Compliance Stuff

Corporate espionage has become one of the most significant threats to enterprise value in today’s data-driven economy. In recent years, allegations of trade-secret theft and insider leaks have disrupted funding rounds, delayed public offerings and triggered parallel criminal and civil investigations across multiple jurisdictions. As competition intensifies around artificial intelligence (AI), advanced manufacturing and life-science innovation, companies must treat trade-secret protection as both a legal and operational imperative. The following three strategies represent best practices for mitigating espionage risk and preserving the value of proprietary IP assets. 1. Build a Zero-Trust IP Perimeter Traditional network security models that rely on single-layer authentication are no longer sufficient to protect sensitive intellectual property. A zero-trust architecture assumes that every user, device and application is a potential risk until verified. Companies should deploy multilayer...

In a prior edition we discussed the Business Case for having a Compliance and Ethics  (“C&E”) program.  Here we review the Legal Case.  The legal case for having an effective C&E program is often what causes companies to initiate C&E programs. The are several pieces to this. Legal requirements In certain risk areas and/or industries the C&E elements may be legally required. Where C&E elements are mandated, not having them can itself be a legal violation, with a range of penalties, including disruptive and expensive investigations, fines, and even prison. These requirements can be highly detailed, such as those seen in the finance sector dealing with risks like anti-money laundering.  There are also requirements related to specific risks that apply across all industries, such as required harassment training.  In the US, for example, this may be imposed at the state or municipal level.  Mandated programs can seem to those in government as...

 On May 12, Matthew R. Galeotti, the head of the US Department of Justice’s (DOJ) Criminal Division, announced a new white collar enforcement plan, outlined changes to the Corporate Enforcement and Voluntary Disclosure Policy, and added new priority areas to the Corporate Whistleblower Awards Pilot Program Policy . The DOJ also introduced a new corporate monitor selection policy. Below, we highlight what to know about the new White Collar Enforcement Plan and the revised Corporate Whistleblower Awards Pilot Program Policy and what actions you can take today.  Below, we highlight what to know about the new White Collar Enforcement Plan and the revised Corporate Whistleblower Awards Pilot Program Policy and what actions you can take today. What to Know The plan underscores the US government’s “America First” priorities. Foreign organizations may be at increased enforcement risk. The DOJ is committed to investigating and prosecuting bribery, despite the temporary Foreign Corrupt ...

 Last week, Attorney General Pamela Bondi issued 14 memoranda outlining new enforcement priorities at the US Department of Justice (DOJ). Notably, DOJ resources will shift away from the Foreign Corrupt Practices Act (FCPA) and the Foreign Agents Registration Act (FARA) and toward prosecuting human trafficking and smuggling, immigration enforcement, and pursuing total elimination of cartels and transnational criminal organizations. Here are three actions corporations should consider as we enter a new era of corruption prosecutions. Maintain your compliance program. It takes a long time to build an ethical culture and a short time to lose it. Although there may be fewer corporate investigations under the Trump Administration, the statute of limitations for FCPA criminal violations is still five years and for violations of FCPA accounting provisions it is six years . Conspiracy charges allow the government to prosecute even older conduct, up to five years after the last overt act of t...

Here are five (5) questions that are fairly simple but revealing as to whether a company’s Sanctions Compliance Program (“SCP”) is effective.  This is not an exhaustive list but it is my top 5. Question 1 — Does the Company conduct annual sanctions compliance training for relevant employees? I have written about this and reminder everyone since 2019 about the importance of conducting sanctions training.  OFAC’s Sanctions Compliance Guidance issued in 2019 mandates, at a minimum, that companies provide annual sanctions compliance training.  Notwithstanding this directive, which is reinforced by compliance professionals (including me), most companies are not offering annual sanctions compliance training.  I cannot understand why companies are ignoring this requirement.  Several States require annual training on sexual harassment and other topics.  Companies are able to meet this requirement, but when it comes to sanctions compliance, companies lack the commi...