Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

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

Texas Instruments CEO Resigns after Code of Conduct Violations | WSJ

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

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

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

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

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

Lativia's Corruption Scandal is Getting Even Weirder | Bloomberg

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

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

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

Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

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

India, South Korea sign agreements on trade and commerce | India Times

"India and South Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade..." (Click here for the article) - India, South Korea

HMRC doubles fines for breaking money laundering rules | Financial Times

"The UK tax authority almost doubled the fines it handed down for violations of money-laundering rules in the latest financial year..." (Click here for the article) - UK

Iran calls for EU help as shipping giant pulls out for fear of US sanctions | KYC360

"One of the world's biggest cargo shippers announced on Saturday it was pulling out of Iran for fear of becoming entangled in U.S. sanctions..." (Click here for the article) - EU, Britain, France, Germany, China, Russia, Iran, USA

China Implements New Tariffs on US Products | CNBC

"China immediately slapped retaliatory tariffs on US imports on Friday after the US imposed duties on $34 billion worth of Chinese products..." (Click here for the article) - China, USA

Pakistan's Former Prime Minister Found Guilty of Corruption | WSJ

"A Pakistani court found former Prime Minister Nawaz Sharif guilty of corruption in a verdict that will likely affect the country's election..." (Click here for the article) - Pakistan

US SEC Charges Credit Suisse with FCPA Violations | Securities and Exchange Commission Press Release

"The SEC today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of the FCPA..." (Click here for the article) - Pakistan

Tuesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

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

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

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

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

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

Vietnam arrests oil refinery executives amid corruption crackdown  | Reuters

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

UK Data Protection Act 2018  | Cordery Compliance

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

Serious Fraud Office charges against Barclays dismissed  | Independent

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

 

 

Monday Compliance News - Around the World

/ 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.

Malaysia proposes amendments to Anti-Corruption Act | GCSG

"On March 26, 2018 the Malaysian Anti-Corruption Commission Amendment Bill 2018 passed its first reading.  The amendments propose several changes to the Malaysian Anti-Corruption Commission Act of 2009." (Click here for the article) - Malaysia

EU Targets US Products in Retaliation of US Section 232 Tariffs | SIDLEY

"The EU has published its response to the US section 232 tariffs on EU steel and aluminum products." (Click here for the article) - USA, European Union

Europe faces limited options on US threat on Iran sanctions | Financial Times

"The EU faces a tough call on whether to hit back against a US squeeze on European companies' dealings with Iran - but history offers the bloc only small comfort that it can prevail." (Click here for the article) - USA, European Union

Russia Remains Chief Sanctions Risk for Companies, Banks | WSJ

"The risk of breaching Russian sanctions remains a top concern for European banks, corporations and wealthy individuals despite market tensions surrounding the US withdrawal from the Iran deal..." (Click here for the article) - USA, European Union, Russia

Novartis investigating $85 million bribery allegations in Turkey | Reuters

"An anonymous whistleblower has accused Swiss drugmaker Novartis of paying bribes in Turkey through a consulting firm to secure business advantages worth an estimated $85 million..." (Click here for the article) - USA, Turkey, UK, Switzerland

 

Malaysia proposes amendments to Anti-Corruption Act

/ Global Compliance Solutions Group LLC/

On March 26, 2018 the Malaysian Anti-Corruption Commission Amendment Bill 2018 (the "Amendment") passed the first reading.  The amendments propose several changes to the Malaysian Anti-Corruption Commission Act of 2009 ("2009 Act"). 

The most significant proposed change is the addition of a new section(1) which for the first time adds a corporate liability(2) provision for corrupt acts committed by persons associated with a "commercial organization"(3).  The 2009 Act only contained provisions for individual liability.  With the Amendment a commercial organization commits an offense if:

"a person associated with the organization(4) corruptly gives, agrees to give, promises or offers to any person any gratification whether for the benefit of that person or another person with intent- (a) to obtain or retain business for the commercial organization; or (b) to obtain or retain an advantage in the conduct of business for the commercial organization."(5)

Penalties under the Amendment are no less than ten times the sum or value of the gratification, or one million ringgit ($253,000), whichever is higher, and/or imprisonment for up to 20 years.  In addition, the Amendment states that commercial organizations will be able to provide a defense against a corruption charge by having adequate procedures in place that were designed to have prevented persons associated with the organization from committing the offense.  The Malaysian government intends to publish guidelines in the future that will provide more clarity on how they will interpret "adequate procedures".

Key Takeaways

  • The Amendment introduces corporate liability for corrupt acts committed by persons associated with a commercial organization
  • Having an adequate compliance program in place may mitigate the potential penalties associated with a corrupt act by an associated person
  • Associated persons include both employees AND third parties providing services on the company's behalf
  • The penalties for non-compliance are potentially severe 

Recommendations

  • If you have a business that operates in Malaysia we recommend a review of your  compliance programs in country and a review of your monitoring and auditing practices to ensure they are adequate to prevent and detect corrupt acts.

GCSG will continue to follow developments and will distribute the guidelines when the Malaysian Anti-Corruption Commission publishes them.  For more information contact your GCSG experts.

E  info@globalcompliancesg.com

References and Definitions:

  • (1) The 2009 Act only provided for individual liability associated with corruption by company employees - Malaysian Anti-Corruption Commission Act 2009
  • (2) The corporate liability amendments are modeled after the UK Bribery Act 2010.
  • (3) "Commercial Organization...means (a) a company incorporated under the Companies Act 2016 and carries on a business in Malaysia or elsewhere; (b) a company wherever incorporated and carries on a business or part of a business in Malaysia; (c) a partnership- (i) under the Partnership Act 1961 and carries on a business in Malaysia or elsewhere; or (ii) which is a limited liability partnership..and carries on a business in Malaysia or elsewhere; or (d) a partnership wherever formed and carries on a business or part of a business in Malaysia."(5)
  • (4) "A person is associated with a commercial organization if he is a director, partner or an employee of the commercial organization or he is a person who performs services for or on behalf of the commercial organization."(5)
  • (5) Malaysian Anti-Corruption Commission (Amendment) Bill 2018
  • Malaysian Anti-Corruption Commission

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.

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

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

Laundering Scandal Exposes European Rift on Policing Banks | Bloomberg

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

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

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

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

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

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

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

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

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

Monday Compliance News - Around the World

/ 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.

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

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

NIST Releases v 1.1 of its Cybersecurity Framework | NIST News

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

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

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

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

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

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

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

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

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

Construction Sector Experiences Heightened Vulnerability to Fraud | Construction Executive

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

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

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

Italy Expands Whistleblower Protections

/ Global Compliance Solutions Group LLC/

Italy's Anti-corruption law, known as the Severino law (1), was promulgated in 2012.  The Severino law included public sector whistleblower protection provisions but it did not include protections for many private sector whistleblowers.  On November 30, 2017 a new law ("Law 179") was passed that included enhanced protections for public sector employees as well as more general protections for private sector whistleblowers. (2) 

Some of the important elements of Law 179 as it relates to public sector employees include:

  • A public employee that reports illegal conduct is not to be retaliated against
  • The anti-retaliation provisions for public employees now include employees of public economic entities, private law employees subject to public scrutiny, and to employees of contractors of companies supplying goods or services to the public administration
  • Allows for the reporting of violations to an internal officer, to the National Anti-Corruption Authority (3), an accounting authority, or to the judiciary
  • Reinforces the protection of the anonymity of a whistleblower

Some of the important elements of Law 179 as it relates to private sector employees:

  • Extends private sector employee protections beyond just the finance sector, insurance companies, and specific activities such as worker health and safety (4,5,6)
  • Requires companies that already have compliance programs to develop a whistleblower reporting program that includes at least one reporting mechanism allowing employees to report illegal conduct or potential violations and at least one confidential reporting mechanism that protects the whistleblower's identity
  • Requires companies should have a department responsible for managing the whistleblower program, procedures that provide guidance on what is covered and the protections provided, and allow for the discipline of employees that violate the procedures
  • Includes a prohibition against whistleblower retaliation  
  • The Company bears the burden of proof when a whistleblower makes a retaliation claim

Law 179 entered into force on December 29, 2017.

References:

Vietnam's anti-corruption laws bolstered

/ Global Compliance Solutions Group LLC/

On January 1, 2018 Vietnam's new Penal Code (the "New Code") became effective.  The New Code enhances Vietnam's anti-corruption laws and expands the range of covered offences to the private sector for profit-based commercial entities.

Till the new Code requirements came into effect Vietnam's bribery statutes focused on the bribery of public officials.  Now, the new Code prohibits offering bribes to persons in the private sector and introduces corporate criminal liability for tax evasion and money laundering.      

Key Amendments

  • Prohibits bribes offered to or accepted by "persons with positions and/or powers" in the public and private sector
  • Prohibits bribing foreign public officials
  • Introduces corporate liability for tax evasion (Article 200); terrorist financing (Article 300); and money laundering (Article 324)
  • The death penalty for receiving bribes has been removed

Other Observations

  • The new Code does not extend liability for commercial bribery offences to corporations - it is still only applicable to individuals
  • To be applicable, the inducements must be offered with corrupt intent
  • Penalties for giving and receiving bribes depend on a trigger threshold of 88 USD (VND 2 million)

Key Link(s):

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.

South Korea's Ousted President, Gets 24 Years in Prison | The New York Times

"Park Geun-hye, South Korea's impeached and ousted president, was sentenced on Friday to 24 years in prison on bribery and other charges in a case that exposed the entrenched, collusive ties between the government and huge conglomerates like Samsung." (Click here for the article) - South Korea

U.S. seeks about 20 years prison for Turkish banker in Iran sanctions case | Reuters

"U.S. prosecutors on Wednesday asked a federal judge to sentence a Turkish banker convicted of helping Iran evade U.S. sanctions to about 20 years in prison." (Click here for the article) - U.S., Turkey

Metro-Atlanta travel agency operators charged with Fraud scheme | US DOJ

"Elisabeth Greenhill and Jonathan Greenhill have been charged for running a fraud scheme that targeted faith-based and humanitarian groups conducting mission work overseas." (Click here for the article) - U.S.

Ukraine's Privatbank files $3 bn lawsuit against PWC subsidiaries | Reuters

"Ukraine's largest bank, PrivatBank, said on Monday it had filed a $3 billion lawsuit against the Ukrainian and Cypriot subsidiaries of international accounting firm PwC for alleged breaches during audits of the lender in 2013-2015." (Click here for the article) - Ukraine

Trudeau sees high chance of NAFTA deal with Mexico | Yahoo

"Canadian Prime Minister Justin Trudeau signaled Thursday he saw a strong chance of reaching a deal with the US and Mexico to revamp the North American Free Trade Agreement." (Click here for the article) - Mexico, Canada, U.S.

Third Gas Pipeline Data System Shuts One Day After Cyber-attack | RigZone

"A third U.S. pipeline company reported its electronic system for communicating with customers has stopped working, a day after a cyber-attack resulted in a similar shutdown." (Click here for the article) - U.S.

US and South Korea Reach Agreement on KORUS FTA | USTR Press Release

"...the United States and the Republic of Korea have reached an agreement in principle on the general terms of amendments and modifications to the United States-Republic of Korea Free Trade Agreement." (Click here for the article) - U.S.

 

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.

Corruption Perceptions Index 2017 | Transparency International

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

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

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

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

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

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

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

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

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

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

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

 

Proposed Amendment to Australian Bribery Offence

/ Global Compliance Solutions Group LLC/

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):

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.

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

/ 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.

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

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

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

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

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

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

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

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

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

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

Monday Compliance News - Around the World

/ 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.

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

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

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

/ Global Compliance Solutions Group LLC/

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): 

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.

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

/ 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.

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

Argentine Congress Approves New Corruption Law

/ Global Compliance Solutions Group LLC/

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

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

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

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

The bill allows for:

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

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