The Anti-Corruption Report

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

Recent Issue Headlines

Vol. 2, No. 7 (Apr. 3, 2013) Print IssuePrint This Issue

  • Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two)

    Hiring an outstanding chief compliance officer (CCO) is necessary but not sufficient for effective FCPA compliance.  To be effective, the right CCO needs the right tools – actual authority credibly conveyed by an appropriate title; access to the board and management; a workable reporting structure; sufficient budget; quality people; up-to-date technology; and a receptive culture.  Few companies would dispute the notion that a CCO needs the foregoing tools, among others, to do his or her job well.  But fewer still have a coherent and consistent approach to translating these concepts into practice.  How, for example, can a company structure reporting lines to maximize the effectiveness of its CCO and minimize the likelihood of FCPA violations?  What level of board access is appropriate for the CCO, and how can a company facilitate such access?  This article addresses these and similar questions.  In doing so, this article aims to help companies empower their CCOs and thereby minimize the probability and magnitude of FCPA and other compliance violations.  Many of the recommendations in this article do not involve increased spending, but rather a more prudent allocation of resources, better informed structuring and refocused culture.  More effective FCPA compliance is not just about spending more money; it’s about thinking differently, confronting reality and giving the right people the right tools.

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  • A Guide to Anti-Bribery Issue Spotting in China: Enforcement Trends, Third-Party Risks, Gift Giving, Travel Expenses, Foreign Officials and Due Diligence

    Recent news reports, such as the downfall of Bo Xilai, as well as reports of watchdog groups such as Transparency International, emphasize the heightened corruption risk that companies doing business in China face.  Not only does the Chinese culture value gift giving and relationship building, but, because of the government structure, a large proportion of employees there are foreign officials.  This increases the range of business activity that may give rise to FCPA liability.  Plus, China’s top leaders have been paying more attention to official corruption and have taken steps to strengthen their own laws against bribery and step up enforcement.  A recent webinar focused on the topic of Chinese corruption risk.  The panelists, partners at Gibson Dunn & Crutcher LLP and Herbert Smith Freehills LLP, discussed: the current state of anti-corruption law and enforcement in China; China-specific anti-corruption issues; FCPA enforcement actions stemming from bribery in China; and ways to mitigate the FCPA risks of doing business there.  This article summarizes the key takeaways from the webinar, focusing in particular on the lessons for companies that do business in China and lawyers that represent such companies.

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  • FCPA Training That Works: An Interview with Joseph Spinelli, Global Leader of Navigant’s Anti-Bribery & Corruption-FCPA Segment

    Designing and implementing a workable and customized FCPA training program is a foundational challenge in anti-corruption compliance for all companies doing business internationally.  As the FCPA Resource Guide says, “Compliance policies cannot work unless effectively communicated throughout a company.”  As a practical matter, training is the primary channel through which companies communicate their culture of FCPA compliance and specific compliance strategies.  Done right, training is one of the most effective bulwarks against FCPA violations.  But how can companies do training right?  To answer this question, The FCPA Report is undertaking a series of interviews with experts that approach the same topic (FCPA training) from different disciplines.  This article – the first installment in that series – includes our interview with Joseph Spinelli, a Managing Director in Navigant’s Global Investigations and Compliance practice and the global leader of Navigant’s Anti-Bribery & Corruption-FCPA segment.  Spinelli has more than 30 years of forensic experience, founded the forensic practice at a Big Four accounting firm and has served in various monitorships.  See “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part Three of Three),” The FCPA Report, Vol. 2, No. 6 (Mar. 20, 2013).  Spinelli shared his views not only on how to make a training program effective in preventing bribery, but also on how to ensure the company receives maximum credit when the government is evaluating its training program.  He addressed, among other things: training third parties; which employees should be trained; specialized training for different industries; the relative merits of different technologies for training employees; training challenges, including facilitation payments; and effective training methods.

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  • Lessons from the Latest Anti-Corruption Developments in the U.K., Brazil and China

    A single-minded focus on the FCPA with a passing nod to other countries’ regulatory regimes is not enough to make a company’s compliance program first-in-class today; multinational companies must fully address an array of global anti-bribery laws in an environment of growing global enforcement and increased prosecutorial vigor.  Regulatory regimes in other countries may not be consistent with existing company compliance programs.  In a recent webinar, partners from Hogan Lovells shared their insight and experience on navigating the latest global developments in anti-bribery and corruption regulation and enforcement.  This article conveys the highlights from the discussion, focusing primarily on the anti-corruption regimes in China, the U.K. and Brazil.

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  • How to Maintain an Anti-Corruption Reporting Hotline That Complies with Data Privacy Laws

    The November 2012 FCPA Resource Guide emphasized that a confidential reporting hotline is one of the hallmarks of an effective FCPA compliance program.  However, operating such a hotline requires a company to collect personal data about employees.  Accordingly, maintaining a reporting hotline may conflict with applicable data privacy laws, particularly in non-U.S. jurisdictions.  How can companies both abide by data privacy laws and maintain a reporting hotline, consistent with best compliance practices?  This article addresses this question and, in doing so, offers guidance on setting up a hotline; processing and investigating complaints; and post-investigation procedures.

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  • SEC’s FCPA Unit Chief and Top Practitioners Address the Role of Financial Controls in FCPA Compliance Policies, Internal Investigations, Self-Reporting and Related Topics

    In a recent panel discussion held at the New York City Bar, Kara Brockmeyer, Chief of the SEC’s FCPA Unit, and Mark Schonfeld, a partner at Gibson Dunn & Crutcher LLP, discussed the SEC’s role in civil FCPA enforcement from a private and public perspective.  The panel was moderated by Wayne Carlin, a partner at Wachtell, Lipton, Rosen & Katz.  The three experts shared useful insights regarding managing the costs of FCPA investigations, creating strong compliance programs, negotiating with the SEC and deciding whether to voluntarily disclose a violation to the government.

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  • Troutman Sanders Adds FCPA and Corporate Compliance Partner Sharie A. Brown in D.C. Office

    On April 1, 2013, Troutman Sanders LLP announced the expansion of its White Collar and Government Investigations practice with the addition of partner Sharie A. Brown, who will be resident in the firm’s Washington, D.C. office.

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  • Fish & Richardson Adds Litigator Thomas C. Frongillo as a Principal in its Commercial Litigation Group

    On March 20, 2013, Fish & Richardson announced that Thomas C. Frongillo, previously head of the Litigation Practice at Weil, Gotshal & Manges LLP’s Boston office and Co-Chair of the firm’s national White Collar Defense & Investigations Practice Group, has joined as a Principal in Fish’s Commercial Litigation Group.

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