If there is one issue that is repeated over and over (and over), it is third-party risks. Over the last ten years, we have witnessed an explosion in anti-corruption enforcement around the world. And with this enforcement...more
The Treasury Department’s Office of Foreign Asset Control (“OFAC”) has been a steady performer in this challenging pandemic environment. Since the pandemic, OFAC has maintained a strong profile, while managing a difficult...more
Ethics and compliance professionals believe in their mission – if they did not, they would not be in the field. E&C professionals believe in the power of positive thinking, ethical conduct, and in the overall ability of an...more
This was a strange year. Not just because of the continuing pandemic and economic disruption. The Biden Administration took over after an unusual and delayed transition. The apparatus of government was slow to transition....more
NatWest’s fraudulent “spoofing” schemes occurred in the primary and secondary markets for U.S. Department of Treasury Securities, including derivatives that tracked the prices of U.S. Treasury Securities for 5-year, 10-year...more
1/5/2022
/ Banks ,
Corruption ,
Criminal Prosecution ,
Derivatives ,
Enforcement Actions ,
Financial Institutions ,
Fraud ,
Futures ,
Royal Bank of Scotland ,
Securities Transactions ,
Spoofing ,
U.S. Treasury ,
UK ,
White Collar Crimes
The Department of Justice secured a guilty plea from NatWest Markets, the newly-named Royal Bank of Scotland, for trade manipulation, referred to as “spoofing,” in U.S. Treasury markets. The NatWest resolution reflected new...more
1/5/2022
/ Compliance ,
Compliance Monitoring ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Futures ,
Guilty Pleas ,
Market Manipulation ,
Royal Bank of Scotland ,
Securities Fraud ,
Spoofing ,
White Collar Crimes ,
Wire Fraud
In May 2019, OFAC released its Framework for a Sanctions Compliance Program. OFAC announced that it intended to increase the prosecution of individuals for sanctions violations. OFAC has brought two cases against...more
When the Department of Justice warns businesses and individuals, everyone needs to listen and respond accordingly. Starting in 2016, the Justice Department’s Antitrust Division warned businesses that the Antitrust Division...more
12/20/2021
/ Aerospace ,
Antitrust Division ,
Antitrust Violations ,
Corruption ,
Criminal Conspiracy ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Indictments ,
No-Hire/No-Solicitation Agreements ,
No-Poaching ,
Outsourcing ,
Popular ,
Price-Fixing ,
White Collar Crimes
The new United States Strategy on Countering Corruption includes several important statements of interest to legal and compliance professionals. ...more
12/16/2021
/ Anti-Corruption ,
Bribery ,
BSA/AML ,
Compliance ,
Corruption ,
Digital Assets ,
Enforcement Guidance ,
FinCEN ,
Foreign Corrupt Practices Act (FCPA) ,
Money Laundering ,
Real Estate Transactions ,
Suspicious Activity Reports (SARs) ,
White Collar Crimes
The Biden Administration’s new anti-corruption initiative is a significant commitment to the battle against global corruption. According to the Biden Administration, “[c]orruption is a cancer with the body of societies – a...more
The Biden Administration announced a new, comprehensive anti-corruption program, the United States Strategy on Countering Corruption. The new anti-corruption policy is the follow on to the earlier announcement elevating the...more
While we wait for the coming FCPA enforcement storm, DOJ and the SEC have quietly continued to rack up and resolve several enforcement actions....more
12/8/2021
/ Adoption ,
Bribery ,
Compliance ,
Corruption ,
Criminal Conspiracy ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Money Laundering ,
Odebrecht ,
Securities and Exchange Commission (SEC) ,
Statutory Violations ,
White Collar Crimes
FCPA practitioners, In-house counsel and compliance officers, and yes, even the FCPA Paparazzi, have been patient enough. As the saying goes, talk is cheap. It is action that counts....more
The crushing aftermath of the tragic 737 MAX scandal is disturbing at the least. Innocent lives were lost because of Boeing’s culture misfires, poor leadership at the management and board level, and an arrogant disregard for...more
11/30/2021
/ Aircraft ,
Airplane Accidents ,
Aviation Industry ,
Boeing ,
Caremark claim ,
Corporate Culture ,
Corporate Governance ,
Corruption ,
Internal Controls ,
Safety Standards ,
Settlement Agreements ,
Shareholder Litigation ,
White Collar Crimes
In its decision, the Chancery Court methodically analyzed the weaknesses in Boeing’s board processes and its fundamental failure to meet basic Caremark standards in tackling airplane safety issues, particularly after the Lion...more
When considered in light of the Chancery Court’s decision, DOJ’s essential findings in its Boeing investigation are problematic at best. The Chancery Court’s decision outlines how Boeing’s culture of safety deteriorated into...more
11/24/2021
/ Airplane Accidents ,
Aviation Industry ,
Boeing ,
Breach of Duty ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Derivative Suit ,
Enforcement Actions ,
Fiduciary Duty ,
Safety Standards ,
White Collar Crimes
Mashreqbank, based in Dubai, agreed to pay $100 million to the New York Department of Financial Services, the Federal Reserve, and the Office of Foreign Asset Control for violation of the now-repealed Sudan Sanctions...more
11/23/2021
/ Cease and Desist Orders ,
Compliance ,
Consent Order ,
Corruption ,
Criminal Prosecution ,
Economic Sanctions ,
Enforcement Actions ,
Federal Reserve ,
Financial Services Industry ,
Financial Transactions ,
NYDFS ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Sudan ,
White Collar Crimes
The Justice Department continues to attack and dismantle global ransomware extortion organizations. Business surveys often confirm that executives are hyper-focused on the risk of ransomware attacks against businesses....more
11/18/2021
/ Criminal Conspiracy ,
Criminal Prosecution ,
Cyber Attacks ,
Cyber Crimes ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Extradition ,
Hackers ,
Indictments ,
Personally Identifiable Information ,
Popular ,
Ransomware ,
White Collar Crimes
Chief compliance officers play a key role in managing a company’s ethical culture. Most companies fail to pay proper attention to its culture because it is difficult to define, measure and monitor. Such an approach is...more
Bribery occurs in the United States — what a surprise! Transparency International’s Corruption Perception Index ranks the United States as 25 out of 179, a relatively low ranking for corruption. Some have argued (including...more
11/11/2021
/ Bribery ,
Corruption ,
Criminal Conspiracy ,
Criminal Investigations ,
Criminal Prosecution ,
Defense Contracts ,
Defense Sector ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Federal Contractors ,
Money Laundering ,
U.S. Navy ,
White Collar Crimes
On October 28, 2021, U.S. Deputy Attorney General Lisa O. Monaco—a veteran of government service in previous Administrations and a champion of corporate accountability—announced several significant changes to current...more
11/10/2021
/ Biden Administration ,
Chief Compliance Officers ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corporate Monitoring ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Priorities ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
Policy Statement ,
Prosecutorial Discretion ,
White Collar Crimes
Little problems can become big ones. A failure to respond to a risk – whether it is a conflict of interest violation or a weakness in internal controls – can become even more significant depending on the size and scope of...more
11/10/2021
/ Conflicts of Interest ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Fraud ,
Internal Controls ,
Kickbacks ,
Money Laundering ,
White Collar Crimes ,
Wire Fraud
We have heard it over and over, again and again – third-parties pose significant risks of bribery for all global businesses. Almost every FCPA enforcement action includes some form of third-party misconduct. The current...more
Lisa Monaco, the Deputy Attorney General (No. 2 in DOJ), delivered an important speech at the National Institute of White Collar Summit. Lisa was part of the Enron Task Force years ago and has a strong professional...more
11/2/2021
/ Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Priorities ,
National Security ,
Non-Prosecution Agreements ,
White Collar Crimes
The Credit Suisse case highlights the significant impact that global corruption and fraud can have on developing economies. Mozambique’s economy suffered serious harm from the scheme, which started to unravel when the IMF...more
10/26/2021
/ Bonds ,
Bribery ,
Corruption ,
Credit Suisse ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Fraud ,
IMF ,
Mozambique ,
Offerings ,
Securities Fraud ,
White Collar Crimes