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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Issues in Cross Border Investigations

In an article, entitled “Internal Investigations, How to Conduct an Anti-Corruption Investigation: Developing and Implementing the Investigation Plan”, Mara Senn, now Director & Senior Counsel, Global Compliance Investigations at Zimmer Biomet  and Michelle K. Albert, former lawyer at Arnold & Porter discussed cross-border investigations. They considered the following issues.
Offer interview translations.
Avoid cultural pitfalls.
Observe data privacy restrictions.
Comply with labor requirements.
Be aware of other local requirements.
Put forms in native translations.
Preserve the attorney-client privilege.
Prepare for local enforcement actions.
Prepare for security risks.
Protect whistleblowers.

Three key takeaways:

  1. Use translators and translations of key documents in witness interviews.
  2. Use local counsel to facilitate the investigation and to help navigate any local anti-corruption investigation issues.
  3. Never, never, never retaliate. The SEC will pay whistleblower bounties for non-U.S. citizens.
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Blog

Farewell to Tony Bennett and Crafting Impactful Compliance Campaigns

Tony Bennett died last week. He was one of a handful of performers whose music filled my head, heart and ears my entire lifetime. For me, it all began with I Left My Heart in San Francisco  in the mid-1960s. By that time Bennett had at least one maybe two careers of a lifetime. But by the 1960s Bennett was just getting started. He was a crooner of the old school but he wanted to sing the classics, which he did. The thing about classics, is that they are classic for a reason. They are great songs  and in the hands of great singers the are wonderous.

The was never proved more so than in 1993 when MTV had Tony Bennett Unplugged. It was a musical event for the ages. It won a Grammy for Best Album. Here was a (then) 70-something crooning the classics to an entirely new generation of fan, GenXers. And they loved him, the songs and the music. That event led to Bennett going back on top for the rest of his life. It also led to collaborations and even duets with artists as diverse as Lady Gaga, KD Lange and Amy Winehouse. So farewell to Tony Bennett, forever singing the classics of the Great American Songbook.

Have you ever wondered how to make compliance training interesting and engaging? I thought about Tony Bennett after I recorded a recent podcast with Peter Grossman and Duane Stumpf, two experts in the field of compliance training, to discuss this very topic. Peter is the co-founder of Labyrinth Training, which creates interactive animated compliance trainings, and Dwayne is the global head of integrity and compliance and the chief compliance officer for Alcon Vision. Together, they discussed the challenge of incorporating a 1970s rock and roll music number into a compliance training, and how they created a training series that was interactive and required the user to make decisions that affected the narrative.

The conversation highlighted the importance of delivering lessons in a way that people will remember, enjoy, and take notice. Peter has a background in entertainment and publishing, having worked for US Weekly and Rolling Stone, and Dwayne is a “recovering sales rep” who spent the first decade of his life in sales and the next decade plus in consulting. Their combined experience and expertise made for a fascinating discussion.

The Lens policy is Alcon Vision’s policy on how they interact in the marketplace. It is a principles-based policy that helps guide and put context around being ethical in the marketplace with their products. Peter and his team helped Alcon Vision put real life scenarios into sticky, funny, and humorous content. The team then launched a compliance training program in a Netflix style, with five episodes each lasting seven to eleven minutes. The team hyped up the program with emails, internal social media posts, and movie posters.

The team was able to get an impressive 81% of people to complete the training within 60 days. They changed the narrative of compliance by creating something that had never been seen before. To make the training even more engaging, they incorporated a musical number into the training, with a 70s style rock song. They also created a catchy jingle for an awareness video about the importance of wearing masks.

The fourth episode of the training introduced the worst person, Dr. Louis. Dr. Louis is famous and is trying to take advantage of the salesperson by soliciting bribes. Dr. Louis is wearing a lab coat that looks like a NASCAR jacket, covered in ads for every product. He tries to convince the salesperson to sponsor his lab coat with the Q Four logo and even breaks into a song and dance to convince the salesperson to sponsor his lab coat. Martin, the salesperson, starts singing along with Dr. Louis at one point.

The CEO of the organization even sent a note of congratulations when the award was announced. They even created a fictional product called Q Four, a quadrifocal lens with a Siri-like voice command to change eye color. The purpose of the training was to get people to stop and think before they engage in activities. The team won two Telly Awards, one for the narrative and one for the interactive design.

The takeaway from this conversation is that compliance training should be engaging, interactive, and fun, and tailored to the needs of the organization. Using interactive elements, humorous content, and musical numbers, organizations can create effective and memorable compliance trainings that their employees will enjoy and take notice of and most importantly will become more engaged with your compliance function.

 THE LENS

CALL DR LOUIS

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10 For 10

10 For 10: Top Compliance Stories For the Week Ending July 22, 2023

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.

  • Head of DOJ Criminal Division, Kenneth Polite to step down. (WSJ)
  • Tesla Directors settle comp suit. (Reuters)
  • KPMG caught cheating for exams again, this time in The Netherlands. (Dutch News)
  • Does Singapore have a corruption problem? (FCPA Blog)
  • Lisa Osofsky issues her final SFO report. (WSJ)
  • Teens take on corruption in Nigeria. (Teen Vogue)
  • US issues new anti-trust guidance. (FT)
  • Panama ex-President sentenced for corruption. (Reuters)
  • Sri Lanka passes ABC bill. (AL Jazeera)
  • Deutsche Bank fined yet again for AML failures. (NYT)

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – The Witness Interview

What are the characteristics of a good interview in the context of an internal investigation? Is there one technique you can use which will provide you the results you want to achieve? How should you think through your questions and document review prior to the investigation? At this point in time, how do such issues play out in the time of Coronavirus?
There is no one right way to prepare for and conduct an interview. What is important is that you have a plan and execute on that plan. Begin by obtaining an understanding of what the various stakeholders want answers to. This could include the Board of Directors, C-Suite executives, the GC and legal department, the CCO and compliance function or up to government regulators such as the SEC or DOJ.

Three key takeaways:

  1. There is no one right way to prepare and do an interview.
  2. The interview should not be confrontational.
  3. The interview, like the entire investigation process, is a chess match.
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Sports and Compliance

Sports and Compliance – Kyle Brasseur on Outsourcing Sports Journalism

Welcome to the Sports and Compliance podcast. For the longest time, I have wanted to have a podcast on the intersection of Sports and the World of Compliance and Ethics, both for those stories as they play out on the Sports Page and for the lessons they provide to business executives and compliance professionals. In this podcast series, I am joined by one of the top compliance commentators around, Stephen Martin, CCO at Skillsoft. Together, we will use our love of sports and competition to discuss current ethical issues in sports, look at compliance through a sports lens, and determine how the world of sports and its stories can guide the compliance professional. In today’s episode, Tom takes a solo turn behind the microphone to visit with Kyle Brasseur, EIC at Compliance Week and recovering sports journalist. The New York Times recently announced that it was outsourcing its entire sports department to the Athletic.

As Boston sports fans passionately hold their journalists accountable, Tom and Kyle discussed the implications of this shift, the importance of beat writers, and the need for well-rounded journalism skills to transition between disciplines. They also highlighted the importance of handling layoff announcements with respect and sensitivity to show those affected the necessary dignity. This conversation provides insight into the controversy of outsourcing sports journalism and its potential effects on the quality of content readers receive.

Key Highlights

·       Beat Reporting Role

·       Boston Sports Fans

·       Outsourcing Sports Journalism

·       Sports Journalism Transitions

·       Layoff Announcements

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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Florida Man Moves Outside of Florida

What happens when two top compliance commentators get together? They talk compliance of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode! This week on the podcast, we discussed a variety of financial fraud and corruption cases that have recently come to light. From Bank of America’s creation of millions of fake accounts to KPMG getting caught cheating in the Netherlands, these cases serve as a reminder to the importance of strong compliance programs and the need for companies to be proactive in preventing fraud. Additionally, the DOJ is utilizing data analytics to enhance their ability to prosecute FCPA cases, while Women in Compliance work to empower and support female professionals in the industry. Finally, the Florida Man Scam highlights the need to be aware of the potential for scams and to exercise caution when giving out personal information.

Highlights Include

·      Bank of America Scandal

·      Navex Survey

·      Corruption in Singapore

·      KPMG Cheating Scandal

·      Kenneth Polite Reflects

·      Lisa Osofsky Reflects

·      Women in Compliance

·      Florida Man Should Stay in FL

·      Contracts and Emojis

 

Resources 

  1. WSJ Risk and Compliance Journal
  2. FCPA Blog
  3. Radical Compliance
  4. Dutch News
  5. WSJ Risk and Compliance Journal
  6. DOJ Press Release
  7. 2023 Navex Survey
  8. Reuters
  9. Compliance Week
  10. BBC

Connect with Kristy Grant-Hart on LinkedIn

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Investigative Challenges

What are some of the top challenges you may face during an investigation? Beyond the basics, a company must consider the intake process as a starting point, which Jonathan Marks noted is one of the biggest challenges. Rather surprisingly, he noted there are still companies without a hotline or anonymous reporting system, stating “We still see organizations whereby there is no formal ethics hotline except for the fact that they might send an email to some member of management or some member of the Board.”
Planning your investigation, having the right team members involved, and meeting the challenges which inevitably arise during an investigation can be difficult. However, beginning with the DOJ’s 2015 Yates Memo, the 2016 FCPA Pilot Program, and the 2017 and 2019 versions of Evaluation of Corporate Compliance Programs, together with the 2020 Update, 2023 ECCP, and FCPA Corporate Enforcement Policy, the pressure on every CCO and company to get an investigation done quickly, efficiently and, most importantly, right is even greater now. Marks has laid out a concrete way for you to think through how to plan an investigation, staff it correctly, and meet the inevitable challenges.

Three key takeaways:

  1. The intake process may seem the most straightforward but many companies drop the ball at this initial step.
  2. You must never retaliate against employees who come forward in good faith.
  3. Always think several steps ahead.
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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations -The Investigative Team

Since 2015, DOJ has put even more pressure on every CCO, compliance practitioner, and indeed company, to get an investigation done quickly, efficiently, and, most importantly, right. This is even more true after the U.S. Supreme Court’s decisions in Digital Realty Trust v. Somers, which limited whistleblower protection and benefits to only those whistleblowers who go to the SEC, rather than initially report internally. What do all these documents tell who should be on your investigation team?

As data collection, retention and preservation are critical elements of any significant internal investigation you will need to have the involvement of your IT function. IT can help put a litigation hold on documents that can help with the preservation of data in other areas of the organization. Further, they can assist with certain other aspects as more facts and circumstances are known.

HR is often an underutilized function for an internal investigator. HR can provide context about employees’ work history. There may be notes in HR areas as diverse as training and exit interviews. HR can also give the investigator some insight regarding the credibility of the individual who might be making the allegation. For example, are they good and trusted employees? How long have they been there? What’s their general demeanor? What’s been the feedback on that particular individual?

Forensic accountants should be a part of your investigation team. Such a skilled set team member can bring an investigative mind that drives them to answer questions about what occurred, when and how it happened, and who was involved. However, most lawyers do not understand how forensic accounting is performed and how they can assist your compliance investigation going forward.

Obviously, the GC would be involved to help protect the attorney-client privilege if for no other reason. Further, an investigation needs to have compliance involved, to understand what compliance program was in place at the time of the incident in question, what procedures submission had, and understand if this truly was a gap in the compliance function or maybe there was an area within the compliance function that was not operating as prescribed, or maybe it was a little bit weak.

 Three key takeaways:

1. HR plays a key but often underused role in internal investigations.

2. The Board of Directors and senior management have different roles.

3. Use your legal department to protect the privilege.

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FCPA Compliance Report

FCPA Compliance Report – Maria D’Avanzo on the Intersection of AI, ChatGPT and Compliance

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In the latest episode of FCPA Compliance Report, Maria D’Avanzo from Traliant returns to discuss the intersection of AI, ChatGPT, and compliance. The recent Federal Trade Commission investigation into OpenAI serves as a reminder of the importance of staying up to date on the latest developments in the field of AI technology and the potential implications of such developments. With AI and Chat GPT being powerful tools that can automate processes and generate content, organizations must implement AI Policies and Training to ensure these technologies’ safe and responsible use. AI Compliance Training is necessary to educate employees on the risks posed by AI technology and to guarantee that their compliance program is robust and effective. Organizations must create a comprehensive policy and provide ongoing training to ensure AI’s safe and responsible use.

Key Highlights:

  • AI and Chat GPT Consequences
  • AI Policy and Training
  • Creating a Policy
  • AI Compliance Training
  • FTC OpenAI Investigation

Resources:

Maria D’Avanzo on LinkedIn

Traliant

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Compliance Into the Weeds

Compliance into the Weeds: BOA Enforcement Action for Bogus Accounts

The award-winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject and looking for some hard-hitting insights on sanctions compliance. Look no further than Compliance into the Weeds! In this episode, Tom and Matt take up the recent CFTC enforcement action involving Bank of America.

In yet another reminder of the importance of ethical practices within the banking industry, Bank of America recently faced civil charges for misconduct, including a junk fees scheme and opening credit cards for customers without their authorization. This follows in the footsteps of similar misconduct from Wells Fargo in the mid-2010s, which resulted in a hefty $185 million fine. To address the issue, Bank of America has agreed to discontinue its flawed incentive program and develop a compliance plan within 90 days. Banks must remain vigilant in their compliance efforts, capture customer consent and documentation, and have data analytics capabilities, or risk similar fines. Furthermore, this penalty emphasizes the need for banks to keep their practices updated with regulations.

 Key Highlights 

·      Facts of enforcement action

·      BOA penalty

·      BOA remediation

·      Comparisons to Wells Fargo

·      Banks behaving badly

 Resources:

Matt Kelly

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Blog Post in Radical Compliance

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