May 25, 2022

Dan Kahn Reflects on the DOJ’s Compliance Evolution

Over the course of the past decade or so, the view of corporate compliance programs has changed significantly. Dan Kahn, a partner at Davis Polk, witnessed these changes firsthand and even played a role in how they were developed and institutionalized. The Anti-Corruption Report recently spoke with Kahn about the DOJ’s view of compliance when he first joined the Department, how DOJ leadership incentivized compliance and what this ongoing evolution means for companies faced with anti-corruption allegations. See “Acting Fraud Section Chief Dan Kahn Shares Insights on How the DOJ Thinks About Compliance” (Mar. 31, 2021).

Tesco Is Making Big Strides With Little Learning Leaps

Evidence is mounting at Tesco, one of the U.K.’s largest retailers, that its “Little Learning Leaps” microlearning approach to employee compliance training increases uptake and retention, allows for better customization to job duties and current events, and employees prefer it. Motivated in 2010 by the new G. Scott Grocery Supply Code of Practice law and the U.K. Bribery Act, the team at Tesco sought ways to both enhance the content of their core compliance training and reduce some of the manual complexity. Its solution was to develop a microlearning program that replaced single lengthy training modules with multiple short bursts spread out over time and allowed learners to test out of future content by demonstrating their existing knowledge. David Ward, Tesco ethics and compliance director, and Sarah Twaites, Tesco business integrity manager, provided details about Tesco’s “Little Learning Leaps” program and valuable insights for practitioners considering a move to microlearning at SCCE’s 10th Annual European Compliance & Ethics Institute. See “High- and Low-Tech Innovations to Overcome Compliance Training’s Drawbacks in the Financial Industry” (Jan. 10, 2018).

Lessons From Airbus on Third-Party Corruption Risk Mitigation

Most recent anti-corruption cases have involved third parties, and Airbus was no different, Nat Edmonds, a partner at Paul Hastings and former DOJ FCPA prosecutor, said at the SCCE’s 10th Annual European Compliance & Ethics Institute. Edmonds, one of Airbus' U.S. counsel in the January 2020 record-breaking settlement. and Frédéric Tardieu, senior legal counsel at Airbus Helicopters, discussed the evolving global anti-corruption enforcement climate, Airbus’ approach to third-party relationships, and the key components of third-party corruption risk management, including risk-based due diligence, contracts and audit rights, training, monitoring, and governance. This article distills their insights. See our three-part series on the Airbus case: “A Milestone in International Anti‑Corruption Cooperation” (Feb. 19, 2020); “Compliance Lessons” (Mar. 4, 2020); and “The Value of Cooperation” (Mar. 18, 2020).

Advice From a CPO on Balancing Insider Threat Management and Privacy

Breaches due to employees’ actions or inactions – whether their intentions were malicious or benign – remain a significant threat for companies. Given this landscape and the increasing cost of data security failures, it is not surprising that most companies have implemented employee monitoring initiatives in some form. Our sister publication the Cybersecurity Law Report spoke to Leidos chief privacy officer Heidi Salow about the insider threats companies are facing today, how they can be managed and how to balance employee privacy and risk mitigation. See “Effective and Compliant Employee Monitoring (Part One of Two)” (May 30, 2018); Part Two (Jun. 13, 2018).

FINRA Clarifies Stance on CCO Supervisory Liability

The prospect of being held personally accountable for a company’s failures is high on the list of concerns for many CCOs, and while the SEC is debating the issue, FINRA recently weighed in on the subject. “The CCO’s role, in and of itself, is advisory, not supervisory,” FINRA advised in recently released notice, concluding that the responsibility for meeting a member firm’s supervisory obligations “rests with a firm’s business management, not its compliance officials.” The notice outlines the circumstances in which a CCO may be held liable for violating FINRA Rule 3110, which sets forth a firm’s supervisory obligations, including the factors mitigating for and against formal charges under that rule. This article discusses the key takeaways from the notice, with commentary from W. Hardy Callcott and Lara C. Thyagarajan, partners at Sidley. See “NYC Bar Report on CCO Liability Calls for More Regulatory Guidance, Transparency and Cooperation” (Apr. 15, 2020).

Seward & Kissel Welcomes Co-Head of Government Enforcement and Internal Investigations Group

Jaime Nawaday, a former AUSA in the SDNY’s Criminal and Civil Divisions, advises public and private companies, boards of directors, and senior executives in federal criminal and civil cases involving financial fraud, securities fraud, FCPA, the False Claims Act, asset forfeiture, and Bank Secrecy Act and AML issues.  For insight from Seward & Kissel, see “FCPA Compliance Strategies for Hedge Funds and Private Equity Firms” (Jun. 11, 2014).