There have been a relatively limited number of U.S. Foreign Corrupt Practices Act (FCPA) enforcement actions in recent years. Nonetheless, two recent announcements (one resolution, one declination) by U.S. regulators...more
In recent months, the U.S. Department of Justice (DOJ) and Securities & Exchange Commission (SEC) have announced several notable penalties for violations of the U.S. Foreign Corrupt Practices Act (FCPA). The FCPA prohibits...more
1/14/2021
/ Anti-Bribery ,
Bribery ,
Compliance ,
Corruption ,
Criminal Investigations ,
Criminal Penalties ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Deutsche Bank ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Penalties ,
Securities and Exchange Commission (SEC) ,
Securities Violations
• Actions underscore long arm of U.S. sanctions jurisdiction
• Voluntary disclosures and cooperation can lead to significant penalty reductions
• Facilitation of a violation is treated the same as a direct...more
3/5/2020
/ Civil Liability ,
Civil Monetary Penalty ,
Cooperation ,
Economic Sanctions ,
Enforcement Actions ,
General Licenses ,
Global Terrorism Sanctions Regulations (GTSR) ,
Jurisdiction ,
Myanmar ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Shipping ,
Telecommunications ,
Voluntary Disclosure
• A payment to a government official can take many forms.
• The SEC charges bank for books and records violation even absent a bribery charge.
• Industry-wide enforcement is a continuing tactic for U.S....more
10/24/2019
/ Accounting Controls ,
Banking Sector ,
Banks ,
Books & Records ,
Bribery ,
Enforcement Actions ,
Financial Services Industry ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Government Officials ,
Hiring & Firing ,
Internal Controls ,
Internships ,
Quid Pro Quo ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements
• The World Bank aggressively pursues sanctions against entities and individuals for misconduct in connection with Bank-funded projects
• Sanctions can lead to cross-debarment by other multilateral development banks and...more
• Company committed multiple apparent violations of U.S. sanctions on North Korea
• Penalty imposed in part because of company’s “non-existent” sanctions compliance program
• Settlement underscores need to address supply...more
2/8/2019
/ China ,
Corporate Counsel ,
Cosmetics ,
Due Diligence ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
Goods or Services ,
Imports ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Settlement Agreements ,
Supply Chain
• Russian corporations de-listed through significant specific steps agreed to with OFAC
• Exporter settles for $7.7 million and agrees to comprehensive compliance measures
• OFAC outlines sanctions compliance best...more
1/4/2019
/ Audits ,
Best Practices ,
Certifications ,
Delisting ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Fifty Percent Rule ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
Russia ,
SDN List ,
Settlement Agreements
• Previously permissible activities must be wound down in 90 or 180 days
• Non-U.S. companies at particular risk of enforcement action
• Only limited guidance issued so far, unclear what authority U.S. companies...more
•Many medical products can be exported to Iran – so long as a license is obtained
•Imposition of successor liability underscores importance of pre-transaction due diligence
•OFAC enforcement, as in the past, continues...more
1/10/2018
/ Aggravating Factors ,
Distributors ,
Due Diligence ,
Enforcement Actions ,
Exports ,
Iran Sanctions ,
Licenses ,
Manufacturers ,
Medical Supplies ,
Mergers ,
Mitigating Factors ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Sanction Violations ,
Statute of Limitations ,
Subsidiaries ,
Successor Liability ,
Voluntary Disclosure
Post at a glance:
• FinCEN imposes $8 million penalty against California’s biggest and oldest card club
• Club failed to implement and maintain an effective anti-money laundering (AML) program and failed to detect,...more
11/22/2017
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Banking Sector ,
Banks ,
Casinos ,
Enforcement Actions ,
Financial Institutions ,
FinCEN ,
Fines ,
Penalties ,
Reporting Requirements ,
Suspicious Activity Reports (SARs) ,
Willful Violations
It is rare for companies to go to court to fight penalties imposed by the Office of Foreign Assets Control (OFAC) for violations of U.S. sanctions. It is even more rare for a court to make any sort of finding against the...more
6/24/2017
/ Administrative Procedure Act ,
Appeals ,
Arbitrary and Capricious ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Penalties ,
Remand ,
Sanction Violations ,
Subpoenas
On March 7, 2017, Chinese telecommunications company, Zhongxing Telecommunications Equipment Corp. (ZTE), signed on to three separate settlement agreements with the United States, agreeing to pay $892 million for violations...more
- Canadian bank pays penalties for U.S. dollar transactions involving Cuba and Iran
- Bank receives Finding of Violation – but no penalty – for violations by European subsidiaries
- Disclosure and cooperation...more
1/30/2017
/ Banks ,
Canada ,
Cuba ,
Cuban Assets Control Regulations (CACR) ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Financial Transactions ,
Foreign Subsidiaries ,
Imports ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement
Lest U.S. companies think that Cuba and Iran are entirely open for business, a U.S. government settlement announced earlier this month with National Oilwell Varco, Inc. (NOV), a U.S. oilfield services company, will serve as a...more
11/29/2016
/ Civil Monetary Penalty ,
Cuba ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Iran ,
Iran Sanctions ,
Non-Prosecution Agreements ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement ,
UK