Tag: FCPA

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This Week in FCPA

Episode 209 – the George Floyd is Buried edition


As Trump goes back into hiding in his bunker, the rest of the country continues to reopen. Self-Tom and Jay are back to consider some of the top compliance articles and stories over the past week.

  1. Final thoughts on the DOJ 2020 Update to the Evaluation of Corporate Compliance Programs. Tom summarizes the highlights on the FCPA Compliance and Ethics Blog. Mike Volkov gives his five top takeaways.
  2. Want to see examples of ham-fisted leadership. Matt Kelly on Radical Compliance. Tom and Matt take a deep dive in Compliance into the Weeds.
  3. Why does WFH raise compliance risks? Vera Cherapanova on the FCPA Blog.
  4. How did Jho Low use Kuwait to continue his fraud? Reporting in the WSJ.
  5. Common features of corruption and police brutality. Matthew Stephenson opines in GAB.
  6. How can you sharpen your cyber security? Jim DeLoach in CCI.
  7. How can you build a listen up culture? Bob Conlin on Navex Global’s Ethics and Compliance Matters
  8. Managing risk in compliance staffing. Kathryn Reimann on NYU’s Compliance and Enforcement Blog.
  9. Brian Benczkowski bails the DOJ. Dylan Tokar on the WSJ Risk and Compliance Journal.
  10. Interested in moving to the CCO chair? Check out my latest podcast series The Compliance Lifewhere I interview one CCO type for a month on their journey to the CCO chair and beyond. In on this month’s edition I visit with Ryan Rabalais. In this Part 2, he details why the corp compliance function can be seen as a Black Box. The Compliance Life is now available on iTunes.
  11. On Compliance and Coronavirus this week, I feature three podcasts from the folks at K2 Intelligence FIN: Gabe Hidalgo on lessons for financial institutions during the time of Covid-19; Sepideh Rowland on PPP and changing risks for financial institutions; Ray Dookhie joins me to discuss evolving fraud risk during the time of Covid-19. Compliance and Coronavirus is available on iTunes here.
  12. On the Compliance Podcast Network, this month topic: internal reporting and investigations; all on 31 Days to a More Effective Compliance Program. This week’s offerings: Monday-internal reporting and whistleblowers during layoffs; Tuesday-triage of allegations; Wednesday-the investigation protocol; Thursday– preparing for an investigation; Friday– selection of investigative counsel. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel.
  13. Join Tom and Jonathan Marks for a webinar on the 2020 Update to the Evaluation of Corporate Compliance Programs. Thursday, June 18 at noon CT. Registration and information available here.
  14. Join Jay’s AMI colleagues Dionne Lomax and Jesse Caplan for a webinar entitled, “The DOJ’s New Guidance for Antitrust Compliance Programs + Special Considerations During the COVID Pandemic”. This webinar will discuss the U.S. Department of Justice Antitrust Division’s recently announced initiative to encourage corporations to develop and implement effective antitrust compliance programs. Our panel will discuss the new guidance and special considerations during the COVID pandemic and provide practical tips for developing a comprehensive program, including tips on how to handle a federal and/or state antitrust investigations. The event will be held next Tuesday, June 16th, at 12P EST/9A PST. Registration and information can be found here.

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.

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This Week in FCPA

Episode 208 – the Trump Administration Attacks Americans edition


As peaceful protesters are attacked by the Army on the order of the Trump Administration, Tom and Jay ask “now that Trump has his wall around the White House, will Mexico pay for it?” Self-distancing Tom and Jay are back to consider some of the top compliance articles and stories on the new 2020 Update to the 2019 DOJ Evaluation of Corporate Compliance Programs.

  1. Tom Fox goes through a multipart deep dive. Part 1-Overall Themes, Part 2-Data and Continuous Improvement, Part 3-Third parties and M&A, Part 4-CCO and the Complaince Function, Part 5-Conclusion.
  2. Matt Kelly explores on Radical Compliance.
  3. Matt Kelly goes Pizza Pizza with another article in Navex Global’s Ethics and Compalince Matters.
  4. Dylan Tokar reports in WSJ Risk and Compliance Journal.
  5. Mike Volkov has a 3-part exploration on Corruption Crime and Compliance. Part 1, Part 2 and Part 3.
  6. Dick Cassin explores organizational justice in the FCPA Blog.
  7. Jonathan Marks looks at it from the forensic perspective in Board and Fraud.
  8. Interested in moving to the CCO chair? Check out my latest podcast series The Compliance Lifewhere I interview one CCO type for a month on their journey to the CCO chair and beyond. In on this month’s edition I visit with Ryan Rabalais. In this Part 1, he details his journey into compliance and the winding road which took him to the CCO Chair. The Compliance Life is now available on iTunes.
  9. On Compliance and Coronavirus this week: David Wolf on using podcasting and audio white papers as communication tools during the time of Covid-19; James Green on operationalizing risk management during this health crisis; Eden Gillott joins me to discuss crisis communication during the time of Covid-19. Compliance and Coronavirus is available on iTunes here.
  10. On the Compliance Podcast Network, this month topic: internal reporting and investigations; all on 31 Days to a More Effective Compliance Program. This week’s offerings: Monday-intro to internal reporting and investigations; Tuesday-Advantages of an internal reporting system; Wednesday-Internal reporting case study; Thursday– Internal Reporting Best Practices; Friday- Answering DOJ questions on internal reporting. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel.

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.

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FCPA Compliance Report

Mike DeBernardis on Q1 FCPA Enforcement Highlights


In the Episode, I am joined by Mike DeBernardis, Counsel and Hughes Hubbard. We review the Foreign Corrupt Practices Act enforcement from Q1 and take a look into that veiled land of the future. Some of the highlights include:

  • Key highlights from the Cardinal Health SEC enforcement action.
  • The Airbus international anti-corruption enforcement action is the largest ever. How can a CCO begin to get their arms around it or discern what it might mean for their company?
  • What are Mike’s 3 key takeaways from Airbus?
  • What is the significance of the individual prosecutions in Q1?
  • What are the top questions Mike and the Hughes Hubbard team is receiving from its clients now?
  • While investigations may slow down in Q2, Mike expects an uptick in Q3 & Q4.
  • What are the 5 elements of an ethical culture?
  • There will not be any Free FCPA Pass from the DOJ going forward on enforcement.
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Daily Compliance News

April 15, 2020-the (Non) Tax Day edition


In today’s edition of Daily Compliance News:

  • Are monitors hobbled? (WSJ)
  • US repatriates $300 stolen money to Malaysia. (DOJ Press Release)
  • Former Goldman exec charged with ‘egregious’ FCPA violations. (FCPA Blog)
  • Will Texas institution oil production limits? (WaPo)
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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program for 3rd Parties-Introduction and Key 2022 Enforcement Actions Involving 3rd Parties

Over the month of April, I will consider the risk management of third-parties in an operationalized compliance program. As every compliance practitioner is aware, third-parties still present the highest risk under the FCPA. You must assess whether the company has a business rationale for needing the third party in the transaction, and the risks posed by third-parties, including their reputations and relationships, if any, with foreign government officials. You should ensure that contract terms with third parties specifically describe the services to be performed, the third party is actually performing the work, and that its compensation is commensurate with the work being provided in that industry and geographical region.   Finally you must engage in ongoing monitoring of the third-party relationships, through updated due diligence, training, audits, and/or annual compliance certifications by the third party.

In this introduction, I visit with Alexander Cotoia, a Regulatory and Compliance Attorney at the Volkov Law Group to consider how recent FCPA enforcement actions point towards the use cases for a robust third-party risk management system. In 2022, the overwhelming majority of FCPA related enforcement actions involved third parties and required organizations to reprioritize third party risk management. In this episode, we consider case studies involving ABB Limited, GOL Airlines and Oracle which all demonstrated the importance of understanding bribery and corruption schemes, making voluntary disclosures, and reassessing third party risk management.

3 Key Takeaways

1. How can organizations reprioritize third-party risk management as a core compliance function?

2. What strategies can organizations use to avoid FCPA violations and maximize cooperation credit?

3.How can organizations effectively assess the risks posed by potential business partners?

Check out The Compliance Handbook, 3rd edition here

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This Week in FCPA

Episode 193 – the Astros Blowback Continues edition

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As the blowback on the Astros, MLB, Commisioner Rob Manfred continues to get worse, Jay and Tom are back to consider some of the top compliance articles and stories which caught our eye this week.

  1. Airbus still making news. Asher Miller provides 5 key takeaways for the compliance practitioner in the FCPA Blog. Dylan Tokar reports on more follow on investigations in the WSJ Risk & Compliance Journal. Joanne Taylor joins Tom on the FCPA Compliance Report to consider the UK perspective. Tom considers the French enforcement perspective in the FCPA Compliance and Ethics Blog.
  2. Another sentencing in the PdVSA ongoing bribery scandal. See the DOJ Press Release.
  3. What are WOW moments in compliance? Geert Vermeulen begins a 5-part series in Risk and Compliance Platform Europe.
  4. How do compliance officers show their worth? Dick Cassin explain in the FCPA Blog.
  5. Is it time to rebalance your 3rd party risk management strategy? Mike Volkov reports in Corruption Crime and Compliance. Mike writes about the importance of classifying your 3rd parties in Navex Global’s Ethics & Compliance Matters blog.
  6. Is the tide turning against whistleblowers? Aaron Nicodemus explores in Compliance Week. (sub req’d)
  7. Civil damages for corruption claims? Rick Messick considers on the Global Anti-Corruption Blog.
  8. New round of Alstom employee indictments. Dick Cassin reports in the FCPA Blog.
  9. What is a moral hazard moment? Jeff Kaplan explains on the Conflict of Interest blog.
  10. On the Compliance Podcast Network, Tom begins a one month look at the role of HR in compliance on 31 Days to a More Effective Compliance Program.This week saw the following offerings: Monday-succession planning and compliance; Tuesday-compliance performance appraisal review; Wednesday-Hiring a CCO: developing a job profile; Thursday-sales incentives and compliance;Friday-the exit interview. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.
  11. Join Tom to watch Jay on the panel with other compliance experts in the Dow Jones Refining Compliance Risk event in Hosuton on Tuesday, February 25 from 10 AM to 12 PM. For information and registration click here.
  12. Join Tom in NYC on Thursday, March 12 as Convercent is hosting an Innovation Forum from 3:30-7 PM at Sabrina. This event will allow you to network with like-minded individuals within the ethics and compliance space and hear from Thomas Fox and Philip Winterburn as well. For more information and registration click here.

 
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.

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This Week in FCPA

Episode 191 – the All Hail Airbus edition


Reports are that Airbus would settle corruption allegations for nearly $4bn in England were correct. Jay and Tom are back to consider some of the top compliance articles and stories which caught our eye this week.

  1. Airbus commentary is out. Dick Cassin on the FCPA Blog, Mike Volkov on Corruption Crime and Compliance, Tom Fox on the FCPA Compliance and Ethics Blog and Jonathan Armstrong on Cordery Compliance all lead the discussion.
  2. COSO warns of siloed compliance. Kristin Broughton in the WSJ Risk and Compliance Journal.
  3. Odebretch extends monitorship 9 months. Will that be enough? Mengqi Sun explores in the WSJ Risk and Compliance Journal.
  4. What about small annual changes in the TI-CPI? Matthew Stephenson goes diadic in the Global Anti-Corruption Blog.
  5. Is new DOJ Guidance a sword or shield or both? Jay continues his series in CCI.
  6. How to grow your compliance program as your company scales. Gio Gallo explains in CCI.
  7. Worried about CCO liability? Matt Kelly explores on Radical Compliance.
  8. Bernie Ebbers passes. A moment of silence for his role in compliance. Jim Zarolli in NPR.
  9. Speaker programs and big pharma. WilmerHale lawyers opine in NYU’s Compliance and Enforcement Blog.
  10. On the Compliance Podcast Network, Tom begins a one month look at the role of HR in compliance.This week saw the following offerings: Monday-introduction to the role of HR in compliance; Tuesday-the role of HR in creating an ethical culture; Wednesday-the hiring process; Thursday-the reference check. Friday-incentivizing compliance. Note 31 Days to a More Effective Compliance Program now has its own iTunes channel. If you want to binge out and listen to only these episodes, click here.
  11. Join Tom for the webinar, The Houston Astros: Ethics, Compliance and Sign Stealing onThursday February 13, at 2 PM CST. Registration and information here.

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.

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Why a Duck

A Night at the Opera, Part 2 and 2019 FCPA Enforcement Year in Review


From Vaudeville to the Silver Screen to the Small Screen, the Marx Brothers made an impact wherever people found them. Now Tom Fox and Mike Volkov have wedded their love of the Marx Brothers with their passion for compliance and bring them into the boardroom to help explain and explore the sometimes-chaotic world of governance, risk-management, ethics and compliance. In this episode they begin a three-part series where they discuss the movie A Night at the Opera and how it informs the 2019 in Compliance, FCPA enforcement actions and Compliance into 2020 and beyond.  In this episode we review the 2019 FCPA year in enforcement. Highlights from the podcast include:
1.     What were the key lessons learned from SEC enforcement actions in 2019?
2.     What were the key lessons learned from DOJ enforcement actions in 2019?
3.     Why was the Ericsson enforcement action such a stunning resolution?
4.     What was the state of monitorships in 2019?
5.     Why did ‘follow the money’ continue to be critical in 2019?
6.     Did the Yates Memo achieve full expression in 2019?
Resources
Mike Volkov-FCPA Enforcement Highlights
Tom Fox
SEC Enforcement Actions from 2019
Five DOJ Enforcement Actions in 2019
Marx Brothers
The Statement Room Scene-YouTube

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FCPA Compliance Report

Episode 457-James Koukios on October MoFo’s International Anti-corruption developments

In the Episode, I visit with James Koukios, a partner at Morrison and Foerster in Washington DC. Koukios is a former prosecutor from the Department of Justice who worked in the FCPA Unit. He is back to discuss the firm’s monthly newsletter the Top 10 International Anti-Corruption Developments for October 2019.
Some of the highlights include:

  • The DOJ Issues Guidance on Corporate Inability-to-Pay Claims. We consider is this something new or codification of prior practices?
  • The Unaoil guilty pleas. Are they huge, even bigger than Panalpina?
  • The EU whistleblower initiative. Is this a sea change or something else? What might it mean for anticorruption enforcement?
  • OECD Expresses Concern over Brazil’s Foreign Bribery Enforcement. Has there been a change in Brazil enforcement or is this simply a part of the natural ebb and flow of enforcement actions?
  • Are things really going to heat up in Mexico in terms of investigations involving Pemex? Should US companies which have done business in Mexico be scrubbing their operations?

Resources
To see the firm’s Top 10 International Anti-Corruption Developments for October 2019, click here.

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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