Monday Compliance News - Around the World

GCSG's Monday Compliance News (published Tuesday the week of Jan 22) 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.

The Impact of Retroactive Transfer Pricing Adjustments on the EU Customs Valuation | KPMG Meijburg & Co

"With its judgment of December 20, 2017 in the Hamamatsu Photonics Deutschland case, the Court of Justice of the European Union finally provided some clarity about the impact of retroactive transfer pricing adjustments...." (Click here for the article) - European Union

UK companies will face huge new VAT burden after Brexit | The Guardian

"More than 130,000 UK firms will be forced to pay VAT upfront for the first time on all goods imported from the European Union after Brexit...." (Click here for the article) - UK, European Union

Ban Ki-Moon's Nephew Pleads Guilty in Bribery Case | The Wall Street Journal

"Joo Hyun Bahn, the nephew of former United Nations Secretary-General Ban Ki-Moon, pleaded guilty on Friday to U.S. charges connected to a scheme to bribe a foreign official...." (Click here for the article) - Vietnam, U.S., Global

Canada takes the U.S. to WTO in wide-ranging trade complaint | The Globe and Mail

"The Canadian government is taking the United States to the world's trade court in a wide-ranging complaint that accuses Washington of flouting the rules of commerce." (Click here for the article) - Canada, U.S.

Deferred prosecution agreements proposed to take companies task | The Straits Times

"A new legal framework that can grant companies amnesty for certain corporate offences is being proposed in Singapore." (Click here for the article) - Singapore

Cigarettes and Murky Joint Ventures Help North Korea Evade Crackdown  | The Wall Street Journal

"Global businesses faced a deadline last week to exit joint ventures operating in North Korea, but dozens of them are still there." (Click here for the article) - North Korea, U.S., South Korea, China, Global

US Company Settles Whistleblower Lawsuit, Pays for Importer's Customs Fraud  | Global Trade Magazine

"Federal prosecutors in New York recently announced the settlement of a remarkable lawsuit relating to a scheme to evade import duties." (Click here for the article) - U.S.

SFO opens investigation into Chemring Group PLC and its subsidiary  | U.K. Serious Fraud Office News Release

"The SFO confirms it has opened a criminal investigation into bribery, corruption and money laundering arising from the conduct of business by Chemring Group plc and CTSL..." (Click here for the article) - U.K.

Argentine Congress Approves New Corruption Law

On Wednesday, November 8, 2017 the Argentine Congress approved a new law to combat corporate corruption.  The passage of this law follows the arrests of two Argentine politicians on corruption charges.

The law applies to private legal entities and covers the following crimes:

  • Local or international bribery and influence peddling
  • Illegal payments to public officials
  • Illegal enrichment of public officers and employees
  • Falsifying balance sheets and reports to conceal bribery or influence peddling

Companies are liable for the above crimes whether they are committed directly or indirectly on their behalf.  A corporation may also be held liable for the actions of third parties acting on their behalf.   

The bill allows for:

  • Courts to fine companies up to five times more than the amount fraudulently obtained
  • Companies to be blacklisted from public contracts for up to 10 years
  • The lessening of a corporations punishment for self-reporting a crime discovered by an internal compliance program, the existence of a sufficient compliance program prior to the violation, entering into a collaboration agreement, among other factors       

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Canada Repeals Facilitation Payments Exception

     On October 30, 2017 the Government of Canada announced the facilitation payments exception, contained within the Corruption of Foreign Public Officials Act (CFPOA), has now been removed.  Bill S-14 repealed the exception and went into force on October 31, 2017.

     The CFPOA defined facilitation payments as follows:

  • "For the purpose of subsection (1), a payment is not a loan, reward, advantage or benefit to obtain or retain an advantage in the course of business, if it is made to expedite or secure the performance by a foreign public official of any act of a routine nature that is part of the foreign public official’s duties or functions, including:
    • the issuance of a permit, licence or other document to qualify a person to do business;

    • the processing of official documents, such as visas and work permits;

    • the provision of services normally offered to the public, such as mail pick-up and delivery, telecommunication services and power and water supply; and

    • the provision of services normally provided as required, such as police protection, loading and unloading of cargo, the protection of perishable products or commodities from deterioration or the scheduling of inspections related to contract performance or transit of goods."

     Contact GCSG professionals at with any questions or for more information on how we can assist you with your compliance program.  Visit our website at to learn more about our products and services.   

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