The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Anti-Money Laundering

  • From Vol. 7 No.24 (Nov. 28, 2018)

    How a Flamboyant Intermediary Snarled Goldman Sachs in the 1MDB Scandal

    Sovereign wealth fund 1Malaysia Development Berhad, commonly referred to as 1MDB, was allegedly plundered of billions by Najib Razak, the former prime minister of Malaysia, along with other foreign officials and hangers-on. At the center of the swirling scandal is a friend of former Prime Minister Najib’s family who acted as an intermediary and fixer on several 1MDB-related transactions – Low Taek Jho or “Jho Low” as he was known in the media. Low worked with Tim Leissner, the former Southeast Asia chairman at Goldman Sachs, and Ng Chong Hwa (a.k.a. Roger Ng), a managing director at the bank, on setting up 1MDB as well as on three bond offerings. Newly available court papers offer significantly more information about the allegations against Low, Leissner and Ng than was previously in the public domain, and indicate that other criminal prosecutions may be coming down the pike. We look at the facts of the case and some of the ways Goldman’s compliance program failed to prevent the corruption. See “High- and Low-Tech Innovations to Overcome Compliance Training’s Drawbacks in the Financial Industry” (Jan. 10, 2018).

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  • From Vol. 6 No.14 (Jul. 19, 2017)

    Regional Risk Spotlight:  An Interview with Michael Kim of Kobre & Kim on South Korea’s Anti-Money Laundering Laws

    While anti-corruption compliance is a focus for many companies, anti-money laundering laws are an additional worry for those in the financial services and gaming industries. And while U.S. laws may be the primary concern for U.S.-based companies, other countries have enacted similar regimes to combat money laundering and meet international standards. The Anti-Corruption Report recently spoke with Michael Kim, a former Assistant U.S. Attorney for the SDNY and U.S.-qualified lawyer practicing in Kobre & Kim’s Seoul office, about South Korea’s anti-money laundering laws and how anti-corruption compliance can overlap with AML compliance there. See “Former FinCEN Director James H. Freis, Jr. Discusses the Intersection between Anti-Money Laundering and Anti-Corruption Law (Part One of Two)” (Feb. 6, 2013); Part Two (Feb. 20, 2013).

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  • From Vol. 6 No.8 (Apr. 26, 2017)

    No Good Deed Goes Unpunished: Possible Unintended Consequences of Enforcing Supply-Chain Transparency (Part One of Two)

    In light of recent laws such as the U.K. Modern Slavery Act and the California Transparency in Supply Chains Act, a responsible supply chain that embodies a company’s corporate social responsibility policies has become a key part of the strategy of many companies. But that strategy is being carried out by responsible sourcing teams and corporate-responsibility professionals while anti-money laundering and anti-corruption programs remain in the custody of legal and compliance personnel. In a guest article series, Fernanda Beraldi, international ethics and compliance director and corporate counsel at Cummins, Inc., and Edwin Broecker, a partner at Quarles & Brady, argue that the coming challenge for companies will be how to integrate these historically divergent functions as they balance disclosure demands, the operational need to continuously improve imperfect and challenging conditions in their supply chains and increasing legal risk for full disclosure and performance. In this first article, they discuss in detail the different legal regimes that affect supply-chain transparency. In the second article, they will discuss how, in light of recent litigation, that transparency can have unintended consequences for companies. See “The New Landscape of Corporate Social Responsibility Regulation and Its Overlap With FCPA Compliance” (Nov. 7, 2012).

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  • From Vol. 6 No.3 (Feb. 15, 2017)

    How Anti-Corruption Compliance Can Springboard Sanctions Compliance

    As economic sanctions regimes move from broad embargoes to more focused measures, it is critical for businesses to determine whether a particular person or entity is subject to sanctions. Because there is often considerable overlap between FCPA and sanctions risks, anti-corruption compliance measures can often be leveraged for sanctions compliance. During a program at SCCE’s Annual Compliance and Ethics Institute, Ryan P. Fayhee, a partner at Baker & McKenzie, Catherine L. Razzano, assistant general counsel and director of General Dynamics Corporation (speaking on her own and not the company’s behalf) and Anne-Marie Zell, a manager at TRACE International, Inc., discussed the current U.S. sanctions regime and provided advice on how to leverage FCPA compliance programs to facilitate sanctions compliance. Razzano also discussed how General Dynamics handled the imposition of Russian sanctions in 2014. See “Five Ways a Company Can Leverage Its Anti-Bribery Compliance Program to Facilitate Sanctions Compliance” (Sep. 14, 2016).

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  • From Vol. 5 No.21 (Oct. 26, 2016)

    Lynch’s Visit to Italy Highlights International Cooperation and Enforcement

    On October 20, 2016, U.S. Attorney General Loretta E. Lynch and Italian Minister of Justice Andrea Orlando hosted a meeting about international cooperation in the fight against organized crime and corruption. The meeting focused on the recent achievements and future developments of the collaboration between the U.S. and the Italian governments in the judicial field. In a guest article, Italian lawyers Roberto Cursano and Riccardo Ovidi, counsel and associate at Studio Professionale Associato at Baker & McKenzie discuss the key takeaways from the meeting, arguing that the meeting’s focus on collaboration confirms that companies should take into account the transnational dimension of anti-corruption enforcement when formulating their compliance programs. See “The Italian Organismo di Vigilanza, A Model for an Effective Compliance Committee” (Jun.15, 2016).

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  • From Vol. 5 No.19 (Sep. 28, 2016)

    What Compliance Lessons Can Companies Learn From the SFO’s First Two DPAs?

    In July 2016, the U.K.’s Serious Fraud Office received court approval for its second-ever DPA. Both this DPA and the one before it, involving Standard Bank, are stark demonstrations of the fact that violating the U.K. Bribery Act can have serious and expensive ramifications not only for the offending company but also for others in its corporate group, even if they were unaware of the bribery. They also serve as another reminder of the dangers of using agents to win business. In a guest article, Matthew Getz and Prateek Swaika, partner and associate, respectively, at Boies, Schiller & Flexner, consider some of the lessons to be learned in this context, and what companies operating in the U.K. should do to avoid incurring liability when using agents to enter into contracts. See also “In Second DPA, SFO and U.K. Court Focus on Cooperation, Self-Reporting and Compliance” (Aug. 31, 2016).

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  • From Vol. 5 No.17 (Aug. 31, 2016)

    In Second DPA, SFO and U.K. Court Focus on Cooperation, Self-Reporting and Compliance

    Recently a U.K. court approved the second Serious Fraud Office application for a DPA. The identity of the counterparty remains confidential but is understood to be a small to medium-sized U.K. entity wholly owned by a U.S. corporation. The first DPA which was approved by the same judge in November 2015, was with Standard Bank, a regulated institution that settled for what could be perceived as a more stringent penalty. More recently, financially troubled Sweett Group was prosecuted after failing to cooperate in the SFO’s investigation. In a guest article, Elizabeth Robertson, a partner at Skadden located in London, discusses the key features of the most recent DPA and examines the differences between it, the Standard Bank case and the Sweett Group case offering insights on anti-corruption enforcement in the U.K. See “Lessons From the U.K. Sweett Group Prosecution” (Mar. 23, 2016).

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  • From Vol. 5 No.11 (Jun. 1, 2016)

    Current and Former Agents Discuss the Five Pillars of the FBI’s FCPA Strategy

    In conjunction with the announcement of the FCPA Unit’s Pilot Program in April, the DOJ noted that the FBI has recently established three new squads of special agents who will focus on FCPA and anti-money laundering investigations. These three International Corruption Squads, “should send a powerful message that FCPA violations that might have gone uncovered in the past are now more likely to come to light,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division in a press release. At an invitation-only event hosted by global consulting firm Protiviti and at ACI’s 18th Annual New York Conference on the FCPA, current and former FBI agents explained that the FBI’s strategy for fighting international corruption is built on five pillars and discussed how the strategy will affect FBI FCPA investigations going forward. See “Going Deep on the Fraud Section’s FCPA Pilot Program (Part One of Three)” (Apr. 20, 2016); “How Will the Fraud Section’s Pilot Program Change Voluntary Self-Reporting? (Part Two of Three)” (May 4, 2016); “Earning Cooperation Credit Under the Fraud Section’s FCPA Pilot Program (Part Three of Three)” (May 18, 2016).

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  • From Vol. 5 No.10 (May 18, 2016)

    Resolutions in the Direct Access Partners Matter and the Panama Papers: A Caution for Financial Sector Anti-Corruption Compliance

    In May 2013, the DOJ unsealed criminal FCPA, Travel Act, money laundering and conspiracy charges against two employees of the New York broker-dealer Direct Access Partners, as well as Travel Act, money laundering and conspiracy charges against Maria de Los Angeles Gonzalez de Hernandez, vice president for finance of the Economic and Social Development Bank of Venezuela. In the three years since the original indictments, the case expanded, with additional indictments, amended SEC complaints, guilty pleas, sentencing and, in early April 2016, final judgments being entered in the SEC civil action. In a guest article, Sean Hecker and Andrew Levine, partners, and Philip Rohlik, counsel at Debevoise & Plimpton highlight the lessons companies can learn from the DAP case and other recent events. See “Why the Direct Access Partners Case Matters for Financial Sector Anti-Corruption Compliance” (Oct. 23, 2013).

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  • From Vol. 5 No.8 (Apr. 20, 2016)

    District Court Order Threatens Confidentiality of Monitor Reports

    Reports of compliance monitors retained in accordance with corporate settlements have generally been kept out of public view – until now. Finding that a compliance monitor’s report is a judicial record and the public has a First Amendment right to see it, Judge John Gleeson of the Eastern District of New York granted, in large part, the pro se request of an HSBC mortgage customer to unseal the first annual report of the compliance monitor HSBC retained in connection with its $1.9 billion settlement with the DOJ. The matter is stayed pending appeal. A similar case is pending in the D.C. District, where 100Reporters has asked for the Siemens monitor report stemming from that FCPA enforcement action. See also “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part One of Three)” (Feb. 20, 2013); Part Two (Mar. 6, 2013); Part Three (Mar. 20, 2013). 

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  • From Vol. 5 No.6 (Mar. 23, 2016)

    U.S. District Court Addresses Definition of “Public International Organization”

    Adding to a scant body of FCPA case law, the U.S. District Court for the Eastern District of Pennsylvania sheds light on the term “public international organization" and consequently the definition of foreign official. The defendant was charged with violating the FCPA, the Travel Act and money laundering laws by funneling bribes to an official of the European Bank for Reconstruction and Development by making payments to the official’s sister. The Court upheld every count of the fourteen-count indictment in its pre-trial ruling. We summarize the facts of the case and the Court’s key findings. See also “What the Eleventh Circuit’s ‘Instrumentality’ Decision Means for FCPA Practitioners” (May 28, 2014).

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  • From Vol. 4 No.25 (Dec. 2, 2015)

    How the Expanding Petrobras Scandal May Spark a New Era of Multi-Lateral Enforcement

    More than two years after Brazilian authorities launched their investigation into Petrobras, the consequences of the scandal continue to grow, stretching beyond the borders of Brazil and potentially encompassing other state-owned or operated entities.  In a recent webinar, attorneys from Mayer Brown and its Brazilian affiliate, Tauil & Chequer Advogados, describe the latest developments, including a Peruvian investigation into construction companies allegedly involved in the Petrobras scandal and what they say may be a potential U.S. “sweep” of companies with ties to state-owned entities, illustrated by an investigation of the Venezuelan state-owned oil company.  They also offered advice on how companies can avoid the fallout from these investigations.  See “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 6 (Mar. 18, 2015); and “Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 11 (May 27, 2015).

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  • From Vol. 4 No.12 (Jun. 10, 2015)

    WilmerHale Partners Discuss How Private Fund Managers Can Address Growing Corruption Risks

    The financial services industry is under increased scrutiny from anti-corruption enforcement authorities both in the U.S. and abroad.  Fund managers face two primary types of corruption risks.  First, employees or third parties engaged by a manager may make improper payments to secure business.  Second, a fund may acquire a stake in a company that is engaging in corrupt practices.  During a recent program hosted by Lawline, Kimberly A. Parker and Erin G.H. Sloane, both partners at WilmerHale, discussed these and other corruption risks faced by fund managers and provided actionable advice on how to address them.  See “Private Equity FCPA Enforcement: High Risk or Hype?,” Vol. 4, No. 4 (Feb. 18, 2015).

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  • From Vol. 4 No.12 (Jun. 10, 2015)

    Anti-Corruption Compliance Lessons from the FIFA Case

    The FIFA corruption scandal, which has already resulted in the indictment of 14 individuals, is drawing worldwide attention to anti-bribery enforcement.  The indictments describe a cacophony of bribe payments and a series of pay-to-play exercises designed to line the pockets of FIFA officials.  Although the FIFA case does not include FCPA charges, the expansive scandal and the enforcement action present many lessons applicable to global anti-corruption compliance.  In a guest article, Robert Appleton, a partner at Day Pitney, details the FIFA charges and discusses the compliance lessons that can be drawn from soccer’s biggest scandal.

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  • From Vol. 4 No.6 (Mar. 18, 2015)

    Taking Third Party Diligence Beyond the FCPA and the U.K. Bribery Act

    An active third-party due diligence program protects a company from a host of dangers, including anti-corruption violations, sanctions issues and forming relationships with destructive business partners.  A recent program presented by the Society of Corporate Compliance and Ethics highlighted the continued importance of third-party due diligence for anti-corruption compliance and the impact of economic sanctions regimes on that due diligence.  The program featured Candice D. Tal, founder and Chief Executive Officer of security and risk management consulting firm Infortal Worldwide Inc.; and Cordery Compliance Limited’s principal adviser André Bywater and partner Jonathan P. Armstrong.  See also “Risk-Based Solutions to Complying with Anti-Money Laundering, Export Controls, Economic Sanctions and the FCPA,” The FCPA Report, Vol. 3, No. 2 (Jan. 22, 2014).

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  • From Vol. 4 No.6 (Mar. 18, 2015)

    U.K. Property Market Attracts Corrupt Assets

    The booming U.K. property market may be serving as a safe haven for corrupt assets, according to a recent report by the U.K. chapter of watchdog Transparency International.  It found that the volume of property registered to anonymous companies is a “major barrier” to U.K. law enforcement investigations and interferes with effective money laundering diligence and compliance with international sanctions.  See also “Eye-Opening Report Helps Companies Tackle European Corruption Risks,” The FCPA Report, Vol. 3, No. 6 (Mar. 19, 2014).

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  • From Vol. 3 No.23 (Nov. 19, 2014)

    Finding Synergies in OFAC and FCPA Compliance

    Given the increasing enforcement of various regulations that affect companies operating globally, creating efficiencies in compliance programs, and getting buy-in from management, is crucial for compliance officers.  At a recent event hosted by The FCPA Report and Alston & Bird, experts discussed two pressing regulatory areas: the FCPA and trade sanctions.  We compile the insight given by panel members Jim Finnerty, Senior Vice President and Associate Deputy Global Anti-Money Laundering Officer-United States of TD Bank; Edward Kang and Jason Waite, partners at Alston & Bird; and Justin Shur, a partner at MoloLamken.  See also “FCPA and OFAC Compliance Essentials,” The FCPA Report, Vol. 3, No. 20 (Oct. 8, 2014). 

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  • From Vol. 3 No.19 (Sep. 24, 2014)

    Defendant in Alstom/Marubeni Bribery Prosecution Tests FCPA’s Definition of “Agency” and its Reach Over Foreign Nationals

    Cases that test the government’s interpretation of the FCPA tend to be few and far between.  Lawrence Hoskins, a foreign national who worked for Alstom Holdings, SA has been charged with criminal violations of the FCPA and money laundering in connection with bribes paid by an Alstom/Marubeni consortium to secure contracts to build power plants in Indonesia.  Hoskins has moved to dismiss the indictment, challenging the government’s claim that he was an agent of Alstom’s U.S. subsidiary for purposes of FCPA liability.  He also argues that the FCPA is unconstitutionally vague and that it does not apply extraterritorially to foreign nationals in his situation.  This article examines both parties’ briefs.  See also “How Broad Is the FCPA’s Reach Over the Acts of Foreign Nationals?,” The FCPA Report, Vol. 2, No. 6 (Mar. 20, 2013).

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  • From Vol. 3 No.9 (Apr. 30, 2014)

    FCPA Implications of Recent Decisions on Judicial Monitoring of DPAs, Statutes of Limitations and Jurisdiction

    FCPA cases are often settled without litigation, and judicial interpretation of the law is relatively scarce.  A few recent cases, however, may impact how the FCPA is enforced.  A recent panel at the New York City Bar discussed five such cases and examined possible FCPA implications of these cases for prosecutors and defense counsel. The panel was moderated by John Buretta, a partner at Cravath, Swaine & Moore and included Peter Clark, a partner at Cadwalader, Wickersham & Taft; Colby Smith, a partner at Debevoise & Plimpton; and Lee Dunst, a partner at Gibson, Dunn & Crutcher.  See also “Four Ways the SEC Enforcement Landscape Is Changing and Why They Matter,” The FCPA Report, Vol. 2, No. 24 (Dec. 4, 2013).

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  • From Vol. 3 No.2 (Jan. 22, 2014)

    Risk-Based Solutions to Complying with Anti-Money Laundering, Export Controls, Economic Sanctions and the FCPA

    Many companies subject to the FCPA are also concerned about anti-money laundering laws, economic sanctions or export control restrictions.  Often, these crimes go together.  What do these three areas have in common?  How should companies structure their compliance programs in response to the various laws to which they are subject?  During a recent webinar hosted by the Cross-Border Group, partners at Foley & Lardner LLP discussed the overlap among these laws and provided concrete suggestions for how companies can use risk-based approaches to comply with all three. See also “How Can Anti-Money Laundering Laws Affect an FCPA Compliance Program? An Interview with Former FinCEN Director James H. Freis, Jr. (Part Two of Two),” The FCPA Report, Vol. 2, No. 4 (Feb. 20, 2013).

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  • From Vol. 2 No.21 (Oct. 23, 2013)

    Why the Direct Access Partners Case Matters for Financial Sector Anti-Corruption Compliance

    With the filing of criminal and civil charges against employees of New York-based broker dealer Direct Access Partners, the government has opened a new chapter of FCPA enforcement in the finance sector.  The labyrinthine scheme alleged by the government and the financial company’s rapid disintegration following the revelation of the charges serve as a stark reminder to the financial services industry of the importance of periodically assessing the effectiveness and appropriateness of anti-bribery compliance programs.  In a guest post, Sean Hecker, Andrew M. Levine and Steven S. Michaels of Debevoise & Plimpton LLP discuss the most recent developments in the case, summarize the government’s charges against the lower level defendants Clarke and Hurtado and identify some of the unique risks faced by financial services firms stemming from the complex transactions in which they deal and the multiplicity of government entities with mandates that can encompass anti-bribery compliance.  See also “FCPA Charges against Broker-Dealer Stemming From Routine SEC Examination Is ‘Wake-Up Call’ to the Financial Services Industry,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013). 

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  • From Vol. 2 No.10 (May 15, 2013)

    FCPA Charges against Broker-Dealer Stemming From Routine SEC Examination Is “Wake-Up Call” to the Financial Services Industry

    A routine SEC examination of a New York-based broker-dealer has resulted in FCPA, Travel Act and money laundering charges against two employees in its Miami office.  It’s the first in which individuals were targeted for bribery during the sale of financial services.  Acting Assistant Attorney General Mythili Raman warned in a statement that the case “is a wake-up call to anyone in the financial services industry who thinks bribery is the way to get ahead.”  In an irregular move in a corruption case, prosecutors also charged the foreign official the employees allegedly bribed with violating the anti-money laundering statutes and the Travel Act.  This article distills the compliance takeaways and summarizes the complaints.

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  • From Vol. 2 No.4 (Feb. 20, 2013)

    How Can Anti-Money Laundering Laws Affect an FCPA Compliance Program? An Interview with Former FinCEN Director James H. Freis, Jr. (Part Two of Two)

    Though motivated by different statutes, anti-money laundering compliance programs and FCPA compliance programs deal with related risks.  Anti-money laundering laws are also integrally related to FCPA charges, and prosecutors use them frequently in FCPA enforcement actions across industries and geographies.  The FCPA Report recently spoke with the nation’s former top anti-money laundering regulator, James H. Freis, Jr., about a range of issues, including the role anti-money laundering laws play in FCPA cases, how financial regulators are working together across the globe to combat corruption and the corruption challenges facing the gaming industry in particular.  In this, the second part of our interview, Freis discussed, among other things: the connection between anti-bribery laws and broader financial reforms around the globe; how financial institutions can integrate their AML and FCPA compliance programs; the similarities and differences between Politically Exposed Persons and foreign officials; and the importance of high-profile FCPA enforcement.  In the first article in this series, Freis discussed, among other things: what companies should focus on when conducting corruption and anti-money laundering risk assessments and audits; how the DOJ and SEC work with FinCEN on corruption cases; and details regarding the formation, operation and future of the Egmont Group, a 130-member organization of international financial intelligence units.  See “Former FinCEN Director James H. Freis, Jr. Discusses the Intersection between Anti-Money Laundering and Anti-Corruption Law (Part One of Two),” The FCPA Report, Vol. 2, No. 3 (Feb. 6, 2013).

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  • From Vol. 2 No.3 (Feb. 6, 2013)

    Former FinCEN Director James H. Freis, Jr. Discusses the Intersection between Anti-Money Laundering and Anti-Corruption Law (Part One of Two)

    One way prosecutors have pursued the FCPA’s broad jurisdictional reach and overcome some of the inherent challenges in corruption cases has been the use of a set of powerful tools – anti-money laundering laws.  The FCPA Report spoke with the nation’s former top anti-money laundering regulator, James H. Freis, Jr., about a range of issues, including how prosecutors use anti-monetary laundering laws in FCPA cases, how financial regulators are working together across the globe to combat corruption and the corruption challenges facing the gaming industry.  Freis was the director of the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) from 2007-2012 and is now Counsel at Cleary Gottlieb Steen & Hamilton LLP.  As Director of FinCEN, Freis led the development and enforcement of regulations, fighting not only money laundering and corruption, but terrorist financing, fraud and other financial crimes applicable to a broad range of financial institutions, including banks, securities and futures industry participants and insurance companies.  We are publishing our interview with Freis in two parts.  In the first part, Freis discussed, among other things, what companies should focus on when conducting corruption and anti-money laundering risk assessments and audits; how the DOJ and SEC work with FinCEN on corruption cases; and details regarding the formation, operation and future of the Egmont Group, a 130-member organization of international financial intelligence units.

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  • From Vol. 2 No.2 (Jan. 23, 2013)

    JPMorgan Chase Anti-Money Laundering Consent Orders Highlight the Role of Risk in Structuring Compliance Programs

    On January 14, 2013, JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, N.A. (together, the Banks) and their parent holding company, JPMorgan Chase & Co. (JPMC), entered into a consent order with the Office of the Comptroller of the Currency of the United States (OCC) and a separate consent order with the Board of Governors of the Federal Reserve System (Fed).  The orders follow regulatory examinations of JPMC and the Banks occasioned by JPMC’s revelation that one of its traders, Bruno Iksil, known in the industry as the “London Whale,” made huge derivative bets that cost JPMC billions.  While the consent orders primarily focus on shortcomings in JPMC’s anti-money laundering efforts and how those efforts may be improved, they more generally espouse the view – apparently shared by the SEC and DOJ in their FCPA enforcement programs – that compliance efforts should be risk-based.  See “Comprehensive FCPA Guidance Provides a Roadmap for Companies to Reevaluate and Revise Their Compliance Policies,” The FCPA Report, Vol. 1, No. 13 (Nov. 28, 2012).  This article describes the orders in detail.

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  • From Vol. 1 No.12 (Nov. 14, 2012)

    Finding Clarity in the New U.K. Bribery Act

    The U.K.’s Ministry of Justice has added another tool to its arsenal – like the U.S., it intends to use Deferred Prosecution Agreements (DPAs) for cases of economic crime, following a recent consultation and the overhaul of U.K. Bribery laws in July of last year.  That overhaul replaced elderly bribery laws regarded as ineffective to prosecute modern cases.  The new Bribery Act 2011 (Act) provides a consolidated scheme of offences and, unlike the FCPA, applies to bribery in both the public and private sectors.  Law enforcement agencies in the U.K. had two main mechanisms to deal with bribery and other economic crime by companies: criminal prosecution (followed by confiscation of illicit assets), or civil recovery under legislation which enables prosecutors to make a claim against a company to recover the proceeds of criminal conduct.  DPAs will offer a third option.  In a guest article, James Maton, a partner in Edwards Wildman Palmer UK LLP’s London office, provides details about the provisions of the Act and guidance issued by the U.K., and the government’s new policy on DPAs.  A forthcoming article in The FCPA Report will address specific actions companies can take in light of this new enforcement landscape in the U.K.

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  • From Vol. 1 No.11 (Nov. 7, 2012)

    Kroll Survey Identifies Global Fraud Trends and Risks in Europe, the Middle East and Africa

    Kroll Advisory Solutions (Kroll) recently released its sixth annual “Global Fraud Report,” analyzing the results of an in-depth survey on fraud and corruption worldwide conducted in July and August 2012.  To complete its research, Kroll’s Economist Intelligence Unit polled more than 830 senior executives in a broad range of industries, with over half the participants holding C-level positions at companies with annual revenues exceeding $500 million.  This article discusses Kroll’s key survey findings and recommendations then details Kroll’s regional analyses for Europe, the Middle East and Africa.

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  • From Vol. 1 No.4 (Jul. 25, 2012)

    International Corruption Risks Facing Financial Institutions

    For many years, financial institutions had not been frequent targets of FCPA enforcement.  However, the past two years have revealed that regulators have not forgotten about this industry.  The financial crisis increased regulatory scrutiny both from an investigative and a legislative perspective.  The SEC and DOJ are investigating financial institutions for violations of securities laws, the FCPA, anti-money laundering rules, and similar regulations.  As discussed in this article, and as the various reviews by regulators reveal, banks, private equity firms, and other financial institutions face several avenues of potential liability due to the nature of their overseas business under a myriad of domestic and international statutes.  To properly navigate this complex regulatory framework requires an effective and regularly updated compliance program, consistent with the recommended government standards (and perhaps building off of their current anti-money laundering procedures), and any responses to regulatory requests demand a carefully structured internal review.  In a guest article, Palmina Fava and Alan Brudner, both partners at Paul Hastings LLP, and Mor Wetzler, an associate at Paul Hastings, discuss: the regulatory focus on financial firms; guidance for anti-corruption compliance derived from anti-money laundering initiatives; the potential for anti-corruption liability without actual knowledge of the relevant corruption; the strict liability provisions of the U.K. Bribery Act; common sources of liability for financial institutions; specific compliance considerations raised by dealings with sovereign wealth funds and state-owned enterprises; and the risk of required offset funds.

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