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       

Key Link(s):

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 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.

Procurement Leaders: Risk Management Ranks Among Top Concerns  | Risk & Compliance Journal - WSJ

"Reducing costs ranks as the biggest priority for chief procurement officers (CPOs) around the world, but risk management, technology, and talent are also top of mind..." (Click here for the article) - North America, South America, Asia Pacific, Europe, Middle East, Africa

Compliance Officers Less Worried About Liability | Risk & Compliance Journal - WSJ

"Concerns about personal liability have lessened somewhat for compliance professionals but a survey shows they continue to be a big worry for those tasked with handling compliance for their organization." (Click here for the article) - Global

The Emergence of Compliance - A new profession? | Harvard Law School Center on the Legal Profession

"What do compliance officers, social media marketers, and 3-D designers have in common?  They are all members of relatively new specialties, attempting to carve out areas of expertise to meet the evolving demands brought on by economic, technological, business, and social change." (Click here for the article) - Global

UN expands North Korea blacklist in first U.S., China sanction deal under Trump | Reuters

"The U.N. Security Council on Friday expanded targeted sanctions against North Korea after its repeated missile tests..." (Click here for the article) - China, North Korea, USA

Federal Contractors Face New Training Requirements | Risk & Compliance Journal - WSJ

"New rules that took effect Wednesday require cleared U.S. government contractors to have in place insider-threat awareness training programs before they can handle classified information." (Click here for the article) - USA

SEC Bars Former PetroTiger GC Convicted in Bribery Case | Corporate Counsel

"Former general counsel Gregory Weisman has been suspended from practicing before the U.S. Securities and Exchange Commission more than three years after his guilty plea in the PetroTiger Ltd. bribery case." (Click here for the article) - USA

Compliance Boosts Foothold in C-Suite, Boardrooms | Risk & Compliance Journal - WSJ

"Chief compliance and ethics officers are increasingly being included in senior-level discussions about corporate strategy, showing compliance is gaining favor in boardrooms worldwide but also pointing out the challenges the function continues to face, according to a survey..." (Click here for the article) - Global

General Motors Accused of Rigging Diesel Pickup Truck Emissions | Road and Track

"A class-action lawsuit accuses General Motors of rigging emission-control systems on 2011-2016 Chevrolet Silverado HD and GMC Sierra HD pickups with GM's Duramax turbo-diesel 6.6-liter V-8 engine." (Click here for the article) - USA

Exports and End-Use | RealClear Defense

"In a report this week, Amnesty International expresses its annoyance that the US Army failed to keep tabs on more than $1 billion worth of arms and other military equipment in Iraq and Kuwait." (Click here for the article) - Iraq, Kuwait, USA

Hong Kong and Macau regulators intensity efforts against money laundering, financial crime and terrorist funding | South China Morning Post

"Hong Kong and Macau have launched simultaneous shake-ups of the systems they have in place to tackle the growing menace of money laundering, financial crime and the funding of terrorist groups." (Click here for the article) - China, Hong Kong, Macau

China's Cyber Security Law: The Impossibility of Compliance? | Forbes

"China's much-anticipated Cyber Security Law (CSL) will come into effect on 1 June 2017.  The new law is the first comprehensive law to address cyber security concerns at the national level and to some extent consolidates cyber activities captured in other laws and regulations." (Click here for the article) - China

CVS's Omnicare to pay $23 million to resolve U.S. kickback case | Reuters

"CVS Health Corp's Omnicare unit has agreed to pay $23 million to resolve a whistleblower lawsuit alleging that it took kickbacks from a drugmaker..." (Click here for the article) - USA

Unaoil Probe Threatens Oil-Sector Merger | Risk & Compliance Journal - WSJ

"An oil merger is in danger after revelations of ties to Unaoil, which is under U.K. investigation for bribery and money laundering." (Click here for the article) - UK, USA

Japan's METI Issues Updated End User List | METI

(Click here for the post) - Japan

Bank's slapped with fines for weak anti-money laundering controls | Mail & Guardian

"Several local and international banks have been slapped with administrative fines by the South African Reserve Bank, for weak anti-money laundering and combating of financing of terrorism controls." (Click here for the article) - South Africa

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.

Chief Compliance Officer Fined, Barred from Work  - Corporate Counsel

"Once again, the federal government has held a chief compliance officer personally liable for failing to stop a company's misconduct." (Click here for the article) - USA

Why Me?  What Triggers a US Customs Inspection? - More Than Shipping

"Even today, it remains a mystery - how import shipments are selected to be inspected by U.S. CBP (Customs and Border Protection)..." (Click here for the article) - USA

Industries ranked by open FCPA related investigations - The FCPA Blog

"Here are industries ranked by the number of companies that have disclosed open FCPA-related investigations..." (Click here for the article) - USA, Global

Thirty companies name Brazil in connection with FCPA-related probes - The FCPA Blog

"Of the 104 companies that have disclosed open and active FCPA-related investigations, 30 have mentioned Brazil.  Seventeen have mentioned China.  Poland and India each have three mentions..." (Click here for the article) - Brazil, China, Poland, India

New ISO Anti-Bribery Standard Gaining Traction - Forbes

"Bribery and other forms of corruption continue to plague business and society.  According to the World Bank, some $1.5 trillion is paid globally in bribes each year..." (Click here for the article) - USA, Global

DOJ Sheds Some Light on U.K. Prosecutor Assignment - The Wall Street Journal

"A top U.S. Justice Department official spent part of a speech at an anti-corruption conference in Brazil revealing some of the reasons why the department plans to send a prosecutor on a detail to the U.K." (Click here for the article) - USA, UK, Brazil

 

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.

Police raid BT's Italian offices over £530m accounting scandal  - The Times

"BT's offices in Italy have been raided by police as part of an investigation into a £530 million accounting scandal." (Click here for the article) - Italy

Investigation in Brazil "much bigger" than Watergate, says lead prosecutor - CBS News

"The political corruption investigation in Brazil known as Operation Car Wash is 'much bigger' than the Watergate scandal in the U.S., the lead prosecutor tells correspondent Anderson Cooper..." (Click here for the article) - Brazil

Trump administration formally launches NAFTA renegotiation - Washington Post

"The Trump administration on Thursday formally notified Congress of its intent to renegotiate the North American Free Trade Agreement, a step forward on a campaign promise that was widely popular among voters..." (Click here for the article) - USA, Mexico, Canada

Brazil's corruption scandals may be the best thing to happen to Latin America - Miami Herald

"If you think that the corruption scandal swirling around Brazilian President Michel Temer is the only one that will shake Latin America in coming weeks, mark your calendar..." (Click here for the article) - Brazil, Latin America

FIFA audit official admits bribery in US federal probe - USA Today

"The sprawling American investigation of bribery and corruption in international soccer has reached into Asia and claimed the first guilty plea from a senior official in the new FIFA leadership." (Click here for the article) - Switzerland, USA, Guam, Kuwait, Philippines, Germany, France

FDA launches new webpage to promote use of symbols in medical device labeling (Imports) - Customs & International Trade Law

"If you think that the corruption scandal swirling around Brazilian President Michel Temer is the only one that will shake Latin America in coming weeks, mark your calendar..." (Click here for the article) - USA

Chinese National Pleads Guilty to Economic Espionage and Theft of a Trade Secret from US Company - The US Department of Justice

"Today, Xu Jiaqiang, 31, formerly of Beijing, China, pleaded guilty to economic espionage and theft of a trade secret, in connection with Xu's theft of proprietary source code from Xu's former employer..." (Click here for the article) - USA, China

Big data driving SEC focus on disclosures, recommendations and security - OnWallStreet

"Advisers will see SEC regulators employ new methods to investigate a firm's staff training, the suitability of its investment recommendations, conflicts of interest disclosures and cybersecurity safeguards..." (Click here for the article) - USA

UK Plans to Fold Serious Fraud Office into NCA Meet Skepticism - The Wall Street Journal

"UK Prime Minister Theresa May promised to fold the Serious Fraud Office into the National Crime Agency if her Conservative Party wins the general election next month..." (Click here for the article) - UK

More CEOs are getting forced out for ethics violations - Washington Post

"If it seems like more CEOs are getting cast aside amid ethical blunders or corporate scandals, they are." (Click here for the article) - USA

US Presses China to impose sanctions on DPRK - worldecr.com

"The US has indicated that it believes that China will agree to impose new UN sanctions on North Korea..." (Click here for the article) - USA, China, North 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.

Global Trade Growth is About to Slow, Morgan Stanley Says - MH&L

"Signs are pointing to a looming slowdown in global trade growth according to Morgan Stanley.  Each component of the bank's proprietary global trade leading indicator -- save for the U.S. dollar -- declined in April to mark back-to-back drops for the index, which is used to forecast real activity with a one-month lead." (Click here for the article) - Global

Qualcomm settles FCPA charges in hiring case for $7.5 million - The FCPA Blog

"The Securities and Exchange Commission said Tuesday that Qualcomm Incorporated agreed to pay $7.5 million to settle charges that it violated the Foreign Corrupt Practices Act by hiring relatives of Chinese government officials." (Click here for the article) - China, USA

US Attorney General Issues Charging and Sentencing Principles

/ Global Compliance Solutions Group LLC/

On Friday, May 12 US Attorney General Jeff Sessions issued a memorandum providing charging and sentencing principles for the US Department of Justice (DOJ).  The DOJ in its press release said "This policy was formulated after extensive consultation with Assistant U.S. Attorneys at both trial and appellate level, as well as U.S. Attorneys and Main Justice Attorneys.  It ensures that the Department enforces the law fairly and consistently, advances public safety and promotes respect for our legal system."

The guiding principles within the memo include:

  • Prosecutors should charge and pursue the most serious, readily provable offense
  • Prosecutors must disclose to the sentencing court all facts that impact the sentencing guidelines or mandatory minimum sentences, and should in all cases seek a reasonable sentence under the factors in 18 U.S.C. § 3553

In addition, the memo rescinds any previous policy of the DOJ that is inconsistent with the above guiding principles.

Key Links:

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 President Issues Executive Order Addressing Trade Agreement Violations and Abuses - The White House (Click here for the EO) - USA

India bans all trade with North Korea - CNN Money

"North Korea has lost one of its biggest trading partners after India banned most dealings with the country." (Click here for the article) - India, North Korea

Huawei's Plano office responds to NYT report about investigation into smartphone maker's sales to Iran, Syria, others - The Dallas Morning News

"American officials are investigating whether the company violated American trade controls on Cuba, Iran, Sudan and Syria, according to an administrative subpoena..." (Click here for the article) - China, USA

UK Serious Fraud Office (SFO) confirmed investigation opened into KBR, Inc. - SFO News Releases (Click here for the news release) - UK, USA

FBI agents raid offices, government buildings across Texas in statewide corruption probe - Hearst Newspapers, LLC

"The FBI descended on a host of city and county government buildings...across Texas, executing search warrants as part of a public corruption probe..." (Click here for the article) - 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 compliance news bites, from around the world, that we deliver every Monday morning. 

Identity Fraud Cases Skyrocket in Netherlands - NLTimes.nl

"The number of reports about identity fraud in the Netherlands more than doubled last year, according to figures from the Identity Fraud Hotline." (Click here for the article) - Netherlands

How hackers made off with millions - Thomson Reuters

"It's been a little over a year since the New York Federal Reserve and the SWIFT international transaction system were breached in a cyber-attack that resulted in $81 million stolen from a Bangladesh central bank account - one of the biggest known bank thefts in history" (Click here for the article) - USA, Bangladesh

Report Faults Wells Fargo's Law Department in Sham-Accounts Scandal - Law.com

"The report, released Monday, was commissioned by Wells Fargo last year after the bank agreed to pay $185 million to settle accusations that employees opened as many as 2.2 million unauthorized accounts by transferring funds without customers consent from existing accounts." (Click here for the article) - USA

The money machine: how a high-profile corruption investigation fell apart - Guardian News and Media Limited or its affiliated companies

"The 2014 summit - much like David Cameron's highly publicized global Anti-Corruption Summit in 2016 - was intended to show Britain's determination to live up to its responsibilities.  Instead, the case of the $23m collapsed within a year - when a British judge ruled that the SFO had built its case on 'conjecture and suspicion', and ordered the money returned to its owner." (Click here for the article) - Britain, Ukraine

North Korea oil imports, airline among possible US sanctions targets - Thomson Reuters

"...the Trump administration is focusing its North Korea strategy on tougher economic sanctions, possibly including an oil embargo, banning its airline, intercepting cargo ships and punishing Chinese banks doing business with Pyongyang..." (Click here for the article) - USA, North Korea, China

How one of the world's biggest oil firms secured a $1.3 billion deal mired in corruption allegations - BuzzFeed

"On the evening of 17 February 2016...the chief executive of oil giant Shell, picked up his phone...The topic of their conversation: a 'dawn raid' on the company's headquarters earlier that day by Dutch police investigating a controversial $1.3 billion Nigerian oil deal struck five years previously." (Click here for the article) - Netherlands, Italy, Nigeria

Trump considers trade order that could lead to duties - CNBC

"U.S. President Donald Trump is considering an executive order to launch a trade investigation that could lead to supplemental duties in certain product categories..." (Click here for the article) - USA

BIS publishes FAQs on HK export/re-export documentation requirements

/ Global Compliance Solutions Group LLC/

OFPP Issues Draft Guidance on Anti-Trafficking Risk Management Best Practices & Mitigation

/ Global Compliance Solutions Group LLC/

On Thursday, December 8, 2016 the Office of Federal Procurement Policy (OFPP) issued a notice and request for comment (81 FR 88707) on a draft guidance document entitled "Anti-Trafficking Risk Management Best Practices & Mitigation Considerations".  The guidance was drafted with the assistance of the Office to Monitor and Combat Trafficking in Persons in the Department of State (DOS) and the Department of Labor (DOL).  The guidance is intended to help agencies determine if one of their contractors is taking adequate steps to meet their anti-trafficking responsibilities under the Federal Acquisition Regulation (FAR).

Executive Order 13627 (September 25, 2012) and Title XVII of the National Defense Authorization Act (NDAA) (FY2013) established requirements for government contracts to prevent trafficking in persons.  As a result, the Department of Defense (DoD), General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) published a final rule (80 FR 4967-4992) on January 1, 2015 which amended the FAR in order to implement the requirements. 

The guidance memo states "Contractors are expected to be committed, proactive, and forthcoming in their efforts to address and reduce the risk of human trafficking in their operations and supply chains" and identifies a best practices list. 

The best practices list does not change existing regulatory requirements.  But it is noted that a contractor's efforts to "adopt best practices may be appropriately considered as a mitigating circumstance".  The best practice list includes the following:

  1. Contractor Internal Steps
    • Appointment of an accountable official
    • Implementation of a Code of conduct and policies that address trafficking
    • Implementation of a worker training program for all employees
    • Implementation of a whistleblower protection mechanism
    • Development of a compliance plan for contracts or portions of contracts performed overseas in excess of $500,000
  2. External steps
    • Company has taken steps to map out supplier relationships in its supply chain and utilized risk screening tools or procedures to identify high risk portions of its supply chain
    • Dissemination of a code of conduct throughout its supply chain
    • Validation of protections with its subcontractors
    • Implemented recurring auditing processes and regular updates to its policies and procedures
    • Demonstrated targeted corrective action plans for addressing risks, monitoring progress, direct monitoring, and follow-up audits for sites identified as non-conforming

Key Date(s):  Comments should be submitted in writing on or before January 9, 2017 via email (OFPPData@omb.eop.gov) or facsimile (202-395-5105).  Cite "Proposed Memo on Anti-Trafficking" in all correspondence.  

Customer Due Diligence Requirements

/ Global Compliance Solutions Group LLC/

On May 11, 2016 the Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) published final rules (81 FR 29397-29458) under the Bank Secrecy Act to clarify customer due diligence requirements for Banks; brokers or dealers in securities; mutual funds; and futures commission merchants and introducing brokers in commodities. 

Unlike most other federal agencies where they've taken the approach to provide guidelines or inferred expectations around customer due diligence, these rules contain explicit customer due diligence requirements.

FinCEN makes the case that there are four core elements of customer due diligence (CDD):

  • Customer identification and verification (already a requirement)

  • Beneficial ownership identification and verification (required by the new final rule)

  • Understanding the nature and purpose of customer relationships to develop a customer risk profile (implicitly required already and will now be explicitly required by the new final rule)

  • Ongoing monitoring for reporting suspicious transactions and, on a risk-basis, maintaining and updating customer information (implicitly required already and will now be explicitly required by the new final rule)

These four core elements are also good basic guidelines for any global business, regardless of industry, with third party relationships.  Companies that fail to maintain an adequate level of oversight of their third parties risk conducting business with people and entities that do not share their same values for integrity.  This can lead to relationships that end with compliance failures that could damage the company's reputation and in some instances result in criminal/civil penalties.

A good third party due diligence program will include these basic elements:

  • Written policy with Executive level support

  • Third Party verification and screening against denied party/restricted party lists as well as for adverse media events

  • Desktop procedures that include when, what and how a third party is to be on-boarded and for how an existing third party relationship is to be monitored (for changes in their risk profile)

  • Red Flags awareness and a process for handling Red Flags as they arise

  • Prioritization of third parties by level of risk and categorization by required levels of due diligence (low, moderate, high)

  • Training    

Global Compliance Solution Group (GCSG) is well versed in assessing and implementing corporate third party due diligence programs.  If you have any questions or needs in this area please contact us directly at info@globalcompliancesg.com. 

The final rules become effective on July 11, 2016 and covered institutions must fully comply by May 11, 2018.

Key definitions:

  • Third Party - means customers or intermediaries that conduct business on a company's behalf with persons outside of the company and encompasses those contracted in both sales and supply channels.

  • Intermediaries - may include joint venture partners, consortium partners, agents, advisor (e.g. legal, tax, financial, consultant, lobbyist), supplier, vendor, service provider (e.g. communications, logistics, storage, brokers, forwarders, etc.) or distributor/reseller. 

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