The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

Articles By Topic

By Topic: Training

  • 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).

    Read Full Article …
  • From Vol. 5 No.12 (Jun. 15, 2016)

    Training Insights From In-House Experts (Part Two of Two)

    Training employees on corruption and how to avoid it is a necessary part of an effective compliance program – this is uncontroversial. But deciding what to teach, and how exactly to teach it, is a knottier issue for companies. Should the focus be on explaining the laws or a company’s policies? What are the best approaches to helping employees understand what is expected of them? This second part in The FCPA Report’s series explores how experts from companies such as Walmart International, The Hershey Company, Tyco, Weatherford and Barrick Gold design their training curricula and the pedagogical tools they use to get their message across. The first article in the series discussed which employees should be targeted for training and how companies can ensure that employees complete their training. See also “NAVEX Global Identifies Key Hurdles to Effective Compliance Training and Offers Tips to Overcome Them” (Sep. 9, 2015).

    Read Full Article …
  • From Vol. 5 No.11 (Jun. 1, 2016)

    Training Insights From In-House Experts (Part One of Two)

    When it comes to anti-corruption training, law firms and vendors provide companies with numerous options – but which models really work? The FCPA Report spoke with a number of in-house counsel with responsibility for, and oversight of, anti-corruption programs at major companies such as Walmart International, The Hershey Company, Tyco, Weatherford and Barrick Gold. They offered insights into the methods and techniques that have been successful in the field, considering their diversified work forces and sometimes-limited budgets. This first article in our two-part series examines who needs to be trained when and how companies can make sure their employees are getting properly trained. The second article will discuss training curricula and the pedagogical tools the in-house experts have found to be successful. See “Twenty Tips for Creating an Effective Training Program” (Oct. 8, 2014).

    Read Full Article …
  • From Vol. 5 No.7 (Apr. 6, 2016)

    Compliance Professionals Share Insights on Revitalizing Codes of Conduct

    A company’s code of conduct is the bedrock of a strong compliance program but it cannot be set in stone. Companies need to reevaluate and periodically update their codes to ensure their relevance. A recent panel discussion at Ethisphere’s 8th Annual Global Ethics Summit looked at the experiences of three large corporations in updating and upgrading their codes of conduct, focusing on the key issues they faced in the process. The program was moderated by Ed Petry, vice president at NAVEX Global, and featured Megan Belcher, vice president and chief counsel at ConAgra Foods, Bettye J. Hill, vice president and chief ethics and compliance officer at Oshkosh Corporation, and Peter Loftspring, assistant general counsel and chief compliance manager at Black & Veatch Corporation. This article summarizes the key takeaways from the program. See also “Customizing Codes of Conduct to Spread the Message of Compliance” (Mar. 4, 2015); and “Six Steps to Revitalize the Company Compliance Code” (Aug. 20, 2014).

    Read Full Article …
  • From Vol. 5 No.6 (Mar. 23, 2016)

    Twenty Ways a Company Can Use Behavioral Psychology to Improve Compliance

    Compliance resources are never unlimited, but there are ways for compliance personnel to improve the effectiveness of compliance messages at minimal expense. Behavioral psychology can be used to leverage compliance resources and to more effectively encourage people to do the right thing in their jobs, Virginia MacSuibhne, vice president and general counsel of Ventana Medical Systems, explained during a recent Clear Law Institute program. MacSuibhne presented 20 inexpensive, but effective, communication tools that can be used to assure that a compliance message hits home. See also Five Practical Steps for Creating a Compliant Tone in the Middle (Dec. 16, 2015).

    Read Full Article …
  • From Vol. 4 No.23 (Nov. 4, 2015)

    Creating a Values-Based Compliance Code and Recruiting Compliance Champions to Spread the Message

    How can a company create a compliance policy that reflects its core business values?  Once that policy is created, how can a company spread the compliance message effectively across multiple nationalities, languages and countries?  How can it encourage employees to comply with the updated policy?  Accomplishing those goals is no easy task, Dr. Marsha Ershaghi Hames, practice leader in LRN’s education, culture and leadership advisory services department, told The FCPA Report during a recent interview.  Ershaghi Hames discussed how a company should evaluate its current code, how it can spread the message amongst employees, how it can use regional compliance champions to strengthen its messaging and more.  See also “How to Build a Compliant Culture and Stronger Company from the ‘Middle’ (Part One of Three),” The FCPA Report, Vol. 4, No. 7 (Apr. 1, 2015); Part Two, Vol. 4, No. 8 (Apr. 15, 2015); Part Three, Vol. 4, No. 9 (Apr. 29, 2015).

    Read Full Article …
  • From Vol. 4 No.20 (Oct. 7, 2015)

    Eight Ways Compliance Officers Can Build Relationships with the “Middle”

    The much-talked-about “tone at the top” is often cited as crucial for an effective compliance program.  Ensuring that that tone is conveyed throughout the organization, however, is equally important.  Getting the compliance message across typically falls on an organization’s middle managers.  A recent Society of Corporate Compliance & Ethics program featuring Charlotte Nafziger, director of compliance of T-System, Inc., explored the importance of middle management in developing an effective ethics and compliance program and the ways compliance officers can engage middle management in doing so.  See also The FCPA Report’s three-part series, “How to Build a Compliant Culture and Stronger Company from the ‘Middle,’” Part One (Apr. 1, 2015); Part Two (Apr. 15, 2015); and Part Three (Apr. 29, 2015).  

    Read Full Article …
  • From Vol. 4 No.18 (Sep. 9, 2015)

    NAVEX Global Identifies Key Hurdles to Effective Compliance Training and Offers Tips to Overcome Them

    While compliance personnel think ethical culture is a top priority, their efforts are often hampered by employee cynicism and fractured budgets, according to a new NAVEX Global survey on ethics and compliance training.  The survey’s 677 participants described the current state of their ethics and compliance training and provided useful metrics to use when assessing compliance programs.  We discuss the survey findings and share insights from Ingrid Fredeen, a vice president at NAVEX Global, who discussed the survey’s findings during a NAVEX webinar.  See also The FCPA Report’s FCPA Training That Works series: Navigant’s Joseph Spinelli (Apr. 3, 2013); Weatherford’s Billy Jacobson (Apr. 17, 2013); Manatt, Phelps & Phillips’ Jacqueline C. Wolff (May 1, 2013).

    Read Full Article …
  • From Vol. 4 No.8 (Apr. 15, 2015)

    Consero Benchmarking Survey Offers CCO’s Insights on Budgets, Training, Strategy and Third-Party Management

    “Chief compliance officers seem pleased with the variety and sophistication of new resources available to support their efforts, but they are troubled by the speed at which the global economy is changing, and the increasing complexity of the compliance environment,” Paul Mandell, Founder and CEO of Consero Group, LLC told The FCPA Report, drawing on the findings from his firm’s 2015 Corporate Compliance & Ethics Data Survey.  In the Survey, developed in connection with Consero’s Fall 2014 Corporate Compliance and Ethics Forums in the U.S. and U.K., senior compliance executives offered information on their budgets, the effectiveness of their training, their confidence in their third-party management and other topics.  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). 

    Read Full Article …
  • From Vol. 3 No.20 (Oct. 8, 2014)

    Twenty Tips for Creating an Effective Training Program

    Anti-corruption enforcement agencies have made it clear that training is a foundational part of a compliance program.  How can companies effectively and efficiently implement such training programs?  At the Society of Corporate Compliance and Ethics’ 2014 Compliance and Ethics Institute, compliance staff from The Nature Conservancy (TNC), one of America’s largest environmental non-profits which employees 3,700 individuals operating in 35 different countries, shared practical tips and tricks for running an effective training program before, during and after training is conducted.  Using TNC’s program as an example, Charlotte Young, TNC’s Chief Ethics and Compliance Officer and Grace Wu de Plaza, TNC’s Deputy Ethics and Compliance Officer, provided their top training strategies.  See “Seven Practical Tips for Enhancing Anti-Corruption Training and Four Ways to Measure Its Effectiveness,” The FCPA Report, Vol. 3, No. 18 (Sep. 10, 2014).

    Read Full Article …
  • From Vol. 3 No.18 (Sep. 10, 2014)

    Seven Practical Tips for Enhancing Anti-Corruption Training and Four Ways to Measure Its Effectiveness

    A robust training program is one of the pillars of an effective compliance program.  During a panel at Practising Law Institute’s Corporate Compliance and Ethics Institute, compliance experts outlined seven rules for creating such a program and discussed four strategies for measuring program effectiveness.  The panelists included Janice Innis-Thompson, Senior Managing Director and Chief Compliance and Ethics Officer at TIAA-CREF; Edward Petry, VP of the Ethical Leadership Group advisory services division of Navex Global; and Rebecca Walker, a partner at Kaplan & Walker LLP.  See also The FCPA Report’s FCPA Training That Works series: Navigant’s Joseph Spinelli (Apr. 3, 2013); Weatherford’s Billy Jacobson (Apr. 17, 2013); Manatt Phelps & Phillips’ Jacqueline C. Wolff (May 1, 2013).

    Read Full Article …
  • From Vol. 2 No.24 (Dec. 4, 2013)

    Lessons on Effective Compliance Training and Communications from Compliance Directors at Microsoft and Genesys

    Communication and training are key aspects of an effective anti-corruption compliance program; without them, even a carefully thought-out compliance program is simply words on a page.  A recent Practising Law Institute program drew on the extensive practical experience of compliance directors at Microsoft and Genesys, who spoke about the strategies they use to assure that their employees, and the third parties with which their companies do business, are properly trained and about how they assess the effectiveness of their training.  See also “How To Keep Employees Engaged and Invested in an Anti-Corruption Compliance Program,” The FCPA Report, Vol. 2, No. 14 (Jul. 10, 2013); and “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).

    Read Full Article …
  • From Vol. 2 No.23 (Nov. 20, 2013)

    Six Steps to Reduce Third-Party Anti-Corruption Risk

    A central theme running through many recent FCPA enforcement actions is the involvement of third parties in illegal activities.  The role third parties play (whether agents, resellers, distributors, subcontractors or consultants) make them the ideal facilitators for the transfer of funds, and companies can be liable for the bribes those third parties make.  Some companies may think they have it covered with a “no FCPA violations” clause and audit rights in the contract.  In today’s climate, however, that is simply not enough, nor is a “notice” in a partner program or guide that requires that the partner be familiar with the FCPA or U.K. Bribery Act.  Companies need a comprehensive approach to third-party risk reduction that includes more than just due diligence, but also risk assessments, training, business justification and monitoring.  This guest article by Farzad Barkhordari, CEO of Click 4 Compliance, discusses the dangers of doing business with third parties and outlines steps companies should take when engaging third parties, including examples of how the steps can be implemented in common scenarios.

    Read Full Article …
  • From Vol. 2 No.18 (Sep. 11, 2013)

    Anti-Corruption Professionals from GE, Abbott Laboratories and Navistar Share Proven Strategies on Third-Party Due Diligence, M&A, Training, Nepotism and Regional Risk

    Anti-corruption compliance can feel like a battlefield, with potential landmines at every turn.  But what do practicing in-house compliance professionals view as their biggest challenges?  What issues keep them up at night?  And, most importantly, what have they done to address those issues?  In a panel hosted by the American Conference Institute, three in-house compliance experts shared their practical experience.  They discussed specific challenges they have faced and outlined the strategies they used to effectively address those challenges.  The expert panelists included Matthew Hsu, Senior Counsel, Global Fraud and Anti-Corruption at Abbott Laboratories; Shannon Masson, Senior Counsel at Navistar, Inc.; and Kevin Matthews, Associate General Counsel at GE Oil and Gas.  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).

    Read Full Article …
  • From Vol. 2 No.16 (Aug. 7, 2013)

    Dechert Produces Movie to Assist in FCPA and Corporate Governance Training

    The board of directors of a beleaguered company faces a vote on whether to acquire a new company with promise, and risk, in an emerging market.  It’s a serious, high-stakes situation faced by many boards.  It is the subject of many papers and seminars.  And it’s even the subject of training sessions in various media – but, Dechert LLP says, there has never been a training video like this.

    Read Full Article …
  • From Vol. 2 No.14 (Jul. 10, 2013)

    How To Keep Employees Engaged and Invested in an Anti-Corruption Compliance Program

    No matter how robust a compliance program is on paper, if employees do not understand the importance of compliance or are not actively participating in protecting the company, the program’s success will be limited.  Amplifying the challenge of maintaining a successful program is the reality that most corporate employees must be educated not only about anti-corruption compliance, but also about other ethical and compliance issues.  Companies attempting to spread the compliance gospel run the risk of over-communicating and losing the attention of their target audience.  In today’s complex regulatory environment, how can a company keep its employees actively engaged in its anti-corruption compliance program?  This article shares insights and strategies from in-house counsel for fostering employee interest in compliance.  See also “Comprehensive FCPA Guidance Provides a Roadmap for Companies to Reevaluate and Revise Their Compliance Policies,” The FCPA Report, Vol. 1. No. 13 (Nov. 28, 2012).

    Read Full Article …
  • From Vol. 2 No.13 (Jun. 26, 2013)

    Kroll Managing Director Extracts Practical Lessons from 2013 Anti-Bribery and Corruption Benchmarking Survey

    Forty seven percent of companies don’t train their third parties.  That was one of the key findings of a recent benchmarking survey released by Kroll and Compliance Week.  The companies asked more than 300 executives from companies with a median annual revenue of $3.5 billion and a median of more than 9,600 employees about their risks, resources and compliance programs.  The FCPA Report talked to Lonnie Keene, a Managing Director at Kroll, about the practical implications of the survey results, and what specific actions companies should take in response to the results.  For a discussion of additional benchmarking data from Kroll, see “Kroll Benchmarking Report Surveys State of FCPA Compliance at U.S. Multinationals,” The FCPA Report, Vol. 1, No. 2 (Jun. 20, 2012).

    Read Full Article …
  • From Vol. 2 No.10 (May 15, 2013)

    Insight from Top Companies and Practitioners on How They Are Addressing Current Anti-Corruption Issues, from Self-Reporting to Risk Assessments to Training

    The government has made it clear that complying with the FCPA does not, and should not, require companies to adopt a one-size-fits-all solution.  Each company must tailor its program to its unique business model.  Despite the individuality of each program, however, it is useful for a company and its advisors to understand how the company’s peers and competitors are ensuring FCPA compliance.  How much are companies spending on anti-corruption compliance?  What type of training program does each company find effective?  What percentage of companies invest in risk assessments?  A recent panel hosted by the Practising Law Institute provided answers to these questions and more.  Combining commentary from industry experts Mark Mendelsohn, partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP, Alexandra Wrage, president of TRACE International, Inc., Raja Chatterjee, Global Head of the Anti-Corruption Group at Morgan Stanley, and Susan Ringler, Deputy General Counsel for Xylem Inc., as well as interactive audience polling of conference participants (including in-house counsel, outside counsel and compliance personnel), the panel provided unique insight into trends and patterns in the FCPA world.  The panel analyzed the difficult issues that arise when developing training programs, allocating anti-corruption compliance resources, conducting risk assessments, executing internal investigations and making voluntary disclosures.  See “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).  See also The FCPA Report’s FCPA Training That Works series: Navigant’s Joseph Spinelli (Apr. 3, 2013); Weatherford’s Billy Jacobson (Apr. 17, 2013); Manatt Phelps & Phillips’ Jacqueline C. Wolff (May 1, 2013).

    Read Full Article …
  • From Vol. 2 No.9 (May 1, 2013)

    FCPA Training That Works: An Interview with Jacqueline C. Wolff, Co-Chair of the Corporate Investigations & White Collar Defense Practice at Manatt, Phelps & Phillips, LLP

    This is the third article in our ongoing series on FCPA and anti-corruption training.  Each of the articles in the series is based on a long-form interview with a thought leader from a different discipline.  Collectively, the articles in this series provide a deep and multidisciplinary view of one of the most important processes available to companies to mitigate FCPA risk.  Our goal in this series is to provide actionable insight – recommendations, best practices and specific techniques that companies can use to improve the effectiveness of their training programs.  To advance that goal, this installment includes our interview with Jacqueline C. Wolff, a Partner at Manatt, Phelps & Phillips, LLP, Co-Chair of Manatt’s Corporate Investigations & White Collar Defense practice and former Chief of the Environmental Crimes Unit and Assistant United States Attorney for the District of New Jersey.  Our interview with Wolff delved deeply into a wide range of relevant topics, including: special considerations applicable to training different categories of employees; when to train third parties; the role of outside counsel in training; the interaction between attorney-client privilege issues and candor during training; the risks of online training; appropriate training frequency; the role of hypotheticals; minimizing cost without sacrificing effectiveness; and training lessons from the November 2012 Guidance.  The prior installment in this series included our interview with Billy Jacobson, Senior Vice President, Co-General Counsel and Chief Compliance Officer of Weatherford International, the global oil and natural gas services company.  See “FCPA Training That Works: An Interview with Billy Jacobson, Chief Compliance Officer of Weatherford International,” The FCPA Report, Vol. 2, No. 8 (Apr. 17, 2013).  And the first installment in the series included our interview with Joseph Spinelli, the head of Navigant’s FCPA practice and former Inspector General of New York State.  See “FCPA Training That Works: An Interview with Joseph Spinelli, Global Leader of Navigant’s Anti-Bribery & Corruption-FCPA Segment,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

    Read Full Article …
  • From Vol. 2 No.9 (May 1, 2013)

    SEC’s NPA with Ralph Lauren, the Agency’s First Ever, Modifies the M&A Due Diligence Requirements Traditionally Included in DOJ DPAs, and Outlines Specific Actions That Constitute Effective Self-Reporting

    While implementing an enhanced FCPA compliance program in 2010, Ralph Lauren Corporation (RLC) unearthed a multi-year bribery scheme perpetrated through its Argentine subsidiary, P.R.L.-S.R.L.  RLC reported its findings to the SEC and DOJ within two weeks and cooperated fully with their subsequent investigations.  As a result, the SEC entered into its first-ever non-prosecution agreement (NPA) with RLC.  Simultaneously, the DOJ entered into a separate NPA with RLC.  RLC has agreed to pay aggregate disgorgement, interest and penalties of over $1.6 million, to cooperate further with the SEC and DOJ, to enhance its compliance program and take further remedial measures and to report back to the DOJ for two years.  This article summarizes the terms of those agreements which, among other things, evidence the potential benefits for companies that self-police, self-report and cooperate fully with the SEC and DOJ.  See also “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,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

    Read Full Article …
  • From Vol. 2 No.8 (Apr. 17, 2013)

    FCPA Training That Works: An Interview with Billy Jacobson, Chief Compliance Officer of Weatherford International

    Creating and deploying best-in-class training is a fundamental aspect of maintaining a successful anti-corruption compliance program, and a robust training program can be a powerful defense if the SEC or DOJ finds a “rogue employee.”  But training is inherently limited – training sessions cannot cover the full range of anti-corruption situations an employee may face across geographies, and the sessions themselves are limited by time and cost.  How can a company maximize the impact of this important activity?  To answer this and related questions, The FCPA Report is undertaking a series of interviews on FCPA training with experts from different disciplines.  This article – the second installment in the series – includes our interview with Billy Jacobson, Senior Vice President, Co-General Counsel and Chief Compliance Officer of Weatherford International, one of the largest oil and natural gas service companies, operating in 100 countries.  Prior to his association with Weatherford, Jacobson served as a federal prosecutor for the Fraud Section of the U.S. Department of Justice’s Criminal Division, where he served in various positions, including as Assistant Chief for FCPA Enforcement.  He has also been in private practice as a partner at Fulbright & Jaworski L.L.P.  In the first installment of this series, The FCPA Report spoke with Joseph Spinelli, the head of Navigant’s FCPA practice and former Inspector General of New York State.  See “FCPA Training That Works: An Interview with Joseph Spinelli, Global Leader of Navigant’s Anti-Bribery & Corruption-FCPA Segment,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

    Read Full Article …
  • From Vol. 2 No.7 (Apr. 3, 2013)

    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.

    Read Full Article …
  • From Vol. 2 No.4 (Feb. 20, 2013)

    Six Steps for Converting a “Paper” FCPA Compliance Program into a Pervasive Culture of Anti-Bribery Compliance (Part One of Two)

    Recent enforcement actions have highlighted the bribery risk inherent in retaining third parties in foreign countries.  To adequately address such risks, companies need more than a compliance manual sitting on the shelf – they need a culture of compliance that pervades the organization.  Drafting a thorough and customized compliance manual is the first step in this process.  But how can companies bring a complete compliance program to life?  A recent webinar tackled this hard question head on, incorporating the long and relevant experience of the webinar participants, as well as lessons from the recently-issued FCPA Guidance.  This is the first article in a two-part series summarizing the key takeaways from the webinar.  This article discusses: how the hypotheticals in the Guidance provide insight into the government’s enforcement strategy and what the “flavor of the month” FCPA cases are; six ways to ensure an FCPA compliance program is best-in-class; and integral steps to take when conducting risk assessments of third parties.  The second article will address: steps to take after a risk score is assigned to a third party, including details about a “boots-on-the-ground” approach; ways to monitor third parties on an ongoing basis; compliance advice for smaller companies; and how to incentivize employees to report complaints internally before going to the government.  See also “Five Themes for General Counsel to Monitor with Respect to Dodd-Frank Whistleblowers and the FCPA,” The FCPA Report, Vol. 1, No. 9 (Oct. 3, 2012).

    Read Full Article …
  • From Vol. 1 No.10 (Oct. 17, 2012)

    Davis Polk Lawyers and Morgan Stanley Compliance Director Discuss DOJ’s Decision Not to Prosecute Morgan Stanley for FCPA Violations

    In April 2012, Morgan Stanley Managing Director Garth Peterson pleaded guilty to one count of conspiring to circumvent Morgan Stanley’s internal controls in violation of the FCPA.  The plea was the result of his efforts to enrich himself and the Chinese official who facilitated a Shanghai real estate deal with his Morgan Stanley unit.  Notably, the DOJ indicated that it was declining to bring charges against Morgan Stanley as a result of Peterson’s misconduct.  In a recent webcast, Morgan Stanley’s anti-corruption chief, Raja Chatterjee, and its outside counsel from Davis Polk & Wardwell LLP, discussed the “unprecedented and important” decision not to prosecute Morgan Stanley for Peterson’s FCPA violations.  They believe that, by declining to prosecute Morgan Stanley, the DOJ has made a statement that “compliance matters” and that an effective compliance program can be a mitigating factor in an FCPA investigation.  This article summarizes the webcast with a view to identifying the lessons that can be learned from the Morgan Stanley matter.  See also “Civil and Criminal Enforcement Actions Against Former Morgan Stanley Employee Highlight the Relevance of the FCPA for Private Fund Managers,” The Hedge Fund Law Report, Vol. 5, No. 19 (May 10, 2012).

    Read Full Article …
  • From Vol. 1 No.9 (Oct. 3, 2012)

    Anti-Corruption Compliance in the Age of Global Enforcement

    A global wave of anti-corruption regulation has been steadily gaining momentum since it began in the 1990s.  International organizations, such as the Organisation for Economic Co-operation and Development, have set their sights on fighting bribery and have successfully pressured member states to pass tighter laws.  Cross-border enforcement cooperation is also on the rise.  This heightened scrutiny has highlighted the importance for corporations to have globally effective anti-corruption compliance programs.  Successful programs help reduce the risk of violations and may also engender a more favorable regulatory response when issues arise.  In a guest article, Richard Sibery, the Leader for Fraud and Investigations with Ernst & Young LLP’s Fraud Investigation & Dispute Services (FIDS) practice, and Virginia Adams, a Senior Manager in E&Y’s FIDS practice, discuss the three basic building blocks of a best-of-breed compliance program.  For additional insight from Sibery, see “Training, Certification, Due Diligence, Customs Clearance and Facilitation Payments: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice,” The FCPA Report, Vol. 1, No. 1 (Jun. 6, 2012); and “Anti-Corruption Audits, Risk Assessments, Transaction Testing and the Dangers of Petty Cash: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice,” The FCPA Report, Vol. 1, No. 2 (Jun. 20, 2012).

    Read Full Article …
  • From Vol. 1 No.2 (Jun. 20, 2012)

    Anti-Corruption Audits, Risk Assessments, Transaction Testing and the Dangers of Petty Cash: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice

    This article includes the second part of The FCPA Report’s in-depth interview with Brian Loughman and Richard Sibery, leaders of the Fraud Investigation and Dispute Services Practice at Ernst and Young LLP (E&Y).  Our interview focused on the critical decision points for global companies confronting anti-bribery issues when operating abroad.  We covered a lot of ground and, in the process, conveyed much of the key substance of the recent book by Loughman and Sibery, Bribery and Corruption: Navigating the Global Risks (Wiley 2012).  In light of its length and depth, we have published our interview as a two-part series.  This second part covers topics including: the dangers of petty cash; the nuts and bolts of transaction testing; FCPA-specific due diligence considerations for mergers and acquisitions; whether a company should combine an anti-corruption audit with a general audit; and best interviewing and communication techniques.  The first part of the interview dealt with the challenges of designing an effective FCPA training program, techniques of effective third party due diligence and risk assessments and other actionable topics.  See “Training, Certification, Due Diligence, Customs Clearance and Facilitation Payments: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice,” The FCPA Report, Vol. 1, No. 1 (Jun. 6, 2012).

    Read Full Article …
  • From Vol. 1 No.1 (Jun. 6, 2012)

    Training, Certification, Due Diligence, Customs Clearance and Facilitation Payments: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice

    Brain Loughman is the Americas Leader of the Fraud Investigation & Dispute Services Practice at Ernst & Young LLP (E&Y), and Richard Sibery leads E&Y’s Fraud & Investigations Group within the Fraud Investigation & Dispute Services Practice.  In those roles, Loughman and Sibery have amassed deep, detailed and current experience with global anti-bribery investigations and remediation – the sort of practical know-how that only comes with extensive, on-the-ground experience.  The FCPA Report recently had the privilege of conducting a wide-ranging interview with Loughman and Sibery.  The general intent of the interview was to identify the most pressing anti-bribery issues facing global companies and specific strategies for addressing those issues.  In this sense, our interview sought to paraphrase some of the more important points made in the book recently written by Loughman and Sibery, Bribery and Corruption: Navigating the Global Risks (Wiley, 2012).  In particular, our interview covered: the challenges of designing an effective FCPA training program; the utility of certification programs; techniques of effective third party due diligence and risk assessments; issues surrounding customs payments, including the difficult issue of facilitation payments; the dangers of petty cash; the nuts and bolts of transaction testing; why M&A transactions pose unique due diligence challenges; whether an anti-corruption audit and a general audit plausibly may be combined; and best practices for interviewing and communications.  We are publishing the full transcript of our interview with Loughman and Sibery in two parts: the first part is included in this issue of The FCPA Report and the second part will be included in the next issue.

    Read Full Article …