Aug. 7, 2019

The Anti-Corruption Report’s Guide to Risk Assessments: Techniques and Building a Team

Compliance risk assessments are complicated processes with many moving parts. The first article in our series on tackling risk assessments looked at the DOJ’s new guidance in its Evaluation of Corporate Compliance Programs and also discussed the different types of assessment a company could choose to undertake. The remainder of the series will focus on just one of the many types of risk assessments – periodic compliance risk assessments – though many of the considerations and techniques are the same for both broader and narrower assessments. In this article, we examine how companies can choose a team for the undertaking and the techniques that can be used for gathering information. A future article will examine where to look for risks, how to present findings to management and pitfalls to avoid. See our series on conducting effective anti-corruption risk assessments: “An Interview With David Simon, Partner at Foley & Lardner” (Nov. 20, 2013); and “An Interview With Kevin Bennett, Managing Director, Forensic and Valuation Services, at Grant Thornton” (Dec. 4, 2013).

How Nadège Rochel of Hollister Inc. Uses Monopoly, a Deli Counter and Emotional Intelligence to Promote Compliance

For some, compliance is a dry and serious topic, but not for Nadège Rochel, global compliance manager at medical device company Hollister Incorporated. Rochel’s enthusiasm for compliance is palpable and has led her to use a monopoly-like game for her training programs and set herself up at a compliance “deli counter” where employees can take a number to talk about whatever is on their minds. The Anti-Corruption Report recently spoke with Rochel about her creative approach to compliance, the role of emotional intelligence when gaining employees’ trust and how to be taken seriously while making compliance fun. See “Charles River Labs Discusses Building a Compliance Brand” (Jan. 23, 2019).

$25M Microsoft Settlement Highlights Channel Partner Risk and the Value of Tech in Remediation

Microsoft’s recent $25‑million settlement with the SEC and DOJ demonstrates, once again, that partnering with third parties abroad requires careful vetting and well-designed internal controls. While the company was dinged by the SEC for misconduct in four countries, and its Hungarian subsidiary entered into a non-prosecution agreement with the DOJ, its tech-focused remediation efforts helped the company earn cooperation credit despite failing to self-report. We examine how a reliance on channel partners, a lack of oversight on discounts and incentives to close deals quickly landed the tech giant in hot water. See “Channeling the Channel-Partner Risk: Addressing Anti-Corruption Risk with Channel Partners in the Technology Sector” (Jun. 21, 2017).

Lessons in Self-Reporting and Cooperation From the Walmart Settlement

Walmart’s $282-million FCPA settlement with the DOJ and SEC has several notable features such as differing cooperation credit for separate regions and an insufficient self-report. On the other hand, charges that Walmart violated the FCPA’s anti-bribery provisions are noticeably missing. In this article, we glean lessons from those elements of the settlement and discuss the enforcement signals this long-awaited high-profile case sends. See “Walmart Finally Settles for $282M and a Monitor” (Jul. 10, 2019) and “Analyzing Walmart’s Unique Monitorship and Its Compliance Failures and Fixes” (Jul. 24, 2019).

DOJ’s 2019 Enforcement Activities Demonstrate a Continued Commitment to FCPA Enforcement

Enforcement of the FCPA is poised for another record-shattering year in 2019. But even as the penalties collected in foreign bribery cases continue to rise, there appears to have been a notable evolution in the approach that the DOJ is using when pursuing such cases. In a guest article, Sullivan & Cromwell partner Ann-Elizabeth Ostrager discusses what the DOJ’s recent activities say about the Department’s priorities. See “Analyzing the DOJ’s New Evaluation of Corporate Compliance Programs” (May 15, 2019).

Bolsonaro Nepotism Allegations Upend Brazilian Corruption Investigations

Brazilian president Jair Bolsonaro was elected based on campaign promises to eradicate corruption, but allegations that he acted to exonerate his son Flavio Bolsonaro, recently implicated in an alleged corruption scheme, may have cast a cloud over his administration. Also affecting anti-corruption efforts is a petition in the case involving Flavio that has resulted in an expansive ruling temporarily suspending all investigations in Brazil based on financial information obtained by various government entities without prior court authorization or judicial order. In a guest article, partner Eloy Rizzo and associate Victoria Arcos of KLA – Koury Lopes Advogados explore the implications of that ruling. For more from KLA, see “Seven Tips for Conducting Integrity Due Diligence on Third Parties in Brazil” (Mar. 6, 2019).

Former Assistant Chief of FCPA Unit Joins Wilson Sonsini

Over his 12-year career at the DOJ, Tarek Helou led or supervised more than 100 investigations into companies in a wide range of industries giving him comprehensive experience in investigations related to the FCPA. For more from Wilson Sonsini, see “Government and Defense Attorneys Discuss Hot-Button SEC Issues” (Nov. 14, 2018).

Former NYDFS and Morgan Stanley Compliance Officer Joins Pillsbury in New York

Cassandra “Cassie” Lentchner has joined Pillsbury in New York as senior counsel in the firm’s cybersecurity and regulatory compliance practice. Previously, she served as head of compliance for the state’s regulator of financial services companies and managed FCPA and U.K. Bribery Act compliance for Morgan Stanley. For more from Pillsbury, see “Magyar Telekom Individual Defendants Settle Bribery Claims From 2005” (May 10, 2017).