Tag: DOJ

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Report from IMPACT 2023

Report from IMPACT 2023: Sally Yates, David Ogden and Andrew Weissmann – Former DOJ Heads Talk Compliance

ECI’s IMPACT 2023 was one of the leading compliance events in 2023. At this conference, Tom Fox, the Voice of Compliance, was able to visit with several of the speakers, exhibitors, participants and one group of ethically minded Girl Scout Troop. In this limited podcast series, Report from IMPACT 2023, Tom explores many of the most cutting-edge topics in ethics and compliance through short podcast episodes. Check out the full series of interviews. You will be enlightened, informed and come away with a fuller and more thorough understanding of the most cutting-edge topics in ethics and compliance. In this episode, Tom visits with former Deputy Attorney Generals Sally Yates and David Ogden and former head of the Fraud Section Andrew Weissmann on the evolution of DOJ thinking on compliance.

This podcast episode covers the importance of compliance with the Foreign Corrupt Practices Act (FCPA) and how the Department of Justice (DOJ) is working to ensure corporate America is held accountable. Through voluntary disclosure incentives and open dialogue with the Defense Bar, agencies, and prosecutors, the DOJ has implemented measures to ensure that companies are adhering to the FCPA. The expertise of Main Justice prosecutors is highly valued, and the Fraud Section of the DOJ can provide invaluable insight into corporate policy. By fostering an open dialogue between the DOJ and industry, both parties can benefit from effective implementation of policies and an understanding of the benefits of compliance.

 Highlights include 

·      Yates Memo

·      Compliance Programs

·      Sticks and Carrots

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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 

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10 For 10

10 For 10: Top Compliance Stories For the Week Ending July 29, 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.

  • Zelensky warns about corruption. (FT)
  • Ukraine tackles corruption. (EuroNews)
  • New cyber disclosure rules go into effect. (AP)
  • Najib deposed in 1MDB case. (Bloomberg)
  • Cognizant investigation not outsourced. (WSJ)
  • DWS closes in on settling greenwashing charges. (FT)
  • Prosecutors want SBF jailed pre-trial. (WSJ)
  • DOJ revamps Crypto enforcement team. (WSJ)
  • Altice co-founder denies corruption. (Reuters)
  • US consultancies struggle in China after raids. (FT)

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

Connect with Tom 

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Daily Compliance News

Daily Compliance News: July 28, 2023 – The New Cyber Disclosure Rules 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, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • Zelensky warns about corruption. (FT)
  • New cyber disclosure rules go into effect. (AP)
  • Najib deposed in 1MDB case. (Bloomberg)
  • Cognizant investigation not outsourced. (WSJ)
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Daily Compliance News

Daily Compliance News: July 24, 2023 – The Struggling in China 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, compliance, ethics, risk management, leadership or general interest for the compliance professional.

  • DOJ revamps Crypto enforcement team. (WSJ)
  • Altice co-founder denies corruption. (Reuters)
  • US consultancies struggle in China after raids. (FT)
  • GOP release FBI report showing no Biden corruption in Ukraine. (Bloomberg)
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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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Daily Compliance News

Daily Compliance News: July 18, 2023 – The Polite to Exit 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 covered in today’s edition:

  • Head of DOJ Criminal Division, Kenneth Polite, to step down. (WSJ)
  • What is risk? (NYT)
  • Microsoft to face EU probe over bundling. (FT)
  • Tesla Directors settle comp suit. (Reuters)
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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Answering DOJ Questions on Confidential Reporting

What are some best practices regarding an internal reporting system? The 2012 FCPA Guidance stated, “An effective compliance program should include a mechanism for an organization’s employees and others to report suspected or actual misconduct or violations of the company’s policies on a confidential basis and without fear of retaliation.”

This was expanded in the DOJ’s 2020 Guidance, in the section entitled “D. Confidential Reporting Structure and Investigation Process,” with the following language, “Another hallmark of a well-designed compliance program is the existence of an efficient and trusted mechanism by which employees can anonymously or confidentially report allegations of a breach of the company’s code of conduct, company policies, or suspected or actual misconduct. Prosecutors should assess whether the company’s complaint-handling process includes proactive measures to create a workplace atmosphere without fear of retaliation, appropriate processes for submitting complaints, and processes to protect whistleblowers.”

Three Key Takeaways:

  1. Internal reporting systems indicate a working, operationalized compliance program.
  2. There must be a solid communication line between the people doing the investigation and those leading the remediation.
  3. Your internal reporting mechanism must be trusted.
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Report from IMPACT 2023

Report from IMPACT 2023 – Andrew Weissmann – Compliance Rules from the DOJ Perspective

ECI’s IMPACT 2023 was one of the leading compliance events in 2023. At this conference, Tom Fox, the Voice of Compliance, was able to visit with several of the speakers, exhibitors, participants, and one group of ethically-minded Girl Scout Troop. In this limited podcast series, Report from IMPACT 2023, Tom explores many of the most cutting-edge topics in ethics and compliance through short podcast episodes. Check out the full series of interviews. You will be enlightened, informed and come away with a fuller and more thorough understanding of the most cutting-edge topics in ethics and compliance. In this episode, Tom visits Andrew Weissmann, former head of the DOJ Fraud Section and current Podcaster and author.

The Department of Justice has been working to ensure that companies understand the rules of the road and what is expected of them to comply with the law. Tom Fox and Andrew Weissmann discussed the evolution of compliance programs from the Department of Justice’s perspective, the dialogue between the Department of Justice and the compliance community, the FCPA Pilot Program, the ABB FCPA Enforcement Action, and the need to use different forms of media to ensure that people are consuming the right information. They highlighted the importance of self-disclosure, extraordinary cooperation, and extraordinary remediation to receive a stunning result from the Department of Justice. Furthermore, they discussed the need to educate people in a variety of ways, such as Twitter, podcasts, articles, and op-eds, to ensure that policies are read and consumed. This podcast episode provides an insightful look into the Department of Justice’s approach to compliance and the need for different forms of media to ensure that people are informed.

Highlights include 

·      Compliance Evolution

·      Compliance Education

·      FCPA Recidivism

Resources 

Andrew Weissmann

Prosecuting Donald Trump podcast

Connect with Tom Fox on Linkedin

ECI

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31 Days to More Effective Compliance Programs

One Month to a More Effective Board – 20 Questions Directors Should Ask about the Board Compliance Committee

In an area of inquiry entitled Oversight, the 2023 ECCP asks three basic questions which we have explored throughout this chapter:

1. What compliance expertise has been available on the Board of Directors?

2. Have the Board of Directors held executive or private sessions with the compliance function?

3. What types of information has the Board of Directors examined in their exercise of oversight in the area in which the misconduct occurred?

To facilitate the answers to these questions, consider this list of 20 questions to reflect the oversight role of directors. These are questions the Board should ask of both senior management and the Board should ask itself. The questions are not intended to be an exact checklist, but rather a way to provide insight and stimulate discussion on the topic of compliance. The questions provide directors with a basis for critically assessing the answers they get and digging deeper as necessary. Although the questions apply to most medium to large organizations, the answers will vary according to the size, complexity and sophistication of each individual organization.

Part I: Understanding the Role and Value of the Compliance Committee

1. What are the Compliance Committee’s responsibilities and what value does it bring to the Board?

2. How can the Compliance Committee help the Board enhance its relationship with management?

3. What is the role of the Compliance Committee?

Part II: Building an Effective Compliance Committee

4. What skill sets does the Compliance Committee require?

5. Who should sit on the Compliance Committee?

6. Who should chair the Compliance Committee?

Part III: Directed to the Board

7. What is the Compliance Committee’s role in building an effective compliance program within the company? How can the Compliance Committee assess potential members and senior leaders of the company’s compliance program?

8. How long should directors serve on the Compliance Committee?

9. How can the Compliance Committee assist directors in retiring from the Board?

Part IV: Enhancing the Board’s Performance Effectiveness

10. How can the Compliance Committee assist in director development?

11. How can the Compliance Committee help the Board chair sharpen the Board’s overall performance focus?

12. What is the Compliance Committee’s role in Board evaluation and feedback?

13. What should the Compliance Committee do if a director is not performing or not interacting effectively with other directors?

14. Should the Compliance Committee have a role in chair succession?

15. How can the Compliance Committee help the Board keep its mandates, policies and practices up-to-date?

Part V: Merging Roles of the Compliance Committee

16. How can the Compliance Committee enhance the Board’s relationship with institutional shareholders and other stakeholders?

17. What is the Compliance Committee role in CCO succession?

18. How can the Compliance Committee foster great technical impact for compliance function?

19. What role can the Compliance Committee play in preparing for a crisis, such as the discovery of a sign of a significant compliance violation?

20. How can the Compliance Committee help the Board in deciding CCO pay, bonus and resources made available to the corporate compliance function?

 Three key takeaways:

1. The DOJ Evaluation requires active Board of Director engagement around compliance.

2. Board communication on compliance is a two-way street; both inbound and outbound.

3. Has the Board built an effective Compliance Committee for itself?