News & Analysis as of

Looking Back on Johnny Winter and GSK’s 2001 China Bribery Scandal

Interestingly, there was an article in the Financial Times (FT) by Demetri Sevastopulo and Andrew Ward, entitled “GSK admits to 2001 Chinese bribery scandal”, which reported that the UK pharmaceutical company GlaxoSmithKline...more

China’s State Secret Laws: Avoiding Liability in Cross Border Litigation and Investigations

When complying with discovery obligations in cross border litigation or responding to document production requests from overseas regulators, multi-nationals operating in China have to comply with China’s state secret laws...more

One person’s gift, another person’s bribe: The challenge of giving gifts in China, Part 1

It was the week before Chinese New Year. The financial year had ended weeks earlier and unpaid invoices had made a dent in the annual performance of the small family business. For months, the foreign husband, a co-owner of...more

Warning all Foreign Companies in China: Don’t be the next GlaxoSmithKline

The fact that GlaxoSmithKline (GSK) has been on China’s radar for bribery is nothing new – the Chinese authorities instituted an investigation against the company in July 2013. What is new is that GSK’s former Vice President...more

Gehrig’s Streak Ends And Compliance Week 2014 Is Near

Today we celebrate greatness in two areas. The first is in baseball as on this day in 1939, “New York Yankees first baseman Lou Gehrig benches himself for poor play ending his streak of consecutive games played at 2,130....more

China Business Registration Reform

On February 7, 2014, the State Council issued Notice on Reform Plans of Registration Policies of Registered Capital, GuoFa [2014] No. 7 (the “Notice”) providing guidelines on business registration reforms of companies in...more

China Compliance Update: Commercial Bribery Risks Remain Very Real in China

The enactment of new legislation, as well as new and continuing investigations, demonstrates that Chinese regulators have not slowed down their efforts to ferret out corruption in the pharmaceutical sector and related...more

The CFIUS Review Process And Foreign Investments

Washington is a town that is filled with secrets – some interesting and others not so interesting. I grew up and have practiced law in Washington, DC. all of my career. ...more

U.S. Administrative Law Judge Suspends Chinese Affiliates of “Big Four” Accounting Firms

In a surprising turn in the long-running and widely reported dispute between the Securities and Exchange Commission (“SEC”) and the Chinese affiliates of the “Big Four” accounting firms, on January 22, 2014, a U.S....more

China Solicits Comments on Good Supply Practices for Medical Devices

The China Food and Drug Administration (the “CFDA”) recently published a draft regulation, Good Supply Practices for Medical Devices (the “Draft GSP”), for public comment through January 20, 2014. The first-ever regulation...more

A Peek Around the Curtain: A False Claims Act Settlement for Avoiding Customs Charges

On November 14, 2013, the U.S. Department of Justice announced a False Claims Act settlement with Basco Manufacturing Company, a maker of shower enclosures, for $1.1 million related to misstatements on U.S. Customs and Border...more

The SEC: The Future Path of Enforcement (Part II)

PRC based issuers, and the reliability of the financial information for these companies, continued to be a key issue for the Commission as well as the PCAOB in 2013. An action brought by the Commission against Subaye, Inc....more

What Hath GSK Wrought? More Compliance Lessons From China

In an article, entitled “GSK China probe flags up wider worries”, in the Wednesday edition of the Financial Times (FT) reporters Andrew Jack and Patti Waldmeir discussed the ongoing bribery and corruption scandal involving...more

Letter From China-Interview With Amy Sommers

Ed. Note-this article is one of a continuing series of interviews of thought leaders in FCPA, Bribery Act and anti-corruption/anti-bribery. In this blog post, I interview Amy Sommers, partner in the Shanghai office of K&L...more

Joan Fontaine And The Evolution Of Compensation Issues In A Compliance Program

Compliance programs evolve just as the thinking on best practices has changed over the past few years. One of the areas that has not received as much attention in compliance programs is the amount of compensation paid to...more

US China Trade War–Developments Trade, Customs, Patents, US/China Antitrust And Securities

There have been some major developments in the trade, Customs fraud, patents, US/Chinese antitrust, and securities areas. I have just returned from a trip of more than 2 weeks in China. While in China, we discussed US...more

China to Relax the Corporate Registered Capital System and Reform the Annual Inspection Process

The government is moving in a direction to make the corporate formation and supervision process more user-friendly. Two key changes are expected to happen in the near future. The first is the abolishment of the registered...more

Chinese Labor Law in Reform: New Restrictions on Dispatched Worker Model

Multinational companies’ Chinese subsidiaries, known as foreign invested entities or “FIEs,” have two basic options when hiring employees. They can either hire them directly (“Employment Model”), or they can “lease” them from...more

Of Princelings And Princess-lings – Does Their Employment Have Corrupt Intent?

There was an excellent article this weekend in the Financial Times (FT), entitled “Finance: Plugged Into the Party”, where reporters Henry Sender and Tom Mitchell explored the hiring of sons and daughters of Chinese...more

The Miami Dolphins-A Code Red For Compliance

Tom Cruise: Did you order a Code Red? Jack Nicolson: You’re G__D__ right I ordered a Code Red. The above lines were spoken in the movie version of “A Few Good Men”. If there was ever one scene which demonstrated...more

Does Motive Matter In Anti-Bribery And Anti-Corruption Enforcement?

Do the intentions behind enforcement of domestic or international anti-corruption laws matter? Or is ‘the law the law’ and it really does not matter what a government’s motives are in enforcing laws that it has on the books....more

Where Else? JP Morgan Chase Investigation Into Hiring Practices Expands

One of the most dreaded questions in any Foreign Corrupt Practices Act (FCPA) investigation is: Where Else? By this I mean that if you have a systemic failure of internal controls in one geographic area it may well be that...more

The Financial Report - Volume 2, No. 19. October 2013 (Global)

Discussion and Analysis - Most of us have seen those top-rated TV commercials for a wireless provider featuring a conservatively dressed man sitting at a little table with several children and asking them, “Is it...more

The Global Anti-Corruption Perspective - October 2013

CHINA’S NEW WAVE OF REGULATORY ENFORCEMENT: WHAT MULTINATIONALS NEED TO KNOW - Since Xi Jiping became China’s leader this year, the PRC has seen the launch of an unprecedented, sweeping government campaign to tackle...more

China's new wave of regulatory enforcement: what multinationals need to know

Since Xi Jiping became China’s leader this year, the PRC has seen the launch of an unprecedented, sweeping government campaign to tackle corruption. The wave of enforcement action against corrupt officials that...more

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