The Anti-Corruption Report

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

Articles By Topic

By Topic: Continuous Monitoring

  • From Vol. 7 No.13 (Jun. 27, 2018)

    Using Data Analytics to Boost Compliance Program Effectiveness

    Data analytics is becoming a critical component of FCPA compliance. Unfortunately, like other fields that involve math, many lawyers find it beyond their skill set, according to Richard W. Grime, a partner at Gibson Dunn, while moderating a recent PLI program on maximizing the use of data in compliance programs. However, lawyers must become familiar and comfortable with analyzing data if they are going to be doing any FCPA compliance work, he said. The speakers on the panel also included Hui Chen, an independent ethics and compliance consultant and former DOJ compliance counsel; Sulaksh R. Shah, a partner at PwC; and Zachary N. Coseglia, assistant general counsel and head of global compliance monitoring and analytics at Pfizer Inc. 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. 7 No.10 (May 16, 2018)

    A Quick Guide to Getting Started With Compliance Program Metrics

    In recent years, the SEC and DOJ have made it clear that they want to see hard data to support a company’s claim that its compliance program is robust and functioning effectively. But gathering and analyzing compliance program data can be a daunting task for many companies. In this quick guide, we provide step-by-step instructions on how companies can get started on the process. For a full discussion of this process 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. 7 No.4 (Feb. 21, 2018)

    Real Risks, Artificial Intelligence: The Next Wave of Anti-Corruption Compliance?

    The ability to understand the risks and monitor the operations of diverse business lines, remote locations and high-risk countries is the true test of an effective compliance program. As the number of transactions increase, and data from operating and financial technology systems proliferate, artificial intelligence and machine learning offer compliance officers a means to keep pace. In a guest article, EY executives discuss how to best use these evolving technologies to manage a compliance program. See “Hui Chen Suggests Companies Focus on Ethics and Metrics to Move Beyond a Rules-Based Approach to Compliance” (Nov. 15, 2017).

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  • From Vol. 6 No.22 (Nov. 15, 2017)

    Hui Chen Suggests Companies Focus on Ethics and Metrics to Move Beyond a Rules-Based Approach to Compliance

    As much as corporations may seek a list of dos and don’ts from government regulators in the anti-corruption space, taking such a formulaic, rules-based approach to compliance is missing the mark, warned former DOJ compliance counsel Hui Chen during a presentation at Converge 17. Instead, companies should avoid treating their compliance programs like a checklist and focus on ethics, metrics and measurable results, she advised. Metrics should not merely be used to demonstrate the number of policies a corporation has on hand or to tick off the amount of training conducted, Chen said. Rather, data should be generated and evaluated to demonstrate how the “tone at the top” translates to actual conduct at the upper echelons and then trickles down to the rank and file. 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.18 (Sep. 20, 2017)

    Measuring Compliance: Gathering and Analyzing Data (Part Four of Four)

    Knowing what data to collect about a compliance program is an obvious and necessary first step to measuring its effectiveness, but figuring out the logistics of data collection and analysis is just as important. In the first article in this four-part series we discussed how to begin generating compliance metrics. The second article laid out seven areas of compliance a company can measure and the third part discussed the challenges of measuring compliance program quality. This final article discusses how to gather and analyze data and use it to continually improve a compliance program. 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.17 (Sep. 6, 2017)

    Measuring Compliance: How to Measure Quality (Part Three of Four)

    One of the biggest challenges companies face when evaluating a compliance program is finding ways to measure quality and effectiveness. Often, companies focus on quantitative measures which can be easy to collect but lacking in insight. Many such metrics, like the number of trainings or dollars spent on compliance, offer little information on how effective a program is at achieving its goals. Because quality can be so challenging to measure, many companies just do not do it, which can leave them at risk. This article, the third in a four-part series, provides specific methods companies can use to measure the quality of their program and the strength of their compliance culture. 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.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.15 (Aug. 2, 2017)

    Measuring Compliance: Getting Started (Part One of Four)

    While most companies have established some sort of compliance program, measuring its effectiveness can be challenging. Collecting data is clearly an important part of that process, but questions remain as to what data to collect, how to collect it and how to analyze it. “When companies think about data, they automatically assume it is something very sophisticated, but it isn’t – it’s just asking how many, how much and why?” Hui Chen, former compliance counsel to the DOJ’s Fraud Section, told The Anti-Corruption Report. In this first article in a multi-part series, we discuss why companies should be measuring their compliance programs and the steps they should take to get started. The following articles will suggest some specific areas of compliance a company could consider tracking and measuring, and discuss the challenges of qualitatively measuring compliance, and gathering and analyzing data. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program (Part One of Two)” (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 6 No.15 (Aug. 2, 2017)

    LBI and Its Monitor Discuss Getting the Most Out of a Monitorship

    FCPA settlements often include appointment of a monitor to ensure that the defendant takes appropriate steps to remedy its compliance failures and improve its policies, procedures and controls. At the SCCE’s European Compliance and Ethics Institute, Thomas Topolski, then-president of Louis Berger International (LBI), a company that is currently subject to a monitorship, and the company’s FCPA monitor, Eric R. Feldman, a senior vice president and managing director of Affiliated Monitors, Inc., discussed the monitorship process, the monitor’s assessment methodology and the lessons to be learned from monitorships. See “Serious Consequences for Former Louis Berger Executives Highlight Increasing Individual FCPA Risk” (Jul. 27, 2016).

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  • From Vol. 6 No.7 (Apr. 12, 2017)

    Kroll/Ethisphere Report Highlights Concerns About Reputational Risk and Post-Onboarding Monitoring of Third Parties

    A whopping 92% of compliance professionals expect their organizations’ bribery and corruption risks to either increase or remain the same in 2017, according to a survey conducted by Kroll and the Ethisphere Institute, and around half said their compliance budget is lacking. Respondents cited third-party relationships and global regulatory enforcement as enhancing the risk, and expressed concerns about the impact of a bribery or corruption violation on reputation. We analyze the survey results with input from Kroll experts. See also “2016 Brought Heavy Enforcement, a Flurry of Settlements and Disruption to the FCPA Space” (Mar. 1, 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. 6 No.4 (Mar. 1, 2017)

    A Guide to Enforcing Audit Rights, the Next Third-Party Frontier: Forestalling Problems, Documenting the Audit and Responding Appropriately (Part Three of Three)

    Although third-party audit rights are only effective if the company designs and implements a solid plan for exercising them on a periodic basis, many companies still struggle with enforcing those rights and how, once an audit cycle is concluded, to respond to information the audit uncovered. The FCPA Report’s Guide to Enforcing Audit Rights provides practical guidance for every step of the audit-right enforcement process, from drafting a policy to remediation. This, the third article in our three-part series, discusses how companies can address common auditing challenges, how they should document the audit process and how they might respond to an audit’s results. The first article in the series discussed, in detail, drafting the company’s policy and outlined six steps a company should take prior to conducting an onsite audit of a third party. The second laid out a plan for conducting the actual onsite audit. See also “When and How Should Companies Include Audit Rights in Third-Party Contracts? (Part One of Three)” (Jul. 23, 2014); Part Two (Aug. 6, 2014); and Part Three (Aug. 20, 2014).

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  • From Vol. 5 No.24 (Dec. 7, 2016)

    A Dish of Cream? Some Caviare? Or Strassburg Pie? How to Properly Respond to Bribery Requests  

    “Before a Cat will condescend to treat you as a trusted friend, some little token of esteem is needed, like a dish of cream,” T.S. Eliot wrote in his Book of Practical Cats. Ensuring that an employee properly responds to a bribe request is no easy task because providing the soliciting individual with a “little token of esteem” may be the path of least resistance for employees. In a guest article, Hogan Lovells attorneys Peter Spivack and Rafael Ribeiro discuss how a company can strengthen all aspects of its compliance program to minimize the risk that bribes will be requested and ensure that their employees respond appropriately when they are. For further insights from Hogan Lovells, see “How Companies Can Use Enhanced Auditing Techniques to Address the Government’s Increasing Focus on Internal Controls” (May 13, 2015).

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  • From Vol. 5 No.23 (Nov. 23, 2016)

    Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part Two of Two)

    The International Organisation for Standardisation’s new standard for anti-bribery management systems – ISO 37001 – provides a useful frame of reference for companies developing management tools such as key performance indicators (KPIs) and tracking metrics to address anti-corruption compliance. In the first part of this guest article series, Matthew Herrington, a partner at Steptoe & Johnson, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Leslie Benton, vice president of advocacy and stakeholder engagement of CREATE.org, explained how to use ISO 37001 to develop management tools such as KPIs and tracking metrics to address anti-corruption compliance, and provided an example of a KPI strategy mapped to the training requirement. In this second part, they examine additional areas of ISO 37001 that naturally lend themselves to KPI and/or metrics. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One of Two)” (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.22 (Nov. 9, 2016)

    Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two) 

    The International Organisation for Standardisation, a worldwide federation of national standards bodies, recently released a standard for anti-bribery management systems – ISO 37001. The new standard sets forth requirements for such a program, as well as guidance for establishing, implementing, maintaining, reviewing and improving it. It is a fairly detailed document spanning a range of topics such as employment procedures, third-party due diligence, risk assessments, financial and non-financial controls, and internal audits. In a guest article, Matthew Herrington, a partner at Steptoe & Johnson, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Leslie Benton, vice president of advocacy and stakeholder engagement of CREATE.org, discuss how companies can use the ISO to develop management tools such as key performance indicators (KPIs) and tracking metrics to address anti-corruption compliance. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One (Feb. 24, 2016); Part Two (Mar. 9, 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.19 (Sep. 28, 2016)

    Experts from PwC Discuss Compliance Audits and Common Missteps

    Compliance auditing is a critical component of an effective anti-corruption compliance program, recognized both by the U.S. Sentencing Guidelines and the government’s FCPA Resource Guide. A recent Strafford program, “FCPA Compliance Audits: Lessons From Recent Investigations,” discussed regulators’ expectations regarding compliance auditing, the process for scoping and conducting a compliance audit and common audit pitfalls. David A. Wilson, a partner at Thompson Hine, led the discussion, which featured Sulaksh Shah, a partner at PwC, and James Gargas, a director at that firm. This article discusses some of the key takeaways from the program. See also our interview series, “Best Practices for Performing Compliance Program Assessments: Pamela Passman of CREATe.org” (Apr. 6, 2016); “Susan Markel of AlixPartners” (Feb. 24, 2016); and “Jeffrey Kaplan of Kaplan & Walker” (Nov. 4, 2015).

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  • From Vol. 5 No.18 (Sep. 14, 2016)

    TI Finds That Companies in Emerging Markets Need to Improve Transparency

    A recent survey by international anti-corruption watchdog Transparency International found that companies based in emerging markets are less transparent about their anti-corruption programs than large global companies. The study examined publicly available information from 100 emerging market companies regarding anti-corruption programs, organizational transparency and country-specific reporting of tax and financial information. This article summarizes the key takeaways from the study and TI’s recommendations. See “Ten Steps A Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part One of Two)” (Jun. 24, 2015); Part Two (Jul. 8, 2015).

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  • From Vol. 5 No.14 (Jul. 13, 2016)

    Treating Like Cases Alike – A Tool for Quantifying Compliance Issue Severity 

    As many practitioners in the compliance community will attest, a significant number of FCPA violations can come across their desk. How can a company ensure that possible FCPA violations are acted on consistently and equitably? In a guest article, Matt Herrington and Stephanie Wang of Steptoe & Johnson propose an analytical tool that allows companies to distill allegations regarding FCPA violations into certain quantifiable factors, allowing compliance officers to create a methodological approach to what investigative response should be taken in any given situation. Such an analysis makes it easier to identify similar allegations and act consistently and, in the event that the government ends up being involved, this severity analysis can help justify the actions taken by the company. Herrington and Wang demonstrate the use of their proposed tool with five hypotheticals and illustrative graphs. See also “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.9 (May 4, 2016)

    Using Data Analytics to Meet the Government’s Anti-Corruption Compliance Expectations

    The SEC and DOJ’s FCPA Resource Guide outlines ten “Hallmarks of an Effective Compliance Program” that provide prescriptive guidance about what the DOJ and the SEC consider to be critical components of an effective compliance program. But, what are compliance officers and chief audit executives to do in response to this regulatory “perfect world” of compliance? With limited resources and competing priorities in the real world, where should compliance officers and chief audit executives focus their efforts to meet this guidance? The answer is data analytics, Grant Thornton’s Bill Olsen, Dan Reynolds and Alex Koltsov say in a guest article. They argue that when used properly, data analytics is proactive, risk-based, scalable, repeatable and defensible against after-the-fact scrutiny. The article focuses on how two regulatory program “hallmarks,” ABAC risk assessment and continuous improvement and monitoring, can be addressed by data analytics. See also “Ernst & Young Experts Reveal How Forensic Data Analytics Can Transform Anti-Corruption Compliance” (Apr. 30, 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.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)

    Excessive Power for Junior Employees and Lavish Trips for Foreign Officials Lead to $28 Million PTC Settlement

    PTC Inc., a Massachusetts-based software company, will pay more than $28 million to settle parallel civil and criminal FCPA charges. Like FLIR and SciClone, PTC’s corruption troubles stemmed from the provision of improper travel, gifts and entertainment to government officials. By inflating the fees paid to third parties for their services, junior employees of PTC’s China-based subsidiaries created pools of money that were then used to fund sightseeing adventures. Officials visited Honolulu, San Diego, New York and Las Vegas and enjoyed guided tours, golfing and other leisure activities. The SEC also announced its first DPA with an individual in an FCPA case, agreeing to defer prosecution against Yu Kai Yuan, a former employee of a PTC subsidiary, because of the significant cooperation he provided during the SEC investigation of the company. The voluntary disclosure calculus and how to handle relationships with lobbyists were among the key compliance concerns implicated in the PTC matter. See “CEO of LAN Airlines Settles FCPA Charges With SEC Over Union Dispute” (Feb. 10, 2016).

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  • From Vol. 5 No.3 (Feb. 10, 2016)

    Kevin Abikoff of Hughes Hubbard Discusses the Benefits and Risks of African Local Content Laws

    Foreign investment in a country has historically been a double-edged sword. While investment may allow elites to prosper, often the benefits do not flow to the general population. In response to this pattern, many countries have adopted “local content laws” that require a certain level of reinvestment by foreign companies into the countries where they operate. While these programs can have clear benefits in terms of technology transfer and local ownership, they can also be a source of corruption risk, as Japanese conglomerate Hitachi learned in 2015 when it was fined $19 million for corruption related to its local partner. The FCPA Report discussed how to navigate these programs when doing business in African countries, where they are prevalent, with Hughes Hubbard partner Kevin Abikoff. He explained why local content laws are beneficial but also how they can lead to corruption, and what companies can do to avoid problems when working with local partners. See “Lack of Training and Due Diligence Leads to $19 Million Penalty for Hitachi” (Oct. 7, 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.18 (Sep. 9, 2015)

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

    Chief compliance officers are regularly being pressured to do more with less.  Many are operating in businesses that are rapidly becoming more complex, both in terms of their global reach and in their use of sophisticated information technology, PwC partner Jerry Stone told The FCPA Report.  At the same time, a CCO faces increasing expectations from global regulators, the board of directors and the C-Suite, all while trying to keep compliance costs low.  To address this myriad of concerns, many companies are outsourcing some or all of their compliance functions to third-party vendors.  In this two-part article series, The FCPA Report examines the outsourcing trend and discusses the benefits and risks of outsourcing various compliance functions.  The first article discussed why a company might outsource some or all of its compliance functions and explored the associated benefits and risks.  This second article looks at how companies are outsourcing various compliance functions and details three steps a company should take before selecting a vendor.  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. 4 No.14 (Jul. 8, 2015)

    Ten Steps a Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part Two of Two)

    Expanding into new markets provides companies with unparalleled opportunities for growth, but establishing operations in a new location requires a company to navigate numerous corruption landmines.  The FCPA Report’s ten-step guide to mitigating corruption risk when entering a new market is designed to help companies create and implement an effective market-entry strategy.  This second article in the series discusses the final six steps: addressing logistical challenges; making disclosures to local governments; creating an integration plan; establishing a compliance program; implementing internal controls; and monitoring and reviewing that program.  The first article in the series addressed the first four steps, including how a company can build a risk profile for the country; the various methods companies can use to enter new markets; and how to mitigate the risk from local partners and other third parties.  See also “Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).

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  • From Vol. 4 No.1 (Jan. 7, 2015)

    Guide to Creating an Effective Compliance-Based Employee Incentive Program (Part One of Two)

    Companies with established and nascent FCPA programs alike are looking for ways to further enhance a compliant culture for their employees.  The creation of an effective compliance-based employee incentive program that both encourages compliant behavior and demonstrates the company’s compliance commitment is a “cutting edge issue” with which more and more companies are grappling, Lucinda Low, a partner at Steptoe and Johnson, told The FCPA Report.  To assist companies as they consider and develop such a program, The FCPA Report is publishing a best-practices guide to creating and implementing an efficient and effective incentive program.  In this, the first part of the guide, we discuss the risks and benefits of incentivizing compliance, outline three steps a company should take before creating an incentive program, and discuss how a company should measure compliance.  The second article in the series will discuss how companies can review the compliance-related activities of its senior and middle management and will provide suggestions for carrots and sticks a company can use to encourage compliant behavior.  See also “When, Why and How Should Companies Discipline Employees for FCPA Violations?,” The FCPA Report, Vol. 1, No. 8 (Sep. 19, 2012).

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  • From Vol. 3 No.21 (Oct. 22, 2014)

    Qui Facit Per Alium, Facit Per Se: Best Practices for Third-Party Due Diligence

    Intermediaries are a critical part of most business operations, and, as recent DOJ and SEC FCPA enforcement actions – nearly all of which involved intermediaries – demonstrate, they pose significant corruption risk.  In a guest article, Dechert partners Mauricio A. España and Hector Gonzalez detail best practices for mitigating and managing third-party corruption risk before and after an intermediary is hired.  See also The FCPA Report’s two-part series on representations in third-party contracts, “Nine Clauses to Include (Part One of Two),” The FCPA Report, Vol. 3, No. 13 (Jun. 25, 2014); “Clauses for High-Risk Situations and Enforcement Strategies (Part Two of Two),” Vol. 3, No. 14 (Jul. 9, 2014).

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  • From Vol. 3 No.12 (Jun. 11, 2014)

    FCPA Compliance Strategies for Hedge Funds and Private Equity Firms

    Given today's investment environment, with an unabated government focus on the private fund industry and significant opportunities developing in emerging markets, private equity fund managers are hard-pressed to ignore corruption risks in their businesses.  Molo Lamken, together with The FCPA Report and The Hedge Fund Law Report, recently hosted a panel that addressed hot topics in FCPA enforcement and compliance for this industry.  The panelists, including outside and in-house counsel, discussed, among other things: the current FCPA enforcement climate for private equity and financial services firms; strategies for mitigating the risk associated with third parties and service providers in high-risk countries; handling facilitation payments; self-reporting violations; and the importance of continuously monitoring compliance programs.  See “Corruption Considerations for Private Fund Managers: An Interview with Molo Lamken Partner Justin Shur,” The FCPA Report, Vol. 3, No. 11 (May 28, 2014).

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  • From Vol. 2 No.22 (Nov. 6, 2013)

    Five Lessons from 2013 FCPA Enforcement: Transaction Monitoring, International Cooperation, Documenting Hiring Decisions, Risk Assessments and Individual Prosecutions

    It has been a busy year for FCPA enforcement – the government has prosecuted individuals for violating the FCPA, used aggressive criminal investigation techniques to build cases and continued to increase its cooperation with foreign governments.  In a recent webinar hosted by The Network, Tom Fox shared his insight into recent FCPA trends and provided tips for FCPA compliance arising from those trends.  See also “Seven Key Trends That Are Changing the FCPA Enforcement and Compliance Landscape,” The FCPA Report, Vol. 2, No. 14 (Jul. 10. 2013).

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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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