Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

How deep is Vietnam's rot? |  Asia Times

"At a meeting of Vietnam’s main anti-corruption body held late last month, the country’s leading politician instructed it to quicken the pace of its investigations into corrupt officials. Nguyen Phu Trong, general secretary of the ruling Communist Party, applauded the anti-graft body for establishing a list of “urgent cases requiring drastic settlement,” local media reported but also stressed that much more needed to be done." (Click here for the article) - Vietnam

Custom brokers:  Integration is the future |  AEB

"Smart people know their limitations. An experienced customs manager in a company that trades across borders needs a well-trained team and powerful IT support to run efficient customs operations. This includes directly interacting with the customs authorities to manage imports and exports in, for example, the Netherlands. And a really good in-house customs department may even be able to handle customs procedures outside of this – for other major markets and large production sites abroad." (Click here for the article) - Global

US to expand benefit of anti-bribery enforcement program |  WSJ

"The U.S. Justice Department plans to make permanent, and expand the benefits of, a program meant to entice companies to turn themselves in when they have bribery problems, saying it won’t prosecute most firms if they meet the conditions." (Click here for the article) - US

Peruvians launch anti-corruption protest amid investigations |  Telsur TV

"Peruvian civil rights groups are uniting in the fight against corruption as hundreds of workers march in Lima in response to recent developments in the Operation Car Wash and Odebrecht scandals." (Click here for the article) - Peru

Transparency International questions use of corruption index |  WSJ

"Transparency International’s Corruption Perceptions Index is being employed as a line in the sand by companies trying to shape global compliance programs to minimize their risk of a bribery scandal. The anti-corruption group isn’t happy." (Click here for the article) - Global

Canada - US trade deal possible if Nafta fails, Trudeau says |  Bloomberg

"Canadian Prime Minister Justin Trudeau said he would consider one-on-one talks with the U.S. on trade, if negotiations to update the North American Free Trade Agreement fail. " (Click here for the article) - US, Canada, Mexico

Oliver Schmidt jailed for seven years for Volkswagen emissions scam |  The Guardian

"A senior Volkswagen executive was sentenced to seven years in prison by a US court on Wednesday after being found guilty of concealing software used to evade pollution limits on nearly 600,000 diesel vehicles. " (Click here for the article) - US, Germany

 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

Two executives plead guilty to role in foreign bribery scheme |  US Dept of Justice

"Two former executives at a Dutch oil and gas services company, Anthony “Tony” Mace and Robert Zubiate, pleaded guilty this week to conspiracy to violate the Foreign Corrupt Practices Act for their roles in a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea." (Click here for the article) - US, UK, Brazil, Angola, Equatorial Guinea, Switzerland

Broad US jurisdiction captures Chinese investment in Africa |  WSJ

"The U.S. criminal complaint unsealed last week against former ministers from Hong Kong and Senegal underlines the broad jurisdiction of the Foreign Corrupt Practices Act, experts told Risk & Compliance Journal. They said the law levels the playing field for U.S. businesses seeking investment in Africa, and that a lack of awareness of the law from Chinese firms may trip them up." (Click here for the article) - US, China, Africa

Supreme Court wary bout widening whistleblower protections |  Reuters

"Conservative and liberal U.S. Supreme Court justices on Tuesday appeared reluctant to broaden protections for corporate insiders who blow the whistle on securities law violations or fraud by their companies." (Click here for the article) - US

3 key steps to eliminating harassment in the workplace |  Corp Compliance Insights

"Both employers and employees benefit when companies and organizations effectively address sexual harassment.  By training employees, devising and implementing harassment policies and procedures and enforcing those policies fairly and consistently, employers can combat sexual harassment in the workplace." (Click here for the article) - US

US lawyers weigh impact of anti-bribery changes |  WSJ

"News that the U.S. Justice Department is beefing up and making permanent a program to encourage companies to come forward over cases of foreign bribery is welcome, but the devil will be in the details, lawyers say." (Click here for the article) - US

International supply chain risks: how US sanctions can kill your deal |  Procurious

"The United States (U.S.) had $2.21 trillion Dollars in exports in 2016 according to the U.S. Department of Commerce (D.O.C)i, and an estimated 10.7 million U.S. jobs supported by exports ii. Yet U.S. unilateral sanctions are being applied more vigorously than ever to perceived foreign foes, negatively affecting trade balances." (Click here for the article) - US

Top ten international anti-corruption developments for October 2017 |  Morrison Foerster

"In order to provide an overview for busy in-house counsel and compliance professionals, we summarize below some of the most important international anti-corruption developments from the past month, with links to primary resources. This month we ask: What are the latest developments in the U.S. Department of Justice’s sweeping investigation into alleged corruption in Venezuela? What new Canadian anti-corruption law has drawn the ire of the Russian president? What new anti-corruption measures were announced at the Communist Party of China’s National Congress? The answers to these questions and more are here in our October 2017 Top Ten list." (Click here for the article) - Global

EU export controls to be extended to cover human rights violations

/ Global Compliance Solutions Group LLC/

On Thursday, November 23, 2017, EU Trade Committee MEPs voted to extend export controls to civilian goods and technologies that might be used for human rights violations.  New rules will be developed that will add certain cyber-surveillance tools to the list of goods and technologies that need to be approved prior to export.

Trade Committee suggestions include:

  • "Strengthening the protection of the right to privacy, data and, freedom of assembly, by adding clear-cut criteria and definition to the regulation.
  • Exporters of products not listed in the regulation but which could be used for human-rights violations, have to make sure that their goods won't fall into the wrong hands, by following OECD-based 'due diligence' guidelines.
  • The Commission must publish a handbook before the entry into force of the new rules, so that EU businesses know what they can and cannot do.
  • New risks and technologies have to be swiftly included in the regulation.
  • Creating a level playing field among member states, by, for example, introducing similar penalties for non-compliance, along with greater transparency of national authorities export control decisions." (1)

Klaus Buchner (Greens/EFA, DE) said: "With today's vote we extend effective control to cyber-surveillance technology.  We close loopholes that otherwise result in innocent people across the world being imprsioned, tortured and killed.  We make the protection of human rights a central aspect of dual-use export control.  We add strong, new transparency measures and include civil society participation, whilst continuing to create value-based European trade policy." (1) 

Key Term(s):

  • MEP - Member of the European Parliament  

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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 declares North Korea a terror sponsor; new sanctions expected |  MSN

"President Donald Trump announced Monday the U.S. is putting North Korea’s “murderous regime” on America’s terrorism blacklist, despite questions about Pyongyang’s support for international attacks beyond the assassination of its leader’s half brother in February." (Click here for the article) - US, N. Korea, Iran, Sudan, Syria

China cuts import tariffs on almost 200 consumer goods |  BBC News

"China is cutting import tariffs on 187 consumer goods from whisky to cashmere clothing to help spur spending and economic growth. The Finance Ministry said tariffs will drop from an average 17.3% to 7.7% on products, including pharmaceuticals, food, health supplements and clothing. The cut will take effect from the beginning of December. The move is designed to encourage consumers to spend more at home rather than on trips overseas." (Click here for the article) - China, US

Export invoice vs. accounting invoice:  What's the difference? |  Shipping Solutions

"An export invoice is an umbrella term that encompasses exporting forms like the Commercial Invoice and the Proforma Invoice—forms that indicate the buyer and seller of the goods, a description of the items, the items’ value, and the terms or proposed terms of the sale. Many governments use export invoices for calculating and assessing customs duties and taxes. Though they are often confused with one another, export invoices and accounting invoices are not the same." (Click here for the article) - Global

Factors affecting the USA, UK, Germanic and Japanese corporate governance models |  White Collar Investigator

"Corporate governance is the framework of laws, regulations and rules that govern/control the interactions and relationships between the owners, the board or the boards, managers and other parties that collectively are a part of a or any decision making process. Corporate governance came into existence to ensure that all parties can work for long-term benefits of the shareholders in a fair and ethical manner without damaging any elements of a corporation’s social responsibility." (Click here for the article) - US, UK, Germany, Japan

Happy Thanksgiving from the GCSG Service Team!

/ Global Compliance Solutions Group LLC/

GCSG wishes you and your family a happy and safe Thanksgiving holiday!

This Thanksgiving we are thankful for all our clients and vendors and for the many successes we have achieved together this past year!

We are always here to partner with our clients to solve challenging compliance issues with a strategic, comprehensive, and common sense approach.  We strive to exceed our clients expectations by providing high quality compliance products and services while staying true to our core values of integrity, service and accountability.

Kindest regards,

GCSG Services Team

** *** **

About GCSG

We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirts Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, fraud investigation, and third-party due diligence and risk management services.

Learn more about GCSG by following us online or contacting us directly:

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Contact us here.

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

Saudi Arabia detains more than 200 people in expanding 'anti-corruption' campaign |  Washington Post

"Saudi Arabia said Thursday that it had detained more than 200 people as part of an expanding “anti-corruption” campaign that has led to the arrests of at least 11 princes and some of the country’s wealthiest and most prominent business tycoons." (Click here for the article) - Saudi Arabia

Banks brace for rocky implementation of US Treasury beneficial ownership rules |  Reuters

"As banks prepare for compliance with the U.S. Treasury Department’s new Customer Due Diligence rule and its tricky beneficial ownership component, some compliance units are planning early implementation and making contingency plans for handling any problems as the new measures go live, bankers say. But banks still may not be doing enough to prepare, even as the amount of money being spent and number of Know Your Customer specialists spikes at large institutions." (Click here for the article) - USA

Fifa corruption trial hears allegations officials took millions in bribes |  The Guardian

"Inside a packed New York City courtroom, and under heightened security on Monday, US prosecutors accused three former South American football administrators of taking millions of dollars in bribes as part of a web of endemic corruption at the heart of the sport’s governing body, Fifa." (Click here for the article) - USA, Brazil

US manufacturers upbeat amid rising demand, promise of tax overhaul |  WSJ

"U.S. manufacturers are broadly upbeat heading into the final months of the year. They say they’re buoyed by steady economic growth at home, improving demand abroad, and expectations the Trump administration and Congress will deliver a package of lower taxes and other policies to stimulate demand for factory goods." (Click here for the article) - USA

US to work with Malaysia to enhance export controls | WSJ

"The US is working together with Malaysia to build expertise and capacity to enhance export control mechanisms between the two countries." (Click here for the article) - USA, Malaysia

US Lawyers propose changes to Justice Dept. monitor program | WSJ

"Experts see room to improve the U.S. Justice Department’s corporate-monitorship program, now under review as part of  a broader look at how prosecutors deter corporate fraud." (Click here for the article) - Global

Wall Street fines fall during first year of Trump administration | WSJ

"Penalties levied by the Securities and Exchange Commission dropped to a four-year low during the latest fiscal year, showing how a more friendly tone from regulators and the transition of political power can yield relief for Wall Street." (Click here for the article) - USA

China faces historic corruption battle ruling party's new graft buster says | The Japan Times

"China must win its battle against corruption or face being erased by history, its new top graft buster said in an editorial on Saturday, underscoring the ruling Communist Party’s focus on eliminating corrupt behavior." (Click here for the article) - China

Lafarge offices searched over Syria business links | Anti-Corruption Digest

"French investigators searched the offices of French-Swiss cement maker Lafarge Tuesday, the company said, as part of an inquiry into financial links to jihadist groups in Syria, including Islamic State." (Click here for the article) - France, Switzerland, Syria

Lessons in third-party compliance from trouble at Airbus | Corporate Counsel

"Airbus, the French aircraft maker, disclosed Tuesday that it may have violated U.S. law on the fees and commissions it paid to sales agents—raising the specter of a U.S. bribery probe to go along with French and U.K.investigations already underway." (Click here for the article) - France, US, United Kingdom

Italy approves law on whistle-blowing; what's new and how to get prepared | Hogan Lovels

"Following a long-lasting legislative process, on 15 November 2017 the Italian Parliament has finally approved a new piece of legislation introducing in Italy comprehensive whistle-blowing provisions, granting broader protection to employees deciding to report misconducts they have learned in the workplace ("Whistle-blowing Law")." (Click here for the article) - Italy

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

As US enforcement lags, international attention to domestic corruption takes front seat | Corporate Compliance Insights

"Indeed, the biggest FCPA settlement of the year, the $965 Million Telia Resolution, was a joint effort among U.S., Dutch and Swedish authorities.  While commentators may disagree about the cause of the apparent slowdown, or whether it will continue throughout the Trump presidency, it is undeniable that since January 23, 2017 enforcement authorities abroad have grabbed the major headlines in the international anti-corruption space." (Click here for the article) - Global

DEA Report: Bitcoin used for trade-based money laundering | Coindesk

"A new report from the U.S. Drug Enforcement Administration (DEA) claims that bitcoin is being used to facilitate trade-based money laundering (TBML) schemes." (Click here for the article) - USA, China

Ghana opens investigation into soccer corruption, fixing | News24

"Soccer officials in Ghana have opened an investigation into bribery, match-fixing and corruption." (Click here for the article) - Ghana

Corporate governance is a board issue for Japanese investors: Kageyama | Business Standard

"Foreign direct investment inflow to India from Japan has seen a sizeable leg-up over the past three-four years, growing from $1.7 billion in 2013-14 to $4.7 billion in 2016-17. Corporate investigation and risk consulting firm Kroll Inc’s regional managing director and head of Asia operations, Tadashi Kageyama, has over the years worked closely with many Japanese businesses and investors and helped them shape their India strategy. He shares with Sudipto Dey the key regulatory challenges that are of concern for many Japanese investors looking at India." (Click here for the article) - Japan, India

Canada warns NAFTA talks can't be "winner take all" | Bloomberg

"Canadian Foreign Minister Chrystia Freeland criticized a one-sided strategy in Nafta negotiations after U.S. Commerce Secretary Wilbur Ross said he wasn’t prepared to make concessions to reach a deal." (Click here for the article) - USA, Canada, Mexico

SAP reports itself to US authorities over Gupta scandal | WSJ

"German software maker SAP SE has reported itself to U.S. authorities after paying 94 million rand ($6.7 million) to companies with ties to South Africa’s controversial Gupta family to secure contracts with state-owned enterprises." (Click here for the article) - USA, Germany, South Africa

Standard Malaysia, MACC launch anti-bribery management system | Straits Times

"The Department of Standards Malaysia and Malaysian Anti-Corruption Malaysia launched an anti-bribery management system based on the Malaysian Standards ISO 37001:2016." (Click here for the article) - Malaysia

Fear grows that EU glyphosate ban could disrupt global trade | Politico

"Some of Europe’s biggest trade partners fear a potential EU ban on glyphosate could hit exports of crops ranging from Australian wheat to Brazilian soybeans." (Click here for the article) - Europe, Argentina, Australia, Brazil, Canada, New Zealand

Supreme Court 'corruption' ruling will factor in Menendez trial | New York Post

"A federal judge Tuesday began discussions over how a jury will be charged to deliberate the fate of New Jersey Sen. Bob Menendez and a wealthy pal from whom he’s accused of taking bribes by bringing up the 2016 Supreme Court decision that has changed the definition of “official corruption.” (Click here for the article) - USA

Akin Gump partner compelled to testify against Paul Manafort | Abovethelaw

"Usually lawyers can be confident that their communications with their clients and any work they do on their behalf will remain shielded from public consumption through the attorney-client and work-product privileges. We do not live in usual times." (Click here for the article) - USA

Airbus could face debarment, fine over US export control missteps - lawyers | Fox Business

"Airbus SE could be barred from receiving U.S. export licenses for military equipment over misstatements that the company says it made on certain arms deals, some legal experts said, though they see a monetary fine as a more likely outcome." (Click here for the article) - USA, UK, Brazil

US backs out of global oil anti-corruption effort | The Hill

"The Trump administration said Thursday it would exit an international effort to fight corruption that targeted revenue from oil and natural gas extraction." (Click here for the article) - USA

Billionaire Saudi Prince Alwaleed Bin Talal arrested in corruption crackdown | The Hill

"Saudi Arabia's Prince Alwaleed Bin Talal, a prominent member of the country's royal family and a wealthy investor, has been swept up in connection with a wide-ranging anti-corruption initiative, according to reports." (Click here for the article) - Saudi Arabia, USA

NAFTA country of origin marking rules - an overview | Braumiller Law Group

"Most trade professionals are quite familiar with the long-standing country of origin marking rules applicable to foreign produced goods imported and sold into the U.S., but many are not quite so familiar with the country of origin rules applicable to goods traded between the three NAFTA countries." (Click here for the article) - USA, Canada, Mexico

The importance of effective internal controls - learning from Hobby Lobby's mistakes | Braumiller Law Group

"Hobby Lobby has agreed to a settlement with the U.S. Attorney’s Office that requires the company to pay fines totaling $3 million, in addition to the surrender of a trove of ancient Middle Eastern artifacts, and the installation of rigorous new internal compliance standards to avoid future trade law violations." (Click here for the article) - USA

US trade deficit inches up in September | American Shipper

"The U.S. trade deficit ticked up another 1.7 percent between August and September to $43.5 billion as rising exports were offset by an even higher increase in imports." (Click here for the article) - USA

Five myths about white collar crime | Washington Post

"Bankers and government officials continue to feature prominently on our newspapers’ front pages — and not in a good way. Since the financial crisis of 2008, a string of political and corporate scandals has played out in our political and financial centers, and recent investigations of people close to President Trump, including Paul Manafort and Rick Gates, have produced indictments for money laundering and tax fraud. Corporate malfeasance, corruption and tax fraud are shrouded in misconceptions." (Click here for the article) - USA

New Canadian sanctions legislation in effect: Sergei Magnitsky Law | Blake Business Class

"On November 3, 2017, the Government of Canada introduced regulations under the recently enacted Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law)  imposing an asset freeze on a number of foreign nationals identified by the government to be responsible for, or complicit in, significant corruption or gross violations of human rights." (Click here for the article) - Canada

US Treasury levies further sanctions against Venezuelan officials | WSJ

"The U.S. Treasury Department sanctioned 10 current and former Venezuelan government officials Thursday as part of the Trump administration’s broader crackdown on the troubled Latin American country." (Click here for the article) - USA, Venezuela

SEC says companies can expect new guidelines on reporting cybersecurity breaches | WSJ

"A senior Securities and Exchange Commission regulator said Thursday that public companies will soon face new guidelines for how they report cybersecurity breaches to investors." (Click here for the article) - USA

Tech critical as government sharpens focus on sanctions violations | WSJ

"A senior Securities and Exchange Commission regulator said Thursday that public companies will soon face new guidelines for how they report cybersecurity breaches to investors." (Click here for the article) - Global

 

 

The World Bank Publishes Doing Business Report 2018

/ Global Compliance Solutions Group LLC/

On October 31, 2017 the World Bank (WB) published the 15th edition (2018) of their Doing Business Report (the "Report").  The Report compares quantitative indicators from 190 countries in an effort to measure the ease of doing business in each country. 

The Report measures regulations in up to 11 different areas of the life of a business and it relies on data that is current as of June 1, 2017.  The ten areas included in the 2018 report are:

  • Starting a business
  • Dealing with construction permits
  • Getting electricity
  • Registering property
  • Getting credit
  • Protecting minority investors
  • Paying taxes
  • Trading across borders
  • Enforcing contracts
  • Resolving insolvency   

The report found that 119 countries saw improvements in their regulatory framework last year.  Reducing the complexity and cost of regulatory processes, obtaining credit, and trading across borders were the areas that saw the most improvement. 

The Doing Business Report is one of 19 risk indicators Global Compliance Solutions Group LLC (GCSG) uses in its quantitative Third-Party Risk Ranking tool (the "tool").  The tool uses the 19 indicators as well as 7 entity specific questions to generate a risk score.  The score is used to evaluate the potential risk a third-party poses to our client's business. 

For more information on GCSG's Third-Party Risk Ranking tool click here or contact GCSG directly for more information: info@globalcompliancesg.com     

Key Link(s):

UK Introduces Sanctions Bill

/ Global Compliance Solutions Group LLC/

On October 18, 2017 the UK "Sanctions and Anti-Money Laundering Bill" (the "Bill") was introduced in the upper house of the Parliament of the UK.  The UK government news release stated the Bill "ensures that when the UK leaves the EU, we can continue to impose, update, and lift sanctions and AML regimes." (1)

Most of the sanctions regimes the UK is currently complying with had their powers established in the European Communities Act of 1972.  Once the UK fully withdraws from the European Union, the Bill will establish necessary legal authority in order to continue to work with their international partners and effectively enforce sanctions regimes and money laundering regulations. 

"This will enable us to impose sanctions as appropriate either alone or with partners in the EU and around the world, to take targeted action against countries, organizations and individuals who contravene international law, commit or finance terrorism or threaten international peace and security." (2) - Alan Duncan, Minister for Europe.

Key Link(s):

Canada Repeals Facilitation Payments Exception

/ Global Compliance Solutions Group LLC/

     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 info@globalcompliancesg.com with any questions or for more information on how we can assist you with your compliance program.  Visit our website at http://www.globalcompliancesg.com to learn more about our products and services.   

Key Link(s):

Sudan Sanctions Revoked

/ Global Compliance Solutions Group LLC/

     On January 13, 2017 the US President issued Executive Order (E.O.) 13761 (further amended by E.O. 13804 on July 11, 2017) providing for the revocation of certain Sudan-related sanctions.  The action was taken in recognition of the positive actions taken by the government of Sudan.  Following the initial E.O., on October 6, 2017, the US Government officially revoked economic sanctions on the Government of Sudan under E.O.'s 13067 and 13412. 

     The revocation of certain sanctions indicates the Government of Sudan has continued to make strides in reducing conflict areas in Sudan, improving humanitarian access, and in cooperating with the US Government with regional conflicts and terrorism.

What changed?

  • Effective October 12, 2017 sections 1 and 2 of E.O. 13067 and all of E.O. 13412 were revoked.  Sections 1 and 2 blocked property of the government of Sudan and prohibited U.S. persons from engaging in transactions with Sudan and the government of Sudan.  The revocation of these provisions will allow U.S. persons to engage in transactions that were previously prohibited under the Sudanese Sanctions Regulations (SSR), 31 CFR 538.
  • Effective October 12, 2017, General License A authorizes exports and re-exports of certain agricultural commodities, medicine, and medical devices still controlled as a result of Sudan remaining on the State Sponsors of Terrorism List (SST List) 

What hasn't changed? 

  • The national emergency declared under E.O. 13067 remains in effect in regards to Sudan.
  • The OFAC sanction related to the Darfur conflict imposed under E.O. 13400 remains in effect.
  • OFAC designations of any Sudanese persons under E.O. 13067 and 13412 remain in effect. 
  • Sudan remains on the SST List; and as a result some agricultural, medicinal, and medical device exports and re-exports to Sudan still require an OFAC license (see General License A comment above).   
  • US persons and non-US persons will still need to obtain Department of Commerce Bureau of Industry and Security (BIS) licenses to export or re-export certain items such as commodities, software, and technology that are on the Commerce Control List (CCL), Supplement No. 1 to part 774 of the Export Administration Regulation (EAR), 15 CFR parts 730-774 or that require a license due to end-use or end-user concerns, 15 CFR 744. 

     Contact GCSG experts at info@globalcompliancesg.com with any questions or for more information on how we can assist you with your compliance program.  Visit our website at http://www.globalcompliancesg.com to learn more about our products and services. 

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

Mexico prosecutor investigating former Pemex CEO is fired | WSJ

"Mexico’s top election-corruption prosecutor was fired Friday while investigating whether bribes allegedly received by a former head of the state oil firm were used to finance the campaign of President Enrique Peña Nieto." (Click here for the article) - Mexico, Brazil, USA

3 fined in F.H. Bertling bribery case | WSJ

"Three former employees of the freight-forwarding company F.H. Bertling Ltd. will pay fines but avoid prison time for conspiring to make corrupt payments to win a $20 million contract in Angola.  A London court sentenced Joerg Bluemberg, Dirk Juergensen and Marc Schweiger to 20 months in prison, but suspended those sentences for two years. Each man was fined 20,000 pounds ($26,300) and barred from serving as a company director for five years, according to the U.K. Serious Fraud Office." (Click here for the article) - UK, Africa, Germany

Airbus corruption scandal: 80 million Euro severance package | Anti-Corruption Digest

"In France, Jean-Paul Gut is a legend. As head of strategy and marketing, he played a key role in the success of Airbus and its rise to the second largest aircraft manufacturer in the world behind Boeing. Gut was the company’s go-to man when it came to brokering deals, with Airbus sending him in when negotiations with clients had stalled. Especially when the stakes were high – when billion-dollar-deals involving dozens of aircraft were on the table. How exactly he did what he did was his secret. Even now, his profile on LinkedIn describes him as a man of “great discretion.” (Click here for the article) - Europe

Energy and chemicals ITM to create $12.7 billion in value-add and 1,400 new jobs by 2025 | Straits Times

"A new road map has been laid out for Singapore's energy and chemicals sector that aims to create $12.7 billion in value-add and 1,400 new jobs by 2025." (Click here for the article) - Singapore

US weighs calling Myanmar's Rohingya crisis 'ethnic cleansing' | Reuters

"The State Department is considering formally declaring the crackdown on Myanmar’s Rohingya Muslims to be ethnic cleansing, U.S. officials said on Tuesday, as lawmakers called for sanctions against the Southeast Asian country’s military." (Click here for the article) - USA, SE Asia

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

Where the FDA is going under Trump | WSJ

"Food and Drug Administration Commissioner Scott Gottlieb serves a president who regularly speaks of rolling back business regulation. Dr. Gottlieb has postponed Obama-era food-labeling rules, pleasing some food manufacturers. But at the same time, he says, the FDA is working to implement another law passed under the former administration: the Food Safety Modernization Act, which will require companies to develop plans to prevent foodborne illness." (Click here for the article) - USA

Former Venezuelan Attorney General Presenting Corruption Evidence to US | WSJ

"The former Venezuelan attorney general in exile, Luisa Ortega, has been presenting evidence of corruption to the U.S. Justice Department, a person close to her said Friday after her latest, explosive public release about her former cohorts in President Nicolás Maduro’s administration." (Click here for the article) - Venezuela, Brazil, USA

 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group, LLC/

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.

OPEC cuts while US shale booms | Global Trade

"The price of crude oil has been falling in recent years, going from over $100 per barrel in 2014 to hovering around $50 per barrel in 2017. In light of declining oil prices, the Organization of the Petroleum Exporting Countries (OPEC) has spent much of 2017 taking steps to stimulate a rebound in crude oil prices. However, there are a myriad of issues across OPEC and non-OPEC nations that have prevented the cartel’s mandated supply cuts from achieving their expected level of success." (Click here for the article) - Global

The step-by-step process of how the words 'corruption' and 'fraud' came to college basketball | abc News

"The FBI announced Tuesday that 10 people, including four college basketball assistant coaches, were arrested as part of a two-year investigation into bribes and other corruption in the sport." (Click here for the article) - USA

Court overturns $663M fraud judgement against guardrail maker Trinity | Insurance Journal

"Trinity Industries Inc. won’t have to pay a $663 million judgment that was awarded in a whistleblower lawsuit alleging the company defrauded the U.S. government with a faulty highway guardrail safety system." (Click here for the article) - USA

Vietnam prosecutes bank executives, aides accused of $264M fraud | Reuters

"Vietnam has prosecuted a former bank executive and several aides and employees accused of pocketing 6 trillion dong ($264 million), police said on Wednesday, as the country intensifies a crackdown on fraud in the banking sector." (Click here for the article) - Vietnam

Somalia poses highest bribery risk in Trace index | WSJ

"Business compliance group Trace International on Thursday released the latest edition of its anti-bribery index, finding that Somalia poses the highest risk and Sweden poses the lowest." (Click here for the article) - Global

US SEC moves to simplify corporate compliance paperwork | Reuters

"The U.S. Securities and Exchange Commission proposed rules on Wednesday to simplify the disclosures that publicly traded companies must file with the agency when communicating with investors." (Click here for the article) - USA

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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.

Managing whistleblowing cases - an important success factor for organizational whistleblowing | Ethic Intelligence

"Organizational whistleblowing, allowing employees and often suppliers, and in some cases even the general public to speak up, when they see something that they think is not right, is a global mega trend. It allows organisations to prevent wrongdoings from occurring in the first place, by having a way to anonymously or not report on a suspected wrongdoing. It also demonstrates an organisation´s dedication to high ethical standards and is increasingly a tool that organisations have to have in place to comply with the law, for example the French anti-corruption law, Sapin 2, to take a current example.." (Click here for the article) - Global

US-Brazil alignment incentivizing companies to settle corruption cases | Global Compliance News

"Operation Car Wash is transforming the legal landscape in Brazil. The anticorruption probe began as an investigation into allegations that officers of Petroleo Brasileiro SA, the state-controlled oil company more commonly known as Petrobras, accepted bribes in exchange for awarding contracts at inflated prices to a multitude of construction companies and other businesses. Operation Car Wash revealed systemic corruption across the public company sector that resulted in losses of more than $15 billion and, as of press time, has led to more than a thousand warrants, dozens of pretrial detentions, and more than a hundred convictions. Brazilian authorities have recovered more than $3 billion; the investigation is ongoing." (Click here for the article) - USA, Brazil

India most corrupt Asian country, Vietnam second: Forbes | Business Standard

"If the statistics furnished by the Transparency International (TI), an anti-corruption global civil society organization, are anything to go by, India has a long way ahead to fulfil one of the many objectives as told by the current Indian government - defeating the malice of corruption." (Click here for the article) - India, Vietnam

The most innovative countries in the world in one map | Market Watch

"It may not be the most prosperous nor the smartest country on earth, but the U.S. leaves the rest of world in the dust in one important area—innovation. " (Click here for the article) - Global

Procurement fraud - an old fraud flourishing in emerging markets, costing billions | Financier

"Procurement fraud is likely one of the oldest frauds that companies must confront. In recent years, this fraud has flourished in emerging markets. Whether in a public or private setting, procurement fraud is often ‘quid pro quo’, whereby a favor or advantage is given in exchange for something." (Click here for the article) - Global

Post-Harvey lessons for chemical plant managers | National Law Review

"One of the many hazards exposed by Hurricane Harvey occurred in Crosby, Texas, when the Arkema chemical plant suffered fires and small explosions on Aug. 31 and Sept. 1. Floodwaters caused the fires by penetrating the facility and shutting down the cooling systems designed to stabilize 500,000 pounds of highly flammable materials inside. This ultimately caused a mandatory evacuation for all residents within a 1.5-mile radius of the plant. Local news outlets reported that Arkema had no plan in place for six feet of flooding and its last risk assessment was submitted in 2013." (Click here for the article) - USA

Texas judge quashes Obama-era overtime pay rule | WSJ

"A federal judge in Texas on Thursday struck down an overtime-pay rule authored by the Obama administration, a likely final blow to a regulation that the Trump administration had already begun to recast." (Click here for the article) - USA

 

CBP ceases trade operations at Port of Savannah

/ Global Compliance Solutions Group LLC/

At 8:00 a.m., on Friday, September 8, 2017 the U.S. Customs and Border Protection (CBP) ceased operations at the Port of Savannah.  They have not posted an anticipated date/time for operations to resume.  The decision will be dependent on Hurricane Irma recovery efforts and related issues.  Click here for the CBP media release. 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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

US sentences ex-Guinea minister to seven year in prison for laundering bribes | Reuters

"A former Guinea government minister was sentenced to seven years in prison on Friday following his conviction of laundering $8.5 million in bribes that U.S. prosecutors say he took in exchange for helping a Chinese conglomerate secure mining rights." (Click here for the article) - USA, Guinea, China

Modernizing NAFTA - a look at the key issues | Global Trade

"The North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada, entered into force in 1994 is to be renegotiated. Talks began earlier this month following the conclusion of the 90-day US Congressional notification period. The status quo is not an option; NAFTA will emerge with a new look." (Click here for the article) - USA, Canada, Mexico

OFAC pushes Iran sanctions enforcement | Volkov Law

"Many companies have been laser-focused on anti-corruption compliance, and with good reason given the risks and consequences of an anti-corruption enforcement action. In doing so, companies have to be careful to avoid ignoring sanctions risks, especially in the ever-evolving nature of sanctions rules and regulations." (Click here for the article) - USA, Iran, Singapore

Emerging markets: rethinking M&A | Forbes

"McKinsey & Company estimates that more than 70% of global merger and acquisition deals fail … but why is this? We believe it is due, in great part, to a lack of information (or poor information) on the target and the deal. What might be blamed on a poor integration process might actually be more related to not knowing enough about the target and opportunity. Too often, particularly in emerging markets, integration teams are left to deal with legacy problems that are not identified within the traditional pre-transaction due diligence: inflated books and stock; non-existent distributors and customers; business-critical political connections; facilitation payments; and conflicts of interest with competitors. The result is companies find they have overpaid for assets that cannot deliver the market-share and growth trajectory that formed the basis of the acquisition strategy in the first place." (Click here for the article) - Global

US uses rare tactic in latest bribery case: a sting | WSJ

"U.S. investigators, in a foreign-bribery case unsealed this week, used an unusual tactic: a sting operation. The unsealed criminal complaint in the case of Joseph Baptiste, a retired U.S. Army colonel who was charged in Massachusetts with conspiracy to violate the Foreign Corrupt Practices Act and with money laundering, said undercover Federal Bureau of Investigation agents and intercepted phone calls were used to bring the allegations. Prosecutors said the charges stemmed from a probe launched in 2014 into Haitian-American businessmen who were offering bribes to Haitian government officials for business there." (Click here for the article) - USA, Haiti

US, Mexico spar on NAFTA | WSJ

"The second round of talks to renegotiate the North American Free Trade Agreement began on Friday under a dark cloud after both the U.S. and Mexico raised the stakes dramatically in recent days. President Donald Trump has jolted the tone of the meetings with renewed calls to pull out of the 23-year-old deal linking the economies of the U.S., Canada and Mexico—a drastic course U.S. officials said he came close to pursuing in April before backing down and agreeing instead to negotiate." (Click here for the article) - USA, Canada, Mexico

 

GCSG Launches Third-Party Due Diligence Survey

/ Global Compliance Solutions Group LLC/

Global Compliance Solutions Group LLC (GCSG) launches a third-party due diligence practices survey

PRAIRIEVILLE, Louisiana, August 28, 2017 – GCSG, an advisory, audit and due diligence firm focused on helping companies manage compliance and risk in their own business and with their third parties, launches a third-party due diligence practices survey.

Click here to take our benchmarking survey.

Is third party due diligence a part of your job duties?  In your area of responsibility?  Within the responsibility of your department?  If any of these sound like your experience, then GCSG needs your expertise.

Do you wonder how your third-party due diligence approach stacks up against other companies?  Then you should take a moment to share your experiences and complete our survey.

The survey will take about 10 minutes to complete.  All survey participants will receive a copy of the survey results report and all responses are anonymous.  We greatly appreciate your feedback.

Click here to take our benchmarking survey.

Survey URL: https://www.surveymonkey.com/r/FSSDYPR

** *** **

About GCSG

Global Compliance Solutions Group LLC was founded in 2016 and is headquartered in Louisiana, USA.  We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs Compliance, Anti-Bribery and Anti-Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, and acquisition and third party due diligence services.  We partner with our clients to solve challenging compliance issues with a strategic, comprehensive, and common sense methodology.  More information can be found at: http://www.globalcompliancesg.com

Learn more about GCSG by following us online:

Contact us here.

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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

KPMG slapped with $6.2m fine over oil company audit errors | Financial Times

"KPMG has been slapped with a fine of more than $6.2m by the US Securities and Exchanges Commission after it signed off the audit of an oil and gas company that had overvalued certain assets by more than 100 times." (Click here for the article) - USA

US takes firm stance on NAFTA as first round of re-negotiations is wrapped up | Bloomberg

"The first round of NAFTA re-negotiations ended Sunday with America’s lead negotiator demanding more car parts be manufactured in the U.S." (Click here for the article) - USA, Canada, Mexico

Can the US scrap its trade deal with South Korea? | WSJ

"The U.S. and South Korea wrapped up fruitless talks over a trade agreement that protectionist Washington blames for an imbalance requiring the pact’s amendment or termination." (Click here for the article) - USA, South Korea

US treasury sanctions Chinese, Russian firms for aiding North Korea | WSJ

"The U.S. on Tuesday targeted a host of Chinese and Russian firms and related individuals it accuses of aiding Pyongyang, expanding its broader efforts to clamp down on financing critical to North Korea’s nuclear-weapons program." (Click here for the article) - USA, China, Russia, North Korea

NAFTA under Trump: Will it stay or will it go? | Global Trade

"We all know that President Donald Trump campaigned against NAFTA in the lead-up to last November’s election, calling it “the worst trade deal ever.” Even after he took office in January, Trump warned the United States would leave the North American Free Trade Agreement if the deal wasn’t renegotiated favorably to the US." (Click here for the article) - USA, Canada, Mexico

DOJ's largest health care fraud enforcement action | Corporate Compliance Insights

"Recent DOJ and Department of Health and Human Services charges were brought against 412 defendants, across 30+ states, with defendants accused of defrauding taxpayers of approximately $1.3 billion. It’s been described as the largest health care fraud enforcement action in DOJ history. In light of the varied health-care-related business practices that are the subjects of the major health care prosecutions, private health providers should scrutinize and review their compliance plans, practices and procedures." (Click here for the article) - USA

Final TSCA inventory reset rule now effective; clock is ticking for companies to report | Lexology

"On August 11, 2017 EPA published in the Federal Register the final TSCA Inventory Notification (Active-Inactive) Rule -- commonly referred to as the “Inventory Reset Rule.” The rule, which is effective immediately, creates new reporting obligations for companies that manufacture or import chemical products. Companies that process chemicals in order to manufacture articles or to create formulated chemical products are also affected by the rule." (Click here for the article) - USA

EU looks to protect its firms from US sanctions | WSJ

"Foreign-policy differences between the European Union and the U.S. are widening, forcing EU leaders to once again ponder how to stop American sanctions from targeting European companies." (Click here for the article) - USA, Europe, Russia, Cuba, Iran

New Report: Anti-money laundering efforts near failure | Fact Coalition

"Worldwide anti-money laundering efforts are currently just a decimal point away from total failure, according to a new report published Wednesday by the Financial Accountability and Corporate Transparency Coalition (FACT Coalition), a non-partisan alliance of more than 100 state, national, and international organizations promoting policies to combat the harmful impacts of corrupt financial practices." (Click here for the article) - Global

US Bid to exit NAFTA arbitration panels draws ire from businesses | WSJ

"U.S. trade officials are putting together a proposal to let the U.S. withdraw from a corporate arbitration system at the heart of the North American Free Trade Agreement, upsetting big American companies that say the system protects their investments overseas." (Click here for the article) - USA, Canada, Mexico

Amazon under investigation for potential Iran sanctions violations | Fox Business

"Ecommerce giant Amazon is under federal investigation for potential violations of the U.S. government’s sanctions against Iran, including sales to an individual listed on the terrorism watch list, the company said in a regulatory filing last Friday." (Click here for the article) - USA, Iran

Treasury targets Chinese and Russian entities and individuals supporting North Korean regime | US Dept. of Treasury

"The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 10 entities and six individuals in response to North Korea’s ongoing development of weapons of mass destruction (WMD), violations of United Nations (UN) Security Council Resolutions, and attempted evasion of U.S. sanctions.  Today’s sanctions target third-country companies and individuals that assist already-designated persons who support North Korea’s nuclear and ballistic missile programs; deal in the North Korean energy trade; facilitate its exportation of workers; and enable sanctioned North Korean entities to access the U.S. and international financial systems.  As a result of today’s action, any property or interests in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked, and U.S. persons are generally prohibited from dealing with them." (Click here for the article) - USA, China, Russia

China has a message for Western companies: corruption does not pay | South China Morning Post

"Last month, a court in Lanzhou city jailed and fined six Nestlé employees, after a years-long investigation into bribery allegations surrounding sales of baby formula. In 2013, Reuters found that Nestle’s staff regularly bribed hospital staff in China to exclusively supply its milk formula to newborns. That practice ran afoul of a 1995 law that bars health practitioners from promoting formula over breastfeeding. It also contravened global guidelines of the World Health Organisation." (Click here for the article) - China, USA, UK, New Zealand, Australia, Singapore

Monday Compliance News - Around the World

/ Global Compliance Solutions Group/

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

ISO 37001 has been enacted | Deloitte

"In a previous edition of this magazine (Middle East Point of View, Summer 2016) we wrote about a pending vote by the International Standards Organization (ISO) on Standard 37001: “Anti-bribery management systems–Requirements with guidance for use.” The standard did pass voting and a final version was published in October." (Click here for the article) - Global

US companies should brace for new Chinese export control law | Bloomberg

"U.S. companies from Dow Chemical to Intel should prepare for a new defense-related export control law that could affect their business operations in China and come with stiff penalties for breaking the rules, analysts in China are telling Bloomberg BNA." (Click here for the article) - US, China

Campaign pledges broken could lead to donor lawsuits | Washington Times

"If a political candidate asks you for a donation with a promise that he or she will do some specific act if elected and then fails to do so, should you be able to sue for fraud?" (Click here for the article) - USA

Russian ex-minister accuses Rosneft chief of entrapment | WSJ

"A former Russian economy minister on trial for allegedly taking a $2 million bribe accused the head of the state oil company of entrapment on Wednesday, in the first hearing of a case that has raised speculation about power plays at the highest levels of the government." (Click here for the article) - Russia

US, South Korea to meet on trade deal next week | WSJ

"U. S. and South Korean negotiators will meet next week in Seoul to potentially amend a five-year-old trade agreement, which President Donald Trump has called “horrible” and blamed for a larger American trade deficit." (Click here for the article) - USA, South Korea