In the FCPA world, we tend to get myopic. We see complex issues and business operations through the prism of anti-corruption risks. Businesses and Chief Compliance Officers, however, have a very different perspective....more
Everyone likes to talk about the importance of due diligence. A whole new due diligence industry has grown, starting with initial anti-money laundering requirements and stretching into corruption and sanctions issues....more
Companies implementing due diligence programs face a number of challenges. It is hard enough to identify all of a company’s third-party intermediaries – agents, distributors, customs and logistics representatives, nominees,...more
The purpose of a due diligence system is not to identify and prevent hiring of a third-party who will commit bribery. To the contrary, no one can predict with accuracy who will commit bribery, unless they truly have...more
Due diligence of third parties can drive you crazy. You know you are in trouble when you start babbling to yourself and others about red flags, more red flags, and even more red flags....more
Compliance officers face lots of challenges when conducting third-party due diligence. One issue that frequently arises is determining who exactly owns a potential agent or distributor. ...more
An effective due diligence screening program should include instances when a company decides not to engage an agent or distributor. It is hard to persuade the business side of this fact but success does not necessarily flow...more
The field of due diligence has quickly filled up. If you look at the industry and company practices ten years ago, you will quickly realize that the world has changed. (Like the R.E.M. song: It’s the end of the world … and...more
FCPA risks are significant when companies acquire other companies. The Justice Department and the SEC have imposed "successor" liability on companies for past bribery violations committed by an acquired company. Pre-closing...more
Almost every FCPA enforcement action involves misconduct by third party agents and distributors. The Justice Department and the SEC have emphasized the importance of companies conducing appropriate due diligence. In the...more
As companies wrestle with designing and implementing due diligence screening and monitoring programs, several organizations have been pushing the value of certifications....more
Almost every FCPA enforcement action involves violations committed by third-party agents, consultants and distributors. Many companies have instituted due diligence procedures to screen third-parties, consultants and...more
In this era of aggressive FCPA enforcement, companies are designing and implementing robust due diligence systems to screen and monitor third party representatives. These policies and procedures are critical to an effective...more
Companies recognize the need to develop robust due diligence procedures to review, monitor and audit third-party intermediaries, prospective acquisition and joint venture partners, and vendors/suppliers. A due diligence...more
The Justice Department and the financial regulatory agencies have sent a strong message of enforcement, suggesting that financial institutions are not adequately implementing AML compliance controls....more
FCPA practitioners can suffer from myopia – a narrow focus on FCPA risks. The FCPA does not apply to company actors who take bribes in exchange for awarding contracts to companies. That situation is commonly referred to as...more
The Justice Department and the SEC continue the drumbeat encouraging companies to voluntarily disclose potential FCPA violations. Of course, the reason for their position is obvious – they want to know about every violation,...more
The United States spends over $2.81 trillion dollars on health care annually and generates billions of claims from millions of health care service and product providers. The vast majority of these providers of services and...more
One of the many challenges in the compliance profession centers on coordination and integration. There are plenty of compliance experts who can describe a perfect world – how to design a specific program and procedures to...more
Almost every FCPA enforcement action involves violations committed by third-party agents, consultants and distributors. Many companies have instituted due diligence procedures to screen third-parties, consultants and...more
Compliance is becoming more and more specialized. Whatever is the soup du jour, or current high-risk operation, becomes the focus of compliance education, marketing, and surveys. ...more
FinCEN’s new Enforcement Division, which was created in June of 2013, is already making its mark in the financial enforcement world.
Federal regulators are focusing on compliance with Bank Secrecy Act (“BSA”) and...more
10/11/2013
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Compliance ,
Due Diligence ,
FinCEN ,
OCC ,
Penalties ,
Ponzi Scheme ,
Reporting Requirements ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs)
Just when you thought the risks for businesses could not get any worse, the government recently found yet another hook for a criminal investigation. ...more
I am sure Justice Department and Securities and Exchange Commission lawyers sometimes sit back and marvel at the world they have helped create – Companies are devoting more resources to the due diligence process for screening...more
Let’s start with a few basic assumptions – we all know that third parties are often the most significant risk for corruption. ...more