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    Jan. 19, 2022

The Monaco Memo: A Roll Back on Individuals and Cooperation

Perhaps the biggest news in U.S. anti-corruption enforcement in 2021 came at the end of October when Deputy Attorney General Lisa Monaco announced four major policy changes in a speech and what has become known as the Monaco Memo. However, after these announcements were made, FCPA enforcement continued to be slow as 2021 limped to a close and 2022 opened, providing few examples of how they might be applied in practice. In this first part of our series taking a close look at the Monaco Memo, we attempt to provide greater clarity on the changes to existing policies on individuals and cooperation. Future articles will address how and when monitors will be required as part of negotiated settlements and the new directive to consider the entirety of a company’s conduct in making charging decisions, as well as what can be expected from the Corporate Crime Advisory Group. For more on DAG Monaco’s policy statements, see “The Accountability Message: What DOJ’s Policy Updates on Corporate Crime Mean for Compliance Officers” (Nov. 10, 2021).

Managing Compliance Scope Creep

Does compliance validate parking? That may not be so strange of a question, since compliance can seem to be tasked with everything else, compliance officers said at SCCE’s Compliance and Ethics Institute last fall. Uncontrolled scope creep is not good for the organization or for individual compliance officers, who often do not get more resources to handle the new tasks, Adam Balfour, vice president and general counsel, corporate compliance and Latin America at Bridgestone America, observed. He, along with Ellen Hunt, then of LifePoint Health and now at Spark Compliance Consulting, and Melanie Sponholz of WCP Healthcare at Waud Capital Partners, offered strategies for evaluating new tasks and opportunities, and for graciously turning down the wrong ones. See “Effective Compliance in the Spotlight: Roles, Reality and Real-Life Suggestions” (Nov. 13, 2019).

Uyghur Forced Labor Prevention Act Brings New Requirements for Supply-Chain Compliance

The Uyghur Forced Labor Prevention Act introduces a U.S. import ban on goods mined, produced or manufactured from the Xinjiang Uyghur Autonomous Region of China through alleged forced labor. The Chinese government, for its part, denies any mistreatment of ethnic or religious minorities in the region. The Anti-Corruption Report recently spoke with Michael Littenberg, a partner at Ropes & Gray, about the new law, which was signed December 3, 2021, and the practical implications for companies’ compliance and human rights programs. See “The Latest Tool in the U.S. Enforcement Arsenal Against China Targets Forced Labor” (Jan. 6, 2021)

 

As the Fight Against Corruption in Mexico Founders, Surgical Risk Assessment Is Key

When the Mexican government passed a suite of legislation in 2015, known as the National Anti-Corruption System (NAS), it was heralded as a sea change in how the country would fight corruption, but the NAS has yet to live up to those expectations. This means that, despite the NAS, companies doing business in Mexico must fight corruption on their own. In a guest article, Daniel Maldonado Alcántara, a partner at Sánchez Devanny based in Mexico City, discusses the current corruption landscape in Mexico, provides real-life examples of the types of corruption companies might encounter when doing business there and offers suggestions on how companies can take a smart, surgical approach to assessing their risk levels in the country. See “Regional Risk Spotlight: Luis Ortiz of OCA Law Firm Discusses New Legislation and Anti-Corruption Challenges in Mexico” (Jun. 29, 2016).

Quick Look at 2021 Anti-Corruption Enforcement Developments

2021 was a surprisingly busy year in legislation that impacts anti-corruption enforcement, mainly stemming from the massive and sweeping National Defense Authorization Act (NDAA) which went into effect on January 1, 2021, and included significant new tools for combatting money laundering and kleptocracy. Additionally, the new administration has focused on anti-corruption efforts as a matter of national security, with a particular focus on combatting corruption in Central America. Then, at the end of the year, the DOJ announced several key policy changes that could have a significant impact on corporate enforcement. Here we have gathered a non-exhaustive guide to some of these key developments for your quick reference. See “Quick Look at Recent DOJ Policy Changes” (Feb. 20, 2019); “Quick Look at 2019 Policy Changes” (Jan. 22, 2020); and “Quick Look at 2020 Policy Changes” (Jan. 6, 2021).

Audrey Harris Joins Affiliated Monitors as Managing Director

A former co-chair of Mayer Brown’s global anti-corruption and FCPA practice, Harris has extensive expertise in advising, counseling and defending clients in high-stakes investigations. For insight from Harris, see “The Accountability Message: What DOJ’s Policy Updates on Corporate Crime Mean for Compliance Officers” (Nov. 10, 2021).

Daanish Hamid Joins Rimôn in D.C.

Most recently a partner at DLA Piper, Hamid advises clients on compliance and investigations involving the FCPA, fraud, anti-money laundering laws and economic sanctions.

Philip Urofsky Retires

Philip Urofsky, the former head of Shearman’s anti-corruption and sanctions compliance practice, has retired, he confirmed to the Anti-Corruption Report. While in active practice, Urofsky was a prolific writer and holds the honor of contributing the first guest article from a law firm partner to the Anti-Corruption Report. Over the years he provided his insights on many issues, particularly DOJ policy changes and initiatives such as the FCPA Resource Guide, the Yates Memo, the Corporate Enforcement Policy and, most recently, updates to the FCPA Resource Guide. We at the Anti-Corruption Report thank him for his contributions and wish him well in his future endeavors.

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Quick Take on FARA

https://acuris.wistia.com/medias/wmb5vyeq2f

Global Editor-in-Chief Rebecca Hughes Parker discusses the Foreign Agents Registration Act (FARA) in this short video. For our three-part guide to FARA and the new risk environment, see here.

ACR Editor Discusses Using Artificial Intelligence to Support Anti-Corruption Compliance

Senior Editor Megan Zwiebel recently appeared on a podcast with Perkins Coie White Collar & Investigations partners Gina LaMonica and Caryn Trombino, who discussed the use of AI in compliance programs, including trends in AI-based compliance, steps companies can take to utilize AI in their compliance programs, and how regulators view the use of data and AI in compliance programs. Listen to the podcast here.