In This Issue
Compendium Roundup
On the Blog
Polling
Benchmarking
Books, White Papers and Articles
Featured Resource
TRACE Scholar Program
TASA
Workshops
Roundtables
Webinars
Partner Events
International Regulatory Updates
News & Press
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April 2014
Compendium Roundup

This month, Hewlett-Packard Company ("HP") agreed to pay $108 million to the U.S. Securities and Exchange Commission ("SEC") and U.S. Department of Justice ("DOJ") to settle charges of violating the U.S. Foreign Corrupt Practices Act ("FCPA"). According to court documents, HP's subsidiaries in Russia, Poland, and Mexico paid bribes through agents and consultants and in the form of lavish gifts in order to win and retain multi-million dollar government contracts for information technology products and services. In Russia, the SEC and DOJ alleged that HP's subsidiary paid more than $2 million in bribes to win a government contract for computer hardware and software.  Despite questions that were raised by the company's employees at the Russian subsidiary about the significant markup being paid, the deal went through without any meaningful due diligence.  In Poland, HP's subsidiary allegedly gave over $600,000 in cash and gifts through its public sector sales manager, who arranged for the public official to receive a percentage of net revenue earned from the contracts.  In Mexico, sales managers at HP's subsidiary allegedly used a pass-through entity to pay inflated commissions to a consultant, who was not an approved deal partner and had not been subjected to the due diligence required under company policy.  The SEC and DOJ acknowledged HP's extensive cooperation and remediation efforts in the charging documents. 

 

There have also been developments for Qualcomm Inc., GlaxoSmithKline, MOL Group, and Eni SpA.

On the Blog
 

This month on the TRACE Blog we reviewed trends in TRACE's 2013 Global Enforcement Report (GER), including the increase in non-U.S. enforcement, the proliferation of parallel prosecutions and the backdrop of new or strengthened anti-bribery legislation in several countries.

 

The TRACE Blog also took a close look at the U.S. Court of Appeals for the D.C. Circuit's recent decision in National Association of Manufacturers v. Securities and Exchange Commission, where the court found that requiring companies to declare whether their products are "DRC conflict free" according to the Dodd-Frank Act forced commercial speech in violation of the Constitution's First Amendment. Other conflict mineral requirements in the Act, however, remain intact.

 

Read these stories and more at traceblog.org!  

  1. Anti-corruption reporting becomes more transparent in Europe. The European Parliament adopted the long-awaited directive on the disclosure of non-financial and diversity information, which requires large public-interest entities with more than 500 employees to disclose anti-corruption and bribery matters, among other things, in their management reports.

  2. U.S.-based information technology company settles FCPA charges. Hewlett-Packard Company agreed to pay a $108 million settlement with the DOJ and SEC due to allegations that its subsidiaries paid bribes in Russia, Poland, and Mexico.

  3. Dodd-Frank's Conflict Minerals rules are put to the test. U.S. court of Appeals held that parts of Dodd-Frank's Conflict Minerals rules violate the First Amendment. Meanwhile, the first reported filing under the conflict minerals rule was made on Thursday April 24 by Taiwan-based Siliconware Precision Industries Co., Ltd.
  4. DOJ investigates yet another company for FCPA violations in China. Qualcomm Inc, the world's biggest mobile chipmaker, announced in an SEC filing this month that it was under investigation by the DOJ for potential violations of the FCPA because of instances in which special hiring consideration, gifts or other benefits were provided to Chinese state-owned companies or agencies.

  5. Guinean government shakes up the mining industry. A Guinean government committee has recommended that BSG Resources Ltd., the mining arm of Israeli tycoon Beny Steinmetz, be stripped of its rights to the Simandou iron-ore project, after finding that the company had obtained the rights to Simandou through corruption.

Vote now on the TRACEblog
Benchmarking
 

The 2014 TRACE Commission Benchmarking Project will provide data on the average commission rates paid to third parties on a country-specific basis for business-to-government deals based on four deal sizes.  Business-to-government deals are defined as contracts between companies and regional, municipal or federal governing bodies. Each survey in the 2014 TRACE Commission Benchmarking Project will cover four countries within a region.  The below survey includes Colombia, Brazil, Argentina, and Mexico.  Anti-trust counsel has reviewed the survey questions, and we ask that you use only commission rates paid in Q1 or prior when answering the questions.

 

In order to participate, please click here to complete the questionnaire.  The results will be submitted anonymously, so please register your company's participation in a separate email sent to hsieh@TRACEinternational.org. Unlike other benchmarking projects, the results of the Commission Benchmarking will only be made available to those companies that participate. 

 

Please submit only one response per company. The deadline for providing responses is May 16th. 
Forum Benchmarking Results
 
The results from the 10th Annual TRACE Forum polling questions are now available for download. You can access them in the TRACE Resource Center or via the links below. 

 

 

Polling Sessions

Anti-Bribery Compliance Priorities, Risk Assessments and Risk Management

 

Investigations, Due Diligence, Compliance Policies, Training and Emerging Markets

 

 

Third Party and Employee Training, Risk and Compliance

 

Download all of the 2014 Benchmarking Results.

 

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.

 

View the full press release here. Download the complete GER with charts and further analysis here.
 
Articles 

Finding the Right Chief Compliance Officer

16 April 2014 | Corporate Counsel | Alexandra Wrage

International Social Media and Freedom of Expression

21 April 2014 | Corporate Counsel | Alexandra Wrage

Podcasts
02 April 2014 | FCPA Ethics and Compliance Report | Thomas Fox interviews Virna Di Palma

15 April 2014 | ACFCS Daniela Guzman interviews Eileen Radford

Featured Resource: TRACE Certified Third Parties

  


Save time and money by working with pre-vetted third party business partners worldwide. Request a custom list of TRACE Certified Third Parties today by writing to membership@TRACEinternational.org
Please note: lists are only available to TRACE Members.

Certification by TRACE signifies that the candidate has completed internationally accepted due diligence procedures and has been forthcoming and cooperative during the review process. The successful completion of TRACEcertification demonstrates a high commitment to commercial transparency.

 
  • There are 5,000+ TRACE Certified SMEs in our database.
  • Your custom report can include pre-vetted SMEs from almost every country.
  • All TRACE Certified entities are required to complete our online anti-bribery training.
  • The customized lists include sales agents, distributors and other third-party business partners who have undergone TRACEcertification and TRACEstandard reviews.
 
If you have any questions, please write to membership@TRACEinternational.org.

TRACE Scholar Program
 
Thank you to everyone who helped spread the word about our new TRACE Scholar Program, which 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.  Applications for this program are no longer being accepted but we are excited for the first TRACE Scholars to begin their studies in Fall 2014!
 
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 info@thetasa.org
 
 

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

  

Upcoming live TASA accredited TRACE events:

June 18, 2014, Washington, DC

July 29, 2014, Vancouver

To inquire about discounts and credits, write to 
info@thetasa.org.  
  
 

TRACE was pleased to welcome over 100 member companies and intermediaries at workshops this month in Singapore (April 28) and Manila (April 30). Speakers discussed regional bribery risks, local anti-bribery laws and international compliance best practices.

 

Notably, the Manila workshop featured a panel, The U.S. Foreign Corrupt Practices Act (FCPA): DOJ Enforcement Trends and Compliance Takeaways, with Daniel S. Kahn, Assistant Chief, FCPA Unit, US Department of Justice and Charles Duross, Partner, Morrison Foerster LLP, speaking via teleconference. 

 

Please visit TRACE Workshops for more information. 

 

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.  
 
Washington, DC, June 18, 2014
View agenda details hereThis roundtable is being held exclusively for senior-level leaders in the field of anti-bribery compliance and is an invitation-only event.

 

Vancouver, July 29, 2014
View agenda details here
 

Fall 2014 Roundtables:

' New York, NY 
' Houston, TX 
' San Diego, CA
' New Delhi 

 

To request an invitation or suggest locations for  upcoming events, please write to workshop@traceinternational.org.

  

MAY

 

Ethics and Anti-Corruption / Bribery Programs - Internal Audit's Role
WEBINAR
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

S„o 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

 

JUNE

 

June 3-4, 2014
Hosted by: International Bar Association
*Severin Wirz, Manager, Advisory Services, speaking
 
London, UK
June 5-6, 2014
Hosted by: Momentum
TRACE Members receive a 15% discount. 
*Alexandra Wrage, TRACE President, speaking

Shanghai, China
June 17-18, 2014
Hosted by: American Conference Institute
TRACE Members receive a $200 discount. 

Chicago, IL
June 24-25, 2014
Hosted by: American Conference Institute
TRACE Members receive a $200 discount. 

London, UK
June 24-25, 2014
Hosted By: C5
TRACE Members receive a 10% discount.
*Eileen Radford,  Director, Advisory Services, speaking 

Grange Tower Bridge Hotel, London, UK
June 24-26, 2014
Hosted by: IBC Legal
TRACE Members receive a 10% discount.
*Eileen Radford, Director, Advisory Services, speaking 

Basel, Switzerland
June 26-27, 2014
Hosted by: B20 Collective Action Hub
*Virna Di Palma, Senior Director, Global Strategy & Communications, speaking

Washington, DC
July 15-16, 2014
Hosted by: American Conference Institute
TRACE Members receive a $200 discount. 

 

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

Turkey

HergŁner Bilgen ÷zeke Attorney Partnership

www.herguner.av.tr

 

The Turkish Military Criminal Law has been amended to list engagement and recruitment of military officials in commercial activities or enterprises as criminal offenses. Civil servants of Turkish government may not be involved in commercial activities nor appointed as commercial sales representative consultants marketing to the government.

 

New Partner Firm Announcements:

 

Mauritius

ENSafrica (Mauritius)

http://www.ensafrica.com/search?SearchTerm=Mauritius

 

 

Ms. Martine de Fleuriot de la ColiniŤre

mdefleuriot@ENSafrica.com

5th Floor, Chancery House

Lislet Geoffroy Street

Port Louis, Mauritius

TEL: + 230 212 2215

FAX: + 230 208 2984

 

Mongolia

MahoneyLiotta LLP

http://www.mlmongolia.com/

 

Mr. James "Jay" Liotta

Jay.liotta@mlmongolia.com

Landmark Building, 7th Floor

Chinggis Avenue, P.O. Box 279

Ulaanbaatar 210646A

Mongolia

TEL: +976-1132-5344 

FAX: +976-1132-5358

News & Press
 
News Coverage of the GER 2013
25 March 2014 | Wall Street Journal Risk & Compliance | Rachel Ensign
 
31 March 2014 | Wall Street Journal Law Blog | Kathy Chu
 
31 March 2014 | Corporate Counsel |Rebekah Mintzer 
 
01 April 2014 | Anti-Corruption & Asset Recovery Blog | James Maton
 
Survey: Anti-Bribery Enforcement is a World-Wide Trend
18 April 2014 | Today's General Counsel
 
News Coverage of the TRACE Scholar Program
3 April 2014 | Transparency International Philippines
 
10 April 2014 | Anti-Corruption Research Network
 
15 April 2014 | Youth Hub Africa
 
2014 TRACE LLM Scholarship in USA for Developing Countries
17 April 2014 | Scholars Hub Africa
 
Other News Coverage
Nonprofits and Demands for Transparency and Disclosure
24 April 2014 | NPQ (Nonprofit Quarterly) | Rick Cohen
 
 

Sincerely,

 

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

www.traceinternational.org