The often-used phrase of “tone at the top” is inartful in my view – an organization’s leadership culture is defined much more broadly than the word “tone” implies. A company’s culture extends well beyond senior leadership...more
6/12/2020
/ Blue Bell Creameries ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Ethics ,
Food Contamination ,
Food Manufacturers ,
Food Safety ,
Food Supply ,
Listeria ,
Quality Control Plan ,
White Collar Crimes
Boeing’s 737 Max problems began over ten years ago. Facing competitive pressure from Airbus, Boeing embraced the 737 Max as its competitive savior. After two horrific crashes killing a total of 346 people, the FAA ordered...more
When a company suffers from serious misconduct, the source of such a failure usually lies in its corporate culture. I know this theory sounds relatively obvious, but bear with me here....more
We all are familiar with the “horror” stories circling numerous infamous corporate scandals – Wells Fargo, Boeing, General Motors, Airbus, Ericsson, HSBC and on and on. When you read about each of these scandals, layer by...more
OFAC continues to aggressively enforce its sanctions programs. In its latest enforcement action, OFAC agreed with Société Internationale de Télécommunications Aéronautiques SCRL (“SITA”), a Swiss telecom company, to an...more
3/5/2020
/ Airlines ,
Anti-Corruption ,
Aviation Industry ,
Compliance ,
Corporate Counsel ,
Corporate Misconduct ,
Corruption ,
Digital Service Providers ,
Economic Sanctions ,
Enforcement Actions ,
Ethics Breach ,
Failure to Comply ,
Global Terrorism Sanctions Regulations (GTSR) ,
Goods or Services ,
Investigations ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Violations ,
SDN List ,
Software ,
Telecommunications ,
White Collar Crimes
We often hear about the dangerous risk to a company’s culture from rigorous sales incentive programs. Like most issues, the answer to this issue is not cut and dried....more
The Justice Department is often criticized for its lack of transparency. But when it comes to policy changes or initiatives, DOJ is more than transparent – DOJ always tells the public what it plans to do and then does it....more
1/30/2020
/ Compliance ,
Cooperation ,
Corporate Misconduct ,
Criminal Sanctions ,
Department of Justice (DOJ) ,
Enforcement Programs ,
Export Control Reform Act (ECRA) ,
Export Controls ,
Exports ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Policy ,
International Emergency Economic Powers Act (IEEPA) ,
National Security ,
Policy Updates ,
Sanction Violations ,
Voluntary Disclosure ,
White Collar Crimes ,
Willful Violations
As a passionate supporter of the compliance function, I continue to advocate for compliance officers and the importance of compliance to overall governance. Good compliance means good business – we all know that....more
As everyone knows, I am an eternal optimist. Being a cynic always leads to negative energy and results. As a former federal prosecutor, I am deeply committed to the idea of doing the right thing....more
1/15/2020
/ Anti-Bribery ,
Anti-Corruption ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Compliance Monitoring ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corporate Misconduct ,
Innovative Technology ,
Leadership ,
Risk Management ,
White Collar Crimes
Corporate leaders often talk to the talk when it comes to a Speak Up culture. In theory, many business leaders can articulate their commitment to a Speak Up culture by emphasizing the importance of employees raising...more
1/10/2020
/ Anti-Corruption ,
BP ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Ethics ,
Internal Reporting ,
Oil & Gas ,
Risk Mitigation ,
Securities and Exchange Commission (SEC) ,
Speak-up Cultures ,
Supervisory Guidance ,
Tone At The Top ,
Whistleblowers ,
White Collar Crimes
The Sweden-based telecommunications company, Ericsson, agreed to a pay a total of $1 billion (yes, billion with a “B”) for FCPA violations.
Ericsson entered into settlement agreements with DOJ and the SEC. Ericsson agreed to...more
12/8/2019
/ Anti-Bribery ,
Books & Records ,
Bribery ,
Corporate Misconduct ,
Corporate Monitoring ,
Criminal Conspiracy ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Statutory Violations ,
Telecommunications
The Department of Justice recently announced updates to its Foreign Corrupt Practices Act Corporate Enforcement Policy. While the changes were relatively minor, the modifications underscored important principles surrounding...more
12/4/2019
/ Anti-Corruption ,
Bribery ,
Compliance ,
Corporate Counsel ,
Corporate Misconduct ,
Corruption ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Disclosure Requirements ,
Enforcement Actions ,
Enforcement Guidance ,
Evidence ,
FCPA Corporate Enforcement Policy (CEP) ,
FCPA Guidance ,
Foreign Corrupt Practices Act (FCPA) ,
Policy Statement ,
Regulatory Reform ,
Regulatory Requirements ,
Regulatory Violations ,
Self-Disclosure Requirements ,
Transparency ,
Voluntary Disclosure ,
White Collar Crimes
Last week, British Arab Commercial Bank (BACB), located in the United Kingdom, agreed to settle an OFAC enforcement action for $4 million. ...more
9/25/2019
/ Anti-Corruption ,
Anti-Money Laundering ,
Banking Sector ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Enforcement Actions ,
Financial Institutions ,
Know Your Customers ,
Office of Foreign Assets Control (OFAC) ,
Prudential Regulation Authority (PRA) ,
Sanction Violations ,
Settlement Agreements ,
Sudan ,
UK ,
White Collar Crimes
We all know about the high-profile scandals that lawyers and compliance officers point to as examples of weak to non-existent ethical corporate cultures. ...more
We all know the phrase – “A fish rots from its head.” A perfectly accurate statement as to how corporate culture can suffer from leadership failures or C-Suite misconduct. But there is much more to corporate culture than...more
Compliance officers and internal auditors are natural partners and allies in the compliance governance landscape. As the compliance profession and influence grew, compliance officers often leaned on internal auditors for...more
I have long predicted that corporate board members are in for a rude awakening. Corporate boards have to improve their ability and knowledge surrounding supervision and monitoring of a company’s ethics and compliance...more
8/7/2019
/ Blue Bell Creameries ,
Board of Directors ,
Breach of Duty ,
Bribery ,
Caremark claim ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Corporate Misconduct ,
Corporate Monitoring ,
Corruption ,
DE Supreme Court ,
Derivative Suit ,
Ethics ,
Failure to Comply ,
Fiduciary Duty ,
Food Contamination ,
Risk Management ,
White Collar Crimes
Microsoft’s bribery and controls violations reflect significant risks facing companies that rely on distributor and reseller networks to sell their products. Companies often enter and operate in emerging markets through...more
7/26/2019
/ Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Microsoft ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Third-Party Risk ,
White Collar Crimes
In yet another major compliance development, the Justice Department announced the adoption of a new policy to credit effective compliance programs in resolving criminal cartel prosecutions against corporations....more
7/16/2019
/ Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Cartels ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Leniency Programs ,
White Collar Crimes
It is easy to get swept up into compliance trends, prognosticators of the future, and future compliance terms such as “artificial intelligence,” or “blockchain.” Do not get me wrong, these are the terms for the future and...more
OFAC is clearly sending a message about sanctions enforcement and compliance responsibilities. OFAC is aggressively seeking out new targets for enforcement. OFAC continues to focus on Iran, Cuba, Venezuela and North Korea,...more
7/11/2019
/ Anti-Corruption ,
Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Financial Transactions ,
Global Terrorism Sanctions Regulations (GTSR) ,
Office of Foreign Assets Control (OFAC) ,
Terrorist Financing Regulations ,
Western Union
The Justice Department has been criticized on numerous occasions about its approach to criminal investigations and prosecutions. In a recent decision, the chief judge in the Eastern District of New York criticized DOJ for...more
7/3/2019
/ Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Failure to Report ,
Foreign Bank Accounts ,
Foreign Corrupt Practices Act (FCPA) ,
Guilty Pleas ,
Internal Investigations ,
Regulatory Violations ,
White Collar Crimes
This is a tough posting – frankly, there are so many lessons learned from the Walmart case that they could fill a book, or an e-book at least. I will focus on some of the big issues....more
6/26/2019
/ Bribery ,
Business Development ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Internal Controls ,
Retailers ,
Securities and Exchange Commission (SEC) ,
Third-Party Risk ,
Wal-Mart
The Walmart case, from a big picture standpoint, represents a serious warning to all global companies committed to rapid international growth. In the absence of a significant and sustained commitment to compliance, rapid...more
6/25/2019
/ Anti-Corruption ,
Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Criminal Sanctions ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Intermediaries ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Third-Party Relationships ,
Wal-Mart
Our long national nightmare is over – President Gerald Ford, August 9, 1974 -
So, $900 million and roughly 8 years later, DOJ and the SEC announced the end of the Walmart FCPA enforcement action. (DOJ and SEC). The...more
6/24/2019
/ Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Subsidiaries ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Wal-Mart