Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes Morgan Lewis partners Carl Valenstein (international corporate law, Latin America) and Katelyn Hilferty (international trade, export controls and sanctions) on whether businesses should consider returning to Venezuela after Maduro’s arrest and President Trump’s announcement. Ed. Note: this podcast was recorded in February, and since then, OFAC has issued New and amended Venezuelan-related General Licenses. The situation remains fluid.
Valenstein leads off by noting that he is counselling businesses to engage in “watchful waiting” due to continued instability, corruption, weakened institutions, security risks, uncertainty about elections, and a lack of clear U.S. incentives, such as political risk insurance. Hilferty explains that sanctions relief is narrow: two limited OFAC general licenses focused on Venezuelan-origin oil and U.S.-origin diluents, while most sanctions and broad export control restrictions remain in effect, with licenses revocable. They discuss payment and transparency concerns, large outstanding debts, and major capital and operational challenges to restore oil production. They advise companies to review licenses, establish compliance guardrails, screen counterparties, and draft contract and payment terms before pursuing opportunities.
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 it more fully. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly look at recent reporting on Binance that raises questions about the effectiveness of its compliance program, monitorships, and executive attitudes toward compliance.
They recap Binance’s 2023 resolution of U.S. criminal and civil matters involving money laundering and sanctions evasion. They discuss the Fortune article, which reported that Binance continued to route funds through its platform to the Iranian government in 2024 and into 2025. They highlight Mr. Zou’s public response on X, suggesting that if investigators found misconduct, it implied they failed to prevent it, which the hosts criticize as a misunderstanding that business units own risk and that compliance’s role is to provide systems, channels, oversight, and escalation rather than “prevent” all misconduct.
Key highlights:
Truth Stranger Than Fiction in Compliance
Binance’s 2023 Guilty Plea, $4.3B Penalty & Two Monitorships
Compliance Team Fallout: Investigators Fired & CCO on the Move
‘If You Found It, You Failed’: Why CEOs Misunderstand Compliance
Iran as the Red Line: Plea Agreement Breach, Politics, and Corruption Risk
Will Anyone Enforce This? Rule of Law Questions and What Comes Next
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 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.
Mike and Brent take an even deeper dive into the “Affiliates” or “50%” Rule announced by the Bureau of Industry & Security (BIS) on September 29, 2025. They identify several misperceptions in the public discussion, explain why they are misperceptions, and identify the pitfalls of operating under those misperceptions—especially in response to inquiries by BIS about pre-rule due diligence on affiliates of entities on the entity list. Specifically, they discuss why the Affiliates Rule is a close cousin to the Office of Foreign Assets Control’s own 50% rule, but why and how BIS’s Affiliates Rule serves different national security objectives and operates a bit differently (02:42); whether the Affiliates Rule brings new compliance burdens and, if so, risk-based due diligence strategies and likely questions from BIS regarding why (10:26); why in the current geopolitical context the benefit of local, boots-on-the-ground compliance might be overstated—or significantly discounted by the U.S. government—and what to do about it (16:18); why it would be a mistake to think that BIS is not today able to bring enforcement actions based on the Affiliate Rule, especially given their ability to bring enforcement actions on the “full” definition of knowledge to include “an awareness of a high probability” (19:26); and why it is dangerous to think of “knowledge” as only “actual knowledge,” and thereby misperceiving that the new Affiliates Rule—by reminding everyone that the catch-all provision under which the Entity List is promulgated is a strict-liability regulation, even as to awareness—has someone taken away a previously available “absence of actual knowledge” defense (23:00).
Mike and Brent then offer practical tips for applying for the license available under the Affiliates Rule for situations where the exporter, reexporter, or transferor is aware of “red flags” as to ownership that it cannot resolve through risk-based due diligence (28:20).
Mike and Brent then conclude with a special edition of Brent Carlson’s “Managing Up,” in which Brent offers some valuable self-reflection (34:58).
Mike and Brent return with their take on a hotter-than-hot topic, the Bureau of Industry & Security’s new “50% Rule,” effective yesterday, September 29, 2025. Mike and Brent discuss the news of the rule’s announcement and the basics of what it does (00:46); the fact that the rule was effective immediately upon filing for public review, i.e., on September 29, 2025 (02:24); the fact that 50% is not some threshold under which risk goes away (06:19); how commentary suggesting that a “loophole” has been closed is not entirely accurate because such a loophole never existed in the first place (08:12); the requirements (including a description of due diligence performed) under a new, unique license application process (09:45); what enforcement risks are likely to arise in the government’s implementation of the new rule, especially if the government compares pre-rule trade flows to post-rule trade flows (10:43); the importance of not making a quick decision in how to respond to the new rule that you might later regret (12:23); the dangers of misreading the new rule to permit entity-shifting as an appropriate response (15:53); BIS’s caution that the rest of the U.S. Export Administration Regulations (EAR) still apply, separately from the Entity List (18:43); the admonition by BIS that “exporters, reexporters, and transferors have an affirmative responsibility to know the ownership of the foreign companies that are parties to a transaction” (19:45); the statement in the rule that those same actors “must adopt a risk-based compliance program to assist them in complying with these requirements” (20:14); the new “Red Flag 29” added to the BIS Know-Your-Customer (KYC) Guidance (21:05); and the importance of the explanatory text’s reference to “control” (irrespective of ownership) by a listed entity as a “red flag” requiring further due diligence (21:59).
Mike and Brent conclude with another installment, back by popular demand, of Brent Carlson’s “Managing Up” segment (24:57).
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 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:
LRN named top compliance training provider. (Yahoo! Finance)
State of Texas to end ABA law school oversight. (Reuters)
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 more fully. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom Fox and Matt Kelly discuss a recent OFAC enforcement action against a Swiss-domiciled freight forwarding company, Fracht.
The case stands out for its complexity, involving a single, high-value transaction that exposed the company to significant sanctions risk through dealings with both Venezuelan and Iranian entities. Tom and Matt break down the compliance failures, the role of senior management, and the extensive remediation steps taken post-incident. This episode offers actionable lessons for compliance professionals on supply chain due diligence, the importance of compliance involvement in urgent deals, and the consequences of sidelining compliance functions.
Key highlights:
OFAC Enforcement Details
Anatomy of the Transaction
Third- and Fourth-Party Risks
Senior Management Involvement
Compliance Failures & Supply Chain Visibility
Remediation & Consequence Management
Key Takeaways for Compliance Professionals:
Always involve compliance in high-value, urgent transactions.
Ensure robust due diligence for all counterparties, including third- and fourth-party risks.
Senior management must be accountable for compliance failures.
Remediation should include policy updates, staff training, and ongoing oversight.
In this episode of From the Editor’s Desk, co-hosts Tom Fox and Ian Sherr dive into key compliance stories from July, including differences in AI regulation between the U.S., EU, and UK, and shifts in regulatory approaches globally. They discuss notable cases, such as the DOJ’s $14 billion healthcare fraud prosecution tied to transnational crime, and T-Mobile’s acquisition of US Cellular amidst DEI program cuts. Upcoming initiatives in Compliance Week are also highlighted, including in-depth industry coverage and data-driven stories to aid compliance professionals in their roles. The episode concludes with insights into the recent acquisition of ECI by Compliance Week’s parent company, Verdian Insights, which aims to enhance resources available to the compliance community.
Highlights include:
Highlighting Key Stories from Compliance Week in July
Emerging Patterns in Compliance
Tariffs and Their Impact
SEC Whistleblower Claims Analysis
Upcoming Features and Data Stories
ECI Acquisition by Verdian Insights and Its Impact
This episode focuses on geopolitical risk. In the initial spotlight segment, we speak with veteran journalist and Asia-watcher Christopher Cottrell about the military tensions in Thailand and their implications for the viability of the country’s newly proposed gaming law.
Following that, we chat with AML veteran Richard Butler of Dow Jones and data scientist Haider Mannan of BigTXN about the enforcement of the US Foreign Corrupt Practices Act, sanctions, and tariffs in the wake of recent actions by the Trump administration and the recent airstrikes on Iran.
Christopher Cottrell
Christopher Cottrell resides in Thailand and has been covering the Indo-Pacific region since 1997, contributing to publications such as The Boston Globe, Christian Science Monitor, CNN, The Guardian, Macau Business, The New York Times, and the South China Morning Post.
He spent 18 years in China and has been reporting on geopolitics in the Pacific Islands and Southeast Asia for the past four years, having edited UK-based Winna Media’s white papers on the Thai Entertainment Complex bill since 2024.
Richard Butler
Richard Butler is the vice president and APAC head of risk and research for Dow Jones & Co. Based in Sydney, Australia, he is responsible for helping businesses with risk and compliance strategies offsetting various forms of regulatory and commercial risk – such as the provision of high-quality, accurate and comprehensive data for identifying, evaluating and monitoring varying types of risk.
Before joining Dow Jones, Richard was the AVP for Treasury Services for Australia and New Zealand at JPMorgan Chase, where he was responsible for ensuring that JPMorgan’s financial institutional and non-bank financial institution clients in Australia and New Zealand adhered to JPMorgan’s best-in-class Know-Your-Customer, compliance, due diligence, and counter-terrorist financing standards. He began his career at ABN AMRO Bank, where he served as both the CAAML (Client Awareness and Anti-Money Laundering) officer and sales manager for the ABN AMRO Treasury Solutions Group in Dublin, Ireland.
Richard is skilled in governance, risk management, and compliance (GRC), as well as team management, direct sales, relationship building, and financial analysis, particularly in the APAC region.
Haider Mannan
Haider Mannan is the CEO and founder of BigTXN, a risk intelligence data provider. He is a data scientist and subject matter expert in investment screening, specializing in ESG controversies, global sanctions, and investment restrictions. He sits on the UK board of the Association of Certified Sanctions Specialists and the membership committee of the UK Sustainable Investment and Finance Association. Haider is also a member of PRMIA‘s advisory expert group on investment risk.
Discussion:
The conversation begins with Chris recounting the threats to Thailand’s security and stability, including the ongoing land border closure and standoff with Cambodia. He recounts with Regulatory Ramblings host Ajay Shamdasani that, notwithstanding its 22 prior coups, military rule, and reputation as a fragile democracy, Thailand has long been the darling of the global investment community, which has long touted its positive long-term economic fundamentals.
He adds the country has curried favor with the West by opening up in ways that many would regard as progressive, such as permitting the sale of cannabis products and paraphernalia, permitting same-sex unions, and seeking to liberalize its gaming sector by tendering a recent bill.
Yet, given the July 1 suspension by the country’s Constitutional Court of Prime Minister Paetongtarn Shinawatra over ethics violations and the weekslong border spat with Cambodia, which has been roiling fears of Thailand’s 23rd coup d’état, theimplementation of the new gaming law has been scuttled.
The discussion then shifts to Haider, who shares his thoughts on how data can help investment screening. He and Richard comment on how recent changes in the sanctions landscape, given the current geopolitical climate under the second Trump administration, pose a challenge for compliance and legal staff at banking and financial institutions, as well as multinational corporations.
Related to this are concerns about the implications for Asia regarding the extraterritorial enforcement of the much-dreaded US Foreign Corrupt Practices Act (FCPA) and the prospect of tariff imposition by the White House, as well as the potential for regulatory retaliation by other countries.
It’s worth noting that on June 9, Matthew Galeotti, head of the US Department of Justice’s (DOJ) criminal division, saidthat under new FCPA guidelines now in place, it would enforce the Act Firmly but fairly.” The comments followed President Trump’s announcement earlier this year that the DOJ would hold off on FCPA enforcement following a review of current standards, as it was believed the existing regulatory regime put US businesses at a disadvantage when competing abroad.
Haider and Richard also discuss why geopolitics matter and the need for lawyers and risk managers to go beyond merely tracking financial news. The conversation concludes with a discussion of a recent case in which the US DOJ’s Office of Foreign Asset Control (OFAC) sanctioned entities/companies in Hong Kong and mainland China that were involved in transferring Iranian oil to China.
Regulatory Ramblings podcasts is brought to you by The University of Hong Kong – Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law.
Mike and Brent follow up on Mike’s being quoted in the Dow Jones Risk Journal regarding the unexpected export control consequences of the Israel-Iran conflict. They discuss the geopolitical context (00:39), the article by Richard Vanderford and Mengqi Sun (01:22), the risk that Iran tries to evade U.S. export controls (and sanctions) by procuring replacement parts and equipment through third-party intermediaries (02:12), the cautionary tale of an Alabama resident sentenced to five years in U.S. federal prison for diverting items to Iran (03:29), the need to be cognizant of “catch-all” U.S. export controls related to ballistic missiles and WMD programs (including nuclear) and those controls reliance on the full definition of “knowledge” to include “an awareness of a high probability” (04:42), increased tracking and investigative activity by the U.S. government (06:19), how companies need to think about responding to “red flags” (06:45), the likely impact of forensic review of battlefield recoveries on requests by Israel and NGOs to companies for assistance in tracing item or component flows to Iran (07:44), and the likelihood of increased, rather than decreased, activity by U.S. agencies as a result of the conflict (09:52). They conclude with another segment of Brent Carlson’s “Managing Up” (12:26).
