As companies move forward on third-party risk management programs, and as automated third-party risk solutions are being implemented, compliance professionals have to re-examine and re-balance the allocation of resources and...more
The Microsoft FCPA settlement, while not significant in the total penalty of approximately $25 million, provides some important instructions concerning distributor and re-seller risks and mitigation strategies. ...more
7/29/2019
/ Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Meals-Gifts-and Entertainment Rules ,
Microsoft ,
Third-Party Risk ,
Third-Party Service Provider ,
White Collar Crimes
We are living in rapidly changing times. I know it sounds trite but it is amazing when you witness rapid innovation and change. Even in our narrow corner of life involving ethics and compliance, we can see change occurring...more
Companies are hyper-focused on identifying risks during the onboarding process, the use of automated platforms to organize and conduct such screening, and continuous monitoring through an automated platform. ...more
The SEC announced last week a $5 million FCPA settlement with Vantage Drilling International (“Vantage”), a Texas-based offshore drilling company. ...more
11/30/2018
/ Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Marketing ,
Offshore Drilling ,
Oil & Gas ,
Petrobras ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Third-Party Agents ,
White Collar Crimes
Believe it or not, but companies are still struggling with third-party risk management systems. I know this sounds hyper-critical but many companies continue to hang onto paper due diligence systems (sometimes with or...more
The United Technologies FCPA settlement underscored, once again, the harm to a company when lawyers fail to do their job.
As outlined in the SEC settlement, an in-house attorney at Otis Elevator was required to review and...more
In light of the evolving (or evolved) DOJ and SEC approach to FCPA enforcement in the merger and acquisition context, global companies have to emphasize their post-acquisition process. ...more
9/14/2018
/ Audits ,
Code of Conduct ,
Compliance ,
Corporate Communications ,
Corporate Officers ,
Department of Justice (DOJ) ,
Directors ,
Due Diligence ,
Employee Training ,
Ethics ,
FCPA Guidance ,
Integration ,
Securities and Exchange Commission (SEC) ,
Transitional Arrangements
Several years ago (or in the recent past as some would say), pre-acquisition due diligence was a major compliance focus for global companies that grew through aggressive merger and acquisition strategies. ...more
9/13/2018
/ Acquisition Agreements ,
Anti-Corruption ,
Code of Conduct ,
Compliance ,
Due Diligence ,
Ethics ,
FCPA Guidance ,
Internal Controls ,
Popular ,
Risk Assessment ,
Successor Liability ,
White Collar Crimes
The financial industry has embraced the future of blockchain technology. And for good reason. As a regulated industry that is required to provide regulators with large amounts of financial data, blockchain can make that...more
No one needs to be reminded about the importance of anti-corruption compliance. For global companies, anti-corruption risks are amongst the top 3 risks identified by corporate leaders....more
3/20/2018
/ Accounting Controls ,
Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Third-Party Risk ,
White Collar Crimes
If you want to learn and read about managing third-party risks, you will have no trouble finding articles, white papers, webinars and more available to you on the Internet. And for good reason....more
Global companies are getting compliance overload, especially when it comes to third party risks. As we have seen over the years, third-party risk management involves significant risks on anti-corruption, AML, fraud,...more
I always enjoyed the assumption underlying economic models – assuming people are rational actors, then . . . Sometime people do not act rationally, and sometimes people react out of fear or make unrealistic assumptions....more
In Part IV of my series on ISO 37001, I examine requirements relating to risk assessments, design of policies and procedures, and due diligence requirements.
Section 4.5 sets out requirements for conducting risk...more
10/19/2017
/ Anti-Bribery ,
Anti-Corruption ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Conflicts of Interest ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Due Diligence ,
Leadership ,
Performance Incentives ,
Policies and Procedures ,
Risk Assessment ,
Risk Management ,
White Collar Crimes
Compliance officers have to avoid complicating a compliance program. As in many areas in life, there is a value in simplicity.
Take for example a compliance training presentation. If a compliance officer overwhelms his/her...more
It is always interesting to learn how companies handle specific compliance issues. Years ago, I could always tell when a compliance department was lacking in stature and independence in a company. Typically, I observed three...more
Instead of wrestling over the definition of an “effective” ethics and compliance program, let’s take a step back and define what we all agree on is an “ineffective” compliance program. Unfortunately, when you work in the real...more
There has been so much attention paid to due diligence. We have reams and reams of articles highlighting the importance of due diligence. In addition, numerous vendors of due diligence services and technologies fill the...more
9/7/2017
/ Bribery ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Due Diligence ,
Ethics ,
FCPA Guidance ,
Risk Mitigation ,
Third-Party Risk ,
White Collar Crimes
Every company has done it. Chief Compliance Officers have had to hold their respective noses and push forward with due diligence to retain a risky third party.
Rather than reject the third party, a CCO convinces him or...more
Chief compliance officers have devoted significant efforts to conducting pre-acquisition due diligence of a proposed target companies. I do not intend to diminish the importance of pre-acquisition due diligence, but I have...more
Chief compliance officers know the importance of trust, not just as a foundation of a global company’s compliance program, but in the context of knowing what company employees are doing out in the field. CCOs will always say...more
The new FinCEN regulations requiring financial institutions to secure beneficial ownership information is fast approaching – May 2018. The US has been way behind in this regulatory area. As a result, money-laundering activity...more
4/20/2017
/ Anti-Money Laundering ,
Beneficial Owner ,
CEOs ,
Compliance ,
Controlling Person ,
Criminal Investigations ,
Due Diligence ,
EU ,
Financial Institutions ,
FinCEN ,
UK
Here is a profound grasp of the obvious – Lawyers can be difficult people. Some like to condemn the profession in its entirety (and carry with them a collection of lawyer jokes). As an attorney, I beg to differ. Many...more
We all enjoy an oxymoron, e.g., army intelligence, compassionate conservative. Some words go together and some do not. When it comes to compliance and private equity companies, you can predict with usual success that private...more