To design and implement an effective ethics and compliance program, companies have to conduct a risk assessment and tailor its policies and programs to its risk profile. DOJ’s Compliance Evaluation reinforces this framework...more
In an unusual FCPA enforcement action, the Justice Department and the SEC resolved FCPA violations against Sociedad Quimica y Minera, a Chilean chemical and mining company, for a total of $30.5 million, for paying...more
1/31/2017
/ Board of Directors ,
Bribery ,
C-Suite Executives ,
Charitable Donations ,
Chile ,
Compliance ,
Corporate Counsel ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Government Officials ,
Mining ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
The first FCPA enforcement action for 2017 landed with very little fanfare. The SEC reached a settlement with Mondelez International for $13 million. The facts surround the hiring of an agent in India and the failure of...more
1/17/2017
/ Books & Records ,
Bribery ,
Cadbury ,
Compliance ,
Corruption ,
Due Diligence ,
Enforcement Actions ,
Food Manufacturers ,
Foreign Corrupt Practices Act (FCPA) ,
India ,
Internal Controls ,
Kraft ,
Popular ,
Prosecutorial Discretion ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Third-Party Agents ,
UK ,
White Collar Crimes
No matter how you cut it – this was a big year in FCPA enforcement. Not just because of the large enforcement actions but the scope and depth of enforcement, remediation and compliance program demands....more
1/5/2017
/ Anti-Corruption ,
Compliance ,
Corporate Counsel ,
Corruption ,
Department of Justice (DOJ) ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Third-Party Risk ,
White Collar Crimes
Third party risk management is easily one of the most challenging risks for compliance officers. With all the attention and hype surrounding third party risk, companies have marshaled attention and resources to mitigate the...more
12/1/2016
/ Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Fraudulent Procurement ,
Procurement Guidelines ,
Risk Management ,
Risk Mitigation ,
Suppliers ,
Third-Party Relationships ,
Third-Party Risk ,
Vendors
Last week, the Justice Department and the SEC finally brought to a close the Sons and Daughters or Princelings investigation. Pending investigations against four other companies still remain to be resolved....more
11/23/2016
/ Banking Sector ,
Banks ,
Cease and Desist Orders ,
China ,
Compliance ,
Corporate Counsel ,
Data Privacy ,
Department of Justice (DOJ) ,
Disgorgement ,
Due Diligence ,
Enforcement Actions ,
Federal Reserve ,
Financial Institutions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Government Officials ,
Hiring & Firing ,
Internal Controls ,
JPMorgan Chase ,
Non-Prosecution Agreements ,
Securities and Exchange Commission (SEC) ,
Sons And Daughters
It is important to remember that companies are required to implement an ethics and compliance program. Ethics should not ever be a segregated issue carved off from a compliance program. They walk hand-in-hand, and reinforce...more
I hate to be the harbinger of bad news; that is against my nature; I am naturally an optimistic person. As I always say, there are solutions to every problem....more
If you review the last ten years of FCPA enforcement, the unmistakable pattern is rising expectations with regard to corporate compliance programs, particularly with regard to third party due diligence and risk management....more
10/18/2016
/ Bribery ,
Corruption ,
Department of Justice (DOJ) ,
Due Diligence ,
Foreign Corrupt Practices Act (FCPA) ,
Och-Ziff ,
Popular ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Third-Party ,
White Collar Crimes
The Och-Ziff enforcement action is replete with examples of failures in due diligence and transaction monitoring compliance. Och-Ziff’s bribery schemes were elaborate and intricate and involved complex transactions,...more
10/11/2016
/ Bribery ,
Corporate Counsel ,
Corruption ,
Democratic Republic of Congo ,
Department of Justice (DOJ) ,
Due Diligence ,
Foreign Official ,
Investment ,
Joint Venture ,
Libya ,
Mining ,
Och-Ziff ,
Popular ,
Sovereign Wealth Funds
The Justice Department and the SEC have been busy over the last 2 weeks in the FCPA arena. For those who have raised doubts about DOJ and the SEC’s continuing commitment to FCPA enforcement, you should forever hold your...more
10/3/2016
/ Anheuser-Busch ,
Beer ,
Bribery ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
India ,
Internal Audit Functions ,
Popular ,
Securities and Exchange Commission (SEC) ,
Settlement ,
Whistleblower Protection Policies ,
Whistleblowers
Ronald Reagan’s mantra with respect to US-Soviet relations in the 1980s applies with equal force to today’s world of due diligence. (I know it shows my age that I can recall this statement). Not all due diligence cases...more
In a rare enforcement action, the SEC settled an FCPA enforcement action for $766,000 for a charitable donation of $154,000 to improperly influence a high-ranking Chiese Communist party official to prevent a provincial agency...more
9/23/2016
/ Bribery ,
Charitable Donations ,
Charitable Organizations ,
China ,
Corruption ,
Due Diligence ,
Enforcement Actions ,
Fines ,
Foreign Corrupt Practices Act (FCPA) ,
Investigations ,
Nu Skin ,
Personal Care Products ,
Popular ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
Risk Management is a constant theme for top management as it might make the difference between a successful move and failure. It implies identification, assessment and prioritization of risks....more
I find myself quibbling with compliance terms – hyper focus on small issues is not a positive trait. I often urge clients and colleagues to focus on issue of more significance and leave the smaller ones for another day....more
9/15/2016
/ Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Foreign Corrupt Practices Act (FCPA) ,
Hitachi ,
Risk Management ,
Third-Party ,
Third-Party Risk ,
VimpelCom ,
White Collar Crimes
The SEC, last week, announced its $5 million settlement with Key Energy. As always, FCPA settlements contain important examples of enforcement priorities and policies. Key Energy’s recent settlement is an example of the...more
8/25/2016
/ Books & Records ,
Bribery ,
Compliance ,
Corruption ,
Disgorgement ,
Due Diligence ,
Energy Sector ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Mexico ,
Oil & Gas ,
PEMEX ,
Popular ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
White Collar Crimes
The term “due diligence” is an overused expression in the compliance world. It has become a term to mean heightened concern or investigation. No one can really define what it means except to say it has different meanings in...more
We all face a number of risks every day. Yet, we do not respond to each and every risk. We engage in risk-ranking our responses. Some are more risk than others and some are more catastrophic than others. So, we engage in risk...more
Compliance is a profession that requires multi-tasking – another profound grasp of the obvious. But in the multi-tasking world, some principles and strategies are more important than others.
My colleague and...more
6/28/2016
/ Bribery ,
Compliance ,
Corruption ,
Documentation ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Government Investigations ,
Hitachi ,
Popular ,
Securities and Exchange Commission (SEC) ,
South Africa ,
White Collar Crimes
In response to aggressive FCPA enforcement and recurring problems with third parties, companies have spent substantial resources and time to design and implement comprehensive ethics and compliance programs. A key part of...more
Global companies have been embracing socially responsible spending projects to build stronger relationships with local communities. The idea makes a lot of sense and real projects can result in real benefits....more
In case you are not following all the latest scandals – Unaoil and the Panama Papers being two significant ones – we are seeing an evolution and possibly a revolution in due diligence expectations....more
Hui Chen, the Department of Justice’s Compliance Counsel, recently stated that 2015 was the year of due diligence and third-party compliance. A recent survey conducted by Kroll and Ethisphere provided a status check on how...more
Most discussions of why third party due diligence is so important begin with an explanation of indirect liability and the “deliberate ignorance” standard of knowledge the FCPA imposes. With so much focus on anti-bribery it is...more
DOJ’s compliance counsel, Hui Chen, pronounced this year as the compliance year of third party due diligence. This has been a good year for compliance but I would not characterize this year as limited to third party due...more