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Books & Articles
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International Regulatory Updates
Due Diligence
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September 2013
In The News


Several news outlets and legal blogs took note this month of a recent action filed by the Securities and Exchange Commission (SEC) under Rule 38a-1(c) of the Investment Company Act.   That rule prohibits an officer, director or employee of a fund or its investment adviser from trying to coerce, manipulate, mislead or fraudulently influence a company's Chief Compliance Officer.  The defendant, who traded in securities for an investment firm, allegedly lied to his Chief Compliance Officer in order to hide trades that he'd failed to clear according to certain regulatory rules and procedures.   It was the first action brought by the SEC under the new ruleSee In the Matter of Carl D. Johns, Adm. Proc. File No. 3-15440 (Filed August 27, 2013).


On September 5-6, leaders of the G-20 Summit met in St. Petersburg, Russia to discuss important international economic and financial issues.  Among the main topics of discussion were anti-corruption and money laundering effortsThe leaders reaffirmed their commitment to implement effective measures for detecting, investigating, prosecuting, and sanctioning bribery offenses as well as creating new standards to combat money laundering and terrorist financing.  These efforts track similar proposals made to tackle off-shore tax havens  during the G-8 Summit in Dublin this past June.


And continuing with another trend that developed over the summer, there were several more bribery probes launched in China this month, including at Dumex Baby Food Co., a subsidiary of France's Danone SA, and at Alcon, the eye care division of Novartis AG. The sweep of the Chinese pharmaceutical and health care industry continued with both Bayer and Agilent added to the list of companies under investigation by Chinese authorities and new developments in the GlaxoSmithKline case.   

There were several important events this month in the world of compliance and anti-bribery. Vote for which story you think deserves the top spot!

  •          Bulgarians march a long time to protest corruption.  For one hundred days straight, Bulgarians en masse have marched in the streets of Sofia to protest rampant corruption and clientelism in their government.  It is the largest protest in Bulgaria since 1997, when mass rallies led to a change in the then-Socialist government.
  •          G-20 commits to fight corruption and increase corporate transparency.  Leaders at the G-20 Summit in St. Petersburg renewed the call for more countries to combat money laundering and corporate corruption as well as to restrict the allowed use of off-shore tax havens.
  •          China anti-bribery push continues.  It's been another big month in China for corruption.  Not only was former Communist Party politician Bo Xilai sentenced to life in prison by a Chinese court, but Chinese authorities also reportedly are investigating numerous employees of PetroChina, one of the State's biggest oil entities, for extorting bribes.  Foreign companies in China are also continuing to feel pressure after new investigations regarding possible bribery of local officials were opened by Bayer, Agilent, Dumex Baby Food Co. and Alcon.
  •          Polish authorities working with DOJ to investigate bribery at HP.  Hewlett Packard announced that the Polish Anti-Corruption Bureau has joined a probe by the Department of Justice into potential violations of the Foreign Corrupt Practices Act by the company.  The announcement follows the recent trend of increased cooperation between US enforcement agencies and their foreign counterparts in cross-border corruption cases.
  •          4 UK Nationals Appear in Court Under the UK Bribery Act.  Four individuals connected to Sustainable AgroEnergy plc have been charged by the UK's Serious Fraud Office (SFO) with "offences of making and accepting a financial advantage" contrary to the 2010 UK Bribery Act.  Their hearing is to begin on October 7 and will mark the first ever case brought by the SFO under the Bribery Act of 2010.
Books & Articles

 How to Pay a Bribe: Thinking Like a Criminal to Thwart Bribery Schemes

Last year, TRACE published a fascinating and instructive book about how bribery schemes are devised, carried out and covered up. TRACE is now in the process of compiling the 2013 edition. We invite in-house counsel and anti-bribery practitioners to "join the conversation" by sharing their corruption (and compliance!) stories by writing to

 In Waging War on Corruption: Inside the Movement Fighting the Abuse of Power  Frank Vogl, one of the leaders of the worldwide anticorruption movement, shares a history filled with stories of heroes and victims of corruption. He chronicles the successful campaigns by enormously courageous civil society activists, journalists, and public prosecutors and explains the crucial challenges that now must be confronted. At stake is nothing less than our global security, the reduction of poverty, the stability of our economic and financial systems, and the cause of freedom and democracy. Waging War on Corruption 
will be of interest to reader of politics and government, business, human rights, and law. 


Citizens Against Corruption: Report From The Frontline tells the story of how groups of courageous and dedicated citizens across the globe are taking direct action to root out corruption. It shows how people are no longer prepared to accept the predatory activities of dishonest officials and are challenging their scams. It draws on over 200 unique case studies that describe initiatives undertaken by 130 civil society organisations (CSOs) which engage directly with public agencies to stop the bribery and extortion that damages peoples' lives and obstructs social and economic progress. This book challenges the notion that, at best, civil society can only have a marginal impact on reducing corruption and argues that aid donors need to radically rethink their assistance for governance reform.  


4 Ways to Pay a Bribe Without Opening Your Wallet 

14 September 2013

Alexandra Wrage


Spanning the Globe: From Fraud to Freeze in 17 Hours

5 September 2013

Greg Glynn

Featured Resource: TRACE's Expansive Knowledge Center

TRACE member companies have exclusive access to an expansive knowledge center which contains local law resources for more than 130 countries, biographies for TRACE Partner Law Firms, policy and contract examples for best practices, cross-industry benchmarking research, compliance survey results and TRACE guidebooks and other anti-bribery publications. The Resource Center also provides access to anti-bribery training videos and stimulating presentations made by first-class speakers at workshops, roundtables and other TRACE events.  Review our new guide here to learn more about the TRACE Resource Center.


The Resource Center is accessible through the TRACE Portal which also contains TRACE's Gifts, Travel & Hospitality Tracking Software. This tool allows administrators to track key information about incoming and outgoing gifts, travel and hospitality given and received by employees and to identify patterns in the data that may raise a compliance red flag. Review our new information sheet to learn more about this practical tool. 

Contact for questions about the TRACE Resource Center, and Portal.


TASA is the only certification program available that is dedicated to anti-bribery compliance and offers over 100 courses taught by world-renowned faculty. TASA integrates rigorous standards with a flexible learning environment. The certification process requires that candidates complete thirty hours of coursework before taking the accreditation exam which ensures students acquire the requisite knowledge. Earn an internationally recognized compliance credential. Begin the application process today at



6th FCPA Boot Camp

October 1-2, 2013, San Francisco, CA


2nd Annual: Singapore Summit on Anti-Corruption, Compliance and Risk Management  

December 3-4, 2013, Singapore


Upcoming live TASA accredited TRACE events:

October 28-29, 2013, Dubai, UAE

October 31, 2013, Tel Aviv, Israel

November 12, 2013, Libya 

Winter 2014, Zambia


To inquire about discounts and credits, write to  

GAIN is rapidly approaching and only a few spaces remain. Register today!
Join Cisco, Mubadala, ABB, 3M Company, FH Bertling Holdings, and other industry leaders for our 
2nd Global Anti-Bribery In-House Network (GAIN) 
Conference. This is an excellent opportunity for attorneys from TRACE partner law firms and TRACE member and non-member companies to meet while learning first-hand about compliance challenges and enforcement trends around the world. 
Click here to view agenda and speakers


Visit our GAIN webpage for program updates and registration details.


TRACE presents its first anti-bribery training workshop in Israel on
October 31, 2013. Employees and intermediaries of TRACE member companies are invited to attend at no charge.
 The Agenda is available here. 


TRACE, in collaboration with the American Chamber of Commerce in Libya, is hosting a full-day anti-bribery and trade compliance workshop on
November 12, 2013 in Libya.
 Employees and intermediaries of TRACE member companies and AmCham Libya  members are invited to attend at no charge. To learn more about this partnership, click hereTo view the Agenda At-a-glance, click here



TRACE and the American Chamber of Commerce in Zambia are pleased to announce a new partnership to promote a due diligence standard in Zambia. In early 2014, TRACE and AmCham Zambia will co-host an anti-bribery and third party compliance workshop in Zambia.  Stay tuned for the final date and program agenda. 


Please visit TRACE Workshops or review our workshop flyer
for program and registration details.


If you are interested in speaking at TRACE workshops or events, please contact Virna Di Palma at   


Save the Date! 10th Annual TRACE Forum March 26-27, 2014, St. Regis, Washington, DC

TRACE members should plan now to attend what has become the premier anti-bribery benchmarking conference. The 10th Annual TRACE Forum will be held March 26-27, 2014 at the St. Regis in Washington, DC. Companies using TRAC should also plan to attend the TRAC working group the afternoon of March 25, 2014. The program is currently under development. Please visit our Forum webpage for program updates and registration details.
San Francisco, CA 
October 1-2, 2013
Hosted By: American Conference Institute
TRACE Members receive a $200 discount.

Libya Industry Day
Washington, DC
October 3, 2013
Hosted By: AmCham Libya
*TRACE Representative attending


12th Annual Compliance & Ethics Institute  

Washington, DC 
October 6-9th, 2013 
*Alexandra Wrage, TRACE President, speaking


Phoenix, AZ 
October 8-9, 2013
Hosted By: IACCM
London, UK 
October 9-10, 2013
Hosted by: 
TRACE Members receive a 10% discount.  
October 9-10, 2013
Hosted by: C5
*TRACE Representative attending
TRACE Members receive a 10% discount.  
London, UK 
October 15-17, 2013
Hosted by: IBC Legal Conferences
TRACE Members receive a 20% discount. Please quote VIP code: FKW82396TRCL when registering. 


New York, NY
Oct 28-29, 2013
Hosted By: Momentum
*Eileen Radford, TRACE Director of Advisory Services, speaking  
TRACE members receive a 15% discount.

London, UK
November 4-7, 2013
Hosted By: 
*Alexandra Wrage, TRACE President, speaking 
Conflict Minerals & The Ethical Supply Chain
Chicago, IL
November 18, 2013
Hosted By: Momentum
*Alexandra Wrage, TRACE President, speaking
TRACE Members receive a 15% discount.  
Washington, DC 
November 18-21, 2013
Hosted By: American Conference Institute
*Alexandra Wrage, TRACE President, speaking
TRACE Members receive a $200 discount.
2nd Annual: Singapore Summit on Anti-Corruption, Compliance and Risk Management
December 3-4, 2013
Hosted By: American Conference Institute
*Alexandra Wrage, TRACE President, speaking
TRACE Members receive a $200 discount.  

Anti-Corruption Compliance for High Risk Markets 

London, UK
December 4-5, 2013
Hosted by: Momentum

* Julie Coleman, TRACE Senior Director of Advisory Services, speaking

Global Investigations Summit 

London, UK
December 4-5, 2013

Hosted by:IQPC 

* Julie Coleman, TRACE Senior Director of Advisory Services, speaking
International Regulatory Updates



Firm: HergŁner Bilgen Ozeke Attorney Partnership


In Turkey, new Turkish Commercial Code (TCC) has been introduced.  As per the new terms of TCC, the commercial intermediary could claim an appropriate compensation from the principal following the dissolution of the contractual relationship if:

  • The principal continues to gain a significant interest after the dissolution, through the new costumers that the commercial intermediary contributed;
  • The commercial intermediary loses its right to payment related to the relationships it has already established or to the relationships to be established within a short period of time with costumers as a result of the dissolution;
  • It seems fair to grant this compensation in the particular circumstances of the case.

Accordingly, under certain conditions, the commercial intermediary may be entitled to compensation if their agreement with the principal is terminated or simply not renewed upon expiration.



Firm: Consortium - Rodriguez, Archila, Castellanos, Solares & Aguilar, S.C. 


In Guatemala, Congress approved the new proposals to reform several laws regarding transparency and quality of public expenses in October 2012.  Among the most relevant changes referred by the proposals, any public official, public employee or anyone performing public functions who takes advantage of his/her position will be penalized with increased punishment, such as five to ten years of imprisonment, fifty thousand to five hundred thousand quetzals in fine and removal from office.



Firm: Karanovic & Nikolic 


In Serbia, the new Law on Public Procurement explicitly prescribes that the bidder, or its legal representative, must not have been convicted for any criminal offence as a member of an organized criminal group, for any criminal offence against the economy or environment, or for fraud, bribery or soliciting or accepting bribes.



Firm: Squire, Sanders & Dempsey LLP


In Hungary, the new Criminal Code entered into force as of July 31, 2013 contains legal framework for fighting white collar crime with particularity to bribery and other corrupt practices in private and non-government industries.  The sanctions include up to ten years of imprisonment.   


The new Criminal Code also excludes any legal or natural person from public procurement if that person has been found guilty of participating in a criminal organization, including any criminal offense committed in affiliation with organized crime, or for the misappropriation of funds, defalcation, budget fraud or money laundering. 


The Next Generation of Due Diligence
TRACE Portable Due Diligence Solutions: Own and Share Your Verified Compliance Information 

 TRACE Portable Due Diligence Solutions offer a new approach to third party due diligence with products that eliminate screening costs for multinational corporations. This new model shifts the responsibility for vetting anti-bribery concerns to intermediaries who - once approved by TRACE - maintain their own verified compliance information. TRACE's pre-vetted "portable" reports allow intermediaries to reduce the number of repetitive requests and share their verified compliance information with all of their business partners. For global companies,the expense and lag time associated with the vetting process is eliminated, allowing projects to move forward with confidence and without delay.  


TRACE Portable Due Diligence Solutions are based on internationally accepted best practices and are further enhanced by TRACE's experience and familiarity with the compliance needs of multinational corporations and their business partners.
News & Press
17 September 2013 
PR Newswire



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