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

September 2014
Compendium Roundup


This month, while U.S. enforcement authorities continued to issue declinations, anti-corruption enforcement in China and Brazil reached new levels. GlaxoSmithKline PLC ("GlaxoSmithKline") agreed to pay an unprecedented US $491.5 million to Chinese authorities after the company's Chinese subsidiary was found guilty of bribery on September 19, 2014. The ruling followed a one-day trial in Changsha, Hunan, and the penalty marks the largest corporate fine ever imposed in China. GlaxoSmithKline's subsidiary in China allegedly paid bribes totaling US $482 million to health officials and doctors through over 700 travel agencies in order to boost sales. The bribes were allegedly paid by sales teams to bribe doctors and hospitals to achieve the company's sales targets.

In Brazil, authorities filed a criminal action against eight Embraer SA employees who allegedly paid US $3.5 million in bribes to officials in the Dominican Republic to obtain a US $92 million contract for attack planes. If convicted, this case will mark the first known effort by Brazil to prosecute its citizens for bribes paid abroad.

Meanwhile, Image Sensing Systems ("ISS") announced that both the U.S. Securities and Enforcement Commission ("SEC") and U.S. Department of Justice ("DOJ") have declined to prosecute. The allegations stemmed from an investigation by Polish authorities in December 2012, when two employees of ISS Poland were charged with criminal violations of the Polish tender and corruption laws under the Polish Penal and Criminal Codes related to a project in Łodz. The Polish investigation appears to be ongoing.

There have also been developments for Alstom SA, Rolls Royce Group pLc, SNC Lavalin, BHP Billiton Limited, General Cable Corporation, VimpelCom Ltd., Innospec, Leighton Holdings Ltd., Israel Military Industries, Petrobras, Volkswagen AG, and Eni SpA.  


SEC announces record-breaking $30 million whistleblower award.  The award, which is the largest in the Commission's history, was for key information related to an ongoing fraud investigation.  It also marks the fourth time that a whistleblowing award has been made to someone living in a foreign country.


GSK agrees to pay $491 million penalty to Chinese authorities because of bribery charges - The announcement of the largest corporate fine ever imposed in China came in the wake of a one-day trial in Changsha, Hunan, finding the company's subsidiary guilty of bribing Chinese doctors and hospitals.  Investigations in the United States and the United Kingdom appear to be ongoing.


California court dismisses human rights abuse case against Cisco Systems - The California court ruled that the plaintiffs, who had brought their case partially under the Alien Tort Statute, did not sufficiently show facts that human rights abuses touched and concerned the United States with sufficient force to overcome the presumption against extraterritorial application of the statute.  The decision closely followed the Supreme Court's 2012 ruling in

U.S. Commerce Department publishes list of all known conflict mineral processing facilities - The list, which was made public pursuant to section 1502(d)(3)(C) of the Dodd-Frank Act, tells companies all known facilities that process the minerals tin, tantalum, tungsten, or gold, but does not indicate whether a specific facility processes minerals that are used to finance conflict in the Democratic Republic of the Congo or an adjoining country.

Brazilian authorities charge Embraer SA employees of bribing officials of the Dominican Republic - Brazilian authorities are reportedly working alongside their U.S. counterparts to collect evidence of a $3.5 million bribe to a retired Dominican Air Force colonel.  The case marks one of the first major actions by Brazilian authorities to curb instances of bribery abroad.


Vote now on the TRACEblog

Articles Written by TRACE

12 September 2014
Alexandra Wrage, Corporate Counsel 

30 September 2014
Alexandra Wrage, Corporate Counsel 

The Wednesday InterWRAGEtory quiz has concluded for 2014 and will begin again summer 2015. 

Sign up for our mailing list to receive quiz updates and other training resources. 
September Quiz Questions:
September 3, 2014
Which participant(s) failed to attend the anti-corruption meeting scheduled between President Obama and then President Medvedev during President Obama's trip to Moscow in 2009? 
Click here to answer. 

September 10, 2014
In the past 2 years, which industry has had the most publicly reported domestic and foreign enforcement actions for bribery?
Click here to answer. 

September 17, 2014
Which classic piece of literature addresses corruption and contains the line, "No becomes Yes for money"?
Click here to answer. 
Featured Resource: Lists identifying sanctioned Russian and Ukrainian individuals

Detailed reports identifying the holdings of Russian and Ukrainian individuals and entities who have been designated on U.S., E.U., Canadian and Australian

sanctions lists in connection with the death of Sergei Magnitsky and the 2014 conflict between Russia and Ukraine will soon be available in our members-only TRACE Resource Center.

These reports, which will be updated on a monthly basis, have been compiled by Baker & McKenzie in collaboration with TRACE to help companies manage compliance risks  and due diligence requirements.


For more information or to request the executive summaries of these reports when they become available, please write to

TRACE Anti-Bribery Specialist Accreditation (TASA) 

TASA (TRACE Anti-Bribery Specialist Accreditation) offers the most comprehensive, high-quality and easily accessible anti-bribery education on the market. TASA boasts over 100 online courses taught by a world-renowned faculty of anti-bribery experts. Candidates have access to an extensive library of recorded webinars as well as live webinars, scheduled regularly throughout the year. 

TRACE members now have complimentary access to live TASA webinars. However, access to the online library of recorded courses and the TASA accreditation exam is limited to TASA candidates.

The new TASA website will be launched this week! Stay tuned for the big announcement. 

Upcoming live TASA accredited ACI conferences include:

October 22-23, 2014, Miami, FL

December 1-2, 2014, Singapore

To inquire about discounts and credits, write to  

Compliance's Next Frontier: Preventing Bribery through Shell & Shelf Companies
3 October 2014, 12:00 pm-1:15 pm
Faculty: Savaria B. Harris, Partner, DLA Piper and James Brachulis, Senior Financial Investigator, DLA Piper

The PRC Labor and Employment Law Regime and Its Effects on Investigations
8 October 2014, 10:00 am-11:15 am
Faculty: K. Lesli Ligorner, Esq., Partner, Simmons & Simmons LLP, Shanghai, China

Putting China's Anti-Corruption Campaign in Context
15 October 2014, 10:00 am-11:15 am
Faculty: Nate Bush, Partner, O'Melveny & Myers, Beijing

The Other Anti-Bribery Litigation: Understanding Risk & Exposure Under the False Claims Act
12 November 2014, 12:00 pm-1:15 pm
Faculty: Savaria B. Harris, Partner, DLA Piper

Effective Anti-Corruption Strategies in the Public Procurement Process: Making Transparency Work
19 November 2014*, 12:00 pm-1:15 pm
Faculty: Max Kaiser, Partner, CAYAD S.C., Mexico
*This course will also be offered in Spanish on 21 November 2014. 

TASA accredited TRACE events: 

Upcoming TRACE events are listed below. TASA candidates may earn up to 6 credits for attending a full two-day TRACE conference and up to 3 credits for attending a TRACE workshop or roundtable.

TRACE Roundtables offer senior-level compliance professionals an opportunity to participate in an advanced discussion on the latest anti-bribery enforcement trends and compliance best practices. Roundtables are led by a TRACE representative and feature special guest speakers. Upcoming roundtables are listed below.  


Palo Alto, Technology Sector, October 21, 2014

Click here to view the agenda. 

Melbourne, January 22, 2015
The program is still under development. 
To request an invitation or suggest locations for  upcoming events, please write to

Join TRACE at an upcoming workshop location near you or send your local employees and intermediaries. TRACE anti-bribery workshops address international and local regulatory developments, enforcement trends and compliance best practices. Speakers include TRACE representatives, senior compliance executives and anti-bribery lawyers. Employees and intermediaries of TRACE member companies attend at no charge. 

Dubai, October 21, 2014

Click here to view the agenda.

Istanbul, October 30, 2014

Click here to view the agenda.

New Delhi, November 5, 2014

Click here to view the agenda-at-a-glance. 


Sydney, January 20, 2015

The program is still under development. 

To request an invitation or suggest locations for  upcoming events, please write to
Register Now: 11th Annual TRACE Forum
The 11th Annual TRACE Forum will be held March 25-26, 2015 at the St. Regis in Washington, DC. TRACE members should plan now to attend what has become the premier anti-bribery benchmarking conference. TRACE Corporate Members are now eligble to register for the 11th Annual TRACE Forum by writing to
The Forum program is currently under development. Please visit our Forum webpage for program updates and registration details. 

Atlanta, GA
October 1-3, 2014
TRACE International is excited to be sponsoring and exhibiting at the ECOA's 22nd Annual E&C Conference. 
*Alexandra Wrage, TRACE President, speaking

London, UK
October 7-8, 2014
Hosted by: WBR
*Alexandra Wrage, TRACE President, speaking

London, UK
October 13-15, 2014
Hosted by: IQPC
*Severin Wirz, Manager, Advisory Services, speaking

October 14-15, 2014
Hosted by: C5

October 15-16, 2014
Hosted by: BSR
*Alexandra Wrage, TRACE President, speaking

Miami, FL
October 15-16, 2014

October 21, 2014
Hosted by: AMLP

Brussels, Belgium
October 21-22, 2014
Hosted by: CBI
*Eileen Radford, Director, Advisory Services, speaking



November 11-12, 2014
Hosted by: C5

November 11-13, 2014
Hosted by: IBC Legal
*Eileen Radford, Director, Advisory Services, speaking

Montecasino, Johannesburg
November 17-20, 2014
Hosted by: C5

Washington, DC
November 17-20, 2014

Copenhagen, Denmark
November 25-26, 2014
Hosted by: C5


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

England & Wales

Allen & Overy

The Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014, passed in January 2014, will require anyone carrying on the business of 'consultant lobbying' to be registered and maintain an up to date register entry.  The definition of 'consultant lobbying' includes communicating personally with a Government minister or permanent secretary about (a) any Government proposal to make or modify legislation, (b) any other Government policy, (c) any contract (or other agreement), grant (or other financial assistance) or licence (or other authorisation) made or issued by the Government, and (d) the exercise of any other function of the Government. There will be both criminal and civil penalties for contravention of the registration requirements under the Act but the relevant operative provision of the Act is not yet in force.



Arthur Cox

The Protected Disclosure Act 2014, commonly known as the Whistleblowers' Act, was signed into law on 8 July 2014 and came into operation by Ministerial Order on 15 July 2014. The Act seeks to make whistleblowing a key element of corporate risk management and foster a culture supportive of whistleblowing in both in the public and private sectors.  It offers protection to broad range of workers who makes disclosure of relevant information, reasonably believed to show relevant wrongdoing and obtained through employment, through following specified disclosure channels: Disclosure to an employer to other responsible person; Disclosure to a prescribed person; Disclosure to a Minister; Disclosure to a legal adviser; and Disclosure through other channels, potentially including the media.  Every public body is now required to establish and maintain procedures for making and dealing with such disclosures.


New Zealand

DLA Philips Fox

All Public Service Departments, the New Zealand Police, and the New Zealand Defense Force are required to comply with the Government Rules of Sourcing (2014) (2014 Rules).  The 2014 Rules represent the government's standards of good practice for the sourcing stages of the procurement life cycle for purchases that are estimated to meet or exceed the value threshold ($100,000 for goods and services or $10 million for construction works). The 2014 Rules provide that an organization can opt-out of compliance where the procurement is related to military and essential security interests.  If a government entity regularly purchases a specific type of good, service or works, it may establish a Panel of Suppliers (list of suppliers who have been pre-approved by a government entity and have agreed to its terms and conditions of supply) and purchase directly from the Panel without needing to openly advertise procurement opportunities.


Slovak Republic

PETERKA & PARTNERS advokátska kancelária s.r.o.

Under the Act on Free Access to Information, Slovakian state agencies are obliged to acquire goods, building operations or services through Central Contracting Organizations, Ministry of Interior in cooperation with Ministry of Finance for the purpose of public procurements, for contracts with estimated value equaling or exceeding the financial limit stated in building regulation issued by the Office of Public Procurement.


NEW Partner Firm 


Martin Kenney & Co. Solicitors

Flemming House

Road Town


British Virgin Islands

TEL/FAX: +284 494 2444

Craig Allam, Managing Director of Investigations

News & Press

New Law studentship (LLM) announced for academic year 2015/16

1 September 2014

Kings College


Head of DOJ Criminal Fraud Section to Rejoin Simpson Thacher
2 September 2014

Wall Street Journal: Law Blog 



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