Chief compliance officers have a lot of issues to balance on their plate. Experienced CCOs know that it is not possible to complete every objective, balance every changing risk, and continuously improve their respective...more
There are lots of sources for compliance guidance — prosecutors, regulators, compliance organizations, and many others have set forth important and valuable guidance for the design and implementation of an effective ethics...more
OK, I admit it. I have been — and continue to be– hyper-focused on the proper role and responsibilities for Chief Compliance Officers. Not that I see any cause for alarm, but it is easy to lose focus in the sea of so-called...more
Let me paint a picture for you. It is not pretty. Unfortunately, this picture occurs all too often in the corporate governance landscape. ...more
Ericsson is having a tough time. First, in 2019, Ericsson settled FCPA charges with the Justice Department and the SEC for a total of $1 billion (with a B). Second, Ericsson had an independent compliance monitor appointed...more
6/15/2022
/ Bribery ,
Corruption ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Employee Misconduct ,
Enforcement Actions ,
Ericsson ,
Failure To Disclose ,
Internal Controls ,
Iraq ,
ISIS ,
Securities and Exchange Commission (SEC) ,
Terrorist Financing Regulations ,
Terrorist Organizations
NAVEX recently released its annual Hotline and Incident Management Report. Given NAVEX’s strong position in the hotline service market, NAVEX has access to a large volume of reporting data. As a result, its annual report is...more
When you get on the mailing lists for legal and compliance products, seminars, conferences and general palabra, I usually become transfixed. Millions of marketing and promotion dollars are being spent in an attempt to...more
You have to wonder how OFAC has the time to investigate and settle cases given its significant work implementing the Russia Sanctions Program. But OFAC continues to demonstrate its commitment to aggressive enforcement. ...more
5/3/2022
/ Compliance ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Failure to Comply ,
Freight Forwarding ,
Goods or Services ,
Internal Controls ,
Office of Foreign Assets Control (OFAC) ,
Prohibited Transactions ,
Sanction Violations ,
SDN List ,
Settlement Agreements
The SEC announced its first FCPA enforcement action in 2022. South Korean telecommunications company, KT Corporation, agreed to pay $6.3 million to settle FCPA violations. As part of the settlement, KT Corp. agreed to pay...more
2/22/2022
/ Anti-Bribery ,
Anti-Corruption ,
Books & Records ,
Bribery ,
Corporate Misconduct ,
Corruption ,
Enforcement Actions ,
Failure to Comply ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
South Korea ,
Telecommunications ,
White Collar Crimes
OFAC is off to a quick start in 2022. After announcing its Airbnb enforcement action in the beginning of January, OFAC announced a settlement with Sojitz (Hong Kong) Limited, a Hong Kong, China-based company that engages in...more
1/21/2022
/ Compliance ,
Economic Sanctions ,
Failure to Comply ,
Financial Transactions ,
Foreign Policy ,
Foreign Relations ,
Goods or Services ,
Hong Kong ,
Internal Controls ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Risk-Based Approaches ,
Sanction Violations
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
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
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
Investor demand for companies to provide robust and transparent ESG information is growing quickly. Investors understand that companies have to develop effective strategies to address ESG risks. The impact on shareholder...more
This has been an interesting enforcement year. The Biden Administration promised a renewal of aggressive enforcement. The difficult transition from the last administration and political resistance to confirmation of...more
The SEC’s FCPA enforcement action against WPP presents a number of important lessons learned, ranging from third-party risk management, properly responding to employee complaints and red flags, and failure to integrate...more
9/29/2021
/ Accounting Controls ,
Bribery ,
Compliance ,
Corruption ,
Due Diligence ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Securities and Exchange Commission (SEC) ,
Third-Party Risk ,
White Collar Crimes
After a long hiatus, the SEC announced a settlement with WPP plc, the world’s largest advertising group, for FCPA violations in India, China, Brazil and Peru for $19.2 million. The SEC’s resolution charges WPP with...more
9/27/2021
/ Accounting Fraud ,
Books & Records ,
Bribery ,
Corruption ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Regulatory Violations ,
Securities and Exchange Commission (SEC) ,
White Collar Crimes
When I was a federal prosecutor and investigating corporations for misconduct, I imagined a well-oiled machine with vast resources, capable of overwhelming government prosecutors and law enforcement agents with lawyers,...more
Corporate families can carry the traits of a smaller family – what do I mean by this quip? An absent parent inevitably causes harm to a family. Families depend on connection, support and ultimately intimacy. ...more
We all know the importance of teamwork and collaboration. Whatever the context, sports, business, military, and many other situations, teamwork and cooperation is essential to success. ...more
“The truest measure of an effective compliance program is how it responds to misconduct.”— FCPA Guidance (2d. ed 2020) -
This straight-forward statement (above) of a company’s commitment to its “effective” compliance...more
Corporate boards face a number of risks. In the face of a high-stakes or important internal investigation, corporate boards, a designated committee, or a special committee often are assigned the important role of authorizing...more
Sometimes compliance issues are simple. Most times they are nuanced. This is a simple issue but it carries with it a significant message. So here goes – where is the CCO’s office?...more
Everyone is now on the culture bandwagon. For those of us pushing the issue over the last decade, welcome aboard to everyone. But once you join, the work is only beginning. ...more
The following scenario is disturbing and occurs all too often – a company receives a hotline report of misconduct occurring in its operations in a foreign country, India, for example. ...more