Anti-Corruption & Compliance Blog

The Department of Justice ("DOJ") is wasting no time in implementing the new cyber-security Executive Order (the EO), signed on February 28, 2024. As explained in our April 2024 blog post, the EO aims to portect Americans’ data security and is set to take effect next year. Within a week after it was signed, the DOJ (1 ...

Government officials underscored the importance of artificial intelligence (AI) enforcement and data protection during the American Bar Association’s 39^th National Institute on White Collar Crime in March 2024. Specifically, Deputy Attorney General Lisa Monaco indicated during her presentation that the ...

Cybersecurity compliance, governance, and disclosure practices have evolved significantly over the past decade. As we have noted in prior blog posts, the U.S. Securities and Exchange Commission is requiring cybersecurity disclosures for public companies. But public companies are not alone in being subject to ...

As we look back on the anti-corruption enforcement trends we saw in 2023, there were several key developments.

• The Department of Justice (“DOJ”) brought 11 enforcement actions in 2023. Only six were against companies - Telefonaktiebolaget LM Ericsson, Corporacion Financiera Colombiana SA, Tysers ...

On September 28, 2023, the Securities and Exchange Commission (“SEC”) announced that it reached a settlement with Exelon Corporation and its subsidiary, Commonwealth Edison Company (“ComEd”), relating to charges that ComEd engaged in a multi-year bribery scheme. Exelon and ComEd agreed to pay a $46.2 ...

On November 30, 2022, OpenAI launched ChatGPT, and the artificial intelligence chatbot quickly became the talk of the corporate world. With over 100 million users, ChatGPT is one of the fastest growing applications of all time. Since its onset, businesses faced issues related to employee use of ChatGPT to draft ...

Human Resources Compliance Audits (Part 2)

In this guest post by a member of Porter Hedges’ Labor & Employment practice group, the Anti-Corruption & Compliance Blog turns its focus to labor and employment law compliance. This post is the second installment of the Blog’s limited series discussing best ...

In this guest post by a member of Porter Hedges’ Labor & Employment practice group, the Anti-Corruption & Compliance Blog turns its focus to labor and employment law compliance. This post is the first installment of the Blog’s limited series discussing best practices for conducting a Human Resources ...

On February 22, 2023, the U.S. Department of Justice’s (DOJ) United States Attorneys’ Offices (USAO) announced a new Voluntary Self-Disclosure Policy that went into immediate effect. The purpose of the new policy is to create a standard for how voluntary self-disclosures (VSDs) are defined and credited by ...

The following summarizes our team’s monitoring of key developments in anti-corruption enforcement during 2022 and what that may mean going forward in this new year:

• The Department of Justice (“DOJ”) brought 17 enforcement actions in 2022. Only 5 were against companies: Honeywell, ABB, GOL Linhas Aereas ...

As the Russian invasion of Ukraine continues, the executive branch is mounting what the U.S. Department of Treasury (“Treasury”) calls a “historically unprecedented campaign of sanctions and export controls” aimed at Russian-connected financial institutions and individuals. The sanctions and ...

While companies increase focus on external risks by enhancing regulatory compliance, anti-corruption policies, and cybersecurity, they must not lose sight of internal risks, including internal fraud and embezzlement. The Association of Fraud Examiners reports that organizations lose an average of 5% of ...

In previous posts on the Porter Hedges Anti-Corruption & Compliance Blog, our team has discussed the U.S. Securities and Exchange Commission’s (“SEC”) proposal to amend its rules and require disclosures related to cybersecurity practices. The SEC wants to enhance and standardize the disclosures ...

Cybersecurity is the goliath of tech-related concerns for companies of all sizes, not just large corporations. The Cybersecurity & Infrastructure Security Agency (“CISA”) encourages small and midsize businesses to focus on their risk management policies and procedures to mitigate risks associated with ...

According to the Cybersecurity & Infrastructure Security Agency, cybersecurity is the process whereby information and communications systems, and the information contained in those systems, are protected from and/or defended against damage, unauthorized use or modification, or exploitation. As noted by ...

On March 9, 2022, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to its rules to require additional disclosures regarding cybersecurity risk management, strategy, governance, and incident reporting by public companies. These new proposed rules expand on over a decade of focus by ...

In late January 2022, the Department of Justice (“DOJ”) issued Opinion Procedure Release 22-01, its first Foreign Corrupt Practices Act (“FCPA”) Opinion since 2020. The opinion states that based on the specific facts presented by the party requesting the opinion (the “Requestor”), a $175,000 ...

In response to Russia’s anticipated and then executed invasion of Ukraine, last week the U.S. Department of Treasury ("Treasury") announced two new rounds of economic sanctions against Russian-connected financial institutions and individuals.

On February 22, 2022, the Treasury announced sanctions ...

As we look back on 2021, several anti-corruption enforcement trends emerge. The following summarizes the key developments of the prior year and trends to watch in 2022:

• The Department of Justice (“DOJ”) brought 24 enforcement actions in 2021. Only three were against companies: Deutsche Bank, Amec Foster ...

On October 19, 2021, the U.S. Securities and Exchange Commission (“SEC”) announced that Credit Suisse Group AG (Credit Suisse) agreed to pay $100 million to the SEC (among other penalties to other agencies) for violations of the Foreign Corrupt Practices Act’s (“FCPA”) internal controls and books and ...

On September 24, 2021, the Securities and Exchange Commission (“SEC”) announced a settlement with WPP plc, the world’s largest advertising group with dual headquarters in New York City and London. According to the SEC’s internal administrative order, WPP’s Indian subsidiary paid up to $1 million to ...

In August 2021, the Securities and Exchange Commission (the “SEC”) announced multiple sizable whistleblower awards totaling approximately $16.1 million to 14 individuals. The awards ranged from $150,000 to $3.5 million. These recent awards continue a pattern by the SEC in late 2020 and 2021 of high dollar ...

On June 25, 2021, the Department of Justice (“DOJ”) and the Securities Exchange Commission (“SEC”) simultaneously announced that the international engineering and project management firm, Amec Foster Wheeler (“Foster Wheeler” or the “Company”), a subsidiary of John Wood Group, plc, would ...

On June 3, 2021, President Biden issued a Memorandum on Establishing the Fight Against Corruption as a Core United States National Security Interest (the “Memo”). The Memo recognized the current Administration’s emphasis on curbing corruption domestically and abroad through strong governance and ...

On April 29, 2021, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the agency that enforces and administers U.S. economic and trade sanctions, announced a settlement with Dallas-based  MoneyGram Payment Solutions, Inc. (“MoneyGram”) for violations of multiple U.S ...

The U.S. Department of Labor recently announced that the Occupational Safety and Health Administration (“OSHA”) will oversee worker retaliation complaints under the Criminal Antitrust Anti-Retaliation Act (“CAARA”) and the Anti-Money Laundering Act (“ALMA”). Some employers may wonder why ...

The Commodity Futures Trading Commission (“CFTC”) recently announced the settlement of its first enforcement action involving foreign corruption. In December 2020, the CFTC issued a Consent Order, finding that Houston-based energy and commodities trading firm Vitol, Inc. defrauded counterparties ...

On January 28, 2021, Transparency International released its 2020 Corruption Perceptions Index (“CPI”).  Transparency International is an organization focused on stopping global corruption and promoting transparency, accountability, and integrity. Its CPI scores are used by companies and individuals ...

On January 20, 2021, Joseph R. Biden, Jr. was inaugurated as the forty-sixth President of the United States. With the change in Presidential administration, we expect new priorities with regard to compliance and anti-corruption enforcement.

Department of Justice / FCPA Enforcement

President Biden has ...

As we look back on 2020, several FCPA enforcement trends emerge. The following summarizes the key statistics and developments in 2020:

• The Department of Justice (“DOJ”) brought 29 enforcement actions in 2020. 7 companies entered into Deferred Prosecution Agreements, and the DOJ obtained 6 convictions ...

On October 22, 2020, the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) announced the coordinated $2.9 billion resolution of a Foreign Corrupt Practices Act (FCPA) enforcement action against The Goldman Sachs Group, Inc. (Goldman Sachs). The settlement is the largest in FCPA history ...

Earlier this year, the U.S. Department of State, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the U.S. Coast Guard issued a global advisory (the “Advisory”), providing information and tools to counter current and emerging trends of illicit shipping and sanctions ...

On August 14, 2020, the U.S. Department of Justice (“DOJ”) issued Opinion Procedure Release 20-01, its first FCPA Opinion since 2014. The DOJ opinion states that, based on the facts and representations provided by the requesting party, a payment to a foreign state-owned investment bank for legitimate ...

On July 16, 2020, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the settlement of apparent violations of the North Korea Sanctions Regulations by Essentra FZE Company Limited (Essentra), a global supplier of cigarette products located in the United Arab Emirates ...

On June 1, 2020, the Department of Justice (DOJ) published an updated version of its guidance for “Evaluation of Corporate Compliance Programs,” originally published in February 2017. The guidance is intended to assist federal prosecutors, but it also shines light on how corporate compliance teams should be ...

On May 7, 2020, the United States Supreme Court issued a decision in Kelly v. United States, reversing the convictions of Bridget Anne Kelly and William Baroni, two appointees of former New Jersey Governor Chris Christie, involved in the “Bridgegate” scandal. As Deputy Chief of Staff and Port Authority ...

In November 2019, the U.S. Department of Justice (“DOJ”) issued revisions to the Foreign Corrupt Practices Act (“FCPA”) Corporate Enforcement Policy (“Policy”). The Policy, which was first introduced in 2016, offers cooperation credit to companies in the form of a presumption of declination ...

The COVID-19 pandemic national emergency has changed the way organizations are conducting business. As businesses adapt and begin to adjust to this new environment, it is important not to lose sight of the policies and procedures that guard your business from compliance risk. Below are a few areas to keep top of ...

As we discussed in our December 2019 Compliance Alert, former Alston S.A. senior executive Lawrence Hoskins was convicted in November 2019 by a Connecticut jury on six counts of violating the Foreign Corrupt Practices Act (“FCPA”), three counts of money laundering, and two counts of conspiracy for his ...

On January 13, 2020, Major League Baseball (MLB) announced the findings of an investigation into allegations that the Houston Astros had engaged in sign stealing during the 2017 and 2018 seasons. The investigation determined that the Astros used various methods (from center field cameras and video monitors ...

As we look back on 2019, several FCPA enforcement trends emerge. The following summarizes the key statistics and developments in 2019:

• The Department of Justice (“DOJ”) brought 29 enforcement actions in 2019. 12 guilty pleas were entered and the DOJ obtained 4 convictions (Mark Lambert, Lawrence ...

Earlier this year, the U.S. Department of the Treasury issued a new “Framework for OFAC Compliance Commitments” (the “Framework”). The Office of Foreign Asset Control (“OFAC”) is the Treasury Department’s arm that administers and enforces economic and trade sanctions based on U.S. foreign ...

In our last alert, we discussed three tips to ensure an effective internal investigation: (1) develop and follow internal policies; (2) identify the audience that will evaluate and make decisions at the outset of the investigation; and (3) identify and understand the law that applies to the investigation ...

Whether big or small, internal investigations require companies to mobilize their resources efficiently and effectively. Internal investigations can be driven by external sources like the government or a lawsuit, while others are driven by internal sources like a whistleblower or the internal audit ...

With the first half of 2019 in the rearview mirror, it is a good opportunity to review the overall trends in Foreign Corrupt Practices Act (“FCPA”) enforcement actions brought by the Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”) so businesses can better anticipate what ...

The Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”) announced on June 20, 2019 that Walmart, Inc. (“Walmart”) agreed to pay a combined total of $282.7 million to resolve the years-long investigation into the retail giant’s violations of the Foreign Corrupt Practices ...

As discussed in Part 1 and Part 2 of this series, the seven core principles of an effective integrity compliance program apply to businesses of any size, but there is no one-size-fits-all model to compliance. What is appropriate for a multi-national business with thousands of employees speaking numerous ...

In our last alert, we discussed the first three fundamental categories of an effective compliance program: (1) Risk Assessment; (2) Management Buy-in; and (3) Code of Conduct [see our previous alert for the full discussion  on these categories]. The next four are just as crucial:

These core principles are the ...

Never has the need for anti-corruption compliance programs for American companies been greater than it is today. This is not only for large multi-national companies, but for small to medium-sized businesses, particularly those doing business abroad and in high-risk countries.

The position of a compliance ...

The Department of Justice (“DOJ”) recently announced that it is declining to prosecute Cognizant Technology Solutions Corporation (“Cognizant”) for paying bribes to government officials in India in violation of the Foreign Corrupt Practices Act (“FCPA”). In its declination letter, the DOJ ...

On January 28, 2019, President Donald Trump issued an Executive Order including Petroleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil company, and any entity owned or controlled by PdVSA, within the definition of the term “Government of Venezuela.” The definition was also broadened to ...

As we kick off a new year, businesses should take the time to review their anti-corruption and compliance programs and make sure they are up-to-date and adaptable to the continuously changing environment. Here are five trending areas to keep an eye on in 2019:

1. USMCA (NAFTA II) Anti-Corruption Provisions
   On November ...