The Anti-Corruption Report

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

Articles By Topic

By Topic: OFAC

  • From Vol. 7 No.20 (Oct. 3, 2018)

    Preparing for a Sanctions Crackdown on Apparel Companies with Operations in China

    A recent spate of OFAC designations, along with advisories jointly issued by the U.S. Departments of State, Treasury and Homeland Security about the risks of supply chain links to North Korea, may signal an impending crackdown on apparel companies with operations in China. In a guest article, Ryan Fayhee and Ashley Hodges, respectively a partner and associate at Hughes Hubbard, analyze the advisories and provide practical steps companies can take to mitigate supply chain risks. 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. 7 No.11 (May 30, 2018)

    One More Arrow in the Government’s Anti-Corruption Quiver: The Global Magnitsky Act

    The Global Magnitsky Human Rights Accountability Act, a 2016 statute targeting acts of foreign corruption, authorizes the president to impose financial sanctions and visa restrictions on foreign persons in response to certain human rights violations or acts of corruption. In December 2017, President Trump issued Executive Order 13818, which identified 13 individuals subject to sanctions and also delegated authority for implementing the law to the Treasury and State Departments. The Anti-Corruption Report explores the implications of the statute and the executive order for those working in the ABAC space. See also “Compliance and Self-Protection in an Uncertain Sanctions Environment” (Nov. 1, 2017), and “Five Ways a Company Can Leverage Its Anti-Bribery Compliance Program to Facilitate Sanctions Compliance” (Sep. 14, 2016).

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  • From Vol. 6 No.21 (Nov. 1, 2017)

    Compliance and Self-Protection in an Uncertain Sanctions Environment

    The United States economic sanctions regime is experiencing a period of turbulence, with major changes occurring in sanctions programs (and the recent restructuring of the state department sanctions office) affecting trade involving several nations that have a significant presence in the world economy. In a guest article, Scott Balber, Jonathan Cross and Jared Stein of Herbert Smith Freehills explain how these developments underscore the importance of managing sanctions risk which may arise from future changes in U.S. law, both by establishing appropriate exit procedures should sanctions require the termination of existing arrangements, and by conducting appropriate political risk assessment and counterparty due diligence to identify and mitigate the potential for sanctions-related business disruption. 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. 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. 6 No.1 (Jan. 18, 2017)

    Regional Risk Spotlight: Myanmar Trips on Legacy of Corruption As It Moves Toward Greater Transparency

    In 2011, Myanmar’s military junta stepped aside after almost half a century in power, and a civilian government began the process of normalizing relations with the West. Since then the country has been rocked by ethnic conflict and civil war, but, by most accounts, the country’s leadership has made steady progress in establishing the legal, financial and civic institutions upon which a more equitable society may be built, including the passage of the Anti-Corruption Law in 2013. Myanmar’s efforts to instill a culture of anti-corruption among officials has largely been successful despite a weak record of enforcement activity, anti-corruption lawyers and political risk consultants based in the region told The FCPA Report’s sister publication Policy and Regulatory Report (PaRR). See “Regional Risk Spotlight: Douglas Mancill of PriceSanond Explains the Thai Corruption Landscape” (Nov. 18, 2015).

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  • From Vol. 5 No.18 (Sep. 14, 2016)

    Five Ways a Company Can Leverage Its Anti-Bribery Compliance Program to Facilitate Sanctions Compliance

    While often treated separately by companies, anti-bribery and sanctions compliance risks frequently intersect. Companies can ensure effective compliance with both types of regulations more efficiently, effectively and economically by combining certain knowledge and resources to jointly address these areas. In a guest article, Baker & McKenzie partner Ryan Fayhee and his associates Geoff Martin and Alexandre Lamy review how the jurisdictional reach and risks presented by anti-bribery and sanctions regulations tend to converge and suggest concrete ways that companies can leverage their anti-bribery compliance programs to facilitate sanctions compliance. Fayhee will also be sharing his thoughts on the topic at the upcoming SCCE Compliance and Ethics Institute in Chicago. See “Finding Synergies in OFAC and FCPA Compliance” (Nov. 19, 2014). 

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  • From Vol. 4 No.1 (Jan. 7, 2015)

    Navigating U.S. and Canadian Economic Sanction Landmines

    Anti-corruption and economic sanctions regimes frequently overlap -- both anti-corruption laws and government sanctions are key consideratons when doing business overseas.   A recent program presented by the Momentum Events Group as part of its AML & Economic Sanctions Compliance Assembly discussed: important elements of the U.S. and Canadian economic sanctions regimes; the current status of sanctions against Iran, Russia and Ukraine; and compliance tips for assuring that businesses do not run afoul of existing sanctions.  The program featured Daniel Chapman, Chief Compliance Officer and Counsel at Parker Drilling Company; Vincent DeRose, a partner at Borden Ladner Gervais; and J. Scott Maberry, a partner at Sheppard Mullin Richter & Hampton.  For a comprehensive look at U.S. sanctions enforcement and effective compliance programs, see “FCPA and OFAC Compliance Essentials,” The FCPA Report, Vol. 3, No. 20 (Oct. 8, 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.21 (Oct. 22, 2014)

    Join The FCPA Report and Alston & Bird for "Hot Button Issues in FCPA and OFAC Enforcement and Compliance"

    The DOJ, SEC and OFAC continue to put resources into enforcement of trade regulations and the FCPA, pursuing new investigative techniques and legal theories in both areas across industries.  On October 28, 2014 in New York, Alston & Bird and The FCPA Report will present a complimentary program, “Hot Button Issues in FCPA and OFAC Enforcement and Compliance: What Your Company Needs to Know,” to help companies understand the trends and enhance their compliance programs to mitigate the risk from both corruption and trade laws.  Panelists will include inhouse compliance experts Jim Finnerty of TD Bank and Louis Ramos of Pfizer, Inc.; Edward T. Kang and Jason M. Waite, partners at Alston & Bird; and Justin V. Shur, a partner at MoloLamken.  Rebecca Hughes Parker, Editor-in-Chief of The FCPA Report will moderate and Craig Carpenito, a partner at Alston & Bird, will give opening remarks.  One hour of CLE credit is available. The full invitation is here.  To RSVP, please email rsvp@fcpareport.com.

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  • From Vol. 3 No.20 (Oct. 8, 2014)

    FCPA and OFAC Compliance Essentials

    The DOJ, SEC and OFAC continue to put resources into enforcement of trade regulations and the FCPA, pursuing new investigative techniques and legal theories in both areas across industries.  On October 28, 2014, Alston & Bird and The FCPA Report will present a program, “Hot Button Issues in FCPA and OFAC Enforcement and Compliance: What Your Company Needs to Know,” to help companies understand the trends and enhance their compliance programs to mitigate the risk from both corruption and trade laws.  Panelists will include inhouse compliance experts Jim Finnerty of TD Bank and Louis Ramos of Pfizer, Inc.; Edward T. Kang and Jason M. Waite, partners at Alston & Bird; and Justin V. Shur, a partner at MoloLamken.  Rebecca Hughes Parker, Editor-in-Chief of The FCPA Report, will moderate and Craig Carpenito, a partner at Alston & Bird, will give opening remarks.  The full invitation is here.  To RSVP, please email rsvp@fcpareport.com.  In advance of the program, Edward T. Kang, Jason Waite and Jim Finnerty shared their views on OFAC and FCPA compliance with The FCPA Report.

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  • From Vol. 3 No.15 (Jul. 23, 2014)

    Anti-Corruption and Trade Regulations: Identifying Common Elements and Streamlining Compliance Programs (Part Two of Two)

    The $9 billion dollar fine of French bank BNP Paribas, which pled guilty in late June 2014 to transferring billions of dollars on behalf of Iran, Sudan and Cuba, is a sharp reminder of the government’s continued focus on trade sanctions.  Understanding how and when the FCPA and trade regulations intersect can help companies affected by both laws structure their compliance programs effectively and efficiently.  In a recent webinar hosted by Securities Docket, FCPA and trade regulations experts from KPMG and McGuire Woods came together to explain the details of the Office of Foreign Assets Control (OFAC) regulations and how they compare and contrast to the FCPA.  In part two of our article series, the panelists discuss six common elements of FCPA and trade sanctions enforcement, detail potential anti-corruption and trade regulation synergies and provide four steps for developing a synergistic compliance program.  In part one of this article series, the panelists detailed various OFAC penalties, discussed how OFAC calculates penalties and outlined three issues for companies to consider when negotiating with OFAC.  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. 3 No.14 (Jul. 9, 2014)

    Anti-Corruption and Trade Regulations: Identifying Common Elements and Streamlining Compliance Programs (Part One of Two)

    The repercussions of violating trade sanctions, and the government’s focus on the issue, were recently highlighted with the $9 billion dollar fine of French bank BNP Paribas, which pled guilty in late June 2014 to transferring billions of dollars on behalf of Iran, Sudan and Cuba.  That case may be followed by others as the government investigates similar behavior by other companies.  Understanding how and when the FCPA and trade regulations intersect can help companies affected by both laws structure their compliance programs effectively and efficiently.  In a recent webinar hosted by Securities Docket, FCPA and trade regulations experts from KPMG and McGuire Woods came together to explain the details of the Office of Foreign Assets Control (OFAC) regulations and how they compare and contrast to the FCPA. In part one of this article series, KPMG Managing Director Charlie Steele details various OFAC penalties, discusses how OFAC calculates penalties and outlines three issues for companies to consider when negotiating with OFAC.  In part two, the panelists discuss the commonalities of FCPA and trade sanctions enforcement, detail potential anti-corruption and trade regulation synergies and provide four steps for developing a synergistic compliance program.

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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.23 (Nov. 20, 2013)

    Construction Industry Experts Discuss Crucial Steps in Internal Corruption Investigations, Due Diligence Best Practices and the Value of Cooperation

    Could the construction industry be the next target of anti-corruption enforcement action in the U.S. and abroad?  The industry is rife with risk – in the U.K., for example, 49% of corruption professionals say corruption is widespread, and law firm Reed Smith LLP predicts that at least two large U.K. Bribery Act investigations are in the works in the next two years for international construction firms.  How can construction companies, and others similarly situated, anticipate and mitigate what may be a gathering enforcement storm?  The Practising Law Institute recently sponsored a panel of attorneys with extensive experience in construction contracting who discussed the best ways to enhance compliance for the construction industry, offering lessons applicable to a range of industries.  The panelists analyzed the current global anti-corruption enforcement climate, detailed best practices with regard to due diligence when contracting with third parties in foreign countries, provided steps that a company should take when faced with an FCPA issue, including investigation mistakes companies make, and examined the value of cooperation and voluntary disclosure.  See also “Survey Reveals the Contours and Content of Bribery in the U.K. Construction Industry,” The FCPA Report, Vol. 2, No. 20 (Oct. 9, 2013).

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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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