The FCPA Report

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

Articles By Topic

By Topic: Anti-Money Laundering

  • From Vol. 5 No.11 (Jun. 1, 2016)

    Current and Former Agents Discuss the Five Pillars of the FBI’s FCPA Strategy

    In conjunction with the announcement of the FCPA Unit’s Pilot Program in April, the DOJ noted that the FBI has recently established three new squads of special agents who will focus on FCPA and anti-money laundering investigations. These three International Corruption Squads, “should send a powerful message that FCPA violations that might have gone uncovered in the past are now more likely to come to light,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division in a press release. At an invitation-only event hosted by global consulting firm Protiviti and at ACI’s 18th Annual New York Conference on the FCPA, current and former FBI agents explained that the FBI’s strategy for fighting international corruption is built on five pillars and discussed how the strategy will affect FBI FCPA investigations going forward. See “Going Deep on the Fraud Section’s FCPA Pilot Program (Part One of Three)” (Apr. 20, 2016); “How Will the Fraud Section’s Pilot Program Change Voluntary Self-Reporting? (Part Two of Three)” (May 4, 2016); “Earning Cooperation Credit Under the Fraud Section’s FCPA Pilot Program (Part Three of Three)” (May 18, 2016).

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  • From Vol. 5 No.8 (Apr. 20, 2016)

    District Court Order Threatens Confidentiality of Monitor Reports

    Reports of compliance monitors retained in accordance with corporate settlements have generally been kept out of public view – until now. Finding that a compliance monitor’s report is a judicial record and the public has a First Amendment right to see it, Judge John Gleeson of the Eastern District of New York granted, in large part, the pro se request of an HSBC mortgage customer to unseal the first annual report of the compliance monitor HSBC retained in connection with its $1.9 billion settlement with the DOJ. The matter is stayed pending appeal. A similar case is pending in the D.C. District, where 100Reporters has asked for the Siemens monitor report stemming from that FCPA enforcement action. See also “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part One of Three)” (Feb. 20, 2013); Part Two (Mar. 6, 2013); Part Three (Mar. 20, 2013). 

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  • From Vol. 4 No.6 (Mar. 18, 2015)

    U.K. Property Market Attracts Corrupt Assets

    The booming U.K. property market may be serving as a safe haven for corrupt assets, according to a recent report by the U.K. chapter of watchdog Transparency International.  It found that the volume of property registered to anonymous companies is a “major barrier” to U.K. law enforcement investigations and interferes with effective money laundering diligence and compliance with international sanctions.  See also “Eye-Opening Report Helps Companies Tackle European Corruption Risks,” The FCPA Report, Vol. 3, No. 6 (Mar. 19, 2014).

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  • From Vol. 3 No.2 (Jan. 22, 2014)

    Risk-Based Solutions to Complying with Anti-Money Laundering, Export Controls, Economic Sanctions and the FCPA

    Many companies subject to the FCPA are also concerned about anti-money laundering laws, economic sanctions or export control restrictions.  Often, these crimes go together.  What do these three areas have in common?  How should companies structure their compliance programs in response to the various laws to which they are subject?  During a recent webinar hosted by the Cross-Border Group, partners at Foley & Lardner LLP discussed the overlap among these laws and provided concrete suggestions for how companies can use risk-based approaches to comply with all three. See also “How Can Anti-Money Laundering Laws Affect an FCPA Compliance Program? An Interview with Former FinCEN Director James H. Freis, Jr. (Part Two of Two),” The FCPA Report, Vol. 2, No. 4 (Feb. 20, 2013).

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  • From Vol. 2 No.4 (Feb. 20, 2013)

    How Can Anti-Money Laundering Laws Affect an FCPA Compliance Program? An Interview with Former FinCEN Director James H. Freis, Jr. (Part Two of Two)

    Though motivated by different statutes, anti-money laundering compliance programs and FCPA compliance programs deal with related risks.  Anti-money laundering laws are also integrally related to FCPA charges, and prosecutors use them frequently in FCPA enforcement actions across industries and geographies.  The FCPA Report recently spoke with the nation’s former top anti-money laundering regulator, James H. Freis, Jr., about a range of issues, including the role anti-money laundering laws play in FCPA cases, how financial regulators are working together across the globe to combat corruption and the corruption challenges facing the gaming industry in particular.  In this, the second part of our interview, Freis discussed, among other things: the connection between anti-bribery laws and broader financial reforms around the globe; how financial institutions can integrate their AML and FCPA compliance programs; the similarities and differences between Politically Exposed Persons and foreign officials; and the importance of high-profile FCPA enforcement.  In the first article in this series, Freis discussed, among other things: what companies should focus on when conducting corruption and anti-money laundering risk assessments and audits; how the DOJ and SEC work with FinCEN on corruption cases; and details regarding the formation, operation and future of the Egmont Group, a 130-member organization of international financial intelligence units.  See “Former FinCEN Director James H. Freis, Jr. Discusses the Intersection between Anti-Money Laundering and Anti-Corruption Law (Part One of Two),” The FCPA Report, Vol. 2, No. 3 (Feb. 6, 2013).

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  • From Vol. 2 No.3 (Feb. 6, 2013)

    Former FinCEN Director James H. Freis, Jr. Discusses the Intersection between Anti-Money Laundering and Anti-Corruption Law (Part One of Two)

    One way prosecutors have pursued the FCPA’s broad jurisdictional reach and overcome some of the inherent challenges in corruption cases has been the use of a set of powerful tools – anti-money laundering laws.  The FCPA Report spoke with the nation’s former top anti-money laundering regulator, James H. Freis, Jr., about a range of issues, including how prosecutors use anti-monetary laundering laws in FCPA cases, how financial regulators are working together across the globe to combat corruption and the corruption challenges facing the gaming industry.  Freis was the director of the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) from 2007-2012 and is now Counsel at Cleary Gottlieb Steen & Hamilton LLP.  As Director of FinCEN, Freis led the development and enforcement of regulations, fighting not only money laundering and corruption, but terrorist financing, fraud and other financial crimes applicable to a broad range of financial institutions, including banks, securities and futures industry participants and insurance companies.  We are publishing our interview with Freis in two parts.  In the first part, Freis discussed, among other things, what companies should focus on when conducting corruption and anti-money laundering risk assessments and audits; how the DOJ and SEC work with FinCEN on corruption cases; and details regarding the formation, operation and future of the Egmont Group, a 130-member organization of international financial intelligence units.

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  • From Vol. 2 No.2 (Jan. 23, 2013)

    JPMorgan Chase Anti-Money Laundering Consent Orders Highlight the Role of Risk in Structuring Compliance Programs

    On January 14, 2013, JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, N.A. (together, the Banks) and their parent holding company, JPMorgan Chase & Co. (JPMC), entered into a consent order with the Office of the Comptroller of the Currency of the United States (OCC) and a separate consent order with the Board of Governors of the Federal Reserve System (Fed).  The orders follow regulatory examinations of JPMC and the Banks occasioned by JPMC’s revelation that one of its traders, Bruno Iksil, known in the industry as the “London Whale,” made huge derivative bets that cost JPMC billions.  While the consent orders primarily focus on shortcomings in JPMC’s anti-money laundering efforts and how those efforts may be improved, they more generally espouse the view – apparently shared by the SEC and DOJ in their FCPA enforcement programs – that compliance efforts should be risk-based.  See “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).  This article describes the orders in detail.

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  • From Vol. 1 No.4 (Jul. 25, 2012)

    International Corruption Risks Facing Financial Institutions

    For many years, financial institutions had not been frequent targets of FCPA enforcement.  However, the past two years have revealed that regulators have not forgotten about this industry.  The financial crisis increased regulatory scrutiny both from an investigative and a legislative perspective.  The SEC and DOJ are investigating financial institutions for violations of securities laws, the FCPA, anti-money laundering rules, and similar regulations.  As discussed in this article, and as the various reviews by regulators reveal, banks, private equity firms, and other financial institutions face several avenues of potential liability due to the nature of their overseas business under a myriad of domestic and international statutes.  To properly navigate this complex regulatory framework requires an effective and regularly updated compliance program, consistent with the recommended government standards (and perhaps building off of their current anti-money laundering procedures), and any responses to regulatory requests demand a carefully structured internal review.  In a guest article, Palmina Fava and Alan Brudner, both partners at Paul Hastings LLP, and Mor Wetzler, an associate at Paul Hastings, discuss: the regulatory focus on financial firms; guidance for anti-corruption compliance derived from anti-money laundering initiatives; the potential for anti-corruption liability without actual knowledge of the relevant corruption; the strict liability provisions of the U.K. Bribery Act; common sources of liability for financial institutions; specific compliance considerations raised by dealings with sovereign wealth funds and state-owned enterprises; and the risk of required offset funds.

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