Global Compliance and the FCPA: Money Laundering, Bribery, China, and More

For your reference, a roundup of recent updates regarding the Foreign Corrupt Practices Act and global compliance, from lawyers and law firms on JD Supra:

FCPA + Anti-Corruption Developments: End of Summer Round-Up (Morrison & Foerster LLP):

“Historically, defendants have settled virtually all FCPA actions, leaving pivotal legal questions unanswered by the courts. But individuals facing prison terms—and, for the first time ever, a company—have started to fight.” Read more»

The Girl with the SEC/FINRA Tattoo: Disciplinary Actions Taken Against Chief Compliance Officers [November 2010 – June 2011] (Sutherland):

“This article, like its predecessors, analyzes recent SEC and FINRA actions against CCOs to highlight examples of conduct that regulators have identified as sanction-worthy, in the hope that others may avoid a similar disciplinary branding in the future. From November 2010 through June 2011, the SEC and FINRA brought disciplinary actions against CCOs for a range of conduct, including playing a role in their respective firms’ inadequate due diligence of private placement products, failing to supervise registered representatives, aiding and abetting their firms’ underlying violations, permitting an unregistered individual to trade securities, failing to preserve emails and failing to provide anti-money laundering supervision…” Read more»

Money Laundering: Do You Know Where Your Customer’s Money Is Coming From? (Snell & Wilmer L.L.P.):

“Contrary to popular Hollywood depictions, money laundering does not only occur when a drug trafficker spends his illicit cash to buy a fancy sports car. The IRS describes the crime generally as activities and financial transactions that are undertaken specifically to hide the true source of the money’.” Read more»

AML for the Compliance Practitioner: The KPMG 2011 Survey on Anti-Money Laundering (Thomas Fox):

“To assist banks and other financial institutions in the fight against money laundering and terrorist financing KPMG suggests they undertake ‘ongoing monitoring’ of the business relationship with each customer.” Read more»

Telecom Executive Sentenced to 4 Years in Prison for Violations of the Foreign Corrupt Practices Act (Morrison & Foerster LLP):

“…a United States District Court judge in the Southern District of Florida sentenced the former CEO of Latin Node, a now-defunct Florida-based telecommunication company, to 46 months in prison for paying bribes to Honduran government officials.” Read more»

Bribery Case: Another Example of DOJ’s Intent to Expand Reach of Criminal Law (Ifrah Law – Strategic Defense in Federal Investigations):

“The Department of Justice continues to show that, even when Congress places limits on the reach of federal criminal statutes, prosecutors will concoct novel theories to try to evade those limits. The latest example of that trend is in the case of Juthamas Siriwan, former governor of the Tourism Authority of Thailand, and her daughter, Jittsopa Siriwan.” Read more»

From Arizona to China, Businesses Must Comply with Anti-Bribery Laws (Snell & Wilmer L.L.P.):

“One of the inevitable risks of increased business with China is violating the U.S. Foreign Corrupt Practices Act, a post Watergate law enacted in 1977 to curb overseas bribery of foreign public officials by U.S. multinational corporations.” Read more»

China Announces Legal Changes That May Broaden Power to Investigate Bribery (IRB No. 487) (Bryan Cave):

“…If passed, the Draft Amendment is expected to provide additional protection to the civil rights of accused parties, including the right to privately confer with an attorney and blocking evidence collected through coercion.” Read more»

Chinese Version of the Foreign Corrupt Practices Act? (Snell & Wilmer L.L.P.):

“In May 2011, an amendment to the Chinese Criminal Law took effect that criminalizes paying bribes to foreign government officials and officials of international public organizations. The amendment … is modeled after the United Nations Convention Against Corruption…” Read more»

Conducting Clinical Trials in China Requires Compliance at Home and Abroad (Snell & Wilmer L.L.P.):

“Stiff U.S. federal penalties remain a reality for the unwary, though, as the Department of Justice has shown recent interest in applying the Foreign Corrupt Practices Act  to the health care sector, particularly in the exponentially growing area of foreign clinical trials.” Read more»

Is Your Business Toxic-in the FCPA Compliance Context (Thomas Fox):

“…is your business so devoid of anything close to a best practices compliance program that you are not able to obtain loans, manage risk through insurance or other equally traditional business practices?” Read more»

The Lacey Act Has Teeth (Duane Morris LLP):

“On August 24, 2011, for the second time in two years, armed federal agents raided the factories of world-famous Gibson Guitar Corporation to search for and seize inventory, materials and files relating to what the federal government believes is wood unlawfully exported from a foreign country in violation of the Act.” Read more»

How do You Evaluate a Risk Assessment? (Thomas Fox):

“What is the amount of risk that your company is willing to accept? Before you even get to this question how does your company assess risk and subsequently evaluate that risk?” Read more»

The Baseball Playoffs Are About to Begin as the Markets Begin to Drive Compliance (Thomas Fox):

“…there is always one business person at a conference who says something along the lines of ‘Why should I spend $200,000 to $500,000 to implement a FCPA compliance solution when the chances of getting caught and sanctioned are quite low?’” Read more»


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