Like any other profession, the compliance profession is not immune to bad apples. Lawyers know the law but have been criminally prosecuted for breaking the law. The same goes for compliance professionals....more
Compliance professionals are riding high. They are the darlings of the corporate governance world, commanding higher salaries, C-Suite positions with access to senior leadership and the board, and an empowered position within...more
A CCO never feels like he or she has caught up on compliance program requirements. As soon as one new best practice is identified, a CCO blinks for a moment and then there is a new best practice for them to consider....more
While reading the independent directors’ report on the Wells Fargo sales incentives scandal, you will be overwhelmed by the feeling of frustration. At the same time, what is described in the report is the extent to which...more
People crave simple solutions to complex problems. No, this is not a political statement, nor do I intend to wade into politics. This statement applies across the board – to business, compliance, government, and other...more
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 know that a compliance program without business buy-in is, by definition, an ineffective compliance program. The level of business support ranges from “mouthing” support to full-fledged embrace and ownership of...more
In the wake of ever-constant business scandals (e.g. ZTE, VW, Takata, Odebrecht), chief compliance officers have to refresh their approach and strategy. Everyone agrees, or at least I think they should agree, that a company’s...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
Humans have an innate desire to complicate things. When it comes to ideas, professionals are no different – compliance consultants, lawyers, financial advisers and others enjoy solving complicated problems. Such an approach,...more
In an unusual move, the Justice Department issued an important document in the dead of night – Evaluation of Corporate Compliance Programs.
We have no explanation from the Justice Department for the issuance of this...more
Returning to the FCPA Pilot Project requirements for timely and appropriate remediation, the Justice Department added three new elements, one of which reinforces the CCO “independence” requirement. The two other elements for...more
The Justice Department has a lot to be proud about when it comes to its FCPA enforcement program. In one area in particular – promoting effective ethics and compliance strategies – DOJ’s FCPA prosecutors have played a...more
The Justice Department has raised the stakes on anti-corruption compliance. In other words, DOJ prosecutors expect companies to have more sophisticated and mature compliance programs. If a company walks into the Justice...more
2/15/2017
/ Anti-Corruption ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ethics ,
Federal Pilot Programs ,
Foreign Corrupt Practices Act (FCPA) ,
Remediation ,
Voluntary Disclosure ,
White Collar Crimes
Some business people are “bad,” meaning they engage in misconduct and either feel no remorse or rationalize why their conduct is acceptable. In a company that embraces bad acting, breaking rules or cutting corners, bad actors...more
The phrase tone at the top is becoming trite. Compliance professionals use it over and over, and few people explain how to apply the concept. Speakers and webinar presenters always gloss over tone at the top, emphasizing...more
My good friend and colleague Dan Chapman, now the CCO at VimpelCom, is a compliance rock star. I have known Dan for years, beginning when he took over at Parker Drilling and implemented a world-class remediation program to...more
When unraveling a major corporate scandal, especially multi-year schemes involving senior executives, the blame game or lessons learned approach can easily turn into a fruitless exercise.
The VA and Takata scandals are...more
1/23/2017
/ Airbags ,
Automobile Recall ,
Automotive Industry ,
C-Suite Executives ,
Chief Compliance Officers ,
Compliance ,
Cooperative Compliance Regime ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Design Defects ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
National Emissions Standards ,
Obstruction of Justice ,
Product Recalls ,
Risk Assessment ,
Safety Standards ,
Self-Reporting ,
Takata ,
Volkswagen ,
White Collar Crimes ,
Wire Fraud ,
Yates Memorandum
Corporate misconduct occurs in a variety of forms. Starting with the basic truism – companies act through people, and when companies engage in misconduct it requires the coordination and collaboration of multiple actors. The...more
1/19/2017
/ Automotive Industry ,
Carbon Emissions ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Criminal Investigations ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
National Emissions Standards ,
Volkswagen ,
White Collar Crimes
All the FCPA prognosticators, predictors and paparazzi have missed the boat on understanding what happened this year – 2016, to make this a record year in FCPA enforcement. As a former public servant for over 20 years, I am...more
1/16/2017
/ Bribery ,
Chief Compliance Officers ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Risk Management ,
Risk Mitigation ,
White Collar Crimes
With the new incoming administration, everyone is busy predicting major changes in DOJ FCPA enforcement. I do not share this view. Frankly, FCPA enforcement is more bipartisan than other controversial enforcement programs...more
1/9/2017
/ Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Ethics ,
FCPA Guidance ,
Federal Pilot Programs ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Government Officials ,
White Collar Crimes
A company that does not back up its words with deeds is doomed to suffer compliance and cultural breakdowns. When a company commits to building a culture of trust and integrity, the company has to keep its word. This is not a...more
As the headlines continue to point to major misconduct and scandals involving senior corporate executives, compliance officers need to refocus their efforts and address a critical need....more
My good friend and colleague, Tom Fox, has written an interesting post on the SEC’s recent United Airlines settlement for $2.4 million for domestic bribery. As Tom has noted, the interesting aspect of the SEC’s enforcement...more
12/12/2016
/ Airlines ,
Airports ,
Bribery ,
Code of Conduct ,
Compliance ,
Corruption ,
Enforcement Actions ,
Ethics ,
Internal Controls ,
Personal Benefit ,
Port Authority ,
Public Officials ,
Quid Pro Quo ,
Securities and Exchange Commission (SEC) ,
Transportation Industry ,
United Airlines ,
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