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    Apr. 24, 2024

Trouble in Paradise: Anti-Corruption Investigations, Enforcement and Developments in the Philippines

Journalist and historian Philip Bowring has described the Philippines as a jigsaw state: a country of fractured geography and complex identity. Something similar may be said of its anti-corruption landscape. The Philippines’ economic growth brings the potential for social development and foreign investment, with the U.S. emerging as a key economic and security partner. At the same time, corruption has hindered its economic and social progress. In a guest article, Hogan Lovells partner Nick Williams, along with counsel Khushaal Ved and senior associate Han Liang Lie, as well as Deloitte Philippines forensic leader Neal Ysart, discuss how nuance, local compliance, commercial know-how and experience with the local regulatory developments will be the maps for this maze. See “In the Crosshairs or at a Crossroads? Indonesia’s Anti-Corruption Inflection Point” (Nov. 8, 2023).

Trafigura Settlement Forms Part of DOJ’s Years-Long Oil Scheme Probe

Continuing, and perhaps completing, a DOJ sweep of the commodities trading industry, Trafigura Beheer BV, a multinational commodities trader, entered into a settlement with the DOJ in March 2024 over bribery activities spanning 2003 to 2014. The company acknowledged that former employees and agents provided bribes to officials tied to Brazilian state-owned oil company Petrobras and will pay a total of about $127 million. The Anti-Corruption Report spoke with experts in the field about the sweep, why conduct in Angola may have been excluded from the settlement and how Trafigura’s slow remediation affected the settlement. See “Brazil’s Anti-Corruption Setbacks Highlight Need for Effective Company Compliance Programs” (Nov. 8, 2023).

Latest SEC Sweep of Off‑Channel Communications Both Befuddles and Turns Up the Heat on Investment Advisers

In its ongoing sweep on electronic communications, the SEC’s Division of Enforcement is increasingly scrutinizing recordkeeping obligations under the Investment Advisers Act of 1940. The regulator recently announced settlement orders with total penalties exceeding $81 million against five broker-dealers, seven dually registered broker-dealers and investment advisers, and four affiliated investment advisers. The charges, according to the SEC’s February 9, 2024, press release, were “for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications.” This article summarizes the key features of the orders and provides insights from industry experts on where the enforcement sweep fits in the context of previous efforts to regulate off-channel communications, the risk that excessive enforcement efforts will dilute the SEC’s message, the questionable impact of self-reporting and how firms should proceed next. See “SEC Charges 11 More Wall Street Firms With Widespread Records Failures” (Sep. 13, 2023).

Central Asia Steers Around Sanctioned Neighbors While Honing Corruption Rules

The Central Asian nations of Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan and Turkmenistan attract foreign business both because of their burgeoning consumer markets and their rich mineral reserves. Adding to the region’s fascination is its strategic location, lending it geopolitical and logistical importance as well as complexity. A recent TRACE webinar hosted by Dentons explored the region’s global compliance landscape and highlighted areas of complexity foreign investors in the region should keep in mind to stay out of trouble. This article distills some insights from the webinar. See “Measures Against Russia Pose Serious Compliance Challenges” (Sep. 27, 2023).

China and India Pose Compliance Challenges With Legal Shifts

China and India are two extremely important markets for large global companies, but they also are two of the riskiest when it comes to bribery and corruption. Recent shifts in the legal environments in both countries further complicate the scene and require companies to be even more vigilant. In a recent firm webinar, Gibson Dunn partners Kelly Austin and Patrick Doris and counsels Ning Ning and Karthik Ashwin Thiagarajan shared on-the-ground insights to help companies assess and mitigate their biggest risks in these important markets. See “FCPA Cases in Asia Continue to Focus on Non-Asia-Based Companies” (Mar. 13, 2024).

Senior White Collar Partner Joins Ashurst in London

Ashurst has added white-collar crime and investigations partner Judith Seddon to its Disputes & Investigations practice. Arriving from Dechert, Seddon will be based in the firm’s London office. For insights from Seddon, see “The End of the (Third Party Management) World As We Know It? (But It Might Be Fine)” (May 10, 2023); and “A Comparative Review of the SFO’s Internal Guidance on DPAs” (Dec. 16, 2020).

Cohen Milstein Adds Former Head of CFTC Whistleblower Office

Cohen Milstein Sellers & Toll has announced the addition of Christina McGlosson as special counsel: Dodd-Frank whistleblower practice in Washington, D.C. She arrives from the U.S. Commodity Futures Trading Commission. See our two-part series on the DOJ’s intention to launch a whistleblower program: “What Will It Look Like?” (Mar. 27, 2024); and “What Does It Mean for Whistleblowers?” (Apr. 10, 2024).

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Spotlight on Trailblazing Women

To mark International Women’s Day 2024, women editors and reporters of ION Analytics interviewed outstanding women in the industries and jurisdictions we cover. In this part, Jill Abitbol, Managing Editor of the Cybersecurity Law Report and Anti-Corruption Report, features notable women in data privacy, cybersecurity, white collar defense, compliance and anti-corruption law, including Christina Montgomery, Leslie Shanklin, Palmina Fava, Alexandra Ross and Lucinda Low. Enjoy reading their inspiring remarks here.