Oct. 16, 2019

In New Guidance, SFO Indicates It Wants Companies to Waive Privilege

One of the greatest areas of divergence between U.S. anti-corruption enforcement and that in the U.K. and other European jurisdictions is how enforcers view privilege. U.S. authorities have put significant effort into explaining how companies can cooperate in investigations without waiving privilege. The SFO’s new Corporate Co-operation Guidance (Guidance) on how to earn cooperation credit takes a different tack, suggesting that the SFO expects companies to waive privilege in order to fully cooperate. The Anti-Corruption Report spoke to several London-based attorneys to tease out what the language in the new Guidance means for companies considering cooperating with the SFO. See “SFO Guidance Moves Toward Transparency but Offers No Guarantees” (Sep. 18, 2019).

How Apache Uses Case Studies to Keep Its Training Pain-Free

When a company operates in a high-risk industry or locations, training all employees on anti-corruption risk can be prudent. However, reaching that many people and keeping them engaged on what some consider a dry topic can be tricky. Joshua Nix, the director of compliance at Apache Corporation, recently spoke with the Anti-Corruption Report about how his company made changes to its training program to make it more risk-based and “as interesting and pain-free as possible.” See “Creating Engaging and Globally Relevant Ethics & Compliance Materials” (Oct. 18, 2017).

Quad/Graphics Self-Reports FCPA and Sanctions Violations, Earning a DOJ Declination and Small SEC Fine

Quad/Graphics, Inc. has learned the hard way that business growth needs corresponding compliance growth. The marketing-solutions and printing-services company has settled SEC allegations that it bribed officials in China and Peru and concealed sales transactions in Cuba after gaining an international footprint through the acquisition of a Canadian printing company. We take a look at the unique allegations and how Quad’s prompt self-disclosure to U.S. authorities earned it a DOJ declination and a relatively small civil penalty. See “How Anti-Corruption Compliance Can Springboard Sanctions Compliance” (Feb. 15, 2017).

Barclays Resolves Hiring Practices Problems With the SEC for $6.3M

By settling with the SEC for $6.3 million, Barclays PLC recently closed a chapter on its less-than-ideal hiring practices in the Asia Pacific region where friends and relatives of clients and government officials were given internships and jobs to win business. The SEC alleged that, even though Barclays had anti-corruption policies prohibiting employment offers from being made in exchange for business, about 117 friends and family of business connections were onboarded with the expectation that their presence at Barclays would boost its own business and open doors to getting even more. For the regulated community, this case, and the string of similar cases before it, that means that it might be time for corporate compliance and human resources functions to work together a bit better. See our two-part series on managing corruption risk when hiring and training foreign officials and their relatives overseas: “Risks and Challenges” (Jul. 27, 2016) and “Practical Compliance Guidance” (Aug. 10, 2016).

DOJ’s Guidance on Compliance Up Close: How Federal Prosecutors Assess Compliance Programs Now

A close look at the updated guidance the DOJ has provided for prosecutors evaluating compliance programs can help organizations ensure that their programs pass muster. During the recent Society of Corporate Compliance and Ethics 18th Annual Compliance & Ethics Institute, Acting Assistant Chief of the DOJ Fraud Section Andrew Gentin shared insight about how and why the Evaluation of Corporate Compliance Programs was updated in 2019 and how the Department is using it. The panel was moderated by Billy Jacobson, a partner at Orrick, and also featured Steven Gyeszly, chief compliance counsel at Marathon Oil. We summarize the key takeaways from the panel. See “A Side-by-Side Look at How the Revised ECCP Compares to the Original” (May 15, 2019).

Understanding the Interplay Between Mexican and U.S. Anti-Corruption Laws

Operating in Mexico while also subject to U.S. laws requires a nuanced understanding of the differences between how the two jurisdictions approach anti-corruption enforcement. During a Strafford presentation, Matteson Ellis, a member of Miller & Chevalier, and Carlos Chávez, a partner at Galicia Abogados, explained how Mexico is updating its approach to anti-corruption enforcement, highlighted the differences between U.S. and Mexican law and reviewed both countries’ compliance expectations. For more from Ellis and Chávez on this subject, see “Staying Up-to-Date on the Slow Implementation of Mexico’s Anti-Corruption Legislation” (Jan. 10, 2018).

Former Special Counsel Robert Mueller Returns to WilmerHale

Former FBI Director and Special Counsel Robert Mueller will focus his practice on high-profile investigations and crisis management. For more from WilmerHale, see our three-part series on managing M&A anti-corruption risk: “Pre-Deal Prep” (Oct. 3, 2018); “Pre-Closing Risk Assessments and Due Diligence” (Oct. 17, 2018); and “Deal Terms and Integration” (Oct. 31, 2018).

Former Federal Prosecutor Rejoins Katten in New York

Vikas Khanna’s practice focuses on issues relating to white collar defense, internal investigations, fraud and anti-money laundering. For more from Katten, see “Attorney-Consultant Privilege? Key Considerations for Using the Kovel Doctrine (Part One of Two)” (Dec. 21, 2016).

Arnall Golden Gregory Welcomes Former AUSA to Washington, D.C., White Collar Practice

Partner John Rowley has extensive experience with FCPA investigations. He joins from Schertler & Onorato, and previously was an Assistant U.S. Attorney and Branch Chief for the Eastern District of Virginia (Alexandria Division).