I am definitely an optimist. Frankly, there is no alternative. Pessimists, by definition, ensure that the result they fear will occur. Another way of saying the same thing – karma is destiny....more
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
Lawyers love contracts. Most business people see the value of a contract and will comply with a requirement that a deal will require a contract in order to move forward. ...more
Chief financial officers are powerful players in the corporate governance landscape. CFOs play a critical role in the management and oversight of the company’s internal accounting controls. Sarbanes-Oxley lifted the...more
10/4/2018
/ CFOs ,
Chief Compliance Officers ,
Compliance ,
Corporate Governance ,
Corruption ,
Financial Reporting ,
Internal Audit Functions ,
Internal Controls ,
Risk Management ,
Sarbanes-Oxley ,
White Collar Crimes
Traditionally, businesses were able to prepare for changes in laws and regulations in advance by monitoring legislative and regulatory actions in Washington, D.C. and relevant state capitols. ...more
In a number of enforcement contexts, I am always struck by a common theme – crooks are able to obtain access to corporate money for improper purposes. You never hear about a crook who uses his own money to pay bribes or...more
Global companies that grow through a deliberate merger and acquisition strategy continue to face significant anti-corruption risks. The list of FCPA enforcement actions includes numerous examples of companies that settled...more
Corporations experience numerous tests of character. Perhaps one of the most important is how the company responds when facing potential misconduct. ...more
A compliance program is a continuously evolving process. The lifeblood of a compliance program is its ability to refresh itself, to incorporate new information and data, and adjust to meet new challenges....more
Congratulations on your new position as the chief compliance officer. You successfully interviewed with the company, met the senior executive team and the audit committee chair, and negotiated a nice compensation package. ...more
Sometimes it takes a large enforcement action to underscore basic and important anti-corruption compliance principles. The Société Générale enforcement action demonstrated two important principles – the dangers of a weak...more
6/13/2018
/ Bribery ,
Compliance ,
Corruption ,
Enforcement Actions ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Libor ,
Libya ,
Risk Management ,
Third-Party Risk ,
White Collar Crimes
There are an infinite number of ways that corporations can end up violating the law resulting in a government enforcement action. There is no way to define the nature and extent of all of these possibilities....more
We need to start giving compliance a better foundation of basic knowledge, strategies and practical approaches. The compliance profession can adopt common solutions to problems for different companies....more
The compliance profession cannot rest on its achievements and become complacent. There are two significant events that are on the horizon and inevitably will occur....more
The fundamental principle of SEC’s market regulation is the power of sunshine, transparency and disclosure. In other words, the SEC seeks to ensure that companies disclose important information to the public so that...more
Corporate commitment to speak up cultures is suffering. The Ethics and Compliance Initiative’s recent Global National Business Ethics Survey contained a critical finding – corporate instances of retaliation against employee...more
5/18/2018
/ Bribery ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Ethics ,
Internal Reporting ,
Ombudsman ,
Retaliation ,
Risk Management ,
Whistleblowers ,
White Collar Crimes
Joint ventures pose a unique constellation of anti-corruption risks. Like third-party risks, companies that enter into joint ventures face significant anti-corruption risks, especially in those situations where a state-owned...more
Third-party risk dominates the anti-corruption compliance landscape. And for good reason – companies do not exercise significant control over their third parties, at least in comparison to company employees. ...more
This week I am posting a five-part series on FCPA compliance issues. While there have been many advances in the anti-corruption ethics and compliance field, there is still more work to do to advance effective strategies for...more
The chief compliances officer is the guardian of a company’s most important intangible asset – its culture. Everyone at a company is responsible for a company’s culture; the board of directors, CEO, senior executives play an...more
With all the recent hoopla and commentary on the Michael Cohen criminal investigation and the execution of search warrants against Cohen, it is important to focus on what is true, what is exaggerated and what is outright...more
4/16/2018
/ Attorney-Client Privilege ,
Corruption ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Evidence ,
FBI ,
Legal Representatives ,
Michael Cohen ,
Privileged Communication ,
Risk Management ,
Search Warrant ,
Trump Administration ,
White Collar Crimes
These are inspiring times for the compliance profession. Looking back on the last ten years, it is amazing to observe the growth and influence of the compliance profession. Many of the original advocates for the compliance...more
A compliance program is an interdependent function that gains exponentially from coordination and cooperation with key functions. CCOs have to be politicians and they have to develop effective interpersonal skills. Without...more
Compliance is a dynamic subject and a profession that “never sits still.” Compliance professionals are always developing new ideas, strategies and approaches to solve problems, and increase efficiency and effectiveness. It...more
When you read and learn about cryptocurrencies (e.g. Bitcoin, Ripple, Ethereum), there are some commentators, politicians and others who characterize cryptocurrencies as a “Ponzi” scheme....more
4/5/2018
/ Banking Sector ,
Bitcoin ,
Blockchain ,
Compliance ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Fraudulent Transfers ,
Initial Coin Offering (ICOs) ,
Investment Fraud ,
Ponzi Scheme ,
Risk Management ,
Token Sales ,
Virtual Currency