Corruption Crime & Compliance

On January 1, 2020, companies will be facing a compliance requirement established by the California Consumer Privacy Act. In practice, California’s CCPA will create a new “national” standard.   The CCPA is designed to give consumers more information and control over their personal information. Specifically, businesses will be required to be more transparent in their handling of personal information and to provide robust disclosures to consumers about how their information is being used.   Many businesses raced to the finish line to meet GDPR requirements. Certain requirements imposed by GDPR will have applicability in the CCPA context; however, there are significant differences in scope and intent that require careful attention. Companies that conduct business in California, collect personal information from California residents, process (or have third party process) such personal information, and meets certain revenue thresholds are subject to the CCPA.   In this Episode, Michael Volkov discusses the CCPA, outlines its requirements and describes necessary steps for compliance.

Bill Hauserman and Ted Datta from Bureau van Dijk, a Moody's Analytics Company, join us for an interesting discussion on third-party risk management, issues surrounding beneficial ownership, trends in the industry and the importance of validating ownership and data quality.  Bill and Ted explain their interesting perspective on third-party risk challenges, regulator expectations and a fascinating view from the global perspective. New anti-corruption regulations and advancements in technology have put significant pressure on banks and corporations to get their compliance right. The issues we address include: The complexity of ownership structures and understanding who the ultimate owner is Why is it interesting to look where the power and control is and how can it be done? Third-party due diligence programs and their evolution in the new regulatory environment The wide array of available RegTech solutions and how to make the right choice for your organization.

On July 22, 2019, Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct in Hungary. Even with the tailored settlement agreement, DOJ and the SEC reiterated robust expectations surrounding third-party distributor networks, particularly in the software industry. To resolve a lengthy six and one-half year investigation, Microsoft entered into a non-prosecution agreement with the Justice Department and an administrative settlement with the SEC. Under the three-year NPA, a Microsoft subsidiary in Hungary, Microsoft Magyarorszag Kft paid $8.75 million criminal penalty. Microsoft agreed to disgorge $13.78 million to the SEC, plus prejudgment interest of $2.78 million.   In this Episode, Michael Volkov reviews the Microsoft FCPA settlement and outlines the lessons learned.  

Global companies face significant challenges in managing their supply chain risks. Most companies incorporate a holistic supply chain risk process as part of their enterprise risk management systems.  Legal risks, while not the most significant risk, is one aspect of these risks, especially in the aggressive enforcement of anti-bribery, sanctions, anti-money laundering and speciality laws surrounding conflict minerals, human trafficking and slavery. In this episode, Michael Volkov examines supply chain risks and discusses effective strategies for increasing legal and compliance participation in supply chain risk management.

Compliance has come a long way over the last 10 years. But it still has a ways to go until it is firmly embedded into the corporate governance landscape. In this episode, Michael Volkov examines current issues surrounding compliance programs, including the state of the compliance profession, technology and new frameworks; government enforcement trends and predictions; and congressional mandates for compliance.    

In yet another major compliance development, the Justice Department announced the adoption of a new policy to credit effective compliance programs in resolving criminal cartel prosecutions against corporations. Since the 1990s, the Antitrust Division’s policy regarding corporate compliance programs was generally fixed given the ability of companies to seek benefits under the leniency program. As part of its new policy, the Antitrust Division released its own guidance for the Evaluation of Corporate Compliance Programs. This new document complements the recent guidance issued by the Criminal Division. The Antitrust Division’s new policy was announced by Assistant Attorney General Makan Delrahim in a recent speech.  The announcement is the culmination of a lengthy process, which included a public roundtable with antitrust practitioners, coordination with global cartel enforcement authorities, and an internal DOJ review. In this episode, Michael Volkov discusses the Antitrust Division's new policy and accompanying guidance.  

In celebration of the 100th episode of Corruption Crime and Compliance, Tom Fox, the Compliance Evangelist and Leader, is our guest.  Tom and Mike discuss Tom Fox's current Compliance Podcast Network, his entertaining Star Trek summer compliance podcast series, his perspective on the recent government compliance guidance, his insights into the compliance profession, technology deveelopments and the future of compliance.  As always, Tom's perspective on these issues is fascinating and insightful.

Companies face significant challenges in managing their third party risk programs.  As companies improve their systems and automate their programs, they continue to face difficult situations in deciding when to conduct enhanced due diligence reviews of a potential third-party.  DOJ and the SEC have provided extensive guidance in the third-party risk area, but companies have to develop and implement their own approach to deciding when to undertake intensive investigations to confirm or deny certain third party facts. In this episode, Michael Volkov reviews third-party risk management situations when enhanced due diligence may be warranted.

So far in 2019, OFAC is sending a strong message about sanctions enforcement and compliance responsibilities. OFAC is aggressively seeking out new targets for enforcement, emphasizing compliance with Cuba and Iran sanctions programs, and focusing on US companies that acquire foreign subsidiaries to ensure post-closing compliance with OFAC sanctions regulations.   In this episode Michael Volkov discusses recent trends in OFAC enforcement actions and priorities.  

As the blockchain industry continues to grow, we'll begin to see traditional industries shifting to the blockchain to leverage the technology. Unstoppable domains is a company working to place web domains on the blockchain. Instead of traditional extensions like .com, .net, or .io,, Unstoppable Domains will utilize .zil addresses as smart contracts on the Zilliqa public blockchain. This will first provide simple, human-readable crypto wallet addresses, to help facilitate adoption and make wallet-to-wallet payments easier. After that, the company will create web-hosting tools to develop websites on the blockchain. What's the point of putting a domain on the blockchain? Well, thanks to the blockchain, they're unstoppable, hence the company name. That implies a whole host of items - free speech, regulations, court orders, etc. - and Brad and I have some great discussion within this podcast. Most importantly in this regard, Unstoppable Domains is currently going through its Sunrise period and allowing trademark holders to claim their trademarks now. Once on the blockchain, these trademarks are no longer obtainable. Website: https://unstoppabledomains.com/ Twitter: @UnstoppableWeb Email: Brad Kam