corporate presence. Another typical problem is when simultaneously in each respective jurisdiction there are two policies. The global one, which allows petty gifts, even if it contains clause on prevalence of local laws and  a tailored gifts policy adopted by an office in the respective jurisdiction. In reality the personnel in the fields will get confused which policy to follow.
Target #2: Toxic Gifts
The FCPA enforcement practice clearly demonstrates absolute ban on entertainment of state officials and PEPs by companies. It is also clear that it is forbidden to give luxurious gifts and even sometimes small gifts if there is a corruption intent. Still there is a grey area for list of non-luxurious gifts which still might be considered as non-appropriate from my point of view even if there is no intent to influence decision taking. I mean alcohol, for instance. In some jurisdictions it is a common practice to give alcohol as Christmas gift. From my prospective it is not right but still it is just a personal view, not a law.
Target #3: Non-Toxic Gift
We have touched a couple of problems related to gifts giving and now it is time to get back to talking about pleasant sides of Christmas. It is time to say that Compliance Man has launched a channel at you tube called ‘Compliance Man by Timur Khasanov-Batirov” aimed on sharing compliance tips with professional community. The first video of the series called “1001 Compliance days” is available here. Please feel free to comment and subscribe.
Merry Christmas to everyone from Compliance Man!
Join us for the next episode of Compliance Man Chooses the Target with Tim Khasanov-Batirov in 2020. 

Categories
STAKE: The Leadership Podcast

Leadership and Remote Employees, Part 1

There are many companies that have employees who’ve never stepped foot in their office.
Maybe you’re thinking, “But that has to be very few companies and employes, right?”
The answer — not so much. Remote employees are not a thing of the future, it is the reality of the 21st Century workforce. Leaders must prepare for the challenges and opportunities this massive change presents.
In this episode, I am sitting down with my business partner, Phil Van Hooser. Phil is a Hall of Fame Leadership speaker and author. Phil and I are speaking on the issue not only because we are helping other leaders successfully navigate the change, but we ourselves in our own business, are practicing what we preach.
With Gen X, Y, and Z increasingly wanting flexible schedules, the number of remote workers in today’s workforce has increased very fast. In today’s episode, part 1 of 2, we are taking a look at why employees want to work out of the office, how that may make managers and supervisors feel, and practical steps you can take to make sure engagement, communication, and performance stays on the right track.
As a leader, YOU control your leadership success. Tune in for real-talk about how to lead well in this new environment of remote workers.
If you’re looking for tangible action steps and refreshing insights to help ignite the power of your own leadership journey, sign up for my weekly leadership blog HERE.
If your business would benefit from higher-performing leaders, check out more information about the comprehensive leadership development training I do HERE.
If you want to reach out to me directly, email alyson@vanhooser.com.
If you enjoyed this episode, will you please subscribe and leave a review? Your reviews help this show get discovered by more incredible leaders just like you. I’m obsessed with helping leaders ignite their performance results and I’d love to have you help me make an impact! Thank you so much!
P.S. Share and tag me on social — @AlysonVanHosoer — and I’ll share your comments and big takeaways on my feed!

Categories
Daily Compliance News

December 11, 2019, the Caught Cheating Again edition

In today’s edition of Daily Compliance News:

  • Patriots caught cheating again. (ESPN)
  • Peleton CEO ducks questions on ad which went awry. (NYT)
  • Boeing whistleblower to testify to Congress. (NYT)
  • Amazon accuses Trump of improper pressure in denying it Pentagon contract. (NYT)
Categories
Great Women in Compliance

The Best Professional Advice Episode

Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.
Today’s Great Women in Compliance podcast is a little different.  At the most recent SCCE Compliance and Ethics Institute held in September, Lisa and Mary asked the session attendees to provide examples of the best professional advice they received, and we had a lot of great information from women throughout the ethics and compliance community.  It was a unique opportunity for Mary and Lisa to be on the same episode, as most of the GWIC podcasts are with one of them interviewing ethics and compliance leaders.
We got exceptional insights from this community, and Lisa and Mary thought it would be the perfect way to end the 2019 podcasts.  Not only did Great Women in Compliance’s first full year brought lots of great discussions on the podcast, it brought out constant reminders of the fantastic individuals that make up the GWIC community.
We all hope you enjoy this advice from the GWIC Community and best wishes to you and yours in 2020. Join the Great Women in Compliance community on LinkedIn here.

Categories
Compliance Into the Weeds

Ericsson from the Internal Controls Perspective

Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly and I go into the weeds about the Ericsson FCPA enforcement action from the internal controls perspective.
Some of the highlights include:

  • What does this enforcement action tell up about internal controls?
  • How were the business units able to evade internal controls for so long?
  • Was there control override?
  • What is the role of ERP systems such as Oracle and SAP in compliance?
  • If a company refuses to use standard ERP systems, is that a control failure under the FCPA?
  • What are the lessons learned for a corporate compliance program?
  • What does all this mean for compliance professionals going forward?

Resources
Tom’s blog posts, both the FCPA Compliance and Ethics Blog.
Part 1-Overview
Part 2-The Bribery Schemes

Categories
FCPA Compliance Report

Hughes Hubbard 2019 FCPA and Anti-Bribery Alert, Part 5: Developments from Brazil with Salim Saud

Welcome to a special five-part podcast series from the Compliance Podcast Network. In this series I am taking a look at the Hughes Hubbard & Reed 2019 FCPA and Anti-Bribery Alert. I visit with five firm lawyers involved in the preparation of the report, each of whom is a subject matter expert in an area of the FCPA and anti-corruption. In this Part 5, I visit with Salim Saud, Partner at Saud Advogados, in cooperation with Hughes, Hubbard & Reed LLP, on developments in anti-bribery enforcement from Brazil from over the past year.
Some of the highlights include:

  • What is the key role the CGU has taken over the past year?
  • How is the CGU currently assessing compliance programs?
  • What were some of the setbacks in Brazil over the year?
  • How can a company obtain a Leniency Agreement?
  • What are some key lessons for the compliance practitioner?

Resources
Hughes Hubbard 2019 FCPA and Anti-Bribery Alert, click here.

Categories
Innovation in Compliance

Outsourced Compliance with Fizza Khan


Fizza Khan, this week’s guest on the Innovation In Compliance show, has been in regulatory consulting for over 10 years. She is the CEO and founder of Silver Regulatory Associates, an innovative company that specializes in helping companies meet their regulatory obligations. She and Tom Fox discuss the idea of outsourced compliance as well as the interesting and often complicated world of cryptocurrency.
Listen to the Episode Now:

The Cutting Edge of Outsourced Compliance
Tom comments that the regulatory compliance space has different guidelines, regulations and laws than his world of ABC compliance. He asks Fizza to describe some of the cutting edge things her company is doing, in particular the idea of ‘outsourced compliance’. She replies that financial services companies must have a strong regulatory compliance program that’s not only good on paper, but practically functioning. Her company, as an outsourced compliance option, can help firms meet their obligations either by integrating into their compliance program or by working alongside an existing compliance program to ensure that it aligns with the client’s interests.
Services Offered
Silver Regulatory Associates offers various services depending on your needs. These include:

  • Registration and foundation services
  • Maintenance service
  • Assessment service
  • Exam support service

Crypto: Security or Exchange Instrument?
There are many questions surrounding cryptocurrency. Whether it is a security or an exchange instrument is one of the questions facing the industry. Fizza explains that the Howey Test is used to determine whether a particular instrument will be deemed a security and needs to come under the SEC’s regulations. The test makes its determination based on three criteria:

  1. Is the investment in the form of money?
  2. Is the investment of money in a common enterprise?
  3. Is there an expectation of profits from the enterprise? Is that expectation of profit derived from the efforts of others?

Tom asks Fizza to discuss what a company must do if it’s determined to be a security vs an exchange instrument, and how her company can help them fulfill their regulatory obligations. She explains the implications of each scenario. Her company helps clients determine the next steps and take appropriate action to become compliant, she says. Continuous analysis and monitoring of cryptocurrency guidelines is paramount. If a company changes the way it uses, manages or distributes its cryptocurrency, this could trigger additional regulatory requirements.
Preparing for the SEC Exam
Tom mentions an article Fizza wrote, entitled, Uptick In SEC Exams: Four Ways To Ensure A Smooth Process. He asks her to explain how she helps companies prepare for such an exam. She replies that the article targets investment managers and broker dealers who are already regulated and registered with the SEC. The routine exam is when SEC staff examiners come to organizations to ensure that their compliance program is meeting all regulatory obligations. They also want to see that the program is being actively implemented in the business. Silver helps you prepare for a smooth exam: they analyze your existing program, help you prepare the required documents, and they even prepare you to answer questions the SEC might pose. Fizza gives several tips to help you highlight your strengths in the Day One presentation.
Resources
SilverRegulatoryAssociates.com
fkhan@silverreg.com 
Article: Uptick In SEC Exams: Four Ways To Ensure A Smooth Process 
Article: Insight: Key Crypto Compliance Considerations In Light of Facebook’s ICO