Proposed Amendment to Australian Bribery Offence

On December 6, 2017, the Australian government proposed to amend the Criminal Code Act of 1995.  The Crimes Legislation Amendment (Combating Corporate Crime) Bill 2017 proposes to amend the offence of bribery by:

• Extending the definition of foreign public official to include a candidate for office
• Removing the requirement that the foreign official must be influenced in the exercise of the official's duties
• Replacing the requirement that a benefit and business advantage must be 'not legitimately due' with the concept of 'improperly influencing' a foreign public official
• Extending the offence to cover bribery to obtain a personal advantage
• Creating a new offence of failure of a corporation to prevent foreign bribery
• Creating a new deferred prosecution agreement scheme  

Key Link(s):

• Australia Federal Register of Legislation - "Crimes Legislation Amendment (Combating Corporate Crime) Bill 2017"
• Parliament of Australia - "Crimes Legislation Amendment (Combating Corporate Crime) Bill 2017"
• Parliament of Australia - "Explanatory Memorandum"

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.

FDA recognizes third-party certification accreditation body

On January 31, the U.S. Food and Drug Administration announced it has recognized the first accreditation body under the Accredited Third-Party Certification Program (the "Program").  The program was created by the FDA Food Safety Modernization Act (FSMA).  In addition, the FDA announced the launch of the Voluntary Qualified Importer Program (VQIP).  

The ANSI-ASQ National Accreditation Board (ANAB) is the organization being recognized.  The ANAB is jointly owned by the American National Standards Institute (ANSI) and the American Society for Quality (ASQ).  

The accreditation bodies that are recognized by the FDA will be able to accredit third-party auditors in order to conduct food safety audits of foreign food facilities.  The VQIP will offer expedited review and entry of human and animal food into the U.S.  

For more information read the FDA press release here.

Key Link(s):

• FDA
• FDA press release: "FDA Takes Important New Steps to Strengthen Oversight of Food Imports" - January 31, 2018
• FSMA: Final Rule on Accredited Third-Party Certification

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

U.S. Sanctions Additional Russian Entities

On Friday, January 26, 2018, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned an additional nine entities, and 21 individuals related to Russia and Ukraine.  In addition, OFAC identified 12 subsidiaries that are 50% or more owned by previously sanctioned Russian companies.  

The action is related to Russia's occupation of Crimea and is intended to pressure Russia to fully implement its commitments under the Minsk agreements.  U.S. Persons (1, 2) are generally prohibited from conducting transactions involving these persons (2).

"The U.S. government is committed to maintaining the sovereignty and territorial integrity of Ukraine and to targeting those who attempt to undermine the Minsk agreements," - Secretary of the Treasury Steven T. Mnuchin (3)

Summary of OFAC Actions Taken

• Designated 11 Ukrainian separatists - Pursuant to Executive Order (EO) 13660
• Designated 3 individuals and 4 entities (ZAO Vneshtorgservis, Gaz-Alyans OOO, Doncoaltrade Sp. ZOO and Ugolnye Tekhnologii OOO) who have supported the illicit coal trade - Pursuant to EO 13660
• Authorized sanctions against 4 individuals and 2 entities (Evro Polis Ltd., Instar Logistics) related to the Russian government - Pursuant to EO 13661
• Authorized sanctions against one construction entity (VAD, AO) and two associated individuals - Pursuant to EO 13685
• Designated one individual and 2 entities (Limited Liability Company Foreign Economic Association Technopromexport, PJSC Power Machines) related to Russia's transfer of four turbines to Crimea
• Identified 12 subsidiaries of Surgutneftegaz as being 50% or more owned by Surgutneftegaz which was added to the Sectoral Sanctions Identification list in September 2014
  • Kaliningradnefteprodukt OOO
  • Kinef OOO
  • Kirishiavtoservis OOO
  • Lengiproneftekhim OOO
  • Media-Invest OOO
  • Novgorodnefteprodukt OOO
  • Pskovnefteprodukt OOO
  • Sngb AO
  • SO Tvernefteprodukt OOO
  • Sovkhoz Chervishevski PAO
  • Strakhovove Obshchestvo Surgutneftegaz OOO
  • Surgutmebel OOO

References and Key Link(s):

• (1) 31 CFR 589.307 - "The term person means an individual or entity." 
• (2) 31 CFR 589.312 - "The term United States person or U.S. 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.
• (3) U.S. Department of the Treasury Press Release - "Treasury Sanctions Additional Individuals and Entities in Connection with the Conflict in Ukraine and Russia's Occupation of Crimea" - 1/26/2018
• Executive Order 13660 - 3/6/2014
• Executive Order 13661 - 3/16/2014
• Executive Order 13685 - 12/19/2014
• Minsk Agreement Protocol Press Release (Russian) - "Organization for Security and Co-operation in Europe" - 9/5/2014 
• OFAC - Office of Foreign Assets Control
• OFAC Resource Center - Russia/Ukraine-related Designations and Identifications - 1/26/2018
• US Department of the Treasury

U.S. Sanctions NK and Chinese entities supporting Kim Regime

On January 24, 2018, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned an additional nine entities, 16 individuals, and six vessels related to North Korea's violations of UN Security Council Resolutions (UNSCRs).  

The actions target actors located in North Korea, China, Russia, and Georgia.

"Treasury continues to systematically target individuals and entities financing the Kim regime and its weapons programs, including officials complicit in North Korean sanctions evasion schemes," - Secretary of the Treasury Steven T. Mnuchin (1)

Summary of OFAC Actions Taken

• Designated 10 representatives of the Korea Ryonbong General Corporation (Ryonbong) and one Workers' Party of Korea official - Pursuant to Executive Order (EO) 13687
• Designated 5 additional North Koreans with links to North Korean financial networks - Pursuant to EO 13810 or 13687
• Designated Beijing Chengxing Trading Co. Ltd., Dandong Jinxiang Trade Co., Ltd., and Hana Electronics JVC - Pursuant to EO 13810
• Designated five North Korean shipping companies (Gooryong Shipping Co Ltd, Hwasong Shipping Co Ltd, Korea Kumunsan Shipping Co, Korea Marine & Industrial Trdg, and CK International Ltd) and blocked six vessels (Goo Ryong, Hwa Song, Kum Un San, Un Ryul, Ever Glory, and UL JI Bong 6) as property of these five companies - pursuant to EO 13810
• Sanctioned the North Korean Ministry of Crude Oil Industry

Key Link(s):

• (1) U.S. Department of the Treasury Press Release - "Treasury Sanctions North Korean Overseas Representatives, Shipping Companies, and Chinese Entities Supporting the Kim Regime" - 1/24/2018
• Executive Order 13687 - 1/6/2015
• Executive Order 13810 - 9/21/2017
• OFAC - Office of Foreign Assets Control
• OFAC Resource Center - North Korea Designations - 1/24/2018
• US Department of the Treasury

India joins the Australia Group

On January 19, 2018 the Indian Ministry of External Affairs announced that India has joined the Australia Group (AG).  The AG, in a consensus decision, admitted India as the 43rd participant.  

The Australia Group, established in 1985, is a voluntary and informal export control arrangement in which 42 countries, as well as the European Union, coordinate their national export controls.  The purpose is to limit the supply of chemicals and biological agents-as well as related equipment, technologies, and knowledge-to countries and entities that are suspected of pursuing chemical or biological weapons capabilities. 

GCSG's compliance experts closely follow dual-use developments.  Contact us at info@globalcompliancesg.com with any additional question's or for more information.

Key Links:

• Government of India, Ministry of External Affairs Press Release - "India joins the Australia Group" - 1/19/18
• The Australia Group 
• The Australia Group - "Control List of Dual-Use Chemical Manufacturing Facilities and Equipment and Related Technology and Software"
• The Australia Group - List of participants

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.

French Anti-Corruption Agency Publishes Guidelines, Part I

On December 22, 2017 the new French Anti-Corruption Agency (created as a result of the "Sapin II Law") published the final form of its anti-corruption recommendations.  The AFA is tasked with developing recommendations designed to help public and private entities within France to prevent and detect acts of corruption. 

The recommendations take into consideration best practices found within international standards, are non-binding, and are applicable throughout the French Republic.  While they are non-binding it is expected that the recommendations will be considered as part of any enforcement activity.  Any company that has a legal entity in France should be familiar with the Sapin II Law and with these recommendations. 

The recommendations affect:

• All companies, including subsidiaries of foreign companies, when the subsidiaries are established in the territory of the French Republic
• All of the following legal entities, regardless of the place of their activities, including abroad:
  • Public limited companies, simplified joint-stock companies, limited liability companies, professional civil companies
• All legal entities "under private or public law, regardless of their size, social form, sector of activity, turnover or the size of their workforce."     
• All non-corporate entities 

The recommendations are intended to help:

• Organization's adopt operating rules to enhance their competitiveness
• Protect organizations from damage to their reputation
• Companies subject to article 17 of the 2016 Sapin II law fulfill their obligations
• Guard against penalties that may be imposed by foreign authorities for failing to prevent or detect corruption

Key sections of the recommendations include:

• Leadership commitment
• Code of Conduct
• Internal Warning System
• Risk Mapping
• Third-Party Evaluation
• Accounting controls
• Training system
• Internal control and evaluation system

In the coming days, GCSG will post additional articles that discuss in more detail each of the key sections mentioned above. 

Contact GCSG professionals at: info@globalcompliancesg.com with any questions or for more information on how we can assist you with your compliance program.   

Definition(s)

Corruption is defined (in the recommendations) "as the act by which a person in a particular public or private office solicits/proposes or agrees/assigns, a gift, an offer or a promise, with a view to accomplishing, delaying or omitting to 'perform an act coming in, directly or indirectly, in the course of his duties."

Key Link(s): 

• AFA Recommendations (French) - "Recommendations to help legal persons to public and private law to prevent and detect acts of corruption, trading in influence, extortion, illegal capture of interest, misappropriation of public funds and favoritism" - December 2017
• LegiFrance.gouv (French) - "Law n ° 2016-1691 of December 9th, 2016 relating to the transparency, the fight against the corruption and the modernization of the economic life" (Sapin II Law) - December 2016

US Dept of Treasury Lists Boycott Countries

On January 8, 2018, the U.S. Department of the Treasury (the "Department") published the list of countries requiring cooperation with an international boycott.  Section 999(a)(3) of the Internal Revenue Code requires the Department to periodically publish a current list of countries which may require participation in or cooperation with a boycott that is not sanctioned by the U.S. government.  The current list of countries is unchanged from the Departments March 30, 2017 list and includes the following countries:

• Iraq
• Kuwait
• Lebanon
• Libya
• Qatar
• Saudi Arabia
• Syria
• United Arab Emirates
• Yemen

Key Link(s):

• Federal Register - "List of Countries Requiring Cooperation with an International Boycott" - March 30, 2017
• Federal Register - "List of Countries Requiring Cooperation with an International Boycott" - January 8, 2018
• IRS - "6.61.6 Boycotts"
• Title 26 - Internal Revenue Code - "Part V - International Boycott Determinations" - 1986

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.

With GDPR looming, key compliance questions still remain | DIGIDAY

"For better or worse, preparing for the General Data Protection Regulation is a do-it-yourself exercise for advertisers in the absence of stronger direction from regulators." (Click here for the article) - European Union

Turkish banker guilty of helping Iran dodge US sanctions  | Reuters TV

WATCH: US jury finds Turkish banker guilty of helping Iran dodge US sanctions (Click here for the video) - Iran, Turkey, United States

Firms can choose not to enter corruption-ridden markets | The Straits Times

"Many well-established multinationals have decent corporate cultures.  Their top managements have been known to decide that if a country operates by practices in keeping with the company ethos, they would not do business in that country." (Click here for the article) - Singapore

Drug Company Allegedly Bribed Doctors to Sell its Powerful Opioid Spray | Gizmodo

"The State of North Carolina is suing a pharmaceutical manufacturer for allegedly bribing doctors and defrauding insurers in order to sell more of its powerful fentanyl spray, fanning the flames of the opioid crisis that has millions addicted and is shortening lifespans." (Click here for the article) - United States

PWC faces negligence claim over $2bn fraud at Colonial Bank | The Times

"Auditors at PWC were negligent and missed a 'Red Flag' over a huge fraud that contributed to the collapse of a bank during the financial crisis, an American court has found." (Click here for the article) - Global

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.

Governance Is the Next Target for Abenomics | The Wall Street Journal

"A wave of corporate scandals and Japan's persistently weak inflation are renewing pressure to improve the way the country's businesses are managed." (Click here for the article) - Japan

Corruption scandal hits Huawei with its top executive suspected of bribery | technode

"The excecutive vice president of Huawei's consumer business group Greater China, Teng Hongfei, has been taken away by the public security, according to people familiar with the matter." (Click here for the article) - China

Ex-Tennessee director of football ops to repay $14K due to forged receipts | Yahoo Sports

"Tennessee's former director of football operations is repaying the school over $14,000 after he pleaded guilty to misconduct regarding forged receipts for expense reports." (Click here for the article) - United States

Non-compliance to be 'very costly' for companies | moneycontrol

"Sending out a strong message to (Indian) corporates, the government has said non-compliance will be "very costly" and strong deterrents will be there to curb the dangerous adventure of using companies for wrongful purposes." (Click here for the article) - India

Happy New Year 2018!

   The GCSG team wishes you a Happy New Year!  We extend our best wishes to you for a 2018 year full of health as well as personal and professional success.

   We owe our success in 2017 to our clients and partners and we are very grateful to you for partnering with GCSG.  We look forward to continuing our successful partnership in 2018!   

   For our clients and vendors today is the last day to take advantage of our offer to make a special corporate donation on your behalf to one of the charities listed below.  Send a contact form with just the name of one of the three charities listed below in the subject or body of the form and we will make a donation to the charity you've chosen.   

• Freedom Network: Empowers human trafficking survivors with choices and support

• Samaritan's Purse: Provides aid to hurting people around the world

• The Nature Conservancy: Helps to conserve lands and waters around the world

Happy New Years,

The 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 Spirits 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:

• Facebook - http://www.facebook.com/globalcompliancesg.com

• Twitter - https://twitter/com/GCSGLLC

• LinkedIn - https://www.linkedin.com/company/global-compliance-solutions-group-llc

• Instagram - http://instagram.com/globalcompliancesg.com

Contact us here.

UK establishes money laundering watchdog

On December 21, 2017 HM Treasury announced the creation of a new watchdog organization, the Office for Professional Body AML Supervision (OPBAS), to strengthen anti-money laundering (AML) standards and to facilitate cooperation across law enforcement agencies.

The OPBAS office will provide direct supervision to "22 accountancy and legal professional body AML supervisors in the UK" (1) and will work to "ensure the 22 bodies meet the high standards set out in the Money Laundering Regulations 2017, and have powers to investigate and penalise those that do not." (1)

The OPBAS regulations will take effect on January 18, 2018.

Key Link(s): 

• (1) UK Gov Press Release - "UK establishes new money laundering watchdog" - 12/21/2017
• UK Gov - "HM Treasury"
• UK Gov Consultation - "Suspicious activity reports regime: call for information" - 02/25/2015
• UK Gov Legislation - "The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017" - 06/22/2017
• UK Gov Policy Paper - "Action plan for anti-money laundering and counter-terrorist finance" - 4/20/2016
• UK Gov Policy Paper - "Government response to consultation on legislative proposals" - 10/13/2016

Japan Imposes Additional Unilateral Sanctions on North Korea

On Friday, December 15, 2017 Japan imposed additional unilateral sanctions against 19 North Korean entities.  This includes companies involved in the financial services, coal, and oil trading sectors.

With the additional 19 entities, the total number of North Korean entities under Japanese sanctions now stands at 56.

(1) "According to a Foreign Ministry official, all the companies are already subject to U.S. sanctions, starting from January last year." 

Key Link(s):

• BBC News - "Japan expands unilateral sanctions against North Korea"
• Ministry of Finance, Japan - "経済制裁措置及び対象者リスト, Economic Sanctions Measures and Target List"
• (1) Nikkei Asian Review - "Japan expands unilateral sanctions on North 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.

EU, Japan conclude world's largest free-trade agreement |  The Globe and Mail

"The European Union and Japan concluded negotiations on a free trade deal to create the world's largest open economic area, signalling their rejection of the more protectionist stance of U.S. President Donald Trump." (Click here for the article) - Japan, Europe

EU to force firms to reveal true owners in wake of Panama Papers |  The Guardian

"Companies across the EU will be forced to disclose their true owners under new legislation prompted by the release of the Panama Papers. Anti-corruption campaigners applauded the agreement as a major step in the fight against tax evasion and money laundering, but expressed disappointment that trusts will mostly escape scrutiny." (Click here for the article) - Europe

Japan unilaterally sanctions North Korea |  European Sanctions

"Japan has imposed unilateral sanctions (asset freezes) against 19 North Korean entities and individuals in response to the state’s nuclear and ballistic missile programs.  It is reported that Korean Computer Center is among the sanctioned entities." (Click here for the article) - Japan, N. Korea

Sessions vows to enforce an anti-bribery law Trump ridiculed |  The New York Times

"Attorney General Jeff Sessions vowed on Monday that the Trump administration would vigorously prosecute white-collar crime amid concerns that such cases would fall by the wayside in favor of higher-profile priorities like violent crime and illegal immigration." (Click here for the article) - US

Whistleblowers' lawsuit leads to massive medical fraud settlement |  The Charlotte Observer

"What started seven years ago as a whistleblower lawsuit filed by two Charlotte-area doctors ended Tuesday with two emergency room physicians groups paying federal and state governments more than $33 million to avoid going to court." (Click here for the article) - US

Eni and Shell on trial in Italy over Nigeria 'corruption' |  BBC News

"Two global oil giants, Eni and Shell, are to stand trial in Italy over allegations of corruption in Nigeria.  The case involves the purchase of an offshore oil block in Nigeria for $1.3bn in 2011" (Click here for the article) - US, Italy, Nigeria

GDPR rules put privacy, anti-bribery enforcement on collision course |  WSJ

"An article in the upcoming General Data Protection Regulation could complicate anti-bribery efforts for organizations operating in the European Union." (Click here for the article) - Europe

Merry Christmas and Happy New Year from your GCSG Services Team!

   The GCSG team wishes you and yours a happy and safe Holiday season.  We extend our best wishes for a New Year full of promise and success.  

   From now till the end of the year, GCSG will make a special corporate donation on behalf of our clients and other partners.  We'd like to invite you to choose one of the charities listed below to receive a donation. 

   Send a contact form with just the name of one of the three charities listed below in the subject or body of the form and we will make a donation to the charity you've chosen.

• Samaritan's Purse: Provides aid to hurting people around the world

• The Nature Conservancy: Helps to conserve lands and waters around the world

   This holiday season we are grateful to you for partnering with GCSG, and we look forward to continuing our successful partnership in 2018! 

Happy Holidays,

The 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 Spirits 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:

• Facebook - http://www.facebook.com/globalcompliancesg.com

• Twitter - https://twitter/com/GCSGLLC

• LinkedIn - https://www.linkedin.com/company/global-compliance-solutions-group-llc

• Instagram - http://instagram.com/globalcompliancesg.com

Contact us here.

CSA Issues New Code of Conduct for GDPR Compliance

On November 21, the Cloud Security Alliance (CSA) released their Code of Conduct for compliance with the European General Data Protection Regulation (GDPR).  The GDPR Code of Conduct (the "Code") provides cloud service providers, cloud customers, and potential customers with guidance to assist with complying with the new requirements found within the GDPR.    

The CSA About web page states they are the "world's leading organization dedicated to defining and raising awareness of best practices to help ensure a secure cloud computing environment." (1)

The Code is structured to meet the mandatory data protection requirements under Directive 95/46/EC as well as the upcoming requirements of the GDPR.  

"...the CSA Code of Conduct for GDPR Compliance is of fundamental importance as it gives guidance for legal compliance and the necessary transparency on the level of data protection offered by the CSPs (Cloud Service Providers)." - Paolo Balboni, European ICT, privacy and data protection lawyer, and co-chair of the Privacy Level Agreement Working Group (2)   

Key Link(s):

• (1) CSA - "About" page   
• (2) CSA - "Press Release" 
• CSA - "Code of Conduct for GDPR Compliance"
• CSA - "GDPR Resource Center"
• CSA - "Home" page
• EUR-Lex - "Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC"
• European Commission - "Protection of personal data"

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       

Key Link(s):

• Argentine National Congress
• Financier Worldwide Ltd.: "New Argentine law on corporate liability and compliance programmes for certain corruption cases"
• Marval O'Farrell & Mairal: Argentine Congress "Corporate Criminal Liability Regime" - 11/30/2017
• OECD: "Argentina must urgently enact Corporate Liability Bill to rectify serious non-compliance with Anti-Bribery Convention" - 03/24/2017
• Reuters: "Argentina congress passes law to fight corporate corruption" - 11/08/2017
• Reuters: "Ex-Argentina VP Boudou arrested in corruption case" - 11/3/2017 
• Reuters: "Former minister for Argentina's Fernandez arrested" - 10/25/2017