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Compendium Roundup
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Books, White Papers and Articles
Featured Resource
New TRACE Scholar Program
Partner Events
International Regulatory Updates
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March 2014
Compendium Roundup

This month, Japanese trading company Marubeni Corporation pleaded guilty to foreign-bribery charges and agreed to pay a USD$88 million fine to the U.S. Department of Justice ("DOJ") in the company's second foreign-bribery payout in two years. According to the court filings, Marubeni Corporation worked in concert with a Connecticut company, among others, to bribe high-ranking Indonesian officials in the state-owned electric company, Perusahaan Listrik Negara, in order to secure a contract to provide power-related services in Indonesia worth USD$118 million.  The plea agreement cites Marubeni's decision not to cooperate with the DOJ's investigation when given the opportunity to do so, its lack of an effective compliance and ethics program at the time of the offense, its failure to properly remediate and the lack of its voluntary disclosure of the conduct as some of the factors considered by the department in reaching an appropriate resolution.       



The DOJ published the first Opinion Procedure Release of the year, requested by a U.S. financial services company and investment bank regarding the buyout of the interest in a foreign company of a minority partner who become a government official.  The DOJ confirmed that it would not bring an enforcement action citing, among other factors, use of an independent third party to determine the shares' value, the level of transparency involved in the transaction, and the foreign government official's confirmation that he would not assist the U.S. company in obtaining or retaining business.  In it, the DOJ reiterated that the FCPA does not prohibit business relationships with foreign officials per se.  Rather, it prohibits the corrupt giving or offering of anything of value in order to obtain or retain business.  


There have also been developments for BSG Resources, Sanofi SA, and Magyar Telekom.


On the Blog
This month on the blog, guest blogger Kathleen Hamann asked the Five Questions That Can Keep Your Monitor From Running Away. As a formal Trial Attorney in the FCPA Unit at the DOJ, Ms. Hamann oversaw a number of monitorships in a variety of cases.


We also reviewed Governance Reform in the Philippines on the 28th anniversary of the 1986 People Power Revolution, gaining insight into progress made from Michelle Juan, Regional Consultant of TRACE. While the road to reform has been difficult,significant progress has been won.


Read these stories and more at!  


  1. U.S. government freezes stolen assets of former Nigerian dictator Sani Abacha- A civil forfeiture complaint was unsealed this month indicating that the U.S. Department of Justice ("DOJ") is seeking recovery of more than USD$550 million in connection with the largest kleptocracy forfeiture action brought in the Department's history.  This is not the first time that the DOJ has gone after a former kleptocrat, however; in 2011, the government brought an action against the assets of President Teodoro Nguema Obiang Mbasogo of Equatorial Guinea.  The son of Equatorial Guinea's president has also been put under formal investigation recently in France for money laundering.
  2. Japanese Corporation pleads guilty to FCPA charges- Japanese trading company Marubeni agreed to pay a USD$88 million fine to the DOJ regarding charges that it worked in concert with a Connecticut company, among others, to bribe high-ranking Indonesian officials in the state-owned electric company, Perusahaan Listrik Negara.  It is the company's second foreign-bribery payout in two years.
  3. US and EU implement economic sanctions related to events in Ukraine and Russia- As part of a broader economic sanctions policy against Russia, the US and EU have added a growing list of individuals to their denied parties watchlists over the past few weeks.  The lists include Gennady Nikolayevich Timchenko, who was until recently co-owner of the Gunvor Group, one of the largest international energy traders.
  4. FCA fines Besso Limited for anti-bribery systems failings- The UK's Financial Conduct Authority (FCA) fined Besso Limited £315,000 (~$520,000) for a failure to take reasonable care to establish and maintain effective systems and controls for countering the risks of bribery and corruption.  Besso is a FCA-regulated insurance broking firm wholly owned by Besso Insurance Group Limited.
  5. China's anti-bribery campaign aims high- Several news reports have hinted that Zhou Yongkang, a retired member of China's Politburo Standing Committee, may be under investigation for bribery.  If true, Zhou would be the highest ranked person in the communist party to be targeted by President Xi Jinping's recent campaign against corruption. 

Vote now on the TRACEblog
Books, White Papers and Articles

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

The 2014 Edition is finally here! Order it online


From the cover: Revisit the furtive corporate backroom dealings of  bribery and corruption in this second collection of works by authors, journalists, prosecutors and bribery experts from around the world. Behind the newspaper headlines and government investigations, these are the true to life stories of what leads people down bribery's crooked path. Explore the unscrupulous lengths to which some will go in order to win business, from using shady offshore front companies in the British Virgin Islands to setting up bogus charities in Eastern Europe. Whether you are a seasoned compliance expert or new to the field, each chapter in this collection offers practical advice while remaining an immensely engaging read.
The Global Enforcement Report (GER), now in its fourth year of publication,
provides graphic and textual analyses of all known enforcement actions-including investigations, prosecutions, settlements and cases settled with no finding of bribery-since the first bribery cases were prosecuted in the United States following the enactment of the FCPA.


Some key findings of the 2013 GER include:

  • An overall increase in the number of countries enforcing domestic bribery laws. China took decisive steps in the enforcement of domestic bribery laws, pursuing 13 actions, while eleven other countries pursued their first domestic bribery enforcement in the period.
  • A steep increase in corporate fines resulting from U.S. enforcement actions. In the U.S. in 2012, the total amount paid by corporations from 13 settlements came to $283 million; in 2013, that number tripled to $731 million from 11 settlements.
View the full press release here. Download the complete GER with charts and further analysis here.


4 Things Your Third Parties Should Know About Due Diligence
07 March 2014 | Corporate Counsel | Alexandra Wrage
Featured Resource: TRACEsort
Intelligent Third Party Online Risk Assessment

After several months in development with leading technology companies, TRACE is relaunching the new and improved TRACEsort risk assessment platform. The new TRACEsort is more customizable and scalable than ever, meeting the growing need for an efficient, cost-effective way to sort and prioritize due diligence reviews on thousands of third party intermediaries globally.     

CASE STUDY: Find out how Dell is using TRACEsort here.


New TRACEsort Features Include:

> An unlimited number of user-defined risk categories based on an organizational risk profile. 

> Adjustable risk scales fine-tuned to create a unique third party ranking system that is consistent across the supply chain. 


For more information or to request a demonstration, please write to


*TRACE Corporate Members receive a discount on TRACEsort.

TRACE Scholar Program
The TRACE Scholar Program will fully fund, with tuition,lodging and travel, two international LLM students to pursue studies related to strategies and tools for increasing transparency and reducing corruption.  TRACE Scholars will spend an academic year at one of two participating universities, followed by a paid summer internship at TRACE headquarters in Annapolis, Maryland. The application deadline for the coming academic year (2014-2015) is April 20.
For more information and application details visit the TRACE Scholars webpage. 
TRACE Anti-Bribery Specialist Accreditation (TASA) 

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. To learn more about TASA, view the catalog. To enroll in the TASA program, please write to

4th Latin America Summit on Anti-Corruption
May 14-15, 2014 * São Paulo, Brazil
June 24-25, 2014 * Chicago, IL
July 15-16, 2014 * Washington, DC


Upcoming live TASA accredited TRACE events:
April 28, 2014, Singapore

April 30, 2014, Manila

June 18, 2014, Washington, DC

To inquire about discounts and credits, write to  
TRACE workshops are designed to provide the employees and intermediaries of TRACE member companies with an overview of local anti-bribery regulations and enforcement trends, insights into regional bribery risks and guidance on international compliance best practices.   



April Workshops in Southeast Asia




28 April 2014 

The Fullerton

View Agenda






30 April 2014

Edsa Shangri-La 

View Agenda




Registration for these workshops is nearly full. Please encourage your employees and intermediaries in this region to register immediately to ensure their seats. Each company may send up to 2 representatives.


Please visit TRACE Workshops for program updates and registration details. 


If you are interested in speaking at TRACE workshops or events, please contact Virna Di Palma at 
Throughout the year, TRACE hosts complimentary senior-level roundtable discussions on compliance with anti-bribery regulations in multiple locations in the US and worldwide. These small-group discussions facilitate peer-to-peer interactions that focus on the priorities of each participant. 
The next TRACE Roundtable is scheduled on June 18, 2014 in Washington, DC. Roundtable locations for the Fall include New York, Houston, San Diego and New Delhi. 


To request an invitation or suggest locations for  upcoming events, please write to
10th Annual TRACE Forum 

TRACE welcomed over 100 TRACE member companies to the 10th Annual TRACE Forum in Washington, DC last week. Distinguished speakers at the Forum included 
Patrick Stokes, the new Deputy Chief of the DOJ's FCPA Unit, Tracy Price, Assistant Director of the SEC's FCPA Unit, Charles Duross of Morrison & Foerster LLP and senior compliance and legal executives from companies including Alcoa, DHL, Dell Inc., Honeywell, Baker Hughes, Weatherford International, L-3 Communications and Altria. Topics ranged from compliance program enhancements to third party due diligence and risk assessments. The conference concluded with a panel of former top DOJ regulators including Mark F. Mendelsohn, Peter B. Clark and Lanny A. Breuer. We are very pleased with this year's Forum and the overwhelmingly positive feedback we have received on the program. A sincere thanks to all attendees and speakers for their participation and contribution to the event's success. The 2015 Forum dates will be announced soon. 

TRACE Forum conference materials are available

online here. Access them now using the password: 032614FORUM



TRACE awarded Dell Inc. the inaugural Innovation in Anti-Bribery Compliance Award at a reception following the 10th Annual TRACE Forum. Dell's outstanding innovation in the category of Third Party Due Diligence and Management and professional motto of "winning with integrity" stood out among the multitude of nominations submitted.


Honorable mention for the award went to Covidien for their efforts in Creating a Compliance Culture through their "LATAM Ethics Circle" program.


For more information about the Innovation in Anti-Bribery Compliance award, click here. View the full press release here.


TRACE periodically hosts and participates in webinars that focus on bribery and supply chain risks and offer practical solutions, developed by TRACE, to address these issues.


Anti-Bribery and Third-Party Compliance in 2014: What Is Required of Multinational Companies and Their Global Business Partners?

April 15, 2014

Hosted by: Bloomberg BNA

*Alexandra Wrage, TRACE President, speaking

TRACE Members receive a discount. 


May 13, 2014
*Alexandra Wrage, TRACE President, speaking


São Paulo, Brazil
April 7, 2014
Hosted by: Migalhas
*Severin Wirz, Manager, Advisory Services, speaking

Budapest, Hungary
April 7, 2014
Hosted by: EuCham CEE
*Alexandra Wrage, TRACE President, speaking

Washington, DC
April 7-9, 2014
Hosted by: American Leaders
TRACE Members receive a $500 discount. 

4th Annual Oil & Gas Supply Chain Compliance Week
Houston, TX
April 14-17, 2014
Hosted by: Hanson Wade
*Alexandra Wrage, TRACE President, speaking


April 15, 2014 
Hosted by: Bloomberg BNA 
*Alexandra Wrage, TRACE President, speaking 
TRACE Members receive a discount. 
New York, NY 
April 28-29, 2014 
TRACE Members receive a $200 discount. 



Ethics and Anti-Corruption / Bribery Programs - Internal Audit's Role
May 13, 2014
Hosted by: The Institute of Internal Auditors Canada
*Alexandra Wrage, TRACE President, speaking


Anti-Corruption France
Paris, France
May 13, 2014
Hosted by: C5
TRACE Members receive a 10% discount. 


Dubai, UAE
May 14, 2014
Hosted by: Legal Week

São Paulo, Brazil
May 14-15, 2014
TRACE Members receive a $200 discount. 

Anti-Corruption North Africa
Paris, France
May 14-15, 2014
Hosted By: C5

TRACE Members receive a 10% discount. 
*Severin Wirz, Manager, Advisory Services, speaking 


European Compliance & Ethics Institute

London, UK 

May 18-21, 2014 

Hosted by: Society of Corporate Compliance and Ethics 

*Alexandra Wrage, TRACE President, speaking


New York, NY
May 19-20, 2014

TRACE Members receive a $200 discount.


Global Anti-Corruption & Compliance in Mining
London, UK
May 27-30, 2014
Hosted by: Resourceful Events
TRACE Members receive a 25% discount.
*Alexandra Wrage, TRACE President, speaking



For a complete list of upcoming events, visit the Anti-Corruption Event Calendar on our website. 
International Regulatory Updates


Zulficar & Partners Law Firm


Egyptian law on Prohibition of Conflict of Interest of Public Officials was recently enacted. The law generally aims to prevent top managerial government officials from being exposed to conflict between their personal and public interest, deal with the conflict of interest cases and neutralize such conflict.


Kingdom of Bahrain

Zu'bi & Partners

  In Bahrain, Law No. 1/2013 was ratified to extend the offence of bribery to cover the private sector, whereby liability for the same may be imposed personally on employees, board members or corporate trustees, including the chairman and deputy chairman of a company. The provisions contained therein are stricter than the Penal Code provisions aimed at the public sector only, whereby the offence of bribery under Law No. 1/2013 may result in the imposition of a fine of no less than BD 500 up to a maximum of BD 10,000 and/or imprisonment for a maximum period of 10 years.  



Andreas Neocleous & Co. LLC


In 2013, the Political Parties Funding Law came into force in Cyprus. The Law aims to ensure greater accountability and provide unified standards for the accounting of political parties and for audits of parties' accounts, extending not only to income and expenses but also to assets and debts. The legislation covers political parties and associated entities, including affiliates such as youth clubs and student associations.


Moreover, a Code of Conduct for Public Servants was drafted by the Ombudsman and approved by the Council of Ministers. The Code states that public servants ought to behave properly, honestly, independently, competently, with integrity and professionalism in contacts with co-workers and the public. Public servants are also obliged to report potential conflicts of interest.



Gibson, Dunn & Crutcher LLP


Confidential reporting of requests for bribes to the Ombudsman's Office are now possible. Depending on the government level and the circumstances of the case, the Ombudsman may be able to grant 'whistle-blower' protection and it would act as a mediator once the issue has been discussed with the government department with which it has an issue.



New Partner Firm Announcement:


The Commonwealth of Puerto Rico

McConnell Valdés LLC 

Mr. Francisco J. Pavía (fjp@mcvpr.cpm)



270 Muñoz Rivera Avenue,

San Juan, Puerto Rico 00920

Tel: 787-759-9292

Fax: 787-759-8282

News & Press
25 March 2014 |  Rachel Louise Ensign, The Wall Street Journal



151 West Street
Annapolis, Maryland 21401
410-990-0076 | 410-990-0707 (fax)