Corruption Crime & Compliance

On July 22, 2019, Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct in Hungary. Even with the tailored settlement agreement, DOJ and the SEC reiterated robust expectations surrounding third-party distributor networks, particu...

Global companies face significant challenges in managing their supply chain risks. Most companies incorporate a holistic supply chain risk process as part of their enterprise risk management systems.  Legal risks, while not the most significant risk, is one aspect of these risks, especially in the aggressive enforcement of anti-bribery, sanctions, anti-money laundering and speciality laws surround...

Compliance has come a long way over the last 10 years. But it still has a ways to go until it is firmly embedded into the corporate governance landscape. In this episode, Michael Volkov examines current issues surrounding compliance programs, including the state of the compliance profession, technology and new frameworks; government enforcement trends and predictions; and congressional mandates fo...

In yet another major compliance development, the Justice Department announced the adoption of a new policy to credit effective compliance programs in resolving criminal cartel prosecutions against corporations. Since the 1990s, the Antitrust Division’s policy regarding corporate compliance programs was generally fixed given the ability of companies to seek benefits under the leniency program. As p...

In celebration of the 100th episode of Corruption Crime and Compliance, Tom Fox, the Compliance Evangelist and Leader, is our guest.  Tom and Mike discuss Tom Fox's current Compliance Podcast Network, his entertaining Star Trek summer compliance podcast series, his perspective on the recent government compliance guidance, his insights into the compliance profession, technology deveelopments and th...

Companies face significant challenges in managing their third party risk programs.  As companies improve their systems and automate their programs, they continue to face difficult situations in deciding when to conduct enhanced due diligence reviews of a potential third-party.  DOJ and the SEC have provided extensive guidance in the third-party risk area, but companies have to develop and implemen...

So far in 2019, OFAC is sending a strong message about sanctions enforcement and compliance responsibilities. OFAC is aggressively seeking out new targets for enforcement, emphasizing compliance with Cuba and Iran sanctions programs, and focusing on US companies that acquire foreign subsidiaries to ensure post-closing compliance with OFAC sanctions regulations.   In this episode Michael Volkov dis...

As the blockchain industry continues to grow, we'll begin to see traditional industries shifting to the blockchain to leverage the technology. Unstoppable domains is a company working to place web domains on the blockchain. Instead of traditional extensions like .com, .net, or .io,, Unstoppable Domains will utilize .zil addresses as smart contracts on the Zilliqa public blockchain. This will first...

After a lengthy investigation (yes, 8 years), Walmart agreed to settle its FCPA violations and paid approximately $282 million , divided as follows: (1) $138 combined criminal penalty under the terms of a three-year non-prosecution agreement; and (2) $144 million disgorgement pursuant to an agreement with the SEC. Walmart’s Brazil subsidiary entered a guilty plea to one count of violating books an...

The California Consumer Privacy Act of 2018 (the “Act”) was signed into law by California Governor Jerry Brown on June 28, 2018, after being hastily introduced in the California Legislature just a few days prior. The Act is effective January 1, 2020. In this episode, Michael Volkov interviews Teresa Troester-Falk, Chief Global Privacy Strategist at Nymity, concerning the Act and the compliance imp...

OFAC’s new framework guidance for sanctions compliance programs stretched into new territory with its risk assessment requirement. This new approach reflects OFAC’s recent aggressive enforcement programs.   The scope of a risk assessment has to mirror the breadth of enforcement risks and has to include review of:   (i) customers, supply chain, intermediaries, and counter-parties; (ii) the products...

Data privacy has become a hot topic lately. Companies have built massive fortunes by selling users’ personal information to the highest bidder. Meanwhile, they often fail to secure that same data while hackers run amok, putting the users at risk.  What’s a person to do?  Enter ImagineBC .  In the ImagineBC community, you’re in control of your personal information – and free to monetize it. Built o...

<!-- /* Font Definitions */ @font-face {font-family:"MS Mincho"; panose-1:2 2 6 9 4 2 5 8 3 4; mso-font-alt:"ＭＳ 明朝"; mso-font-charset:128; mso-generic-font-family:modern; mso-font-pitch:fixed; mso-font-signature:-536870145 1791491579 134217746 0 131231 0;} @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:...

Companies are starting to understand that an effective internal investigation program is a critical function to promote a speak up culture. A company that has a dysfunctional internal investigation program will find it difficult to prevent and detect misconduct. By contrast, a company that maintains an effective internal investigation program by adhering to its standard operating procedures, treat...

On the heels of the Justice Department’s announcement of its new compliance guidance, on May 2, 2019, the Treasury Department’s Office of Foreign Asset Control (“OFAC”) issued its promised guidance for sanctions compliance programs (“SCP”). Together with its aggressive enforcement of economic sanctions, OFAC has set a new standard for SCPs, and has “strongly encourage[d]” companies and individuals...

In a major development in ethics and compliance program expectations, the Justice Department has issued a new and important revised guidance on the Evaluation of Corporate Compliance Programs . The new Evaluation Guidance supersedes the prior document issued in February 2017, which contained a lengthy list of questions on key topic areas.   Join Michael Volkov as he discusses the new guidance and...

The blockchain revolution is still merely in its infancy.  Liquidity Digital seeks to continue pushing the industry forward, by digitizing securities - stocks, derivatives, real estate, and more - and placing them on the blockchain.  Liquidity Digital is building an ecosystem for the creation of new assets, introducing ways to allocate capital to traditionally underserved areas of financial market...

With the growth of the compliance profession and the importance of compliance functions as part of corporate governance, there has been a significant increase in the quantity and quality of compliance studies and surveys. It takes time to keep up with all the compliance information being developed and released. In this episode, Michael Volkov reviews three recent compliance studies.    

Global banks are the poster children of sanctions violations and the importance of trade compliance. At the top of the heap is Standard Chartered Bank. In a long-awaited resolution of a multi-year investigation, the Justice Department, the Treasury Department’s Office of Foreign Asset Control (OFAC), the New York District Attorney’s (DANY), the Federal Reserve, the New York State Department of Fin...

Fresenius Medical, the largest supplier of dialysis equipment and services agreed to pay $231 million to the Justice Department and the SEC to resolve FCPA violations in 17 countries in Africa, the Middle East and Europe. Fresenius entered a non-prosecution agreement with the Justice Department, in which it agreed to pay an $87 million payment and a two-year corporate monitor. Fresenius agreed to...

In another blockbuster FCPA prosecution, the Justice Department and the SEC announced an $850 million settlement with Mobile Telesystems (“MTS”), Russia’s largest mobile carrier. At the same time, the Justice Department announced criminal indictments against an MTS executive and the notorious corrupt Uzbek official, Gulnara Karimova, on criminal charges.   In this episode, Michael Volkov discusses...

Corporations have to invest in their Speak Up Culture.  A critical component is a company's hotline and incident reporting system.  An effective hotline reporting channel(s) depends on responsive and timely investigations of potential wrongdoing. In this Episode, Michael Volkov discusses best practices for hotline and reporting systems.

<!-- /* Font Definitions */ @font-face {font-family:"MS Mincho"; panose-1:2 2 6 9 4 2 5 8 3 4; mso-font-alt:"ＭＳ 明朝"; mso-font-charset:128; mso-generic-font-family:modern; mso-font-pitch:fixed; mso-font-signature:-536870145 1791491579 134217746 0 131231 0;} @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:...

OFAC is off to a fast start in 2019.  It has implemented enhanced Venezuela sanctions, designated PDVSA as a Specially Designated National, and brought four separate enforcement actions with important lessons learned for sanctions compliance. In this Episode, Michael Volkov reviews OFAC's actions and outlines important sanctions compliance lessons learned.

The corporate governance landscape is littered with companies that have suffered major legal and reputational damage as a result of failure to promote and protect a safe workplace environment.  Companies have failed to hold offenders accountable for sexual misconduct and violation of applicable legal and code requirements. The #MeToo era has resulted in increased reporting and monitoring of corpor...