Corruption Crime & Compliance

This week we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.How can companies build trust and drive growth in a region as politically and economically volatile as Latin America? In this episode, Nicolas Garcia - Vice President, Legal, Regional and Compliance Manager for LATAM and Orica - joins Michael Volkov to discuss the complexities of navigating compliance and leadership in LATAM. The conversation highlights how regional dynamics, such as the crisis in Venezuela, influence business operations and how cultural shifts are changing the role of compliance officers. Nicolas provides valuable insights on the evolving compliance landscape, emphasizing the importance of trust, leadership, and a strong compliance culture in driving business success in challenging environments.Listen in as Nicolas and Mike discuss:The ongoing political and economic crisis in Venezuela has led to massive immigration into neighboring countries like Colombia, Chile, and Brazil, creating both economic challenges and opportunities in the region.Guyana is experiencing rapid growth due to foreign investment, particularly in the oil and gas sectors, standing in stark contrast to Venezuela’s decline.Nicholas emphasizes the shift from compliance officers being seen as enforcers to becoming strategic business partners. This transition helps companies not only meet regulatory requirements but also drive success.Establishing a trust-based relationship between compliance officers and leadership is essential. When compliance is integrated into the business strategy, it becomes a tool for enabling growth rather than a barrier.Trust in reporting systems is growing in Latin America, though fear of retaliation remains a concern. Anonymous reporting is on the rise, and substantiation rates are increasing as employees gain confidence in the system’s integrity.Ensuring that investigations follow due process is critical to maintaining credibility in compliance programs. It also helps improve trust and the success rate in legal outcomes.Resources:Nicolas Garcia on LinkedInNicolas Garcia on Email: Nicolas.Garcia@Orica.comMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

This week, we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.Carlos Villagrán is the Director of Compliance at CMPC, a 100-year-old Chilean-based holding company, one of the worldwide leading pulp, paper, packaging, personal care, and other forest products manufacturers. With more than 20,000 employees, CMPC has industrial operations in 9 countries (LatAm and the US) and commercial offices in the US, Europe, and China, selling and distributing its products to more than 45 countries around the world. Carlos joined CMPC to remediate and rebuild CMPC's culture and compliance program after a devastating scandal -- CMPC was prosecuted for its involvement in a decade-long conspiracy to fix prices in Peru and Chile for consumer paper products. Carlos discusses the challenges he faced in rebuilding CMPA's culture and commitment to compliance. His story is an inspiration to all legal and compliance professionals and provides important instructive lessons to corporate leaders and compliance professionals.You'll hear Michael and Carlos discuss:The importance of rebuilding and rediscovering the values and purpose of CMPC after a major corporate crisis.The effects on market share quotas and sales prices when CMPC faced an investigation and found to be the leader of a cartel in Chile and Peru.How the crisis significantly impacted CMPC's reputation, leading to public protests and consumer backlash in Chile and Peru.CMPC’s compliance team addressed the company’s complex nature because of its diverse workforce, including data analytics experts, IT professionals, and engineers.How the compliance program at CMPC shifted from a traditional approach to a more cultural and system-thinking perspective, aligning with the company's values and operations.Success for the compliance program at CMPC is defined by the number of critical tables the team is seated on, indicating their value and integration within the business operations.ResourcesCarlos Villagran on the Web | LinkedInEmail: carlos.villagran@cmpc.cl or cfvillagran@gmail.comMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Dive into the dramatic developments surrounding the Boeing 737 MAX and a crucial plea agreement with the Department of Justice. Explore Boeing’s failures in compliance and certification that led to serious safety concerns. The impact on corporate ethics and accountability is highlighted, alongside reactions from victim families. Tune in for a fascinating analysis of the legal ramifications and what this means for the future of the aviation industry.

This week we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.How do you manage risk when the vulnerabilities are outside your organization aren’t in your hands? In this episode of Corruption, Crime, and Compliance, we delve into the world of third-party risk management with our guest, Natalie Druckman, from Certa. As we discuss the regulatory landscape in EMEA and the US, Natalie highlights the higher regulatory burden faced by companies in EMEA, and how Certa uses AI to streamline workflows, provide intuitive data visualization, and enhance risk forecasting capabilities. AI is the future of third-party risk management, now and in the future.Cybersecurity has become one of the top concerns for organizations. In 2012, Target worked with a third-party vendor and, as a result, suffered an attack that exposed their customers’ credit data. Since then, compliance departments have started working closely with IT to prevent such vulnerabilities. Unlike the US, EU companies don’t benefit from gaps created between state and federal regulations. EMEA faces a mandatory and substantial regulatory burden, particularly in areas like ESG and compliance. A forced labor scandal can sink a company, so ESG’s importance is on par with cyber security.Global companies are increasingly recognizing the importance of addressing ESG topics alongside cybersecurity and financial risks. ESG considerations, such as diversity, modern slavery, and gender pay gaps, have significant reputational and revenue impacts.AI is changing the world in many ways, including compliance. Certa aims to provide a comprehensive solution for third-party risk management, compliance, and operational risks by streamlining processes and incorporating AI capabilities to enhance efficiency and effectiveness.Certa utilizes various AI capabilities, including design AI, which allows users to create workflows using plain language. They don’t need to know anything about tech; they can simply dictate the process, and AI generates the necessary code and infrastructure for it. This allows the company to remain flexible and able to quickly adapt to change.Insights AI is another capability that collects and analyzes data, making it far more accessible and efficient in managing up-to-the-minute risks and developments. This technology also uses design AI, allowing for plain language inputs to immediately create actionable, detailed reports.Recall AI allows companies to guarantee rapid and consistent responses from suppliers and customers by recalling past interactions to create surveys, forms, workflows, and processes. This removes the back-and-forth burden on all parties while still retaining the human touch.Smaller and midsize companies should prioritize their risk management processes and consider automated solutions like Certa. These companies can benefit from the efficiency and effectiveness of an automated platform, regardless of their industry or size.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law GroupNatalie Druckman on LinkedInCertaEmail Natalie: nat@certa.ai

This week, we bring you a replay of one of our most impactful podcasts from last year, featuring Alex Cotoia and Daniela Melendez. Listen in as we discuss the EU Whistleblower Directive of October 2019. We'll return next week with one of our regular updates.Directive 2019/1937 of the European Parliament and Council dated 23 October 2019 on the “protection of persons who report breaches of Union law” (the “Directive”) is currently being implemented by EU Member States. The directive has broad applicability to organizations operating in the EU internal market and applies to both public and private sector organizations alike. Whistleblowers are guaranteed legal protection to the extent: (1) they have reasonable grounds to believe that the information reported was true at the time of the report; and (2) the whistleblower reported either internally to the organization, externally to a competent authority, or publicly. Private sector organizations with 50 or more workers are legally required to establish channels and procedures for internal reporting of EU law breaches and conduct appropriate follow-up. In this episode, Mike Volkov is joined by Daniela Melendez and Alex Cotoia from the Volkov Law Group, who bring their expertise to the table as they delve into the EU Directive and its implementation by several member states. Listen to this discussion to understand and navigate the complexities of the EU Whistleblowing Directive.The EU Whistleblower Directive shifts the burden of proof on retaliatory actions to the person taking the detrimental action, requiring them to demonstrate it was not linked to reporting concerns.Global companies are taking a proactive stance by increasingly focusing on robust ethics and compliance programs. This strategic move is aimed at mitigating risks and promoting positive corporate citizenship in today's economy, where adherence to legal and ethical standards is paramount.France signed the EU Directive into law on March 21, 2022, outlining protocols for gathering and handling whistleblower reports, including a two-month deadline for imposing disciplinary sanctions.Germany enacted the EU Directive on May 12, 2023, allowing anonymous reports and setting a three-month investigation deadline after receiving the report.Spain addressed the EU Directive on February 2023 by covering additional topics like occupational health and safety breaches. The directive established a three-month deadline for investigations and allowed anonymous reports.Italy transposed the EU Directive on August 4, 2022, including administrative, financial, civil, and criminal offenses not covered by the Directive, with a 30-day deadline to conduct investigations upon receipt of reports.Companies are advised to make resources available to conduct investigations quickly due to the short timeframes set by various countries' whistleblower protection laws.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law GroupAlex Cotoia on LinkedIn Email: acotoia@volkovlaw.comDaniela Melendez on LinkedInEmail: dmelendez@volkovlaw.com

Companies face a compliance storm with shifting tariffs, aggressive sanctions, and AI risks. Mapping supply chains is now crucial to avoid disruptions. The pause in FCPA enforcement signals global compliance shifts, emphasizing the need for robust anti-corruption programs. Upcoming U.S. sanctions could impact international trade, especially concerning dual-use technologies. Businesses must manage AI risks carefully, integrating them into their compliance strategies to maintain trust and resilience in a changing landscape.

Corporate risks are evolving, necessitating a new approach for boards and compliance teams. With a shift in regulatory focus, businesses must reassess priorities, especially concerning anti-corruption and antitrust enforcement. The pause in FCPA enforcement highlights the importance of maintaining anti-corruption programs. As the DOJ targets criminal cartels, companies operating in high-risk areas must adapt. The discussion also emphasizes the changing landscape of trade compliance and the impact of tariffs on import-reliant firms, underscoring the need for diligent monitoring.

The Trump administration's decision to pause FCPA enforcement raises concerns about corporate accountability. This shift aims to boost U.S. competitiveness but may harm global anti-corruption efforts. The podcast explores how businesses might adapt their compliance strategies amidst this uncertainty. It also highlights a focus change within the DOJ, shifting from corporate bribery cases to targeting cartels and transnational organizations. As other countries intensify their enforcement, the implications for international business practices are significant.

Sanctioned Russian oligarchs are cleverly maneuvering around international restrictions through complex real estate schemes. A recent settlement highlights how shell companies and non-sanctioned family members were used to hide ownership of luxury properties. Key gatekeepers like real estate professionals and lawyers played a crucial role in these evasive tactics. Text messages emerged as vital evidence of intent, shedding light on the intricate techniques employed to transfer property ownership. The real estate sector faces increasing scrutiny as a hotbed for financial crime.

Explore the potential of AI to revolutionize the economy while navigating its inherent risks. The discussion highlights Goldman Sachs' forecast of a $7 trillion GDP boost and the staggering investments needed for AI infrastructure. Delve into how generative AI creates human-like content, alongside the looming threats of misinformation and fraud. The conversation emphasizes the importance of compliance programs to manage the legal and ethical challenges that come with AI adoption, ensuring businesses can innovate responsibly.