The Anti-Corruption Report

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

Articles By Topic

By Topic: Program Assessments

  • From Vol. 7 No.7 (Apr. 4, 2018)

    ISO 37001: Ready for Take-Off?

    Companies around the world recognize the International Organization for Standardization (ISO) 9001 Standard as the definitive criteria for quality management. Up and down value chains, companies turn to ISO 9001 as a form of verification that business processes are in place to ensure that products and services meet customer requirements. In this guest article, Leslie Benton, the vice president of advocacy and stakeholder engagement at CREATe.org, discusses how the ISO 37001 standard has generated significant international attention and weighs in on the debate of how useful it will be to the field of anti-corruption. For more on ISO 37001, see “Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two)” (Nov. 9, 2016); Part Two (Nov. 23, 2016).

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  • From Vol. 6 No.23 (Nov. 29, 2017)

    Effective Compliance Programs Reject Checklist Approach and Focus on Culture and Behavior

    Companies with the most effective ethics and compliance programs focus on culture and behavior, and have rejected a checklist approach to measuring their effectiveness, according to LRN’s 2016 Program Effectiveness Index Report. LRN found that organizations with the most effective compliance programs assess the presence or absence of ethical behaviors, such as ethical decision-making, organizational justice and freedom of expression, to measure program effectiveness. See our four-part series on measuring compliance: “Getting Started” (Aug. 2, 2017); “Seven Areas of Compliance to Measure” (Aug. 16, 2017); “How to Measure Quality” (Sep. 6, 2017); and “Gathering and Analyzing Data” (Sep. 20, 2017).

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  • From Vol. 6 No.16 (Aug. 16, 2017)

    Measuring Compliance: Seven Areas of Compliance to Measure (Part Two of Four)

    There are myriad approaches a company can take to measuring compliance. Indeed, the choices might seem overwhelming. As discussed in the first article in this multi-part series, there is value in picking just a few metrics and getting started. This second article discusses seven common elements of a compliance program that companies can measure. Future articles in the series will discuss the importance of measuring a compliance program’s quality and techniques for gathering and anaylzing data. See “Defining, Documenting and Measuring Compliance Program Effectiveness” (Dec. 2, 2015).

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  • From Vol. 6 No.16 (Aug. 16, 2017)

    NAVEX Global Ethics and Compliance Training Survey Offers Benchmarking Data on Compliance Training

    In an era of intense regulatory scrutiny and stretched compliance budgets, understanding the benefits derived from a company’s ethics and compliance training, and how that training stacks up against the company’s peers, can encourage executive and employee buy-in and assist in efficient allocation of resources. In its “2017 E & C Training Benchmark Report,” NAVEX Global offers timely insights from more than 900 compliance, legal and other personnel from a broad range of businesses into the maturity and focus of their E&C training programs, training topics, techniques and goals; budgeting and staffing; and effectiveness metrics. See also “NAVEX Global Offers Benchmarking Data on Hotline and Internal Reporting Mechanisms” (Apr. 26, 2017).

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  • From Vol. 6 No.5 (Mar. 15, 2017)

    DOJ’s Guidance Shows That Compliance Programs Still Matter

    Critical comments of the FCPA by President Trump, coupled with a general policy position of lessening regulatory oversight of U.S. companies, have caused speculation as to whether the new administration will curtail FCPA enforcement. Recently, the DOJ Fraud Section quietly released this administration’s first guidance setting out its position on the contours of an effective corporate compliance program. In a guest article, Paul Hastings partners Tara Giunta and Palmina Fava, and their associate Brian Wilmot, explain that this guidance does not signal any easing of enforcement – rather, the Fraud Section is signaling an incisive review of companies and their compliance programs, functions, resources and effectiveness. See “Top FCPA Officials Encourage Strong Compliance Programs and Remediation, the Defense Bar Responds” (Dec. 21, 2016).

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  • From Vol. 5 No.23 (Nov. 23, 2016)

    Brazilian Attorneys Discuss How High-Profile Corruption Investigations Are Changing Compliance in South America

    Brazil has taken the lead in anti-corruption enforcement in South America, but the risks in the region remain high. During a recent program hosted by the Society of Corporate Compliance and Ethics, panelists Shin Jae Kim and Renata Muzzi Gomes de Almeida, partners at TozziniFreire Advogados, and Fernanda Beraldi, an ethics and compliance director and corporate counsel at Fortune 500 manufacturing company Cummins, Inc., examined the current corruption climate in South America, the continuing impact of the Petrobras corruption scandal, the use of cooperation and leniency agreements in Brazil and the Brazilian government’s guidance on effective compliance programs. Beraldi also discussed how Cummins has designed its compliance program to mitigate South American corruption risks. For more from Kim and Muzzi, see “Addressing Five Major Compliance Issues Posed by Brazil’s 2016 Olympic Games” (Jun. 15, 2016).

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  • From Vol. 5 No.21 (Oct. 26, 2016)

    EY’s Rick Sibery Outlines a Seven-Step Process for Monitoring Third Parties

    Despite consistent warnings about the corruption risks associated with engaging third parties in foreign locations, the vast majority of FCPA settlements continue to involve such relationships. Moving beyond traditional due diligence to a more robust, ongoing approach to third-party management is one of the best ways to show regulators that the company is serious about compliance. Effectively monitoring third parties requires more than just performing data analytics, EY partner Rick Sibery said during a recent interview with The FCPA Report. He suggested that a company adopt a holistic approach to monitoring, considering not only its full third-party compliance process but also leveraging other areas of its anti-corruption compliance program. During our conversation, Sibery outlined a seven-step process for optimizing a company’s third-party monitoring program. See “Using Data Analytics to Meet the Government’s Anti-Corruption Compliance Expectations” (May 4, 2016).

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  • From Vol. 5 No.20 (Oct. 12, 2016)

    PwC State of Compliance Survey Explores Compliance and Ethics Leadership, Risk Assessments and Compliance Oversight

    How are companies relating ethics and compliance controls to business strategy and risk management functions? PwC recently surveyed 800 executives at top global companies to examine how they approach compliance, including their methods of assessing risk and the structures of their compliance functions. See also “PwC Report Offers Five Ways to Elevate the Role of the Compliance Function” (Jul. 8, 2015); and “PwC Survey Examines the Role of the Compliance Officer” (Jul. 9, 2014).

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  • From Vol. 5 No.7 (Apr. 6, 2016)

    Travel and Entertainment Corruption Risks: Internal Controls to Ensure the Program Is Working (Part Three of Three)

    A strong travel and entertainment policy that clearly delineates between an acceptable business expense and an impermissible bribe is critical to keeping a company out of FCPA trouble. But a policy alone is not enough – a company must also have sufficient internal controls in place to ensure that employees understand and follow company policies. In this final installment of The FCPA Report’s three-part series on travel and entertainment expenses, we explore the controls companies should have in place to keep their travel and entertainment programs working effectively. The first article in the series discussed the hallmarks of an appropriate T&E expense and the second looked at T&E policies. See also “Five Stages of Corruption and Myriad Internal Controls Failures: Compliance Takeaways From the VimpelCom Settlement” (Mar. 9, 2016).

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  • From Vol. 5 No.7 (Apr. 6, 2016)

    Best Practices for Performing Compliance Program Assessments: An Interview With Pamela Passman of CREATe.org

    One of the greatest challenges companies face when performing a program assessment is measuring the strength of the program. The Center for Responsible Enterprise And Trade, also known as CREATe.org, is a non-governmental organization that has a novel approach to helping companies assess their programs. They have developed what they refer to as “leading practices” based on proven anti-corruption strategies from numerous multinational organizations and U.S. and other governmental organizations. For more insights on this unique approach to program assessments, The FCPA Report spoke with Pamela Passman, founder, president and CEO of CREATe, about their process and how it can help companies improve their programs. See also “Best Practices for Performing Compliance Program Assessments: An Interview With Susan Markel of AlixPartners” (Feb. 24, 2016).

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  • From Vol. 5 No.5 (Mar. 9, 2016)

    Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program (Part Two of Two)

    Key Performance Indicators (KPIs) and tracking metrics, regularly used to measure and evaluate the success of a variety of business actors and activities, are increasingly being used to take the temperature of a company’s compliance department as well. A company can use KPIs and metrics to help determine (1) whether its compliance program is being implemented in a robust and good faith manner and (2) whether the elements of the program, and the program itself, are effective in achieving their desired goals. In a two-part guest article series, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Matthew Herrington, a partner at Steptoe & Johnson, provide a guide for developing and using KPIs and metrics in anti-corruption compliance programs. The first article outlined how to develop and use metrics and KPIs to assess robustness and effectiveness. This second article provides specific examples of KPIs and metrics that can be used to evaluate many of the hallmarks of an effective compliance program, as identified in the DOJ/SEC FCPA Resource Guide.

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  • From Vol. 5 No.4 (Feb. 24, 2016)

    Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program (Part One of Two)

    Key Performance Indicators (KPIs) and tracking metrics are a fact of everyday life for business organizations. Both are tools used to measure and evaluate the success of a wide variety of actors and activities and anti-corruption compliance is no exception. Increasingly, companies and regulatory agencies are relying on metrics and KPIs in judging whether (1) a compliance program is being implemented in a robust and good faith manner; and (2) the elements of the programs, and the program itself, are effective in achieving their desired goals. In this first installment of a two-part guest article series, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Matthew Herrington, a partner at Steptoe & Johnson, discuss the differences between KPIs and metrics in anti-corruption compliance programs, how metrics and KPIs can be used and relied upon to assess robustness and effectiveness, and how good KPIs and tracking metrics are developed. The second article will give examples of KPIs and tracking metrics that companies might consider for some of the primary elements of anti-corruption compliance programs. See also “Defining, Documenting and Measuring Compliance Program Effectiveness” (Dec. 2, 2015).

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  • From Vol. 5 No.4 (Feb. 24, 2016)

    Best Practices for Performing Compliance Program Assessments:  An Interview With Susan Markel of AlixPartners

    Last week, both the SEC and DOJ settled with Massachusetts-based software firm PTC and, as part of the non-prosecution agreement, the DOJ once again outlined what it expects from compliance programs, including a “periodic risk-based review.” The DOJ recommended that such reviews assess the risks the company faces but also look at the anti-corruption policies and procedures to ensure their continued effectiveness. These program assessments can take different shapes and forms, and can involve a variety of in-house and outside experts. To get an auditor’s perspective on program assessments, The FCPA Report spoke with Susan Markel of AlixPartners about the benefits of program assessments and how teams of lawyers and auditors can work together to perform such assessments effectively and efficiently. See “Best Practices for Performing Compliance Program Assessments: An Interview With Jeffrey Kaplan of Kaplan & Walker” (Nov. 4, 2015).

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  • From Vol. 4 No.25 (Dec. 2, 2015)

    Defining, Documenting and Measuring Compliance Program Effectiveness

    The risks of having a compliance program that exists only on paper are well-known, but measuring whether the program is actually working, how it is working, and documenting those findings for internal and external stakeholders present challenges.  A recent program at the SCCE Annual Compliance & Ethics Institute considered how compliance professionals can take steps, through documentation and measurement, to demonstrate the effectiveness of their compliance programs.  The program featured Scott Hilsen, a managing director at KPMG Forensic and Jean-Paul Durand, a vice president and chief ethics and compliance officer at Tech Data Corporation.  See also “How Can CCOs Demonstrate Compliance Program Effectiveness?,” The FCPA Report, Vol. 3, No. 19 (Sep. 24, 2014).

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  • From Vol. 4 No.23 (Nov. 4, 2015)

    Best Practices for Performing Compliance Program Assessments: An Interview with Jeffrey Kaplan of Kaplan & Walker

    Continuous improvement, achieved by ongoing testing and monitoring, is one of the hallmarks of an effective compliance program.  The FCPA Report’s series on compliance program assessments illuminates how companies can use such assessments to meet their ongoing monitoring responsibilities.  In this first interview in the series, The FCPA Report spoke with Jeffrey Kaplan, a partner at Kaplan & Walker with more than 25 years of experience assisting companies in assessing their compliance programs.  He discussed how program assessments differ from general risk assessments, the basic steps for such an assessment and when a company should specifically target the anti-corruption program for assessment.  For more on risk assessments in general see “Conducting Effective Anti-Corruption Risk Assessments: An Interview with David Simon, Partner at Foley & Lardner,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013); and “An Interview with Kevin Bennett, Managing Director, Forensic and Valuation Services, at Grant Thornton,” Vol. 2, No. 24 (Dec. 4, 2013).

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  • From Vol. 4 No.17 (Aug. 19, 2015)

    Thinking Outside the Box: Examining the Growing Trend of Compliance Outsourcing (Part One of Two)

    As anti-corruption enforcement efforts mature, governments are raising the compliance bar.  Implementing and maintaining a best-in-class compliance program that meets these ever-rising standards requires significant human resources and can overwhelm a compliance department, even at a large company.  To help ease the burden on in-house compliance personnel, many companies are outsourcing compliance activities – such as proactive monitoring, training and hotline operations – to third-party vendors.  Some have even gone so far as to hire an outside vendor to serve as their chief compliance officer.  In this two-part article series, we examine the outsourcing trend and discuss the benefits and risks of outsourcing various compliance functions.  This first article discusses the reasons a company might outsource some or all of its compliance functions and explores the associated risks and benefits.  The second article will look at how companies are outsourcing various compliance functions.  See “The Nuts and Bolts of Anti-Corruption Hotlines: An Interview with Benjamin Haley of Covington & Burling,” The FCPA Report, Vol. 3, No. 19 (Sep. 24, 2014).

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  • From Vol. 4 No.16 (Aug. 5, 2015)

    DOJ’s New FCPA Compliance Counsel: A Fairer Assessment for Companies

    For companies in the unenviable position of waiting to see whether federal prosecutors will criminally charge their company – an often existential question – the Department of Justice may have just leveled the playing field, at least slightly.  It has just announced that it will hire a new in-house compliance counsel who will take an active role in determining key aspects of FCPA resolutions.  In a guest article, G. Derek Andreson and Thomas M. Buchanan, partners at Winston & Strawn, and Francesca M.S. Guerrero, an associate, explain how the position came to be, how it will affect companies with varying types of anti-corruption compliance programs and how companies can take advantage of the new program.  See also “Comparing and Contrasting Three FCPA Experts’ Advice on Negotiating FCPA Settlements,” The FCPA Report, Vol. 3, No. 17 (Aug. 20, 2014).

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  • From Vol. 4 No.16 (Aug. 5, 2015)

    LRN Survey Suggests that Companies Should Move Beyond the “Nuts and Bolts” of Compliance and Focus on Values

    Ethics and compliance consulting firm LRN Corporation (LRN) recently released its 2015 Ethics and Compliance Effectiveness Report (Report).  Its study of more than 250 organizations considers the relative effectiveness of dual-hatted chief compliance officers, explains how a values-based tone at the top may improve program effectiveness and details the elements of ethics and compliance programs that distinguish companies with the most effective programs from those with the least effective ones.  The Report drives home the message that the most effective ethics and compliance programs are incorporated into the fabric of a business rather than “bolted on” to an existing operation.  This article summarizes the key takeaways from the Report.  For coverage of LRN’s 2014 report, see “Measuring the Efficacy of Ethics and Compliance Programs,” The FCPA Report, Vol. 3, No. 12 (Jun. 11, 2014).

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  • From Vol. 4 No.12 (Jun. 10, 2015)

    Detecting and Mitigating Corruption Risk When Participating in Public Procurements: Seven Steps to Take During and After a Procurement Process (Part Three of Three)

    Winning a contract through a public procurement process presents a tremendous opportunity for a company trying to enter or expand in an emerging market – the World Bank estimates that procurements account for approximately two-thirds of spending in such areas.  However, these rich sources of business do not come without risk.  Procurement processes require companies to interact with foreign officials and often involve third-party agents or local partners, providing ample opportunity for bribery.  The FCPA Report is publishing a three-part article series to help companies mitigate the corruption risks that arise before, during and after the public procurement process.  This third and final article in the series details seven steps a company should take to protect itself during and after a procurement process.  The first article examined how procurement works and when and how bribery occurs during the procurement process.  The second article provided six steps a company should take prior to engaging in a procurement process.  See also “The World Bank’s Wide Reach and Its Growing Anti-Corruption Program,” The FCPA Report, Vol. 3, No. 11 (May 28, 2014).

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    Google, Boeing, Walmart and PwC Leaders Share Strategies for Overcoming Cultural Hurdles in Compliance

    Developing and implementing a compliance program that delivers a consistent message while simultaneously conforming to widely varying regional customs is daunting.  At a panel during the recent Global Ethics Summit, hosted by Ethisphere Institute and Thomson Reuters, compliance leaders from Google, Walmart, Boeing and PwC shared their personal experiences with spreading a compliance message in a global company, confessed their cultural blunders and what they learned from them, and outlined five strategies for overcoming cultural challenges.  See “Representing Foreign Companies in Criminal FCPA Actions: Strategies for Handling the Legal, Practical and Cultural Challenges,” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 3 No.25 (Dec. 17, 2014)

    Top FCPA Officials Talk Compliance Tips and the Defense Bar Weighs In

    Selling your company’s business side on compliance; the key indicators of a successful compliance program; and the government’s view of M&A risks were all on the agenda of the FCPA enforcement officials' annual fireside chat with the FCPA defense community.  SEC Chief Kara Brockmeyer (FCPA Unit, Enforcement Division), and DOJ Deputy Chief Patrick Stokes (Fraud Section of Criminal Division) were both on hand for the “year in review” discussion at American Conference Institute’s recent International Conference on the Foreign Corrupt Practices Act.  The FCPA Report discussed the regulators’ presentation with prominent defense practitioners, who provided a few caveats to the regulators’ pronouncements.  In our previous issue, we covered Stokes’ and Brockmeyer’s discussion of enforcement priorities and the defense bar’s reaction.  Our coverage of last year’s “year in review” panel can be found here and here.

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  • From Vol. 3 No.19 (Sep. 24, 2014)

    How Can CCOs Demonstrate Compliance Program Effectiveness?

    A chief compliance officer must be able to demonstrate to management and the board that the company’s compliance dollars are providing a solid return on investment.  Meanwhile, if the company becomes embroiled in an investigation, the CCO must also be able to demonstrate to the government that the program is effective.  At the Society of Corporate Compliance and Ethics’ 2014 Compliance and Ethics Institute, Michael Ward, a former Deputy General Counsel and Vice President, Compliance Systems and Investigations for Cisco Systems and former prosecutor, discussed the metrics the CCO should use to measure the effectiveness of a compliance program; strategies for communicating the process; and the results to the relevant audiences.  See also “Measuring the Efficacy of Ethics and Compliance Programs,” The FCPA Report, Vol. 3, No. 12 (Jun. 11, 2014).

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  • From Vol. 3 No.17 (Aug. 20, 2014)

    When and How Should Companies Include Audit Rights in Third-Party Contracts? (Part Three of Three)

    Significant corruption risks continue to stem from the actions of third parties that companies hire.  As detailed in our series about anti-corruption reps and warranties in third-party contracts (Part One and Part Two), appropriate reps and warranties help to mitigate those risks.  Clauses pertaining to audit rights are some of the most difficult to get right, and can be some of the most important.  Our three-part series provides guidance on when and how companies should include audit rights in their third-party contracts.  This third and final article in the series discusses when conditions are ripe for a third-party audit; best practices to use when performing the audit; and what to do about issues uncovered by the audit.  The first article discussed how companies should determine which third-party relationships require audit rights and outlined the benefits and drawbacks of including audit rights provisions in contracts.  The second article provided strategies for securing audit rights during negotiations; discussed situations where companies should or should not proceed without audit rights; and provided advice regarding drafting audit rights provisions. 

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  • From Vol. 3 No.17 (Aug. 20, 2014)

    Six Steps to Revitalize the Company Compliance Code

    A compliance program begins with the written code the company distributes to employees.  The code, the foundation of the compliance program, needs to be accessible, educational and of-the-moment.  In a recent panel at Practising Law Institute’s Corporate Compliance and Ethics Institute, compliance experts shared six strategies for revising company codes.  The panel included Kaplan & Walker’s Rebecca Walker; Janice Innis-Thompson, Senior Managing Director and Chief Compliance and Ethics Officer at TIAA-CREF; and Edward Petry, Vice President of Ethical Leadership Group, the Advisory Services division of Navex Global.  See also “A Comparison and Examination of DOJ Compliance Program Requirements in FCPA Settlement Agreements,” The FCPA Report, Vol. 2, No. 19 (Sep. 26, 2013).

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  • From Vol. 3 No.17 (Aug. 20, 2014)

    Compliance Experts from AT&T and Southern Co. Share Anti-Corruption Auditing and Assessment Best Practices

    Key compliance personnel at two major public companies recently shared their insights on the best ways to monitor and assess compliance programs.  At a panel at PLI's 2014 Corporate Compliance and Ethics Institute, James R. Turner, compliance director at Alabama Power Company, a subsidiary of Southern Company, and Kathy Rehmer, Vice President of Corporate Compliance at AT&T, discussed how their companies perform audits and routine testing of their compliance programs. See also The FCPA Report’s three-part series, “Best Practices for Reviewing Anti-Corruption Compliance Programs”: Government Expectations, Scheduling and Staffing; Challenges, Preparation and Risk Evaluation; and Implementation, Remediation and Documentation.

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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)

    PwC Survey Examines the Role of the Compliance Officer

    In today’s rapidly changing business environment, continually benchmarking and assessing compliance procedures is integral to maintaining a robust program.  PricewaterhouseCooper’s 2014 State of Compliance Survey Report depicts the state of compliance programs and provides compliance insights, including three ways CCOs can improve their relationships with the business units.  The survey also reveals how companies are using social media, how much they are spending on compliance, how they are structuring reporting lines and more.  See also “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two),” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 3 No.12 (Jun. 11, 2014)

    Measuring the Efficacy of Ethics and Compliance Programs

    What exactly makes one anti-corruption compliance program effective and another, that appears to have the same elements, fail to detect and prevent violations?  “It’s all about the culture,” Wayne Brody, a senior advisor at LRN, an ethics and culture advisory firm, told The FCPA Report.  That culture is not intangible, Brody said – effective programs share certain characteristics.  In its 2014 “Ethics and Compliance Program Effectiveness Report,” LRN detailed the results of its extensive research, extracting the factors most commonly associated with an effective compliance program by using its proprietary Program Effectiveness Index.  See “Anonymous Polling, Focus Groups and ‘Organizational Justice’ Help Companies Avoid FCPA Violations While Growing Revenue,” The FCPA Report, Vol. 1, No. 9 (Oct. 3, 2012).

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  • From Vol. 3 No.10 (May 14, 2014)

    A Guide to Detecting and Preventing Expense-Reimbursement Fraud (Part Three of Three)

    A lack of strong controls around the expense-reimbursement process can allow bribes to foreign officials to slip through the cracks.  To assist companies in designing best-in-class expense-reimbursement programs, The FCPA Report is publishing a three-part article series on the topic.  This, the third article in the series, provides strategies for reviewing expense reports and addressing corruption problems that are discovered.  The first article in this series discussed the risks associated with expense reports; provided advice on using travel and entertainment policies to limit expense-report fraud; and outlined strategies for utilizing the training process to decrease expense-report fraud.  The second article in the series explained how different types of expense limits can protect a company and suggested policies that companies can implement to detect and prevent expense-report fraud.  See also “A Guide to Preventing and Detecting Travel Agency Corruption (Part One of Three),” The FCPA Report, Vol. 3, No. 1 (Jan. 8, 2014), Part Two of Three, Vol. 3, No. 2 (Jan. 22, 2014), Part Three of Three, Vol. 3, No. 3 (Feb. 5, 2014). 

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  • From Vol. 3 No.10 (May 14, 2014)

    Walmart’s Global CCO Discusses the Company’s Restructured Anti-Corruption Compliance Program

    The high-profile bribery allegations against Wal-Mart Stores (Walmart) put the FCPA in a global spotlight, prompting board members across the country to ask counsel about corruption risks.  The company itself, a global retail behemoth, has been deeply embroiled in a wide-ranging internal investigation since its 2011 SEC disclosure of possible FCPA violations, followed by the 2012 New York Times report that Walmart had paid over $24 million in bribes in Mexico.  The investigation has cost the company upwards of $500 million so far.  Walmart hired Jay Jorgensen as Senior Vice President and Global Chief Compliance Officer to lead the compliance efforts in 2012.  Jorgensen explained the details of Walmart’s new compliance program in a recent interview at the Dow Jones Global Compliance Symposium and discussed the lessons Walmart learned and the challenges that large multi-national companies face in constructing effective compliance programs.  See “A Guide to Disclosing Corruption Investigations in SEC Filings (Part Three of Four),” The FCPA Report, Vol. 2, No. 11 (May 29, 2013) (tracing Walmart’s disclosures).

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  • From Vol. 3 No.7 (Apr. 2, 2014)

    Weak FCPA Compliance Program and Lack of Cooperation Cited in Marubeni’s $88 Million Guilty Plea

    Resolving its second FCPA enforcement action in just over two years, Japanese-based Marubeni has pled guilty to charges related to payments it made, in concert with its consortium partner French power company Alstom SA, to Indonesian government officials in exchange for a $118 million contract to provide power in that country.  The agreement highlights the broad jurisdictional and temporal reach of the FCPA and includes $88 million in fines, above the minimum Sentencing Guidelines range.  The acts at issue predate Marubeni’s 2012 Deferred Prosecution Agreement with the DOJ to resolve charges it bribed Nigerian officials for energy contracts.  See also “Bilfinger Settlement Highlights the Long Tail and Loose Jurisdictional Requirements of Criminal FCPA Charges,” The FCPA Report, Vol. 2, No. 25 (Dec. 18, 2013). 

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  • From Vol. 2 No.21 (Oct. 23, 2013)

    K&L Gates Panel Reviews Anti-Corruption Enforcement in the U.S., the U.K., China, Australia, Latin America, Africa, Southeast Asia and Russia

    With the spate of new anti-corruption laws around the globe, and the evolution of laws already on the books, “it is critical for a company to have on-the-ground information and local support” in structuring an effective anti-bribery and anti-corruption (ABAC) program and responding to regulatory action in all of the regions in which it operates.  So said Dick Thornburgh, former Attorney General of the United States and former Governor of Pennsylvania, introducing a recent webinar presented by K&L Gates LLP, where Thornburgh is now of counsel.  The K&L Gates speakers who followed Thornburgh shared their direct local experiences and examined the state of the ABAC laws in their regions of speciality.

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  • From Vol. 2 No.18 (Sep. 11, 2013)

    Best Practices for Reviewing Anti-Corruption Compliance Programs: Implementation, Remediation and Documentation (Part Three of Three)

    In an effort to provide concrete, practical advice on the critical but ambiguous task of reviewing anti-corruption compliance programs, The FCPA Report is publishing a series of three articles on the topic.  This, the third and final article in the series, provides four strategies for conducting the actual review; discusses three steps a company should take post-review; outlines issues surrounding documentation of the review; and examines how FCPA settlement agreements, including monitorships and self-reporting requirements, affect reviews.  The first article in the series discussed the importance of regular anti-corruption compliance reviews; detailed the government’s expectations for reviews; outlined how to create an efficient and effective compliance review schedule; and specified how companies should staff their compliance reviews.  The second installment discussed the chief obstacles companies face when conducting a review; provided strategies for creating management buy-in; described four steps a company should take when preparing for a review; and outlined what risk areas the review should address.

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  • From Vol. 2 No.17 (Aug. 21, 2013)

    Best Practices for Reviewing Anti-Corruption Compliance Programs: Challenges, Preparation and Risk Evaluation (Part Two of Three)

    As the recent joint DOJ/SEC FCPA Resource Guide makes clear, for a company to earn meaningful credit with the government in an anti-corruption investigation, its compliance program must not only be robust, but also periodically reviewed and improved.  However, neither the Guide nor any other government resource provides specific direction on the appropriate frequency or depth of reviews.  In lieu of specific authority, companies typically turn to best practices and industry norms when deciding how frequently to review and update their compliance programs.  Best practices, though, can be hard to discern and difficult to apply.  Recognizing the challenge and importance of actionable information on this topic, The FCPA Report is publishing a series of three articles on best practices for reviewing anti-corruption compliance programs.  This article, the second in the series, discusses the chief obstacles companies face when conducting a review; provides strategies for creating management buy-in; describes four steps a company should take when preparing for a review; and outlines what risk areas the review should address.  The first article in the series discussed the importance of regular anti-corruption compliance reviews; detailed the government’s expectations for reviews; outlined how to create an efficient and effective compliance review schedule; and specified how companies should staff their compliance reviews.  See “Best Practices for Reviewing Anti-Corruption Compliance Programs: Government Expectations, Scheduling and Staffing (Part One of Three),” The FCPA Report, Vol. 2, No. 16 (Aug. 7, 2013).  The third and final article in the series will provide strategies for conducting the actual review; discuss what a company should do post-review; outline issues surrounding documentation of the review; and examine how FCPA settlement agreements affect reviews. 

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  • From Vol. 2 No.16 (Aug. 7, 2013)

    Best Practices for Reviewing Anti-Corruption Compliance Programs: Government Expectations, Scheduling and Staffing (Part One of Three)

    The recent joint DOJ/SEC Guidance reflects the government’s view that, in order to be effective, an FCPA compliance program must be periodically reviewed and improved.  However, neither the Guidance nor any other authority specifies how frequently such reviews should be conducted, how expansive such reviews should be or what steps companies should take to improve discovered shortcomings.  In the absence of concrete and authoritative direction on this topic, how should companies approach the ambiguous but critical task of reviewing and improving their compliance programs?  This article is the first in a three-part series addressing this question.  Specifically, this article discusses the importance of regular anti-corruption compliance reviews; details the government’s expectations about reviews; outlines how to create an efficient and effective compliance review schedule; and specifies how companies should staff their compliance reviews.  The second installment will discuss the biggest challenges companies face when conducting a review; what a company should consider when preparing for a review; how a company should prepare to perform a review; and what areas the review should address.  The third and final article in the series will provide strategies for conducting the actual review; discuss what a company should do post-review; outline issues surrounding documentation of the review; and examine how FCPA settlement agreements affect reviews.  See also “Insight from Top Companies and Practitioners on How They Are Addressing Current Anti-Corruption Issues, from Self-Reporting to Risk Assessments to Training,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013).

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