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Matched Legal Cases: ['§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78']

FCPA Compliance Roadmap White Paper | Due Diligence | Corruption
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Foreign Corrupt Practices Act, a compliance roadmap
Foreign Corrupt Practices Act .......................1 FCPA’s Anti-Bribery Provisions ..................... 4 Who is covered ......................................... 4 Corrupt Payment ...................................... 7 Foreign Ofﬁcials ....................................... 7 Third Party Payments ............................... 8 Exceptions and Afﬁrmative Defenses ............ 8 Penalties ...................................................... 10 Accounting Provisions.................................. 10 Global Industries Are At Greatest Risk........ 12 Red Flags ..................................................... 12 Corporate Self-Assessment ........................ 14 Conclusion ................................................... 15 Michael Volkov Proﬁle.................................. 16 Dickinson Wright Proﬁle .............................. 17 A World in Compliance ................................ 18
are intentionally expansive to encompass as much business activity as possible. §§ 78m. including domestic concern and foreign ofﬁcial. As stated in the DOJ’s Criminal Division Presidential budget request: FCPA enforcement is consistent with the Obama Administration’s goals of promoting transparency. Criminal Division Presidential Budget Request available at http:// www.2 The anti-bribery provisions prohibit a domestic concern (a U. The global economic crisis presents a real threat to our progress in promoting integrity in international business.gov/jmd/2011justiﬁcation/pdf/fy11-crm-justiﬁcation. The FCPA’s accounting controls provisions include record keeping and internal control mechanisms which apply to corporations whose securities are registered with the Securities Exchange Commission (SEC).justice. person or corporate entity) from making corrupt payments or promises to pay foreign ofﬁcials for the purpose of obtaining or retaining business. The government’s FCPA enforcement strategy has resulted in large corporate ﬁnes and criminal penalties for individuals. Deﬁnitions of certain terms. undercover ofﬁcers. 1 2 Foreign Corrupt Practices Act of 1977. and good governance. conﬁdential informants.Foreign Corrupt Practices Act Thirty years after its enactment in 1977. wiretaps and other strategies typically reserved for investigations of violent gangs and drug trafﬁcking organizations. These companies must maintain accurate records to account for certain expenditures. The Obama Administration has made it clear to the business community that FCPA enforcement will be a high priority and focused on new industries – pharmaceutical and financial institutions – while additional resources are being assigned to carry out this enhanced effort. S. sustainable development. the Foreign Corrupt Practices Act (FCPA)1 is experiencing the most aggressive enforcement level ever by the Department of Justice (DOJ) and the Securities Exchange Commission (SEC). codiﬁed as amended at 15 U. Department of Justice. or who must ﬁle regular reports with the SEC. 78dd. C.pdf. and 78ﬀ. as well as regular accounting methods to verify access and use of assets. A tremendous upswing in enforcement activities in the past several years has been marked by aggressive law enforcement techniques such as search warrants.S. democracy. 1 Americas Africa Asia Europe Latin America Middle East Oceania .
and every sales agent that we will seek to hold you personally accountable for FCPA violations. In 2009. 3 February 2009: Kellogg. we hope to do so with enhanced resources. In addition. up from just sixteen in 2008.html.justice.html.4 February 2010: BAE Systems plc ends a ten plus year bribery ring involving mid-East countries and agreed to pay $400 million in ﬁnes. Of the thirty-six enforcement actions against companies. the number of enforcement actions are up. See http://www. See http://www. every board member.S. several have resulted in blockbuster corporate ﬁnes: December 2008: Siemens.justice. Breuer. Asia Europe Latin America Middle East Oceania 2 Americas Africa . Assistant Attorney General for DOJ’s Criminal Division. Lanny A.justice. Brown and Root pled guilty to a bribery scheme in Nigeria and agree to pay $402 million in criminal ﬁnes. Recent enforcement actions and prosecutions have increased ﬁve fold since 2004: In 2008.5 Additional evidence of this growing enforcement trend also exists in the prosecution rates of individuals over just the past two years.8 billion against thirty-six corporations and sixty-four individuals for FCPA violations.gov/opa/pr/2009/February/09-crm-112.html. we have begun discussions with the Internal 3 4 5 See http://www. forty-six individuals were prosecuted for FCPA violations.6 billion in ﬁnes to U. and foreign authorities.gov/opa/pr/2010/March/10-crm-209. the prospect of signiﬁcant prison sentences for individuals should make clear to every corporate executive. recently stated: Put simply.gov/opa/pr/2008/December/08-crm-1105. and $177 million in disgorged proﬁts. As I imagine most of you have heard. DOJ and the SEC assessed ﬁnes and penalties of approximately $2. in 2007 the FBI created a squad with agents dedicated to investigating potential FCPA violations. The squad has been growing in size and in expertise over the past two years. As we undertake these efforts.FCPA Enforcement Has Dramatically Increased Resulting In Corporate Mega Fines And Increased Scrutiny Of Individuals The numbers tell the story — year after year. AG and three subsidiaries pled guilty to alleged FCPA violations and agreed to pay $1.
Petersburg. Ga..fbi. Attorney’s Ofﬁces in the country. Miami. recorded hundreds of conversations with the twenty two individual targets. According to the DOJ’s press release on the day of the arrest: In connection with these indictments..Revenue Service’s Criminal Investigation Division about partnering with us on FCPA cases around the country.gov/opa/pr/2010/January/10-crm-048. Fla. Ponte Vedra Beach. 2009. Finally. Fla. See http://www.. An undercover informant posed as a broker for the Minister of Defense from an African nation. Additionally. we are now pursuing strategic partnerships with certain U. the DOJ aggressively employed more traditional law enforcement techniques including undercover agents.7 The undercover informant wore a body wire. Penn. of course. But these partnerships. Upper Darby. Stearns. See http://www..html. the United Kingdom’s City of London Police executed seven search warrants in connection with their own investigations into companies involved in the foreign bribery conduct that formed the basis for the indictments.. and worked closely with an undercover FBI agent who posed as a “middle-man” needed to facilitate “commissions” payable to the Minster of Defense. Fla. In one recent sting operation conducted over a two year period.8 6 7 3 Americas Africa 8 Comments by Lanny Breuer to the 22nd National Forum on Foreign Corrupt Practices Act. Nevada.. In January 2010. Sunrise. San Francisco.S.gov/page2/jan10/fcpa_012610. Ky. Fla. will remain with the Criminal Division’s Fraud Section.mainjustice. including Bull Shoals. Decatur.. Fla.6 The DOJ is practicing what Breuer preaches.gov/criminal/pr/speechestestimony/ documents/11-17-09aagbreuer-remarks-fcpa. Va.. St. November 17. University Park.justice.pdf. see also http:// www. wiretaps and search warrants. and Woodbridge.com/2010/04/05/fcpa-sting-case-why-gabon/.justice. we hope.S. Ark. the sting operation culminated in the arrest of twenty two arms and weapons dealers in Las Vegas. Asia Europe Latin America Middle East Oceania .html. will greatly increase our resources and permit us to capitalize on the skill and expertise of AUSAs in some of the best U. Sarasota.. See http://www. Our successful efforts thus far in FCPA enforcement have been due in large part to the amazing work of our talented career prosecutors in the Fraud Section and enforcement responsibility. Attorney’s Ofﬁces throughout the United States where there are a concentration of FCPA investigations. approximately 150 FBI agents executed 14 search warrants in locations across the country.
Asia Europe Latin America Middle East Oceania 4 Americas Africa . § 78dd-3(f ).C.All told. citizens. and extends to subsidiaries of the issuer.10 (3) Any person other than an issuer or domestic concern include foreign nationals or businesses within the territory of the United States. residents and any business or partnership whose principal place of business is in the United States. Domestic concerns are U. (2) corruptly paid something of value (cash commissions). (3) to a foreign ofﬁcial (Minister of Defense and his intermediary).S.S.C. § 78dd-2(h)(1). § 78dd-1(a). (4) for the purpose of obtaining business (military contracts). What follows is a thorough explanation of the numbered elements. The FCPA’s Anti-Bribery Provisions The Las Vegas raid provides a textbook study of the FCPA in action and enforcement of its anti-bribery provisions. Who is covered The FCPA’s anti-bribery provisions apply to three types of individuals and corporate entities: (1) Issuers.9 This includes foreign companies who securities are traded on domestic stock exchanges through the use of ADRs. 15 U. the arrest and indictments stemming from the Las Vegas raid represent the single most expansive investigation and enforcement action by the DOJ. (1) domestic concerns (the individuals).11 9 10 11 15 U. nationals. The indicted individuals were part of an alleged conspiracy to pay “commissions” to the Minster of Defense in exchange for securing several arms deals. And it is a foreshadowing of the enforcement to come.C. An “issuer” is any company whose security is registered with the SEC or who ﬁles regular reports with the SEC. (2) Domestic concerns. In FCPA lingo.S. 15 U.S.
language or other “signaling device” that should reasonably alert them of the “high probability” of an FCPA violation.S.e. they must act to stop the potential violation and cannot “look the other way”. § 78dd-3(f ). C.173.”13 The “ﬁrm belief” standard has an expansive. the “conduct”. 15 U.C.2. 12 13 14 15 U.14 Conscious disregard or purposefully avoiding learning the truth will be sufﬁcient knowledge.” “willful blindness” or “deliberate ignorance” – should be covered so that management ofﬁcials could not take refuge from the act’s prohibition by their unwarranted obliviousness to any action (or inaction). .e. 1977 Legislative History – House Report. i. Asia Europe Latin America Middle East Oceania 5 Americas Africa . . However.“Corrupt payment” must be for purpose of obtaining or retaining business The payment or promise of payment made by one of the above three subjects must be made “knowingly” the payment would inﬂuence a foreign ofﬁcial “in order to assist . in obtaining or retaining business”. “Willful blindness” is not sufﬁcient to avoid FCPA liability. the Conferees agreed that “simple negligence” or “mere foolishness” should not be the basis for liability.html. S. “knowing” is either actual knowledge or being aware the conduct is taking place.12 For purposes of the statute. available at http://10. If a subject knows or has enough information available to believe circumstances exist for a violation to occur. As set forth in the Conference Report: In clarifying the existing foreign anti-bribery standard of liability under the Act as passed in 1977. catch-all scope. § 78 dd-1(a) and (f ).10/criminal/fraud/ fcpa/history/1988/tradeact. It is enough if the person has a “ﬁrm belief” the circumstances (i. a corrupt payment is being made for the purpose of obtaining or retaining business) exist or the result is “substantially certain to occur. the Conferees also agreed that the so called “head-in-the-sand” problem – variously described in the pertinent authorities as “conscious disregard.
. an act is “corruptly” done if done voluntarily and intentionally.17 Something which might be common practice or custom in a country such as bribes to custom ofﬁcials. S. in United States v. despite the cousin’s testimony that he considered the tickets to be a personal “gift. and the perception of the recipient and the subjective valuation of the thing conveyed is often a key factor considered by the enforcement agencies in determining whether “anything of value” has been given to a foreign ofﬁcial. 2004). 464-466 (5th Cir. . promise to pay. There is no de minimis value associated with the “anything of value” element. among other things. 923 F. supra at 1312. See United States v. transportation.18 Thus. must be intended to induce the recipient to misuse his ofﬁcial position or to inﬂuence someone else to do so . meals.3d 738 (5th Cir. 513 F. Liebo. 15 The corrupt payment or offer to pay must be made for the purpose of “inﬂuencing. 1312 (8th Cir. Asia Europe Latin America Middle East Oceania . drinks. will also run afoul of the FCPA if the stated purpose of the bribe is to assist companies to obtain and retain business. and promise of future employment. 2007). 15 U.Any payment or offer to pay must be made “corruptly.”16 The FCPA applies to more than payments of a “suitcase full of cash” to foreign government leaders to secure a government contract. For example. § 78dd-1(a). and with a bad purpose of accomplishing either an unlawful end or result or a lawful end or result by some unlawful method or means.” the payment was made shortly before a contract was approved and the ofﬁcial had a close relationship with his cousin. entertainment. Kay. gifts. but also. insurance beneﬁts. The term “anything of value” has been broadly construed to include not only cash or a cash equivalent. payment or authorization of payment.” “inducing” or securing an “improper advantage” in “obtaining or retaining business. Kay.2d 1308. use of materials. lodging. aﬀ ’g 359 F. discounts. two executives of an 15 16 17 18 6 Americas Africa United States v. facilities or equipment. Liebo.” One court has deﬁned corruptly as: [t]he offer. C. . 1991). a vice-president of a military supplier was convicted of violating the FCPA when he paid for airline tickets for the cousin of a foreign ofﬁcial because.3d 461.
Public international organizations are an organization designated as such by Executive Order. 2007).19 Foreign Ofﬁcials The recipient of a payment or promise to pay must be a “foreign ofﬁcial.S. Rev. directors of regional health care funds. ofﬁcer or employee of the foreign government and any of its departments.C. 08-01. 15 U.American rice exporter were convicted under the FCPA for payments to Haitian custom ofﬁcials that the Court acknowledged were “the standard practice” and “business as usual” in Haiti. agencies. or public international organization.20 Examples of foreign officials include officials of government owned banks.23 19 20 21 22 23 United States v. instrumentalities. Instrumentalities. See id.”22 Accordingly.S. and officials of government owned financial management services.C.21 Due to the expansive definitions. Proc. the General Manager of a foreign corporation that is owned in-part by a government owned entity is a “foreign official.3d 432. § 78dd-1(f )(1)(B)(i)-(ii). Kay. physicians and other employees from government owned or controlled hospitals. Asia Europe Latin America Middle East Oceania 7 Americas Africa . may include quasigovernmental agencies or business joint ventures between the government and the private sector. candidate for foreign political ofﬁce. FCPA Op. even companies seeking to enter into investment opportunities or joint ventures with such persons must consider taking precautions to ensure compliance with the FCPA. 513 F. § 78dd-1(f )(1)(A). 15 U. 439 (5th Cir.” Foreign ofﬁcials is broadly deﬁned to include every possible level of government ofﬁcial such as a member of a foreign political party or ofﬁcial. although not clearly delineated in the statute.
First. such payments are not for the purpose of obtaining or retaining a business advantage because they are made for a legitimate purpose. companies are not immune from FCPA liability by doing business abroad through others because the FCPA prohibits improper payments to “any person.3d at 439.Third Party Payments The FCPA also contains broad third-party payments provisions under which the actions of foreign subsidiaries and other third parties such as agents. or promised. Kay. the statute allows.C. telephone.S. Proc.C. payments made to a foreign ofﬁcial for the purpose of facilitating or expediting routine governmental action. Rel. and booked to reﬂect their legitimacy and purpose. water.S.24 Recognizing that some business customs or practices might inﬂuence everyday business decisions.28 A written law. FCPA Op. § 78dd-2(c)(1).25 Examples include payments to obtain permits or licenses or to receive mail. given. § 78dd-1(f )(3)(A). consultants. electrical.” Exceptions and Afﬁrmative Defenses There are very limited and narrow exceptions and afﬁrmative defenses to the statutory violations. 15 U.26 Presumably.g. Asia Europe Latin America Middle East Oceania 8 Americas Africa . 78dd-2(h)(4)(A). 15 U. a payment or offer to pay pursuant to a written law or regulation of the foreign country might be appropriate. In other words. 513 F. 78dd-3(f )(4)(A). directly or indirectly. 24 25 26 27 28 See. any such payments should be properly accounted for. Two afﬁrmative defenses allow consideration for payments or offers which are legally justiﬁed or part of a legitimate business activity. and joint venture partners can result in FCPA liability to a parent company or the entity engaging the third-party. distributors. or cargo handling services..S. § 78dd-2(b). does not always protect from FCPA liability. however. while knowing that all or a portion of such money or thing of value will be offered. 15 U. Regardless of the reason. to a foreign ofﬁcial. 07-03. as an exception.C.27 One example of such a payment would be one made to cover expenses of an administrator appointed by a foreign court in order to proceed with the disposition of an estate. Business customs or practices in a foreign country are not enough to escape liability. e.
Proc. Inc. Rel. demonstration or explanation of a product or service. however. United States v. 09-01.000 environmental damage ﬁne by the Nigerian government proceeded to make payment of the ﬁne through a “recommended” contractor. 14. No. it further stated that its decision was not binding on any other party nor would it bind the DOJ if the facts as represented were not accurate or complete. 29 30 31 32 33 34 FCPA Op.Thus.S.29 Second. prosecute a company that provided two-expense paid trips to various tourist destinations in the U. 07-01. § 78dd-2(c)(2). or to the performance of a contract with a foreign government or agency. Rel. FCPA Op..32 The DOJ has also indicated that it would not investigate a stipend paid to local journalists employed by media outlets wholly owned by the People’s Republic of China to cover local transportation costs.S. Asia Europe Latin America Middle East Oceania 9 Americas Africa . Proc. Proc.30 Proper payments under this category may include travel expenses to attend an educational and promotional tour of a company’s U. and incidental expenses that enabled the journalists to attend a company’s promotional conference in Shanghai.33 The DOJ did. in each instance that the DOJ approved a particular payment or practice. FCPA Op. 1999). Rel. Rel. 15 U. Metcalf & Eddy.34 Each of the examples of permissible payments above carries the caveat that the companies at issue undertook several precautions and controls to assure FCPA compliance. a meal. Proc. a bona ﬁde payment or gift which is a legitimate business expenditure and directly relates to the promotion. 1:99CV12566 (D. Thus.S. ﬁled Dec. FCPA Op. 98-01. Mass. operation sites31 or the provision of product samples for the purpose of testing and evaluation by the appropriate foreign government agency. 08-03.C. for the chairman (and his wife and children) of an Egyptian instrumentality that awarded the company contracts for the maintenance of wastewater treatment facilities. the DOJ indicated that it would conduct a criminal investigation if a company subject to an otherwise lawful $50.
why not for its industrial concerns? I became convinced that what was necessary was a simple law that would require corporations to keep accurate books and records. § 78dd-2(g). My research of the various laws did reveal that such a “books and records” requirement was included in the laws governing this nation’s financial institutions.C. Id.000. I was amazed that there was no requirement that publicly traded corporations maintain honest books and records. In my view. Asia Europe Latin America Middle East Oceania 10 Americas Africa .S.Penalties Wide ranging civil and criminal penalties for violations add to the potency of the FCPA.35 Although corporations and their executives and employees can be subject to civil ﬁnes of up to $2 million and up to $100.Record Keeping and Internal Controls Intended To Improve Compliance The rationale behind the record keeping and internal controls provisions is simple: require companies to keep accurate records of their business activity and institute internal controls that will identify and preclude the proscribed activity. respectively. On the civil side.000. explains the origin of the accounting provisions as follows: Most of all. Former federal judge Stanley Sporkin. See 15 U. it would be virtually untenable for someone to admit in writing that the corporation is engaging 35 36 37 See 15 U.37 Accounting Provisions . a corporation would think twice before it recorded a bribe for what it was. civil penalties in either case cannot exceed $10. § 78dd-2(d).C. who is often considered to be the father of the FCPA. It occurred to me that if such a requirement was good enough for this nation’s brokerage and banking institutions. Since bribery is generally considered a crime.S. the DOJ can avail itself of injunctive relief if it believes an individual or domestic concern is engaged in illegal conduct. executives and employees may be ﬁned and imprisoned up to ﬁve years.36 On the criminal side.
”39 The record keeping provision extends to majority owned (i. The Worldwide Banning of Schmiergeld. a company that improperly records payments to foreign ofﬁcials as. 15 U. SEC Litig. Release No. Bribery needs secrecy in order to ﬂourish. Asia Europe Latin America Middle East Oceania 11 Americas Africa . C. “incidental fees” will be subject to liability for violation of the FCPA’s record keeping provisions. Corp. C. 15 U. 16.2d at 1312 (indicating that the defendant’s classiﬁcation of airline tickets purchased for a foreign oﬃcial’s cousin as a “commission payment” was evidence of a violation of the FCPA). in effect. as amended. J. § 78m(b)(7). for example.38 Together the record keeping and internal controls provisions operate as one of the most effective means for enforcement by governmental agencies.43 38 39 40 41 42 43 Stanley Sporkin. Int’l Bus. 923 F.40 However.e. 18 Nw. S. 274 (1998) (citations omitted). 960 F. S. foreclose that activity. United States v.in such activities on an ongoing basis. 269. The record keeping provisions require that books. They require implementation of accounting procedures and controls to “provide reasonable assurance” that company procedure is followed.”41 The FCPA’s internal control provisions closely adhere to and parallel common accounting practices.. I theorized that requiring the disclosure of all bribes paid would. an issuer that owns 50% or less of a ﬁrm and “demonstrates good faith efforts to use such inﬂuence shall be conclusively presumed to have complied with the requirements of paragraph (2). O’Hara. see also Liebo. § 78m(b)(6). records and accounts depicting (fairly) transactions and use of assets in “reasonable detail. 1992).2d 11 (2d Cir.” Reasonable detail means a “level of detail and degree of assurance as would satisfy prudent ofﬁcials in the conduct of their own affairs. and access to and accountability of assets is controlled and regularly monitored. A Look at the Foreign Corrupt Practices Act on Its Twentieth Birthday. § 78m(b)(2). S. C. the accounting provisions are extensions of requirements under the 1934 Securities Act. Int’l Business Machs. transactions are recorded. 50% or more) foreign subsidiaries. See SEC v. See 15 U. requiring companies whose stocks are registered with the SEC or who must ﬁle regular reports with the SEC to implement appropriate record keeping and internal accounting controls.42 Accordingly. In all practical respects. 839 (12/21/00). Thus.
Red Flags For businesses engaged in global expansion and acquisition of foreign companies. are a regular target because these businesses often must work hand in hand with government regulatory divisions.Global Industries Are At The Greatest Risk The most likely targets of FCPA enforcement actions are multi-national corporations who seek entry into foreign markets where the reward of globalization also poses the greatest risk. Between 2002 through 2008. Asia Europe Latin America Middle East Oceania 12 Americas Africa . and intrusive foreign government oversight and regulations may not be thoroughly known or due diligence incomplete. July 2009 at 15. such as energy. Implementation and execution of preacquisition anti-corruption due diligence is a must before entering strategic alliances. Certain industries are naturally at greater risk because their businesses are naturally drawn to less developed regions of the world where potential growth is unlimited. telecommunications. payment procedures. But it is these same less developed regions where bribery of government ofﬁcials is the norm. Any such due diligence should necessarily include review of business practices. engagement of third-party agents. industrial/technology companies. an ounce of prevention is the best medicine. joint ventures or partnerships with new businesses.44 Certain industries. Growth of a business on an international level poses inherent compliance challenges because acquisitions. energy. The area of global expansion and acquisition of new businesses which poses the greatest amount of risk for multi-national corporations. telecommunications and medical devices. Any number of red ﬂags can arise which can expose possible FCPA violations: 44 Pricewaterhouse Coopers. and accounting procedures. The ﬁnancial services industry is another at-risk business segment because it commonly interacts with foreign governments on a variety of levels ranging from providing ﬁnancial services to setting up new businesses. Businesses are strictly liable for crimes committed by their employees under the legal doctrine of respondeat superior. Corruption Crackdown. health care and ﬁnancial services accounted for the vast majority of settlement and penalties. contracts.
to ﬁnd links between current 3rd Party relationships. due diligence is not a onetime event and a process that is marked by a “burst of energy” at the beginning of a new relationship. organizations need to set up an ongoing due diligence process. Unusual payment methods such as wire transfers or lax accounting or invoicing practices. but also executives of State Owned Enterprises • In addition to performing this due diligence at the onset of a relationship. is performed at the beginning of the process versus the following data sets: • A database of persons or companies already linked to corruption convictions or a current investigation by the Department of Justice or the Securities and Exchange Commission A proven database consisting of Foreign Ofﬁcials. as it relates to FCPA. Third-party comes “highly recommended” by government ofﬁcials. Refusal of agents or third-party representatives to sign FCPA compliance policy. which should include not only the ofﬁcials and their family members and known business associates. 13 Americas Africa Asia Europe Latin America Middle East Oceania . instead the due diligence process should be thought of as a continuous process. Due diligence. by Denis McInerney of the Department of Justice. Third-party agent or sales representative is a former government ofﬁcial. called initial due diligence. any one of these red ﬂags should be enough to raise serious concerns about FCPA compliance.• • • • • Persistent and repeated failure to comply with local law. As stated in a recent conference. such as agents. periodically. and illicit behavior or new ties to foreign governments. In combination or on their own.
Every corporation should become engaged and embrace a proactive compliance strategy. • • • • • Preventing corruption is a sound long-term business strategy. Annually corporations assess their corporate governance and compliance programs.Corporate Self-Assessment Corporations have begun to institute a proactive approach to compliance. transaction testing. Implement a robust monitoring. and regulatory agencies. helping to establish that corporations act in a responsible and ethical manner while enhancing shareholder value. and delegate appropriate levels of approval requiring pre-approval of high-risk transactions. and disciplinary mechanisms that are embedded within their business model to help mitigate areas of risk: • • Develop consistent employee recruitment background due diligence and screening procedures. implement controls surrounding cash transactions. business partners. and activities. and auditing process for high risk locations. Enhance compliance and accounting policies and procedures surrounding government-related activities. A multinational corporation will take a variety of steps to implement a sustainable anticorruption program. including compliance contract clauses and maintaining contracts in a central location. Provide additional compliance resources within high risk locations and training to key employees and third parties. Implement a disciplinary mechanism and response plan for instances where potential violations are noted. Institute corporate level and company-wide ethics and business conduct policies and procedures. detection. business partners. 14 Americas Africa Asia Europe Latin America Middle East Oceania . Develop third-party acceptance and retention policies and procedures. so that it can better manage the risks of operating globally and to demonstrate its strong commitment to stakeholders. including the transactions associated with such relationships. including training and communication programs.
and monitor their compliance culture within joint venture operations and subsidiaries. Businesses must act now to identify potential compliance and internal control weaknesses. as well as potential violations.Conclusion The DOJ and SEC have announced and are pursuing an increased and aggressive level of enforcement activity under the FCPA. DETROIT 11175-100 1161353v4 15 Americas Africa Asia Europe Latin America Middle East Oceania . Corporations should also develop and execute stand alone anti-corruption compliance audit modules.
Fraud. False Claims Act. Volkov brings a unique problem solving approach to clients — solutions to complex problems may involve a coordinated approach. Mr. ExportImport.Michael Volkov Proﬁle Mr.659. Corruption. including the design and implementation of an internal investigation. He was a federal prosecutor for 17 years. and a trial attorney in the Antitrust Division.1559 mvolkov@dickinsonwright.. contacts with key policymakers on Capitol Hill. Mr. a Deputy Assistant Attorney General in the Department of Justice. Given his broad range of experience and expertise. Volkov is a litigation partner who focuses on trial practice. He has practiced in the District of Columbia for nearly 30 years. and securities enforcement. Volkov handles a variety of matters for clients — Foreign Corrupt Practices Act. white collar defense and complex internal investigations. Asset Forfeiture and Money Laundering. professional disciplinary proceedings.com 16 Americas Africa Asia Europe Latin America Middle East Oceania . Mr. Food and Drug Administration enforcement matters.C. Contact Information T 202. or negotiation of solutions in the Department of Justice or a speciﬁc US Attorney’s Ofﬁce. Volkov has extensive criminal trial practice — over 75 criminal jury trials. D.659. Antitrust violations. Ofﬁce of Foreign Asset Control.6927 F 202. a Chief Counsel on the Senate Judiciary Committee and the House Judiciary Committee. With his extensive contacts in Washington.
The Team Consists of Senior Attorneys with Skills Needed: • • To ensure compliance with a vast array of federal. state. To prepare comprehensive reports and ﬁndings needed by corporate executives. money laundering. To address legal issues. and Washington. and local statutes and regulations. Lansing. audit committees. and other government agencies at the federal. environmental regulation. To conduct comprehensive internal audits and investigations to identify and resolve potential violations so that appropriate compliance strategies can be implemented. D. new ventures. anti-kickback statutes. state and local level. Grand Rapids. from very large corporations to small businesses. Foreign Corrupt Practices Act. prosecutors. Bloomﬁeld Hills. antitrust. With more than 240 attorneys and ofﬁces in Detroit. individuals and governmental units. the ﬁrm provides comprehensive legal services to a broad range of clients. law enforcement agencies. whistleblower protections. Dickinson Wright has established a corporate internal investigations and monitor ship team. and other managers on compliance issues. grand jury investigations. Justice Department ofﬁcial and Capitol Hill General Counsel. Ann Arbor.C. tax violations. • • • www. and federal law enforcement investigations. chaired by Michael Volkov.dickinsonwright. Inspector General investigations. a former federal prosecutor.com 17 Americas Africa Asia Europe Latin America Middle East Oceania . such as health care fraud. real estate.. intellectual property. To represent companies in all aspects of dealings with regulators. qui tam actions.Dickinson Wright Proﬁle Dickinson Wright was founded in Detroit in 1878 and has since grown to be one of the most respected law ﬁrms in its region.
com Oceania@worldcompliance.. or visit worldcompliance.S.com and our nearest representative will contact you. As more and more leaders realize ‘open source intelligence equals protecting proﬁts’.A World in Compliance WorldCompliance® offers a complete solution to the increasingly unforgiving task of compliance. Alternatively call (+1 877 258 1877) in the U.com Europe@worldcompliance.com Asia@worldcompliance. they turn towards WorldCompliance® as their preventative solution.com Africa@worldcompliance. For complete protection for your organization wherever you are based in the world.com South-America@worldcompliance. email: North-America@worldcompliance.com for further details. Europe Germany Latin America Mexico Middle East +49 951 3020 688 +49 951 3020 688 +571 211 9601 +52 722 477 3985 +971 4 312 4043 18 Americas Africa Asia Europe Latin America Middle East Oceania .com Middle-East@worldcompliance.
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