FCPA Compliance Report

Show Notes for Episode 35, week ending January 13, the Friday the 13th edition  Hernandez and Beech FCPA guilty pleas. Hernandez Criminal Information, Beech Criminal Information. VW guilty plea in emissions-testing scandal. Link to article in New York Times. VW executive Oliver Schmidt arrested in US. See article on FCPA Compliance and Ethics Blog. Zimmer Bio-Met in follow-up FCPA enforcement acti...

You should work to create a culture of data in your compliance program. This comes from an understanding that data is a product, which you can consume internally in the compliance function. Your data is a corporate asset so why not use it. That is a key point that you should recognize. Yet data is not simply big or even scary. It is information that you can use in helping you make better decisions...

You should employ a 6-step process to revising your Code of Conduct. Get buy-in from decision makers at the highest level of the company Your company’s highest level must give the mandate for a revision to a Code of Conduct. It should be the Chief Executive Officer (CEO), General Counsel (GC) or Chief Compliance Officer (CCO), or better yet all three to mandate this effort. Establish a core revisi...

In this episode, I visit with Sherman & Sterling partner Phillip Urofsky who leads a team which produced the the 2017 FCPA Digest, one of the top annual compendium of annual FCPA reviews of the prior year's enforcement actions and related issues. We  discuss the following: Any trends or highlights that observed in the Digest; How cases of Qualcomm, JPMorgan, and VimpelCom reflect new expansions of...

In this episode Matt Kelly and myself take a deep dive into the compliance weeds by looking at a paper written by then SEC General Counsel James Doty (later head of the PCAOB) in 2007 where he proposes a regulatory scheme for FCPA compliance. Matt and I discuss the pros and cons and how the SEC Chairman designate Jay Clayton may view the issues. We then take a brief look at the arrest of VW execut...

A company that does not perform adequate due diligence prior to a merger or acquisition may face both legal and business risks. Perhaps, most commonly, inadequate due diligence can allow a course of bribery to continue - with all the attendant harms to a business’s profitability and reputation, as well as potential civil and criminal liability. In contrast, companies that conduct effective FCPA du...

No area has become more challenging in compliance than continuous improvement. The FCPA Guidance specifies that “a good compliance program should constantly evolve. A company’s business changes over time, as do the environments in which it operates, the nature of its custom­ers, the laws that govern its actions, and the standards of its industry. In addition, compliance programs that do not just e...

In this episode I visit with Leona Lewis, the founder and host of the podcast Masters of Disaster. She reflects on her experiences over the past 18 months of podcasting; what she learned, what surprised her and she highlights some of her more memorable podcasts and guests.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The FCPA Guidance has about as clear, concise and short a statement about hotlines than any other Tenet of an Effective Compliance Program. It states, “An effective compliance program should include a mechanism for an organization’s employees and others to report suspected or actual misconduct or violations of the company’s policies on a confidential basis and without fear of retaliation.” But mor...

There are five steps in the life cycle of third party management. Business Justification and Business Sponsor; Questionnaire to Third Party; Due Diligence on Third Party; Compliance Terms and Conditions, including payment terms; and Management and Oversight of Third Parties After Contract Signing.   Step 1 - Business Justification  The first step breaks down into two parts:  Business Sponsor Busin...

The FCPA Guidance states, that “In addition to evaluating the design and implementa­tion of a compliance program throughout an organization, enforcement of that program is fundamental to its effec­tiveness. A compliance program should apply from the board room to the supply room—no one should be beyond its reach. DOJ and SEC will thus consider whether, when enforcing a compliance program, a compan...

In this episode Jay Rosen and I take a dive into the General Cable FCPA enforcement action, consider the 'Invisible Hand' of regulatory enforcement, corporate response and innovation. We explain how these three factors combine in an 'Invisible Hand' to form a continuous improvement loop of compliance program innovation. It leads developments from cutting edge to best practices to becoming a routin...

Welcome to Day 5 of 30 Days to a Better Compliance Program. Today, I focus on training, ongoing communications and the use of social media in a best practices compliance program.  Training The communication of your anti-corruption compliance program is something that must be done on a regular basis to ensure its effectiveness. The FCPA Guidance explains, “Compliance policies cannot work unless eff...

Welcome to Day 4 of 30 Days to a Better Compliance Program. Today we tackle risk assessments. One cannot really say enough about risk assessments in the context of anti-corruption programs. The FCPA Guidance stated it succinctly when it said, “Assessment of risk is fundamental to developing a strong compliance program, and is another factor DOJ and SEC evaluate when assessing a company’s complianc...

In this episode Matt Kelly and I take a deep dive into 6 compliance issues you should keep an eye on in 2017. They include the Wal-Mart FCPA resolution, the future of the FCPA Pilot Program, the SEC Whistleblower program, the Next PCAOB Chairman, the future of new overtime rules and finally the Barclay's trial for mortgage fraud in the context of the 2008 financial crisis. We also take a look at t...

Welcome to Day 3 of 30 Days to a Better Compliance Program. Today I want to consider the Chief Compliance Officer (CCO) in your organization, through three prisms: access, resources and opportunities.  Access What access does your CCO have to the top decision makers in your organization? While it really does not matter whether the CCO reports to the CEO, Board or GC; it does matter that the CCO ha...

Show Notes for Episode 4, Year End Review, Part I  We turn to the 2016 year in review, in this Part I of a two-part series.    Jonathan Armstrong leads a discussion on a very interesting UK Bribery Act enforcement action out of Scotland involving the Braid Group Ltd. It has some very significant implications for Bribery Act enforcement actions going forward. He also discusses the continued evoluti...

Welcome to Day 2 of 30 Days to a Better Compliance Program. Today I consider written protocols, which are the foundation upon which an effective compliance program is built. Written protocols consist of a Code of Conduct, policies and procedures and internal controls.”  Code of Conduct  The substance of your Code of Conduct should be tailored to your company’s culture, and to its industry and corp...

In this episode Mike Volkov and I take a look at the most significant enforcement actions from 2016, the most significant compliance related issues from 2016 and the issues and cases that may be the most significant going forward into 2017.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to Day 1 of 30 days to a better compliance program. Together with a podcast each day, I will be giving you tip to help you create a best practices compliance program in 2017. At the end of January, you will not only have a good summary of the basics of a best practices compliance program but information that you can incorporate into your compliance regime. Today I consider the various Tone...

In this episode Mike Volkov and myself take a deep dive into the Odebrecht/Braskem and Teva FCPA enforcement actions. We review the underlying facts, the conduct of the parties, the results obtained and what it all means for the compliance practitioner going forward. Learn more about your ad choices. Visit megaphone.fm/adchoices

Show Notes for Episode 33, week ending December 23, 2016-Holiday edition Odebrecht/Braskem FCPA enforcement action. Braskem Information, Braskem Plea Agreement, Odebrecht Information, Odebrecht Plea Agreement, SEC Civil Complaint. Goldman Sachs further ensnared in 1MDB scandal. Link to article in Wall Street Journal. Teva FCPA enforcement action. Teva Information. Teva Plea Agreement. Teva DPA Pre...

In this episode SCCE CEO Roy Snell and I continue are exploration of issues of import to the compliance profession. We consider the penalty assessed by the NCAA on Notre Dame for it use of two ineligible football players and whether the punishment fit the crime; the forced transparency leading to hyper transparency for today's corporate scandals and the sanctions assessed against former Wells Farg...

In this episode I visit with Juliet Lui as we discuss how to best handle small and medium investigations in an efficient and cost effective manner. We discuss how such matters often slip through the cracks as they are not perceived as high profile yet can cause significant problems if allowed to fester. We discuss methodology, costs and deliverables. Lui details two case studies to emphasize how i...

In this episode SCCE CEO Roy Snell and I take a deep dive into corporate governance and compliance, the public skewering of former Wells Fargo CEO John Stumpf and ask if a CEO should be involved in the hiring of a CCO.  Learn more about your ad choices. Visit megaphone.fm/adchoices