New DOJ Corporate Compliance Program Guidance

The US Department of Justice - Criminal Division (“USDOJ”) announced(1) on April 30 the release of a new guidance document(2) on the evaluation of corporate compliance programs.

Effective compliance programs play a critical role in preventing misconduct, facilitating investigations, and informing fair resolutions.”(1) - Assistant Attorney General Brian A. Benczkowski

Part I of the document discusses the elements of a “well-designed” compliance program and Part II discusses the features of what an effectively implemented compliance program looks like.

There are three overarching questions prosecutors will ask themselves, when evaluating the effectiveness of a compliance program, at the time of an offense and at the time of a charging decision(2,3):

  • Is the program well designed?

  • Is the program effectively implemented (or applied earnestly and in good faith)?

  • Does the compliance program actually work in practice?

According to the USDOJ’s guidance, the elements of a “Well-Designed” Compliance Program include:

  • Risk Assessment - “Prosecutors should consider whether the program is appropriately designed to detect the particular types of misconduct most likely to occur in a particular corporation’s line of business” and “the manner in which the company’s compliance program has been tailored based on that risk assessment”

  • Policies and Procedures - “Prosecutors should examine whether the company has a code of conduct that sets forth, among other things, the company’s commitment to full compliance with relevant Federal laws that is accessible and applicable to all company employees” and “whether the company has established policies and procedures that incorporate the culture of compliance into it’s day-to-day operations.”

  • Training and Communications - “Prosecutors should assess the steps taken by the company to ensure that policies and procedures have been integrated into the organization, including through periodic training and certification for all directors, officers, relevant employees, and where appropriate, agents and business partners.”

  • Confidential Reporting Structure and Investigation Process - “Prosecutors should assess whether the company’s complaint-handling process includes pro-active measures to create a workplace atmosphere without fear of retaliation, appropriate processes for the submission of complaints, and processes to protect whistleblowers” and “assess the company’s processes for handling investigations of such complaints…”

  • Third-Party Management - “Prosecutors should also assess whether the company knows its third-party partners’ reputations and relationships, if any, with foreign officials, and the business rationale for needing the third party in the transaction” and “assess whether the company engaged in ongoing monitoring of the third-party relationships"…”

  • M&A Due Diligence - “A well-designed compliance program should include comprehensive due diligence of any acquisition targets.”

Today’s guidance document is part of our broader efforts in training, hiring, and enforcement to help promote corporate behaviors that benefit the American public and ensure that prosecutors evaluate the effectiveness of compliance in a rigorous and transparent manner.”(1) - Assistant Attorney General Brian A. Benczkowski

DOJ prosecutors are encouraged to review whether or not a compliance program is a “paper program” or one that has actually been “implemented” and is periodically reviewed and revised when appropriate. According to DOJ guidance some elements of an effectively implemented program include:

  • Commitment by Senior and Middle Management

    • Does the company leadership demonstrate high level commitment to implement a culture of compliance?

  • Autonomy and Resources

    • Is the program adequately resourced with sufficient personnel and funding?

    • Are compliance personnel in senior positions and do they have adequate autonomy?

  • Incentives and Disciplinary Measures - “Prosecutors should assess whether the company has clear disciplinary procedures in place, enforces them consistently across the organization, and ensures that the procedures are commensurate with the violations.”

  • Continuous Improvement, Periodic Testing, and Review - “Prosecutors should likewise look to whether a company has taken reasonable steps to ensure that the organization’s compliance and ethics program is followed, including monitoring and auditing to detect criminal conduct.”

  • Investigation of Misconduct

    • Is there a well-functioning and appropriately funded mechanism for the timely and thorough investigation of any allegations or suspicions of misconduct by the company, its employees, or agents?

  • Analysis and Remediation of Any Underlying Misconduct - “Prosecutors should consider any remedial actions taken by the corporation…”

Contact GCSG Advisory and Audit Professionals today for assistance:

  • In developing a Risk Profile for your business;

  • Evaluating the effectiveness of your existing compliance program;

  • Implementing a compliance program;

  • Providing third-party due diligence; and

  • Providing in-depth compliance audits to detect potential wrongdoing.

References

New US Sanctions on Iran's Iron, Steel, Aluminum, and Copper Sectors

On May 8, 2019, the Trump administration issued an Executive Order (EO)(1) establishing new sanctions on Iran’s iron, steel, aluminum, and copper sectors. A few key points from the EO include, but are not limited to, the following:

  • “All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person(2) of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any person determined by the Secretary of the Treasury, in consultation with the Secretary of State”:

    • to be operating in the iron, steel, aluminum, or copper sector of Iran, or to be a person that owns, controls, or operates an entity that is part of the iron, steel, aluminum, or copper sector of Iran;

    • to have knowingly engaged, on or after the date of this order, in a significant transaction for the sale, supply, or transfer to Iran of significant goods or services used in connection with the iron, steel, aluminum, or copper sectors of Iran;

    • to have knowingly engaged, on or after the date of this order, in a significant transaction for the purchase, acquisition, sale, transport, or marketing of iron, iron products, aluminum, aluminum products, steel, steel products, copper, or copper products from Iran;….

In addition to the above, there are additional prohibitions on financial institutions and financial transactions (occurring with the noted sectors). The prohibitions included in the EO include:

  • the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked; and

  • the receipt of any contribution or provision of funds, goods, or services from any such person.

Contact your GCSG Trade Compliance professionals for assistance in understanding how to reduce your risk and how this EO may affect your business.

References

(1) Executive Order (EO) on “Imposing Sanctions with Respect to the Iron, Steel, Aluminum, and Copper Sectors of Iran” - May 8, 2019

(2) United States person - means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.(1)

(3) Knowingly - with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.(1)

(4) Entity - means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization.(1)

Network of Iranian front companies disrupted by OFAC

On March 26, 2019 the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced(1) it had taken action against a network of 25 individuals and entities that had transferred over a billion dollars to the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The evasion scheme included a layered network of front companies and agents based in Iran, UAE, and Turkey that were set up to evade international sanctions and to gain access to the international financial system. The network exchanged devalued Iranian rials for dollars and euros.

We are targeting a vast network of front companies and individuals located in Iran, Turkey, and the UAE to disrupt a scheme the Iranian regime has used to illicitly move more than a billion dollars in fundsCentral to this network and sanctioned today pursuant to our counter terrorism authority is Iran's IRGC-controlled Ansar Bank and its currency exchange arm, Ansar Exchange, both of which used layers of intermediary entities to exchange devalued Iranian rial ultimately for dollars and euros to line the pockets of the IRGC and MODAFL…” (1)

Five front companies- UAE-based Sakan General Trading, Lebra Moon General Trading, and Naria General Trading, and Turkey-based Atlas Doviz, and the Iran-based Hital Exchange provided $800 million in funds to Ansar exchange.

Now more than ever, it is vitally important that global companies implement third-party due diligence and engagement policies. These policies are often risk-based but should be comprehensive and include at a minimum background investigation diligence and ongoing monitoring of distribution networks and contract agents.

Contact our Due Diligence compliance professionals at GCSG today to learn how we can help you mitigate your third-party risk with our due diligence reports, risk-ranking tool, policy development and implementation support, and international boots-on-the-ground third-party Audits.

References

(1) U.S. Department of the Treasury Press Releases - “United States Disrupts Large Scale Front Company Network Transferring Hundreds of Millions of Dollars and Euros to the IRGC and Iran’s Ministry of Defense.” - March 26, 2019

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

EU and Japan to Recognize the Other’s Persona Data Protection System | JDSupra - K&L Gates LLP

"On 17 July 2018, the EU and Japan reached an agreement to recognize each other’s data protections systems as “equivalent”, and each commits to complete internal procedures by fall 2018 (the “Data Agreement”). Once adopted, this will allow businesses to transfer personal data from the European Economic Area to Japan and vice versa without being required to provide further additional safeguards for each transfer." (Click here for the article) - EU, Japan

Chinese Intelligence Officer Charged with Economic Espionage | US DOJ

"A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies.  Xu was extradited to the United States yesterday." (Click here for the article) - USA, China

Cyber Tests Showed ‘Nearly All’ New Pentagon Weapons Vulnerable to Attack | NPR

"Passwords that took seconds to guess, or were never changed from their factory settings. Cyber vulnerabilities that were known, but never fixed. Those are two common problems plaguing some of the Department of Defense's newest weapons systems, according to the Government Accountability Office." (Click here for the article) - USA, China

Security firm uncovers new cyber group targeting government and military sectors | The Hill

"A new cyber group appears to have been targeting government and military organizations this past year as part of an espionage campaign, a security firm said on Wednesday." (Click here for the article) - Eastern Europe, Middle East

Oil Industry snubs EU effort to defy US sanctions on Iran | Financial Times

"Big European oil companies are spurning the EU’s attempt to shield Iranian crude from US sanctions because of fears the effort would leave businesses exposed to harsh penalties from the Trump administration." (Click here for the article) - Europe, Iran, USA

Mitigating Compliance Pitfalls in Manufacturing | Manufacturing.net

"The U.S. Department of Justice and the Securities and Exchange Commission have stepped up efforts recently to enforce the Foreign Corrupt Practices Act (FCPA). For manufacturers, this involves regulations surrounding exports and international conduct, including those related to U.S. economic sanctions and export control laws." (Click here for the article) - USA

French ports planning for ‘No-Deal’ Brexit | freightweek

"Norlink Ports, an association of 25 ports and inland gateways in the northern Hauts-de-France region, is planning measures to reduce the commercial impact of Britain leaving the European Union without a trade agreement." (Click here for the article) - UK, France, EU

Three Audit Employees Investigated in Probe of Vehicle Certifications | WSJ

"German prosecutors have launched an investigation into three employees of Volkswagen AG’s luxury car unit Audi suspected of falsifying documents to obtain roadworthiness certifications needed for vehicles to be exported to South Korea…" (Click here for the article) - Germany, South Korea

Countries Face Rising Exposure to Money Laundering | WSJ

"More countries are showing heightened risks of exposure to money laundering, according to an annual ranking of countries assessing their money-laundering risk." (Click here for the article) - Global

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

China Tariffs - List 3 Finalized and Taking Effect | Mitchell Silberberg & Knupp LLP

"At the end of the day on September 17, 2018, the U.S. Trade Representative issued notice that List 3 of the China tariffs has been finalized and takes effect with a 10% tariff on September 24, 2018." (Click here for the article) - USA, China

China eases up on winter smog fight as it battles American trade war headwinds  | SCMP

"China will be less severe with its smog curbs this winter as it grapples with slower economic growth and a trade war with the United States, according to a government plan released on Thursday." (Click here for the article) - USA, China

Ferraris, diamond rings: 3 men indicted in massive $364 million Ponzi scheme | USA Today

"Three men have been indicted in an alleged $364 million ponzi scheme that had more than 400 victims who funded their lavish lifestyle, featuring luxury cars, pricey homes and expensive jewelry, federal authorities said." (Click here for the article) - USA

Paris set to triumph as Europe’s post-Brexit trading hub | Financial Times

"Paris is emerging as the favored financial trading hub for continental Europe, as some of the world’s biggest banks and asset managers prepare for life after Brexit by steering their EU operations away from London to the French capital." (Click here for the article) - UK, France, European Union

US reaches trade deal with Canada and Mexico | Politico

"Trade ministers from the U.S., Mexico and Canada have reached a deal to revamp the North American Free Trade Agreement, the Trump administration announced late Sunday night." (Click here for the article) - USA, Mexico, Canada

Rules of Origin are too complicated | FOOD navigator

"Complex rules of origin labelling requirements inhibit trade and SMEs pay a particularly heavy price, trade bodies amfori and EuroCommerce warn. Speaking at a conference on rules of origin in Brussels, the heads of both associations argued that unless rules of origin requirements are reformed, they will continue to discourage European companies from taking advantage of ‘hard won concessions’ in free trade agreements." (Click here for the article) - European Union

North Korean hacking group tried to steal over $1Bn | FireEye

"This new FireEye report reveals a North Korean hacking group tried to steal over $1 billion from banks worldwide." (Click here for the article) - North Korea, Global

USMCA Provision Could Deter Trade Agreements with China | ST&R

"A provision in the updated NAFTA concluded this past weekend could make it more difficult for Canada and Mexico to pursue potential free trade agreements with China. Observers say the Trump administration could look to insert a similar provision in possible FTAs with the European Union and Japan as part of its effort to pressure Beijing to advance economic reforms." (Click here for the article) - USA, Mexico, Canada, China

Dubai enacts changes to anti-money laundering rules | The National

"The Dubai government has enacted changes to the Dubai International Financial Centre's anti-money laundering laws following a self-assessment of the free zone’s capacity to fight financial crime." (Click here for the article) - UAE

Hong Kong Freezes Chairman Assets, Alleges $1.3 Billion Con | Bloomberg

"Hong Kong’s securities regulator froze the assets of an unnamed chairman of a public company on suspicion of fraud totaling $1.3 billion. The person may have conducted two suspicious transactions to make significant profits, the Securities and Futures Commission said in a statement..." (Click here for the article) - Hong Kong, China

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Europe, Russia and China join forces with a new mechanism to dodge Iran sanctions | CNBC

"In the latest sign of the growing divide between Washington and its allies, the European Union's foreign policy chief announced Monday that the bloc was creating a new payment mechanism to allow countries to transact with Iran while avoiding U.S. sanctions." (Click here for the article) - USA, Russia, China, European Union

China says US trying to force it to submit on trade as new tariffs kick in | Reuters

"The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth." (Click here for the article) - USA, China

Novartis links bonuses to ethics in bid to rebuild reputation | GAN Integrity Inc.

"Swiss drug maker Novartis has revealed its employees only get a bonus if they meet or exceed expectations for ethical behavior as it seeks to address past shortcomings that have damaged its reputation." (Click here for the article) - Switzerland, USA, South Korea, China

Japan mulls bilateral trade deal with U.S. | Reuters

"Japan is mulling a bilateral trade agreement with the United States that would lower tariffs on U.S. agriculture imports in exchange for avoiding higher tariffs on Japanese autos, the Nikkei newspaper said on Saturday." (Click here for the article) - Japan, USA

Potential NAFTA collapse poses major risk to Canada | Financial Post

"Canada’s economic growth could be pared by about a quarter next year if the North American Free Trade Agreement collapses, and the drag will be extended if an automobile trade war emerges, according to a new Conference Board forecast." (Click here for the article) - Canada, USA

British inquiry intensifies Danske Bank money laundering scandal | Reuters

"Danske Bank’s money laundering scandal spread on Friday to Britain where the National Crime Agency said it is investigating the use of UK-registered companies." (Click here for the article) - Finland, Denmark, Estonia, Russia, UK

BASF commits to complying with US sanctions on Iran | Politico

"German chemical giant BASF has made a firm commitment to comply with all U.S. sanctions against Iran, becoming the latest in a string of large European companies to back away from ambitious plans to invest in the Islamic Republic following Washington’s withdrawal from the Iran nuclear deal." (Click here for the article) - Germany, Iran, USA

US Sanctions Russia and China-based IT companies for connections to DPRK | WorldECR

"The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned a Chinese IT company, its Russian counterpart and its North Korean CEO, targeting revenue repatriated to North Korea (‘DPRK’) through overseas IT workers." (Click here for the article) - Russia, China, North Korea, USA

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

US President signs miscellaneous tariff bill - eliminates tariffs | crowell moring

"On September 13, 2018, President Trump signed the Miscellaneous Tariff Bill (MTB) Act of 2018, which temporarily reduces or eliminates import duties on specified raw materials and intermediate products used in manufacturing that are not produced or available domestically." (Click here for the article) - USA

Danske Bank CEO quits over $234 billion money laundering scandal | Reuters

"Danske Bank’s chief executive Thomas Borgen resigned on Wednesday after an investigation revealed payments totaling 200 billion euros ($234 billion) through its small Estonian branch, many of which the bank said were suspicious." (Click here for the article) - Estonia, Russia, Denmark, European Union

U.S.’s Ross says China must decide on trade talks | CNBC

"It is up to Beijing to take the next steps on trade talks, U.S. Commerce Secretary Wilbur Ross said on Tuesday as China vowed to retaliate after U.S. President Donald Trump imposed initial duties on $200 billion worth of Chinese goods." (Click here for the article) - China, USA

US Legislation Gives BIS Greater Powers | WorldECR

"The US Department of Commerce’s Bureau of Industry and Security (‘BIS’) has been given statutory authority under the Export Control Reform Act (‘ECRA’), to control certain exports. The act was signed into law by President Trump on 13 August." (Click here for the article) - USA

Europe Moves to Target Money Laundering in Response to Scandals | WSJ

"Europe threw a one-two punch to fight money laundering on Wednesday, with the European Commission proposing enhanced powers for a regulator and lawmakers passing a package of new rules." (Click here for the article) - European Union

Foreign Bribery Rages Unchecked in over half of Global Trade | Transparency International

"Transparency International’s new report, Exporting Corruption, finds that only 11 major exporting countries - accounting for about a third of world exports - have active or moderate law enforcement against companies bribing abroad in order to gain mining rights, contracts for major construction projects, purchases of planes and other deals." (Click here for the article) - Global

Canada returning to NAFTA talks earlier than expected | CBC

"NAFTA talks are resuming at the decision-maker level sooner than expected, with Canada's foreign affairs minister set to return to Washington on Tuesday." (Click here for the article) - Canada, USA, Mexico

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Retaliatory tariffs on US chem exports to China threaten $18Bn in economic harm | ICIS

"The $11Bn worth of tariffs on US chemical exports enacted by China put almost $18Bn in domestic activity at risk along with nearly 55,000 US jobs..." (Click here for the article) - USA, China

New Sanctions Against Russia Have Unfavorable Impact on Defense Sector | BakerHostetler

"the U.S. State Department published new sanctions against Russia based on the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 after determining that the government of Russia had used chemical weapons in violation of international law..." (Click here for the article) - USA, Russia

Trump Rejects EU Offer to Remove Tariffs on Industrial Goods | ST&R Trade Report

"President Trump said Aug. 30 that a European Union offer to remove all tariffs on two-way trade in automobiles and other industrial goods is "not good enough."  (Click here for the article) - USA, European Union

'Urgency' for Asia Pacific mega trade deal | CNBC

"While the administration of U.S. President Donald Trump is considering slapping another $200 billion in tariffs on Chinese goods, 16 economies in Asia Pacific are racing to conclude a mega trade deal that would become the largest trading bloc in the world." (Click here for the article) - 10 ASEAN nations plus China, Japan, South Korea, India, Australia, New Zealand, 

EU lifts five-year old restrictions on solar panels from China | South China Morning Post

"The European Union will end its five-year-old restrictions on solar panel imports from China, officials said on Monday, as Brussels and Beijing increase their own trade cooperation in the face of protectionist steps from the United States." (Click here for the article) - EU, China

Kim struggles to revive North Korean economy battered by sanctions | Nikkei Asian Review

"In the two and a half months since his historic summit with U.S. President Donald Trump, North Korean leader Kim Jong Un has temporarily shelved de-nuclearization talks in favor of inspecting farms and factories to underscore his focus on improving an economy hamstrung by years of sanctions." (Click here for the article) - USA, North Korea, South Korea

Trump reportedly wants to hit China with tariffs on $200Bn worth of goods | Business Insider

"Bloomberg reported Thursday that Trump had told aides that he wants to follow through on a threat to impose tariffs on another $200 billion worth of Chinese goods as early as next week. That would mean more than half of all Chinese imports would be subject to tariffs." (Click here for the article) - USA, China

China may soon regret slapping tariffs on US soybeans | CNN Money

"One of China's major moves in the trade war with the US is in danger of backfiring on its own farmers.  They're facing a potential shortage of soybeans, one of China's biggest imports from the United States, after Beijing slapped a 25% tariff on them last month in retaliation for US tariffs on a swath of Chinese goods." (Click here for the article) - USA, China

Former DP World Manager must pay Dh5 million fine over bribe plot | The National UAE

"A former DP World manager who sought bribes from two companies in exchange for helping them win lucrative construction projects has had her 18-month jail term upheld – and been told she must still pay a fine of nearly Dh5 million." (Click here for the article) - UAE

Wells Fargo bankers fired after falsifying dinner receipts | Fox Business

"Yet another scandal has reportedly broken out at Wells Fargo.  The bank has fired or suspended at least a dozen employees at its investment bank - Wells Fargo Securities - over allegations these individuals doctored after-hours dinner receipts..." (Click here for the article) - USA

An overview of the Danske Bank money laundering scandal | Berlingske Business

"Berlingske has spent more than a year investigating the extensive money laundering at Danske Bank. Here is an overview of the case – with links to the most important articles (some are in Danish)...For years, large and deeply suspicious money flows were channelled unhindered through Danske Bank’s branch in Estonia – in what experts say was in breach of anti-money laundering laws." (Click here for the article) - Denmark, Estonia, Russia

 

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Cyber Crooks Hit British Law Firms, Steal Over 20 million pounds of client money | KYC360

"UK law firms are increasingly coming under attack from cyber criminals, with attacks costing law firms millions..." (Click here for the article) - UK

US State Department Imposes Sanctions on Russia for Use of Chemical Weapons | Baker McKenzie

"On August 24, 2018, the US State Department gave notice of new sanctions on Russia under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (the “CBW Act”) after determining that the Russian Government has used chemical weapons in violation of international law or chemical or biological weapons against its own nationals." (Click here for the article) - USA, Russia

Microsoft Hit With US Bribery Probe Over Deals in Hungary | WSJ

"Microsoft Corp. is being investigated by U.S. authorities over potential bribery and corruption related to software sales in Hungary, according to people familiar with the matter." (Click here for the article) - Hungary, USA

Company expelled from program for abuse, non-compliance | The Fiji Times

"A RENOWNED automotive company in Fiji has been stripped off from the Revenue and Customs’ Gold Card Services Program for abuse and non-compliance to Customs laws on numerous occasions." (Click here for the article) - Fiji

Nearly Half of Responding Organizations Plan to Modernize Compliance in Year Ahead | Corporate Compliance Insights

"Almost half (48.3 percent) of risk and compliance, internal audit, C-suite executive and board professionals plan to modernize their compliance functions by changing core compliance execution practices during the next 12 months, according to a recent Deloitte poll." (Click here for the article) - Global

Treasury blacklists firms, individuals accused of violating North Korean sanctions | WSJ

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - North Korea, Russia, USA

SEC Charges Citigroup for Internal Controls Failure | CFO

"Citigroup agreed to an SEC enforcement action on Thursday that charged the bank with inadequate controls that failed to detect “fraudulently-induced” loans made by a Mexican subsidiary. The failure ultimately resulted in $475 million of losses reported by Citigroup.." (Click here for the article) - Mexico, USA

Oil giant Total has pulled out of Iran and giant gas project | CNBC

"French oil giant Total has officially left Iran and abandoned its deal to develop a giant natural gas field in the country, Iran's oil minister reportedly told state television Monday, leaving the isolated republic to look for a replacement." (Click here for the article) - France, Iran, USA

UK Government to publish no-deal Brexit advice | BBC News

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - UK, EU

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Sanctions Busters Smuggled North Korean Coal, Iron to the South via Russia | WSJ

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - North Korea, South Korea, Russia, USA

Iran Sanctions Wind-Down Period Ends and New Iran Executive Order | Baker McKenzie

"In conjunction with the New Iran EO, the US Treasury Department's Office of Foreign Assets Control issued extensive new guidance on the New Iran EO..." (Click here for the article) - Iran, USA, European Union

FIFA eliminates "corruption" from Code of Ethics | NBC Sports

"FIFA eliminated the word "corruption" from its revised code of ethics during "secret meetings"..." (Click here for the article) - Global

Petrobras recovers $274 million from corruption scandal | Yahoo News

"Brazil's state-owned oil major Petrobras said Thursday that it has recovered 1.034 billion reais ($274 million) in funds embezzled during a giant corruption scandal that badly damaged the company and upended Brazilian politics." (Click here for the article) - Brazil

Customs of Ukraine and Serbia will work together to fight corruption | The Bobr Times

"Ukraine and Serbia signed a document that concerns data interchange between the customs authorities of the two countries and should increase the efficiency of the fight against corruption." (Click here for the article) - Serbia, Ukraine

The Long-Term Impact of Brexit on the European Union | Seeking Alpha

"When the United Kingdom leaves the European Union, higher barriers to trade, capital flows, and labor mobility will affect output and jobs not only in the UK but also in the remaining 27 EU member states." (Click here for the article) - UK, European Union

There's a good chance to reach a NAFTA deal this month | BDP International

"The U.S., Mexico and Canada have a good opportunity to reach a NAFTA agreement this month, and getting there will depend on the political flexibility of the Trump administration, according to the top representative for Mexico's private sector." (Click here for the article) - Mexico, Canada, USA

US, China to resume Trade Talks as Tariffs Bite | WSJ

"The US and China reached a modest breakthrough in their trade dispute, saying they would hold lower-level talks later this month on the spiraling dispute." (Click here for the article) - China, USA

Venezuelan President implicated in US investigation of money laundering | Malta Independent

"Venezuelan President Nicolas Maduro has been implicated in an American investigation for having laundered some 160 million euros through an unnamed Maltese private investment firm..." (Click here for the article) - Malta, Venezuela, USA

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

An illusion of choice: the conflicts that mire the audit world | Financial Times

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Global

Deutsche Bank reports show chinks in money laundering armor | Reuters

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Germany, European Union, Russia, Ireland, Spain, Italy, South Africa

US unveils next round of Chinese imports to face tariffs | BDP International

"The Trump administration on Tuesday unveiled a list of roughly $16 billion worth of imports from China that will be hit with 25% tariffs." (Click here for the article) - China, USA

US guidance on trade sanctions being reimposed on Iran | KPMG

"The US Treasury Department's Office of Foreign Assets Control today announced the following guidance concerning an executive order reimposing sanctions with respect to Iran..." (Click here for the article) - Iran, USA

Fourth Circuit Agrees with Walmart on Privilege Issue Relevant to FCPA Inquiry | FCPA Professor

"Walmart and the government seem to be at an impasse regarding resolution of Walmar'ts FCPA scrutiny first disclosed in late 2011...In late June 2018 the Fourth Circuit, in this decision, agreed with Walmart's position." (Click here for the article) - USA

US slaps export controls on dozens of Chinese firms over threat to national security | South China Morning Post

"Washington has slapped restrictions on dozens of key Chinese companies - including state-owned developers of military-use technologies such as air defence and satellite systems - for reasons of national security." (Click here for the article) - China, USA

 

Saturday Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Are CEOs Less Ethical Than in the Past? | Strategy + Business

"The job of a CEO at a large publicly held company may seem to be quite comfortable - high pay, excellent benefits, elevated social status, and access to private jets.  But the comfortable perch is increasingly becoming a hot seat, especially when CEOs and their employees cross red lines." (Click here for the article) - Global

What if BREXIT Happened Without an Exit Deal? | Stratfor

"Negotiators for the UK and the EU are racing the clock to reach agreements on a long list of remaining issues before the UK formally leaves the bloc..." (Click here for the article) - UK, European Union

Texas jury indicts Arkema, two executives over chemical releases | Reuters

"A Texas grand jury on Friday indicted chemicals manufacturer Arkema North America and two of its executives for releasing emissions that allegedly endangered the public after a 2017 hurricane." (Click here for the article) - USA

OFAC Sanctions Russian Bank for Moving North Korean Cash | RegTech Post

"The Office of Foreign Assets Control has named Russia's Commercial Bank Agrosoyuz as a Specially Designated National, for moving funds for a DPRK bank, and for two front companies acting for the North Korean Government." (Click here for the article) - Russia, North KoreaUSA

US elevates India to most-important allies list  | The Economic Times

"In a big boost to India, the US has eased the export restrictions for high-technology product sales to India by designating it as a Strategic Trade Authorization-1 country, the only South Asian nation to be on the 36 countries list." (Click here for the article) - IndiaUSA

EU Privacy Becomes Excuse to Withhold in US Bribery Probes | Bloomberg Law

"Companies are improperly using the European Union's fairly new privacy standards as the scapegoat for why they can't disclose documents to the US government during foreign bribery investigations..." (Click here for the article) - European Union, USA

CNPC refutes subsidiary's role in 1MDB money-laundering scandal | South China Morning Post

"China Petroleum Pipeline Engineering, a unit of China's state-owned oil and gas giant China National Petroleum Corp, had refuted a media report that money paid for its pipeline projects in Malaysia was diverted to third-party Cayman Islands companies involved in money laundering." (Click here for the article) - China, Malaysia, Cayman Islands, UAE

Wednesday Compliance News - Around the World

GCSG's Wednesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Texas Instruments CEO Resigns after Code of Conduct Violations | WSJ

"Texas Instruments Inc.'s Chief Executive Brian Crutcher has resigned over violations of the company's code of conduct..." (Click here for the article) - USA

US Tariffs are taxing for the whole world, not just China | South China Morning Post

"The United States' unilateral imposition of 25 per cent tariffs on Chinese products worth US$34 billion damages the global economy in the short term, and strategically threatens the economic well-being of numerous other countries." (Click here for the article) - China, USA

Japan's first corporate plea deal resolves overseas bribery case | The FCPA Blog

"Prosecutors in Tokyo used a plea bargain to resolve an overseas bribery case with a power plant maker under a new law adopted in June..." (Click here for the article) - Japan, Thailand

Lativia's Corruption Scandal is Getting Even Weirder | Bloomberg

"It's central bank chief has been charged with bribery.  A lawyer liquidating the bank that was accused of bribing him was killed in a hail of machine-gun fire.  And one of the banks' biggest lenders was shut down after U.S. allegations of money laundering and violations of sanctions on North Korea." (Click here for the article) - Latvia, USA, North Korea, Russia, Luxembourg, EU

Terrorists slipping through net thanks to anti-money laundering unit delays | Handelsblatt Global

"The Financial Intelligence Unit is overworked and understaffed, say police and prosecutors.  Staff only pass on tips six months after crimes are committed..." (Click here for the article) - Germany

Tuesday Compliance News - Around the World

GCSG's Tuesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

European firms are increasingly tackling the scourge of bribery | The Economist

"Governments in Europe are catching up with America in pursuing corporate graft...A spate of scandals in Europe suggest that prosecutors, as well as the politicians who influence how much freedom judicial investigators enjoy, are becoming ever less tolerant of corporate corruption" (Click here for the article) - Europe, USA

Fraud biggest business risk to Middle East Businesses  | Gulf Digital News

"48% of Middle East businesses cited fraud and corruption as the greatest risk to their company, followed by cyber attacks (38%)..." (Click here for the article) - Middle East

Vietnam arrests oil refinery executives amid corruption crackdown  | Reuters

"Police in Vietnam arrested the chairman and the chief accountant of Binh Son Refining and Petrochemical Co. Ltd. on suspicion of embezzlement..." (Click here for the article) - Vietnam

UK Data Protection Act 2018  | Cordery Compliance

"The UK's new data protection legislation, the Data Protection Act 2018 (DPA 2018) received the Royal Assent..." (Click here for the article) - UK, Europe

Serious Fraud Office charges against Barclays dismissed  | Independent

"A court has dismissed charges brought by the Serious Fraud Office against Barclays relating to capital raisings that took place in 2008." (Click here for the article) - UK, Europe

 

 

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

US considers tightening grip on China ties to Corporate America | CNBC

"The US government may start scrutinizing informal partnerships between American and Chinese companies in the field of artificial intelligence..." (Click here for the article) - USA, China

Laundering Scandal Exposes European Rift on Policing Banks | Bloomberg

"Europe is struggling to agree on how to tackle money laundering in the wake of high-profile scandals in the Baltic region." (Click here for the article) - EU, Latvia, Germany

Panasonic to Pay $280MM to End U.S. Corruption Probe | Bloomberg

"Panasonic Corp. will pay about $280 million to resolve U.S. allegations that executives at its in-flight-entertainment unit improperly hid payments to consultants in the Middle East and Asia, some did little or no work for the company." (Click here for the article) - Middle East, Asia, USA

New Customs Agreement between the EU and New Zealand | EU Commission News

"A new customs agreement between the EU and New Zealand will officially enter force on 1 May." (Click here for the article) - EU, New Zealand

EU considers using algorithms to detect anti-competitive acts | Reuters

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - EU

Corruption at (Philippines) Customs now on lesser scale | Manila Bulletin

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - Philippines

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

British defense contractor under fraud investigation in Algeria | ArabNews.com

"Ultra Electronics on Thursday announced that the UK's Serious Fraud Office had opened a criminal investigation into 'suspected corruption in the conduct of business' by the British defense contractor in Algeria." (Click here for the article) - UK, Algeria

NIST Releases v 1.1 of its Cybersecurity Framework | NIST News

"The U.S. Commerce Department's National Institute of Standards and Technology (NIST) has released version 1.1 of its popular Framework for Improving Critical Infrastructure Cybersecurity..." (Click here for the article) - USA

African Union planning free trade area 7 times larger than the EU | African Union News

"The Extraordinary Summit on the African Continental Free TRADE AfCFTA held from 17 – 21 March 2018 in Kigali , Rwanda, will serve as a platform for the African Union to sign into existence another flagship project that will boost intra-Africa trade: The Treaty Establishing the African Economic Community relating to Free Movement of Persons, Rights of Residence and Right of Establishment." (Click here for the article) - Africa

U.S. publishes list of China-origin products subject to 25% duty | EY

"On 3 April 2018, the United States Trade Representative (USTR) published a proposed list of Chinese goods targeted for assessment of an additional 25% duty upon importation into the United States." (Click here for the article) - China, USA

UK SFO facing judicial review on powers to demand overseas data | Freshfields Bruckhaus Deringer

"The Serious Fraud Office is facing another judicial review of its actions—this time by US engineering and construction company, KBR Inc...The issue in dispute is the SFO’s power to compel KBR Inc to produce data held in the US." (Click here for the article) - UK, USA

China Launches Website to Report Foreign Spies, Corrupt Officials | South China Morning Post

"China has stepped up its campaign against foreign espionage with a website in Mandarin and English encouraging people to report national security threats such as bids to 'overthrow the socialist system'.  The website, 12339.gov.cn, launched by the Ministry of National Security on Sunday, also urges anyone to report attempts by Chinese nationals or foreigners to bribe state or military officials, instigate armed riots or incite ethnic separatism." (Click here for the article) - China

Construction Sector Experiences Heightened Vulnerability to Fraud | Construction Executive

"Ninety-three percent of construction, engineering and infrastructure sector executives said their companies had experienced a cyber incident or information theft, loss or attack in the past year—the highest proportion of all sectors..." (Click here for the article) - Global

Stricter EU Rules on Money Laundering and Terrorism Financing | European Parliament

"To increase transparency and respond to the latest technological developments, MEPs voted on 19 April in favour of an update of EU legislation on money laundering and terrorism financing.  The new directive is aimed at preventing the EU’s financial system from being used to fund criminal activities. It also includes a ban on the large-scale concealment of funds and creates more transparency with regards to the true ownership of companies and trusts." (Click here for the article) - EU

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Corruption Perceptions Index 2017 | Transparency International

"This year's Corruption Perceptions Index highlights that the majority of countries are making little or no progress in ending corruption..." (Click here for the article) - Global

US DOJ Files False Claims Act Complaint Against Pharmacy, PE Firm, and 2 Pharmacy Executives | The US Department of Justice

"The US has filed a complaint in intervention against Diabetic Care Rx LLC...two pharmacy executives...and a private equity firm..." (Click here for the article) - U.S.

Pakistan Avoids Inclusion on International Terror-Financing Watch List | Wall Street Journal

"Saudi Arabia joined Turkey and China in a move to block a U.S.-led attempt this week to place Pakistan on an international terror-financing watch list..." (Click here for the article) - Pakistan, Turkey, Saudi Arabia, China, U.S.

Compliance Needs to Adapt as Prosecutors Cooperate More | Wall Street Journal

"Greater cooperation among global law enforcement agencies to resolve corporate crime issues through settlements means companies need to be prepared to deal with a more complex set of rules..." (Click here for the article) - Global

UK Attorney-General Backs More Funding for Fraud Office | Financial Times

"The UK's attorney-general has backed more funding for the Serious Fraud Office to help it recruit top lawyers and reduce its reliance on "blockbuster funding" for handling big cases." (Click here for the article) - UK

Canada Customs Audits Reveal 66% Tariff Classification Non-Compliance | 3CE Technologies

"For the third straight year, CBSA published its list of trade verification priorities.  Tariff classification remains the agency's primary focus, with 1,267 companies being, or have recently been, audited for HS classification accuracy." (Click here for the article) - Canada

 

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Not so global Britain - Muddled attitudes towards free trade | The Economist

"Public views of trade deals are more complicated than politicians allow" (Click here for the article) - UK, EU

Hezbollah in South America: The Threat to Business | Stratfor

"Businesses must take a variety of threats from Hezbollah into account when operating in South America.  Chief among these is corruption, which Hezbollah exploits - and which can also adversely impact business operations..." (Click here for the article) - South America, Lebanon, U.S.

Novartis bribery probe: ten Greek ex-ministers allegedly involved | The LOCAL ch

"Two former Greek prime ministers and eight former ministers have been implicated in an alleged corruption scandal involving Swiss pharmaceutical giant Novartis..." (Click here for the article) - Greece, Switzerland, China

World Bank Group Announces Debarment of Three companies | The World Bank

"The World Bank today announced the debarment of three companies – Gavinor, S.R.L., J.C. Segura Construcciones S.A., and a joint-venture, Constructura J.C. Segura Construcciones S. A.-Gavinor S.R.L.-UTE – for 18 months in connection with the companies’ fraudulent practice of knowingly misrepresenting work progress during a contract..." (Click here for the article) - Argentina

U.S. Becomes World's Second-Biggest Tax Haven | The Wall Street Journal

"The U.S. rose for the third straight time in a ranking of tax havens, becoming the world's second-largest..." (Click here for the article) - U.S., Global

Samsung Heir Freed, to Dismay of South Korea's Anti-Corruption Campaigners  | The NY Times

"When Lee Jae-yong, the de facto leader of Samsung, walked free on Monday after spending barely a year in jail, it reaffirmed a pattern South Koreans have fought for decades to break: Business tycoons convicted of corruption here hardly spend any time behind bars..." (Click here for the article) - South Korea

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

UK will leave Customs Union and negotiate a free-trade deal | Sky News

"Speaking to Sky News Political Editor Faisal Islam, she said: "We are leaving the Customs Union.  Then we are going to negotiate a free-trade agreement with the EU." (Click here for the article) - UK, EU

U.S. slaps sanctions on network run through Laos casino | The Wall Street Journal

"The U.S. Treasury Department on Tuesday put sanctions on Laos-based alleged crime network it said operated through a casino and engaged in..." (Click here for the article) - Laos, US

U.S. becomes world's second-biggest tax haven | The Wall Street Journal

"The U.S. rose for the third straight time in a ranking of tax havens, becoming the world's second-largest, according to the latest analysis by a research..." (Click here for the article) - Global

Volkswagen supplier to face criminal case in emissions fraud | The Wall Street Journal

"A supplier for Volkswagen AG is in discussions with the U.S. Justice Department to resolve an impending criminal case arising from its alleged..." (Click here for the article) - Germany, U.S.

Whistleblower lawyers see a growth area: Customs Fraud | The Wall Street Journal

"Whistleblower lawyers see room for extra business on a new front: chasing customs-linked wrongdoing ranging from failing to label imported goods to shipping rhinoceros horn across the border..." (Click here for the article) - U.S.

Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Canada, Mexico Reject Proposal to Rework NAFTA Corporate Arbitration System | WSJ

"Mexico and Canada have rejected a proposal by the Trump administration to remake a corporate arbitration system that is a key part of the North American Free Trade Agreement...." (Click here for the article) - Canada, Mexico, United States

Tanker full of Russian Gas to Land in Boston Despite Sanctions | The Daily Caller

"Despite sanctions, a shipment of liquid natural gas from a blacklisted Russian company in Siberia is expected to be unloaded in Boston this weekend." (Click here for the article) - United States, Russia

Saudi Prince Alwaleed bin Talal freed amid corruption probe veiled in secrecy | Chicago Tribune

"Billionaire Saudi Prince Alwaleed bin Talal, who had been held in a luxury hotel since November in a wide-reaching anti-corruption probe that has been shrouded in secrecy and intrigue, was released on Saturday..." (Click here for the article) - Saudi Arabia

Prosecutors charge 6 in multiyear scheme to help KPMG pass inspections of its work | The Washington Post

"KPMG, one of the world's largest accounting firms was repeatedly tipped off about regulator's plans to inspect its work..." (Click here for the article) - Global

Texas man sentenced for conspiring to illegally export radiation hardened integrated circuits to Russia and China | US DOJ

"Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S..." (Click here for the article) - United States, China, Russia