Categories
Greetings and Felicitations

Pawtastic Friends: How Dogs Find Hope & Family Through Enrichment Training

Welcome to the Greetings and Felicitations, a podcast where I explore topics that might not seem directly related to compliance but influence our profession. Experience insight and expertise with host Tom Fox in this podcast featuring guests Michael and Melissa Novelli, co-founders of Pawtastic Friends. Pawtastic Friends is the designated charity for the Compliance Podcast Network. Michael and Melissa are dedicated to helping shelter and rescue dogs in the Las Vegas area become more adaptable through enrichment training, activities such as yoga and aquatics training, obedience, and agility. This podcast is sure to tug on your heartstrings. Listen to how sweet this one dog is! Tune in 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 the people that adopt them.”

Resources

Pawtastic Friends https://www.pawtasticfriends.com/

Categories
Daily Compliance News

February 17, 2023 – The High-Risk Rebuild 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:

  • Jamaica PM facing corruption inquiry. (Reuters)
  • The high risk in Ukraine rebuild. (NYT)
  • The art and science of succession planning. (FT)
  • Is ChatGPT ready for the big time? (WSJ)
Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Internal Controls – Code of Conduct as an Internal Control

In 2016, the SEC announced one of the most interesting non-international-focused FCPA enforcement actions. It involved a clear quid pro quo benefit paid out by United Airlines, Inc. to David Samson, the former chairman of the Board of Directors of the Port Authority of New York and New Jersey. This public government entity has authority over, among other things, United’s operations at the company’s huge east coast hub in Newark, New Jersey.

At the time, United’s Code of Conduct prohibited “United employees from directly or indirectly making bribes, kickbacks or other improper payments to government officials, civil servants or anyone else to influence their acts or decisions” and that “[n]o gift may be offered or accepted if it will create a feeling of obligation, compromise judgment or appear to influence the recipient improperly.” Only the United Board of Directors could grant a waiver to the code, and none was sought or obtained by Smisek. The Order concluded, “The [Chairman’s] Route was initiated in violation of United’s policies.”

The company was also sanctioned for not having internal controls to prevent such actions as those taken by Smisek. The SEC also found this was a violation of Section 13. This was in the face of detailing the protocol for the United instituting or reinstituting a route. The Order stated, “United had insufficient internal accounting controls to prevent approval of the South Carolina Route in derogation of United’s Policies.” All the underlying facts, enforcement theories, and remediation point towards the failure of internal controls when domestic bribery corruption occurs.

 Three key takeaways:

1. It is very unusual for the FCPA to form the basis of a domestic bribery violation.

2. A Code of Conduct can be an internal control.

3. Even a CEO must follow internal controls.

For more information on building a best practices compliance program, including internal controls, check out The Compliance Handbook, 3rd edition.

Categories
Hidden Traffic Podcast

EU Corporate Sustainability Reporting Directive Update

In this solo episode of Hidden Traffic Podcast, host Gwen Hassan dives into the new Corporate Sustainability Reporting Directive (CSRD) adopted by the European Council, which replaces the Non-Financial Reporting Directive (NFRD). The CSRD requires companies, both public and private, to report on a wide range of sustainability-related topics, including human rights, anti-corruption, modern slavery and human trafficking prevention, and environmental protection. Gwen will explain the impact of this directive on businesses and provide valuable insights into what companies can do to meet its requirements. 

The CSRD directive aims to increase disclosure requirements for companies and prevent greenwashing. It will also require subsidiary level reporting and auditable information about supply chain, due diligence and human trafficking prevention. The CSRD applies to a larger number of public and private companies and will increase cost. Companies should start preparing as soon as possible to meet the requirements.

 

The CSRD requires companies to report on a wide range of sustainability-related topics – including human rights, anti-corruption, modern slavery and human trafficking prevention, and environmental protection – and provide information about their strategy, targets, governance policies, incentives and risks. The European Commission will adopt standards for reporting under the CSRD by June of next year. The directive will become effective on January 1, 2026, with a 2028 opt-out date for small and micro entities. Large entities and their parents will have to comply immediately.

 

The recent development of the Forced Labor Protection Act in Africa highlights the issue of outsourcing services to low-cost countries and the potential liability companies can face for labor violations and human trafficking in their supply chain. A former content moderator in Kenya filed a lawsuit against both the outsourcing company he worked for and Meta, a social media giant, alleging that he was subjected to viewing graphic and violent material that caused him post-traumatic stress disorder. The court ruled that the case against Meta can move forward, highlighting the need for companies to take responsibility for practices in their supply chain, even if they were not aware of them. This could result in a strict liability standard for many types of companies.

 

Resources

Gwen Hassan on LinkedIn

Categories
Life with GDPR

NIS II

Jonathan Armstrong and Tom Fox return for another episode of the award-winning Life with GDPR. In this episode, we take up NIS II and are pleased to be joined by Jonathan Marks and Matt Kelly for a robust conversation.

Highlights include:

  • What is NIS II and how does it differ from NIS I?
  • NIS II governs by sectors.
  • What are the implications for global companies?
  • Where can you go for more information.

Resources

For more information on the issues raised in this podcast, check out the Cordery Compliance, News Section. For more information on Cordery Compliance, go their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.

Connect with Tom Fox

Connect with Jonathan Armstrong

Categories
Daily Compliance News

February 16, 2023 – The Defending Fraud 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:

  • Banks want visibility into account ownership data bank. (WSJ)
  • China national soccer head arrested on corruption charges. (FT)
  • Bankruptcy court rejects call for another investigation into FTX collapse. (Reuters)
  • After having accused Twitter of fraud, Musk now defends lawsuits accusing Twitter of fraud. (Bloomberg)
Categories
Wirecard

Season 3, Episode 38 – The Men Behind the Curtain

Welcome to Season 3 of Lies, Spies & Corporate Crimes: The Wirecard Saga. The Wirecard Saga, has become of the world’s leading sources on all things Wirecard. In Lies, Spies & Corporate Crimes: The Wirecard Saga; Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors looks at the biggest financial scandal in post-war Germany from a variety of angles. On this episode, Mikhail delves into the ongoing trial of Wirecard and Ollie Bellenhaus, who stand accused of numerous layers of deceit. She covers the landmark decision made by the Irish highest court as well as details around the many underlying entities that could now become exposed as a result. Mikhail also explores the many shell companies created. Tune in to this captivating episode to explore the world of corporate deceit, fraud, and money laundering on the Lies, Spies, and Corporate Crimes.

Key Highlights:

·      The History of Limited Liability Companies in Britain;

·      Allegations of Fraud in Binary Option Trading;

·      The Impact of Being Victimized by Financial Fraud Involving a Legitimate Business;

·      The Exploitation of Investors;

·      The Impact of Directors on Corporate Business: Examining the Cases of Ryan Coats and Liam Granger;

·      Credit Card Companies and Financial Services Providers;

·      Money Laundering Through Offshore Accounts in Ireland;

·      The Irish Central Bank’s Concern with Grey Mountain’s Unlicensed MSB Operation and Their Response;

·      Tax Evasion or Loss of VAT Revenue in Ireland; and

·      Directors’ Liability in an Irish Company.

Notable Quotes

1. “They label Bellenhaus, a professional liar.”

2. “The defense lawyers accused him of so many layers of deceit. It was almost comical.”

3. “The court’s decision means where a fraud perpetrated can be found to have a nexus through Ireland, there is now a basis to unmask those that ultimately benefited from that fraud no matter where they are.”

4. “Until this case, no Irish court had ever held that the veil of incorporation could be pierced or should be pierced in order that directors be held personally liable for the actual emissions of their company, in a case like the one mister Powell was bringing.”

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Internal Controls – Board of Directors as an Internal Control

Is a Board of Directors a compliance internal control? The clear answer is yes. In the 2020 FCPA Resource Guide, Hallmarks of an Effective Compliance Program, there are two specific references to the obligations of a Board in a best practices compliance program. One states, “Within a business organization, compliance begins with the Board of Directors and senior executives setting the proper tone for the rest of the company.” The second is found under the Hallmark entitled “Oversight, Autonomy and Resources,” which says the CCO should have “direct access to an organization’s governing authority, such as the Board of Directors and committees of the Board of Directors (e.g., the audit committee).”

Further, under the U.S. Sentencing Guidelines, the Board must exercise reasonable oversight of the effectiveness of a company’s compliance program. The DOJ Prosecution Standards posed the following queries: Do the directors exercise independent review of a company’s compliance program and are directors provided information sufficient to enable the exercise of independent judgment? The DOJ’s remarks drove home to me the absolute requirement for Board participation in any best practices or even effective anti-corruption compliance program.

Three key takeaways:

  1. Board oversight over the compliance function is a separate internal control, so document it and use it.
  2. The board must perform oversight over your company’s internal controls.
  3. Does your Board use the five principles for involvement in compliance with internal controls?

For more information on building a best practices compliance program, including internal controls, check out The Compliance Handbook, 3rd edition.

Categories
The Hill Country Podcast

Wynita Yancy – CMO of the Hill Country Youth Ranch

Welcome to the award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the unique area of Texas. Join Tom as he explores the people, places, and activities of the Texas Hill Country. In this episode, I welcome Wynita Yancy, Kerrville transplant and Chief Marketing Officer at the Hill Country Youth Ranch.

Some of the highlights include

  • Founding of the Hill County Youth Ranch
  • The mission of the Hill Country Youth Ranch
  • Wynita’s journey from Chicago to Kerrville
  • Wynita’s experiences in Leadership Kerr County

Resources

For more information on the Hill Country Youth Ranch, click here.

For more information on the lunch workshop on why your business needs a podcast, click here.

Wynita Yancy on LinkedIn

Categories
Great Women in Compliance

Jen Hoar on Corporate Intelligence

Welcome to the Great Women in Compliance Podcast, hosted by Mary Shirley and Lisa Fine. Have you ever wondered about corporate intelligence?  What it means, how it is done, and how it relates to our work in ethics and compliance.  In today’s episode, Lisa speaks with Jen Hoar, who is a Managing Director at Forward Risk and Intelligence.  Jen calls herself a “recovering journalist,” and reflects on how that career path brought her to where she is today.

Lisa and Jen discuss what corporate and human source intelligence are, and the strategies she uses to obtain relevant information.  She also explains the distinction between corporate intelligence and corporate espionage.  They talk about the art of interviewing in her world, and how it is similar – and different – to internal investigations and what many of us do.  Jen also provides some great tips and advice for talking to and connecting with people.

A special thank you to Kelly Paxton for this recommendation, and if you haven’t listened to her podcast, “Fraudish,” you should definitely check it out.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to.  If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it.  If you have a moment to leave a review at the same time, Mary and Lisa would be so grateful.  You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast.  Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance”(CCI Press, 2020).

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.