Tag: trade compliance

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Data Driven Compliance

Vince Walden on a Data Driven Approach to Sanctions and ESG

Data Driven Compliance, hosted by Tom Fox, is a podcast featuring an in-depth conversation around the uses of data and data analytics in compliance programs. In this episode, host Tom Fox visits Vince Walden from Kona AI to discuss data driven compliance and new areas of risk, such as trade AML and trade sanctions. Vince provides an example of a heavy equipment manufacturer using RFIDs on their products to monitor movement, and Tom warns of heavy fines for companies who fail to comply with prevailing sanctions. The conversation continues as Vince and Tom touch on topics such as ESG compliance, financial implications of green initiatives, and consortiums for sharing data. They also discuss how data analytics and text analytics can be used to track inventory and the importance of tracking energy spend to identify ESG-compliant vendors.

Key Highlights

·      Sanctions & trade compliance are the new FCPA.

·      Data-driven compliance for sanctions & trade compliance.

·      Data-driven ESG?

·      The cost of meeting ESG standards.

·      Economic benefits of sustainability.

·      Research with MIT and Integrity Distributed on the data sharing consortium.

Notable Quotes

“It’s not hard. Now they have to put the chips on, which is a variable.”

“You really have to mine the supply chain and use, you know, text analytics, text mining beyond just traditional accounting tools. To get into the weeds in that supply chain to find out where risks are located.”

“It’s funny. This is why I love our profession that we’re all in. It’s compliance and any fraud professionals, there’s always something new, always something changing.”

 “With a much broader overview. So you can see the big picture.”

 Resources

Vince Walden on LinkedIn

KonaAI

Categories
Great Women in Compliance

Ellen Smith – Trade Compliance

Welcome to the Great Women in Compliance Podcast, hosted by Mary Shirley and Lisa Fine. Today’s episode on Trade Compliance, with Ellen Smith, is a celebration of male allyship.  Ellen was nominated to be on the Great Women in Compliance podcast by Matt Silverman.  It is always a joy for Lisa and Mary to see men supporting women and leveraging off the #GWIC podcast to achieve this.

Ellen joins Mary and walks us through some Trade Compliance hot topics of the moment and helps us understand what boycotts are and how they fit into the Trade Compliance landscape.  She also shares her journey about how she came to specialize in this subject matter area and tell us about hanging her own shingle in the space.

One other way you can improve your workplace is with employee recognition, and Mary’s “Living Your Best Compliance Life” column at Corporate Compliance Insights can provide some great insights on the benefits of doing so and some ideas that can brighten someone’s day.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to.  If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it.  If you have a moment to leave a review at the same time, Mary and Lisa would be so grateful.  You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast.  Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020).

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

Categories
FCPA Compliance Report

Josh Fitzhugh on Trade Compliance Since the Russian Invasion of Ukraine


In this episode of the FCPA Compliance Report I welcome back Flex Vice President of Global Trade, Josh Fitzhugh, who visits about the challenges in economic and trade compliance since the Russian invasion of Ukraine. Topics include

  1. Current role
  2. Pre-conflict preparation
  3. How were you able to mobilize for such robust economic and trade sanctions?
  4. Some of the biggest challenges early in the conflict?
  5. What are some of the biggest challenges your team currently faces?
  6. What new challenges do you see in Q3 or further down the road?

Resources
Josh Fitzhugh on LinkedIn

Categories
Never the Same

Sanctions Will Never Be the Same

After the Russian invasion of Ukraine, the world of business will never be the same again. Deputy Attorney General Lisa Monaco recently said that the world’s “geopolitical landscape is more challenging and complex than ever. The most prominent example is of course Russia’s invasion of Ukraine.” It is “nothing less than a fundamental challenge to international norms, sovereignty and the rule of law that underpins our society.” This is even more so in the current business climate. Over this five-part podcast series, I will consider how the business will never again be the same and how a confluence of events has changed business forever. I am joined in this exploration by Brandon Daniels, CEO of Exiger. We will explore the irrevocable changes in Supply Chain, trade and economic sanctions, anti-corruption, cyber-security and ESG. In Part 2, we consider the changes in economic sanctions and trade compliance. Highlights include:

·      Sanctions have changed forever.

·      Economic sanctions should include a comprehensive set of trade policies.

·      Potential damage from state and non-state actors includes corporate espionage, intelligence gathering and economic disruption.

·      Legislative and regulatory responses.

·      How the rise in whistleblower provisions has fueled sanctions and asset seizures.

Categories
Blog

Potential Russia Sanctions and Corporate Response

This week on the FCPA Compliance Report, I began a two-part podcast series on the potential U.S. sanctions if Russia invades Ukraine and what can be done to prepare. The guest and subject matter expert for the podcast was Matt Silverman, Director of Trade Compliance at VIAVI. Now that Russia has invaded Ukraine, I thought the need was even greater to get this information out. This blog post highlights Matt’s thoughts on both topics. I urge to listen to the two podcasts in their entirety to understand what sanctions might be levied and how you can help your company prepare a response.

  • What are the potential U.S. sanctions if Russia invades Ukraine?
    1. Impose a comprehensive or near-complete embargo of Russia.
    2. Impose additional sectoral sanctions on certain Russian industries.
    3. Prohibit exports of certain items or technology to Russia.
    4. Designate Russian entities under the Foreign Direct Product Rule.
    5. Add specific Russian entities or individuals to OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN”).
    6. Prohibit Russian entities from accessing the U.S. financial system/using U.S. dollars and/or sanctioning foreign banks that conduct transactions with sanctioned Russian entities.
    7. Prohibit U.S. persons or entities from investing in Russian companies, requiring divestment, and/or sanctioning foreign entities that buy Russian government bonds.
    8. Impose “secondary sanctions” on entities or individuals that conduct certain transactions with Russia.
    9. Freeze Russian assets located in the U.S.
    10. Ban U.S. financial assistance to Russian entities.
    11. Withhold U.S. aid to any organizations that assist Russia.
    12. Prohibit imports and/or impose high tariffs on specific Russian imports.
    13. S. State-Level Sanctions: States may enact laws that prohibit business with, or require divestment of shares in, firms that conduct certain transactions with Russia.
  • What can be done to prepare?
    • First, ascertain your exposure and consider how some or all of these actions would impact your business.
    • Check your sanctions screening policies and procedures and check your customers and business partners in real time against global sanctions lists.
    • Identify all of your contracts with Russian entities or individuals and review your contracts for compliance with law clauses, notice clauses, and termination provisions.
    • Know your customer.
    • Identify what, if any, items, or technology you are exporting to Russia and any transactions with Russian entities that have ongoing or continuing obligations.
    • Take a look at your supply chain to avoid business interruption.
    • Identify whether you have any outstanding debts from Russian entities or individuals, and, if so, promptly purse collection activities.
    • Identify any procurement or manufacturing activities for goods intended for Russia and consider whether you can safely postpone or delay those activities, especially if you are dealing with specially designed or non-fungible goods (without breaching any contracts or risking failure to meet deadlines).

Resources
Matt Silverman on the potential U.S. sanctions if Russia invades Ukraine. (Part 1)
Matt Silverman on What can be done to prepare your company. (Part 2)

Categories
The Compliance Life

Founding a Trade Compliance Consulting Firm

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Ellen Smith, who has sat in the chair of a Director of Trade Compliance.

In this concluding episode, Ellen reflects on leaving her trade compliance chair t Baker Hughes during the pandemic and setting up her own consulting company, Amalie Trade Compliance Consulting. She discusses building up her own business and how she was able to reconnect with many people she developed relationships with at all the stages of her career. She emphasized why building your network is so critical and how to use if you move into consulting. She talks about the challenges and rewards of a consulting practice.

Rather than a favorite adopted saying to conclude this series, Ellen talks about the presence of Jay Martin and how his presence added to the ethical culture at Baker Hughes.

Resources

 Ellen Smith LinkedIn Profile

Amalie Trade Compliance Consulting

Categories
FCPA Compliance Report

Matt Silverman on Potential Sanctions Against Russia

In this episode of the FCPA Compliance Report, I am joined by Matt Silverman, Director of Trade Compliance at VIAVI. In this Part 1 of a special two-part podcast series, we look at issues related to potential sanctions against Russia, Russian individuals and Russian interests if Russia invades Ukraine. In Part 2, we will discuss what you can do to prepare for such an eventuality. Potential sanctions we review in this episode ininclude:

  1. Impose a comprehensive or near-complete embargo of Russia.
  2. Impose additional sectoral sanctions on certain Russian industries.
  3. Prohibit exports of certain items or technology to Russia.
  4. Designate Russian entities under the Foreign Direct Product Rule.
  5. Add specific Russian entities or individuals to OFAC’s Specially Designated Nationals and Blocked Persons List (“SDN”).
  6. Prohibit Russian entities from accessing the U.S. financial system/using U.S. dollars and/or sanctioning foreign banks that conduct transactions with sanctioned Russian entities.
  7. Prohibit U.S. persons or entities from investing in Russian companies, requiring divestment, and/or sanctioning foreign entities that buy Russian government bonds.
  8. Impose “secondary sanctions” on entities or individuals that conduct certain transactions with Russia.
  9. Freeze Russian assets located in the U.S.
  10. Ban U.S. financial assistance to Russian entities.
  11. Withhold U.S. aid to any organizations that assist Russia.
  12. Prohibit imports and/or impose high tariffs on specific Russian imports.
  13. U.S. State-Level Sanctions: States may enact laws that prohibit business with, or require divestment of shares in, firms that conduct certain transactions with Russia.

Resources

Matt Silverman on LinkedIn

Categories
The Compliance Life

Ellen Smith – Sitting in the Chair and a Leading Trade Compliance Program

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Ellen Smith, who has sat in the chair of a Director of Trade Compliance.

In late 2013, Ellen met Jay Martin, CCO at Baker Hughes who convinced her to move to Baker Hughes to help rationalize and rebuild/rebrand the Trade Compliance Department. While at Baker, Ellen had the opportunity to rebuild the trade program 3 or 4 times. The first, when she joined Baker. A second time, when Baker was considering a possible merger with Halliburton. A third time after a merger with GE Oil & Gas as we were a GE company. The fourth and final time came after post separation from GE. The biggest change in this job was that Jay Martin had established a culture of compliance throughout the organization.

Favorite adopted sayings
‘what you see is what you get’
‘Arm-in-arm’
Resources
Ellen Smith LinkedIn Profile
Amalie Trade Compliance Consulting

Categories
The Compliance Life

Matt Silverman on Trade Compliance in 2025 and Beyond

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, we have our first Director of Trade Compliance, Matt Silverman, Director of Trade Compliance at VIAVI. We discuss Matt’s journey to the Director’s chair and look down the road at where trade compliance will be in 2025 and beyond.

In this concluding episode, Silverman looks at the role and function of trade compliance in 2025 and beyond. He notes that currently at many organizations still falls under the logistics or supply chain function but down the road he believes it will be an integral role in every legal/compliance department with much more high-level visibility in the C-Suite, and trade compliance becoming a bigger factor in risk management considerations.

He also feels that Trade Compliance Directors will likely need significant experience and a legal background, particularly given the trend toward greater enforcement actions taken by DOJ and OFAC. We concluded with some of Silverman’s thoughts on the intersection of ESG with trade compliance.  As ESG gains more popularity and attention in the C-Suite, trade compliance will become more important and one of its roles will be in fulfilling ESG initiatives.

Resources

Matt Silverman LinkedIn Profile

Categories
The Compliance Life

Matt Silverman – Move to the Director of Trade Compliance


The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, we have our first Director of Trade Compliance, Matt Silverman, Director of Trade Compliance at VIAVI. We discuss Matt’s journey to the Director’s chair and look down the road at where trade compliance will be in 2025 and beyond.
His first role as a Trade Compliance Director role was at Solvay. In this role, Silverman learned to balance individual employee management and employee development along with day-to-day compliance issues.  Silverman then moved to VIAVI in the role of Global Trade Director & Senior Counsel. In this position he handles a wide variety of trade issues including import, export, sanctions and antiboycott. He also looks for ways to get involved in other areas that may intersect with trade compliance.