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Failure to Prevent Fraud Mastery: Enhancing Due Diligence, Training, and Improvement

We conclude our deep dive into the Economic Crime and Corporate Transparency Act 2023, which has elevated the expectations for senior leadership and boards across large organizations. Our guide in this journey has been the UK government, which has put out a document entitled “Economic Crime and Corporate Transparency Act 2023: Guidance to organisations on the offence of failure to prevent fraud.” (The Guidance) Today, we conclude with the final three sections on Due Diligence, Training, Ongoing Monitoring, and Continuous Improvement.

As compliance professionals prepare diligently for the upcoming implementation of the Failure to Prevent Fraud (FTPF) offense, it becomes imperative to understand and apply comprehensive fraud prevention measures effectively. Central to a robust anti-fraud framework are due diligence, training, monitoring, and review processes. Each of these areas must be executed diligently, proportionately, and tailored specifically to address the unique risks faced by an organization.

Due Diligence: Building Trust Through Vigilance

Due diligence is a cornerstone of an effective fraud prevention strategy. Organizations must apply meticulous and proportionate due diligence procedures to mitigate fraud risks associated with individuals or entities performing services on their behalf.

For organizations facing heightened fraud risks, standard due diligence might not suffice. Comprehensive screening, including the use of technology-driven third-party risk management tools and vetting checks, becomes vital. Contracts should explicitly state compliance obligations and consequences of non-compliance, while mergers and acquisitions must include rigorous assessments of criminal, regulatory, and tax backgrounds.

Moreover, ongoing due diligence is essential; periodic reviews and updates ensure that an organization remains alert to emerging risks or changes in the status of associated persons. Continuous monitoring can detect potential red flags that may arise post-engagement, such as sudden changes in financial stability, reputation issues, or new regulatory concerns. Additionally, organizations should ensure transparency in their due diligence processes, clearly documenting their methods and findings. This not only enhances accountability but also ensures readiness in demonstrating compliance to regulatory bodies or stakeholders during audits or investigations.

Organizations might also consider collaboration with external experts or industry peers to refine their due diligence methodologies, leveraging collective insights to strengthen their anti-fraud defenses. Regular training and awareness sessions about due diligence expectations can further embed vigilance into organizational culture, ensuring that all stakeholders understand and uphold their roles in fraud prevention.

Five Key Takeaways on Due Diligence:

  1. Leverage Technology: Use advanced screening tools and third-party risk management platforms to enhance due diligence effectiveness.
  2. Contract Clarity: Clearly articulate compliance obligations and termination clauses for fraud breaches within contracts.
  3. Monitor Employee Well-being: Regular monitoring to identify stressors or workload issues that might increase susceptibility to fraud.
  4. Mergers and Acquisitions Scrutiny: Conduct thorough fraud prevention assessments during acquisitions, integrating robust prevention measures post-acquisition.
  5. Dynamic Review: Keep due diligence processes proportionate, up-to-date, and responsive to evolving risks.

Training: Empowering Prevention Through Knowledge

Training is critical to embedding an anti-fraud culture within an organization. A clear and regular communication strategy ensures all associated persons fully understand and internalize the organization’s fraud prevention policies and procedures.

Proportionate training tailored to the specific risks of roles within the organization, especially high-risk positions, is essential. Training must detail the nature of the FTPF offense, the particular procedures required, and the clear protocols for whistleblowing. Continuous evaluation and updates ensure training remains practical and relevant, particularly as personnel change. Effective training should also encompass interactive and engaging methods such as workshops, simulations, and scenario-based exercises, which help employees understand the real-world implications of fraud and the critical importance of adhering to procedures.

Incorporating case studies of relevant fraud incidents can significantly enhance learning by illustrating practical examples and reinforcing key lessons. Organizations should also regularly evaluate the impact of training through assessments, quizzes, and feedback surveys, ensuring that employees retain the information and can effectively apply it in their roles. Integrating fraud prevention messages into routine communications, such as team meetings and newsletters, can further reinforce an anti-fraud mindset. Ultimately, a robust training program not only builds awareness but also empowers employees to identify and address potential fraud risks proactively.

Five Key Takeaways on Training:

  1. Risk-Based Training: Deliver bespoke training programs specifically targeted at roles identified as high risk.
  2. Integration with Existing Programs: Leverage and integrate fraud prevention messages into broader financial crime training initiatives.
  3. Effective Communication: Communicate internal policies, the importance of whistleblowing, and the procedures to follow.
  4. Regular Updates: Keep training modules current with evolving fraud risks, regulatory updates, and personnel changes.
  5. Monitoring Effectiveness: Regularly assess and monitor training efficacy through feedback and performance evaluations.

Monitoring and Review: Continuous Improvement and Adaptation

Monitoring and review constitute the continuous feedback loop critical to fraud prevention. Organizations must regularly assess and refine fraud detection systems and response protocols based on real-world performance and evolving risks.

Monitoring involves detecting fraud, conducting robust investigations, and assessing the effectiveness of preventative measures. Organizations should ensure that sophisticated data analytics and AI-driven detection tools are employed effectively. Investigations must be independent, well-resourced, fair, and transparent, with results communicated to stakeholders.

Review processes ensure organizations adapt and improve continuously. Regularly scheduled reviews, supplemented by event-driven assessments in response to incidents or significant changes in risk, underpin an agile and resilient fraud prevention strategy. Utilizing external feedback and industry-wide insights, organizations can benchmark their strategies and implement best practices.

Five Key Takeaways on Monitoring and Review:

  1. Regular and Responsive Reviews: Schedule regular evaluations, complemented by prompt reviews triggered by specific fraud incidents or risk changes.
  2. Data-Driven Detection: Invest in advanced data analytics and AI tools to proactively detect fraud and fraud attempts.
  3. Independent Investigations: Ensure fraud investigations are conducted independently and transparently, with clearly documented processes and outcomes.
  4. Continuous Adaptation: Maintain flexibility in fraud prevention measures, promptly adapting strategies based on review outcomes and industry developments.
  5. Sectoral Benchmarking: Collaborate and engage with external entities and industry peers to adopt best practices and maintain practical fraud prevention standards.

Concluding Thoughts

As the countdown to the FTPF offense go-live continues, compliance professionals are tasked with a critical responsibility: to ensure their organization’s preparedness through meticulous due diligence, targeted training, and robust monitoring and review practices. Each component is integral to creating an effective, proportionate, and responsive fraud prevention strategy. By embedding these practices into the organizational fabric, compliance professionals not only safeguard their organizations but also reinforce ethical standards, protecting both reputation and long-term sustainability.

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Trekking Through Compliance

Trekking Through Compliance: Episode 55 – Out of Time: Due Diligence Lessons from ‘Assignment: Earth

If there is one constant in the universe, it is that business, regulations, and politics never stand still. Each new venture, partnership, or acquisition brings a fresh set of risks, obligations, and opportunities. Yet too often, organizations approach due diligence as a box-checking exercise when, in truth, it is the essential safeguard that ensures they are not letting an unknown variable derail their mission. Nowhere is this more cleverly dramatized than in the Star Trek TOS episode “Assignment: Earth,” where the Enterprise crew finds themselves conducting the ultimate form of due diligence, investigating the mysterious Gary Seven and the true risks he poses to Earth’s future.

Lesson 1: Verify Identity—Trust, But Always Confirm

Illustrated By: When Gary Seven appears on the Enterprise, he claims to be a human agent from the future, sent to prevent Earth’s destruction. His credentials, demeanor, and even physiology confound the crew.

Compliance Lesson: In every business deal, knowing exactly who you are dealing with is non-negotiable. Vendors, acquisition targets, third-party agents, and partners all come with their backgrounds and histories.

Lesson 2: Investigate the Full Scope—Understand Intent, Capability, and History

Illustrated By: The crew’s investigation into Gary Seven doesn’t stop with his identity.

Compliance Lesson: Surface-level information often fails to reveal the entire story. In business, a potential partner’s capabilities and intent matter as much as their identity. Due diligence is not just about who someone is, but what they are capable of and what they plan to do with that capability.

Lesson 3: Control Information—Monitor and Secure Sensitive Data

Illustrated By: Much of “Assignment: Earth” revolves around the management of sensitive information.

Compliance Lesson: Whether you are acquiring a company or onboarding a supplier, data security is central to modern due diligence. The risks of data leaks, cyber-attacks, or inadvertent disclosure can be devastating, especially if sensitive deal information falls into the wrong hands.

Lesson 4: Expect the Unexpected—Adapt When New Risks Emerge

Illustrated By: Kirk and Spock’s plan to detain Gary Seven is upended when he escapes and races to sabotage a nuclear missile test that could ignite World War III.

Compliance Lesson: Due diligence is not a static process. The best-laid plans are often disrupted by new information, sudden market fluctuations, or the revelation of previously unknown risks.

Lesson 5: Assess Impact and Alignment—Consider the Broader Consequences

Illustrated By: As the story unfolds, the crew realizes that Gary Seven’s actions, though seemingly dangerous, are intended to prevent an even greater catastrophe.

Compliance Lesson: Effective due diligence requires looking beyond the transaction itself. Will this deal, partnership, or acquisition align with your company’s mission, values, and long-term strategy? What are the potential downstream consequences?

Final ComplianceLog Reflections

“Assignment: Earth” might masquerade as a playful, spy-themed episode, but at its heart, it is a meditation on trust, investigation, and the unpredictable nature of risk. For compliance professionals, its lessons ring true across the decades. Due diligence is not a one-time task, nor is it a matter of simply collecting signatures and ticking boxes. It is an ongoing, multi-dimensional practice rooted in skepticism, curiosity, and a willingness to adapt.

Resources:

Excruciatingly Detailed Plot Summary by Eric W. Weisstein

MissionLogPodcast.com

Memory Alpha

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Daily Compliance News

Daily Compliance News: July 22, 2025, The I-9 Hell Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings to 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:

  • What is the cost of culture of silence at NASA? (WSJ)
  • Corruption tainting Milan skyline. (Bloomberg)
  • Companies stuck in ‘I-9 hell’ of paperwork. (FT)
  • Credit Suisse flagged Sanjeev Gupta for corruption, but the bank ignored it. (Bloomberg)

You can donate to flood relief for victims of the Kerr County flooding by going to the Hill Country Flood Relief here.

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Trekking Through Compliance

Trekking Through Compliance: Episode 47 – Charting Unseen Risks: Investigative Strategies from ‘The Immunity Syndrome

There is a moment in every compliance professional’s career when you must venture into the unknown: a new country, a new business line, or a merger with a company whose culture, controls, and risks you only dimly perceive. In many ways, this is the compliance professional’s dilemma when launching operations in a new jurisdiction or business venture. Old assumptions may no longer apply—hidden dangers lurk where we least expect. And survival, not just success, depends on investigative skills, adaptability, and a willingness to challenge everything we think we know. Today, we examine the investigative lessons from “The Immunity Syndrome” that every compliance professional should heed when boldly going where their organization has never gone before.

Lesson 1: Question Your Assumptions—The Risks May Be Invisible

Illustrated By: The Enterprise receives a distress call and learns that the Intrepid, a ship crewed entirely by Vulcans, has been destroyed by an unknown force.

Investigative Takeaways:

  • Do not assume that past success in other markets guarantees future safety.
  • Leverage local knowledge just as Spock’s unique connection gave the Enterprise vital early warning.
  • Use multiple investigative approaches: don’t rely solely on established data or processes.

Lesson 2: Conduct a Deep Diagnostic—Surface Scans Are Never Enough

Illustrated By: The Enterprise finds a “zone of darkness” in space. It is a void with no energy, no light, and no readings at all. Standard scans and probes reveal nothing.

Investigative Takeaways:

  • Supplement traditional due diligence with on-the-ground investigations and “boots on the ground” audits.
  • Look for the absence of evidence as well as the presence—missing records, unusual silence, or gaps in documentation can be just as telling as a smoking gun.
  • Enlist specialists (just as Kirk uses Spock and McCoy’s unique skills) to delve into complex risks, whether legal, cultural, or operational.

Lesson 3: Trust but Verify—Local Expertise Is Essential, But Not Infallible

Illustrated By: Kirk is forced to choose between Spock and McCoy for a dangerous reconnaissance mission into the organism’s interior.

Investigative Takeaways:

  • Respect local expertise, but always cross-check against independent sources.
  • Build diverse investigative teams, including insiders and outsiders, as well as headquarters and field personnel, such as lawyers and auditors.
  • Establish clear escalation protocols when local advice contradicts global standards.

Lesson 4: Monitor for Emerging Risks—What Starts as a Small Threat Can Escalate Rapidly

Illustrated By: Once inside the organism, the Enterprise is quickly overwhelmed.

Investigative Takeaways:

  • Establish early-warning systems for compliance and operational risks.
  • Monitor not just for violations but for near misses, rumors, and signs of stress within the local business.
  • Use “pulse checks”—quick, frequent assessments—to catch emerging issues before they escalate.

Lesson 5: Have an Exit Strategy—Sometimes the Best Move Is to Retreat and Reassess

Illustrated By: As the Enterprise is nearly destroyed, Kirk orders a desperate gambit.

Investigative Takeaways:

  • Continually assess the risk/reward calculus of continuing versus exiting.
  • Prepare senior management for “no-go” recommendations, supported by clear evidence and risk assessments.
  • Document your investigations, findings, and decision rationale thoroughly, especially when choosing to walk away.

Final ComplianceLog Reflections

In every new venture, there is a “zone of darkness.” It is a realm of unknown risks and unexpected threats. The only way to navigate it is through rigorous investigation, humility in the face of uncertainty, and the courage to act, whether that means pushing forward or pulling back.

Resources:

Excruciatingly Detailed Plot Summary by Eric W. Weisstein

MissionLogPodcast.com

Memory Alpha

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All Things Investigations

All Things Investigation – Due Diligence and Drama: A Deep Dive into Art World with Daniel Weiner

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by Daniel Weiner to discuss a complex legal case involving a valuable Picasso painting.

Weiner is the Chair of Hughes Hubbard & Reed’s Litigation Department, Chair of the Complex Business Disputes practice, and a partner in the International & Domestic Arbitration and Intellectual Property Disputes groups. Daniel and Tom take a deep dive into the intricate details of how a series of fraudulent transactions led to a multimillion-dollar dispute over Picasso’s ‘Le Peintre.‘ The podcast highlights the importance of thorough due diligence in the art world and examines the legal complexities involved in resolving such cases. As they unravel the story, they highlight the crucial role of investigations in preventing art fraud and safeguarding ownership rights.

Key highlights:

  • The Fascinating Picasso Case
  • The Fraud Unveiled
  • Legal Issues and Investigations
  • Discovery Disputes and Court Proceedings
  • Consulting and Due Diligence in Art Law

Resources:

Daniel Weiner

Hughes Hubbard & Reed website

HHR Client Alert: Firm Obtains Discovery Win in Dispute Over Sale of Pablo Picasso Painting

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FCPA Compliance Report

Amanda Carty on a Due Diligence and Risk Management

In this episode of the Diligent Compliance Week 2025 Speaker Preview Podcasts series, Amanda Carty discusses her presentation at Compliance Week 2025, “Going Beyond Due Diligence in Risk Management.”

Some of the issues she will discuss:

  • Demonstrate measurable and quantifiable ROI
  • Build psychological safety that drives ethical decision-making and engagement.
  • Navigate matrix environments to expand the influence.
  • Use data to tell compelling compliance success stories
  • Partner with the C-suite to help them navigate disruptive changes, including deregulation and major economic geopolitical shifts.

I hope you can join us at Compliance Week’s 20th Anniversary National Conference. This year’s event will be held April 28-30 at The Mayflower Hotel, Autograph Collection, Washington, D.C. The lineup is first-rate, with some top ethics and compliance practitioners around.

Drop by the Diligent booth for some Compliance Podcast Network coffee to gain insights and make connections at the industry’s premier cross-industry national compliance event, offering knowledge-packed, accredited sessions and take-home advice from the most influential leaders in the compliance community. Back for its 20th year, compliance, ethics, legal, and audit professionals will gather safely face-to-face to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs.

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Blog

The Bre-X Mining Scandal: Part 5 – A Guide for the 2024 Compliance Professional (Part 1)

As we close out this series on the Bre-X mining scandal, the lessons from this notorious case continue to resonate, especially for today’s compliance professionals. The fraud that led to the downfall of Bre-X and the ensuing financial catastrophe for countless investors serves as a stark reminder of the pivotal role compliance plays in maintaining the integrity of any business. This two-part conclusion will explore the critical takeaways for compliance professionals in 2024. In Part 1, I focus on due diligence, transparency, corporate governance, conflict of interest, and regulatory compliance.

The Importance of Rigorous Due Diligence

If Bre-X taught us anything, it is the value of relentless due diligence. In today’s fast-paced business environment, where misinformation can spread like wildfire and trust is fragile, compliance professionals must maintain an unwavering commitment to fact-checking and independent verification.

Verification of Claims. Compliance officers are the gatekeepers of corporate integrity. The Bre-X scandal is a textbook case of what happens when claims are accepted at face value without proper scrutiny. In 2024, ensuring that all claims—whether they pertain to financial projections, resource estimates, or technological capabilities—are rigorously verified by qualified third parties is more crucial than ever. This due diligence must extend beyond simple paper trails; it requires thorough, boots-on-the-ground verification.

Third-Party Validation. One of the core failures in the Bre-X case was the reliance on internal data, which went unchecked. Today’s compliance landscape demands an external layer of assurance. Relying solely on the company’s self-reported information can be perilous. Independent third-party audits, validation, and assessments are no longer optional; they prevent corporate fraud. External experts often see red flags insiders miss due to oversight or willful blindness.

Transparency and Accurate Reporting

Transparency is the lifeblood of compliance, and the Bre-X scandal illustrates what happens when companies stray from this fundamental principle. The fine line between optimism and misleading information can be blurry, but compliance officers must ensure this line is never crossed.

Clear and Honest Disclosure. Today’s compliance professionals must act as the arbiter of clear and accurate corporate disclosure. More is needed to provide minimal information that technically complies with regulations; companies must fully disclose material facts related to their performance, risks, and operational realities. Bre-X misled investors with rosy projections based on fraudulent data. Modern compliance teams must guard against the temptation to oversell the company’s prospects or downplay significant risks.

Avoiding Misleading Information. The Bre-X debacle warns about the dangers of making exaggerated or false claims to investors and stakeholders. In 2024, compliance professionals must adopt a zero-tolerance stance toward misleading information. This requires close collaboration with all departments, ensuring financial reports, press releases, and investor communications are fact-checked, realistic, and grounded in verifiable data. The role of compliance in safeguarding against exaggeration or outright deception cannot be overstated.

Strengthening Corporate Governance

One of the critical failures in the Bre-X case was weak corporate governance. As companies grow in complexity, ensuring robust oversight from the boardroom down is essential.

Effective Oversight. Boards of directors must not only be present; they must be actively engaged in the business. The Bre-X scandal exposed how passive oversight can contribute to unchecked fraud. Compliance professionals should ensure that board members, especially independent ones, are empowered to ask tough questions and hold management accountable. In 2024, compliance officers should push for regular, thorough reviews of corporate governance practices, ensuring that the board remains active in safeguarding the company’s integrity.

Separation of Duties. Another key lesson from Bre-X is the need for a clear separation of duties. The concentration of power in a few individuals, especially in processes like reporting geological results, led to unchecked manipulation. Modern compliance frameworks must ensure no single person holds too much sway over critical processes. In areas such as financial reporting or resource assessments, compliance professionals must establish checks and balances that prevent conflicts of interest and reduce the risk of fraud.

Understanding and Mitigating Conflict of Interest

Bre-X was rife with conflicts of interest that, had they been addressed, might have mitigated the extent of the damage. In 2024, compliance professionals must be vigilant in identifying and managing potential conflicts at all levels of the organization.

Identifying Conflicts. Conflicts of interest can undermine the integrity of any organization through personal financial gain, favoritism, or unaddressed personal relationships. Compliance officers must develop robust mechanisms for identifying and addressing conflicts before they escalate. In the Bre-X case, certain individuals stood to personally gain from inflated stock prices directly conflicting with their fiduciary duties. Modern-day compliance professionals must establish clear conflict-of-interest policies and ensure these are consistently enforced.

Establishing Clear Policies. It is not enough to identify conflicts; companies must have clear policies and procedures to manage them. This includes mandatory disclosures, regular audits, and a strong ethical culture encouraging employees to report potential conflicts. Employees should be trained to recognize conflicts of interest and be empowered to raise concerns without fear of retaliation. The Bre-X scandal reminds us that an unaddressed conflict of interest can lead to catastrophic outcomes for all stakeholders.

Enhanced Focus on Regulatory Compliance

Finally, the Bre-X scandal illustrates the importance of adhering to industry standards and anticipating regulatory changes. In the wake of Bre-X, Canada introduced NI 43-101, a set of strict guidelines for reporting mineral resources. The lesson here is that compliance professionals must stay current with regulations and be proactive in their approach.

Adhering to Industry Standards. In 2024, industry standards are constantly evolving. Whether environmental regulations, data privacy laws, or sector-specific standards like NI 43-101, compliance professionals must ensure that their organizations are always fully compliant. This requires staying informed about changes in the regulatory landscape and ensuring that the company’s internal practices are aligned with the latest requirements.

Proactive Compliance. Compliance officers should take a proactive approach rather than waiting for regulations to change. This includes monitoring industry trends, participating in industry working groups, and maintaining open lines of communication with regulators. Proactive compliance can prevent costly legal battles and protect the company’s reputation.

The Bre-X mining scandal remains a cautionary tale for compliance professionals, and the lessons learned from this case are more relevant than ever in 2024. By emphasizing rigorous due diligence, transparency, corporate governance, conflict of interest management, and proactive regulatory compliance, compliance officers can help safeguard their organizations against fraud and mismanagement that led to Bre-X’s downfall.

In Part 2 of this series, we will conclude this blog post by diving deeper into the evolving role of technology and how it has transformed the compliance landscape, offering new tools and challenges for today’s compliance professionals. Join us tomorrow.

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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 23 — The Sustainability Edition

What happens when two top compliance commentators get together? They talk about 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! In this episode, Tom and Kristy take on a wide variety of compliance related topics.

In the ever-evolving world of regulatory compliance and risk management, challenges are constant, and strategies must be dynamic. Tom highlights the focus on the Tesla Board, celebrates the OECD at 25, bemoans New Zealand’s drop in the TI-CPI, reviews the HP acquisition of Autonomy and looks at the differences in Binance and FTX enforcement.  Kristy highlights the slave labor allegations, EU sustainability law, the ease of whistleblower restrictions, the EU and AI, and checks in on Florida Woman. Join Tom Fox and Kristy Grant-Hart as they delve deeper into these issues in this episode of the 2 Gurus Talk Compliance podcast.

Topics Discussed:

1.     Chinese Slave Labor Allegations Hold Up VW’s Audi, Porsche, and Bentley Vehicles in U.S. Ports (MotorTrend)

2.     EU Corporate Sustainability Due Diligence Law Most Likely Dead, For Now (Forbes)

3.     US Supreme Court’s UBS case makes it easier for whistleblowers to win suits (Reuters)

4.     How EU AI Act May Accelerate Compliance Regime for U.S. Enterprises (WSJ)

5.     The Tesla Board Chair is under scrutiny for oversight of the company.  (NYT)

6.     A tale of 2 corps: Binance and FTX. (Reuters)

7.     OECD at 25.  (The Hill)

8.     No DD, no problem as HP seeks $4bn from Mike Lynch.  (Bloomberg)

9.     New Zealand drops to No. 3 on TI-CPI. (The Conversation)

10.  Woman swipes $1.5 million and splurges on flights, Carnival cruises, Florida cops say (Yahoo)

Resources 

Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom 

Instagram

Facebook

YouTube

Twitter

LinkedIn

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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 10 – Ethical Remote Workers Edition

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!

Tom and Kristy consider the possibility of an international anti-bribery court, challenges in enforcing judgments against countries without strong anti-corruption laws, and the United States’ unlikely participation. The European Commission issued an adequacy decision regarding data transfers between the US and EU, resolving a long-standing issue, but privacy advocate Max Schrems plans to challenge its validity. The importance of on-site due diligence, and the value of on-site audits and cybersecurity disclosure were also explored. The benefits of remote work, global anti-corruption efforts, AI safeguards, and the dangers of zero tolerance policies were covered as well. The conversation provided insights into various compliance-related topics.

Highlights Include

·      World ABC Court

·      No DOJ control on Cognizant investigation.

·      SEC adopts Cyber disclosure rules.

·      Fight against corruption in Ukraine.

·      Goldilocks Compliance.

·      Data Privacy Framework Program Launches New Website Enabling U.S. Companies to Participate in Cross-Border Data Transfers

·      Site Visits: Sometimes the Best Due Diligence is Done on Foot

·      New Data Reveals that Remote Workers are Likely More Ethical than their Office Counterparts.

·      White House Says Amazon, Google, Meta, Microsoft Agree to AI Safeguards

·      Man Steals Vehicle, Crashes it into Building during Search for WiFi Connection

 Resources 

  1. WSJ Risk and Compliance Journal
  2. FCPA Blog
  3. Radical Compliance
  4. Dept. Of Commerce Press Release
  5. WSJ
  6. Conflicts of Interest Blog
  7. GAB
  8. Fast Company
  9. Fox 35 Orlando

Connect with Kristy Grant-Hart on LinkedIn

Spark Consulting

Tom 

Instagram

Facebook

YouTube

Twitter

LinkedIn

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FCPA Compliance Report

FCPA Compliance Report – Candice Tal on Due Diligence: Levels and Evaluation

Welcome to the award-winning FCPA Compliance Report, the longest running podcast in compliance. Join Tom Fox, the host of FCPA Compliance Report, as he speaks with Candice Tal, founder and CEO of Infortal. Get ready to boost your compliance program in this exciting episode of FCPA Compliance Report. In this episode, Tom and Candice discuss the three levels of due diligence typically used to investigate joint venture partners and senior executives and the significance of conducting thorough due diligence. Level one is for low-risk situations, level two is for moderate-risk situations, and level three is for high-risk situations that require deep dark web searches. The key takeaways are to never skimp out on basic due diligence and to consider level three due diligence for high-risk areas or key executives. Don’t miss out on this informative episode of FCPA Compliance Report hosted by Tom Fox and featuring Candice Tal!

 Key Highlights

·      Introduction of Candice Tal

·      What are the 3 levels of due diligence.

·      What is deep dive due diligence.

·      Finding reputational issues.

·      Evaluating due diligence.

Notable Quotes

“Due diligence typically is sorted out into 3 general levels or tiers.”

“If you’re not doing deep dive due diligence, you’re not finding reputational issues.”

“You just can’t find reputational issues on database searches.”

Resources

Candice Tal on LinkedIn

Infortal

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn