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Compendium Roundup
Polling
Surveys
Articles
10 Days of Giving
Featured Resource
Online Training
TASA
Roundtables
TRACE Forum
Recent Events
Partner Events
International Regulatory Updates
News & Press
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How to Pay a Bribe: Thinking Like a Criminal to Thwart Bribery Schemes

November 2014
Compendium Roundup

This month the Netherlands undertook a major anti-bribery enforcement action. SBM Offshore N.V. ("SBM Offshore") agreed to pay $240 million to the Dutch Public Prosecutors Office (Openbaar Ministerie) to resolve allegations that a percentage of commissions paid to sales agents, totaling tens of millions of dollars, was allegedly used to pay for services provided to government officials, including school fees and transportation costs. In 2012, an internal review flagged improper sales practices involving some of SBM Offshore's sales agents, and the company began an internal investigation, which determined that the company paid roughly $40.5 million in improper commissions between 2007 and 2011. The company self-reported the results of its internal investigation to the U.S. Department of Justice ("DOJ") and the Dutch Public Prosecutor's Office in April 2012. The DOJ announced that it has declined to prosecute the company.

In the U.S., the U.S. Securities and Exchange Commission ("SEC") imposed fines totaling $70,000 on two former sales employees of FLIR Systems Inc. ("FLIR"), a U.S.-based defense contractor that produces thermal imaging, night vision, and infrared cameras and sensor systems. The FLIR employees based out of Saudi Arabia allegedly took government officials in Saudi Arabia on a "world tour" to help secure a multi-million dollar contract for FLIR in violation of the U.S. Foreign Corrupt Practices Act ("FCPA"). The officials traveled for 20 nights with stops in Casablanca, Paris, Dubai, Beirut, and New York City. According to the SEC Order, there was no business purpose for the stops outside of Boston, and the airfare and hotel accommodations were paid for by FLIR. Prior to providing the gifts and travel to the Saudi Arabian officials, the employees each had taken FCPA training at the company that specifically identified luxury watches and side trips as prohibited gifts. They allegedly falsified records in an attempt to hide their misconduct. According to the SEC, their investigation is continuing. 

 

 

Walmart Fires Mid-level Manager Amid FCPA Investigation - The company said that it had fired a mid-level manager in India as part of the company's ongoing internal FCPA bribery investigation.  Meanwhile, the global retailer has also indicated a decline in sales in China due, in part, to the country's recent crackdown against gift-giving to government officials there.

 

FIFA Report Clearing Itself of Wrongdoing Stokes More Allegations of Corruption - The report, summarizing an 18-month investigation by the former New York district attorney Michael Garcia, cleared the organization of any wrongdoing in the bidding process for the 2018 and 2022 World Cup tournaments in Russia and Qatar.  Even so, allegations of corruption against FIFA continue to emerge, and several sponsors, including Sony and UAE Emirates Airline, have pulled out from the events.

 

Bio-Rad to Pay $55 Million In FCPA Case -- Bio-Rad Laboratories agreed to pay $55.1 million to the SEC and DOJ to resolve allegations that the company's subsidiaries in Russia, Vietnam, and Thailand violated the anti-bribery and books and records provisions of the FCPA by making improper payments totaling $7.5 million.  The complete Compendium summary for this case may be accessed here.

 

Mexico Cancels Winning Bid for Bullet Train Amidst Bribery Allegations: The Mexican government decided to start the bidding process over again after several potential bidders, including Siemens and Mitsubishi, claimed foul when a Chinese-led consortium won the $3.75 billion tender.  President Enrique Peņa Nieto has been embroiled in the scandal as well, after it was revealed that a Mexican company associated with the winning bid owns a $7 million mansion apparently reserved for the presidential family.

 

SCOTUS Declines to Hear 3rd Circuit Decision Regarding Privilege Exception in FCPA Case: The Supreme Court of the United States declined to hear a 3rd Circuit decision In Re: Grand Jury Subpoena holding that attorney communications were not necessarily privileged in the context of an ongoing FCPA grand jury investigation.  The 3rd Circuit noted that the district court was justified in finding that defendants used information provided to them by their attorney - that undertaking a particular course of action could very likely violate the FCPA - in order to better hide their wrongdoing from law enforcement.  

 

Vote now on the TRACEblog

End of Year Surveys
TRACE surveys provide valuable insights into current and emerging anti-bribery best practices and trends. The below surveys should take less than ten minutes to complete. The deadline for completion of the surveys is December 19, 2014. Your comments are valuable and we appreciate your time. 

If you have any questions, please contact Virna Di Palma at dipalma@traceinternational.org

Anti-Bribery Audits & Risk Assessments
Anti-bribery audits and risk assessments are a critical component of a successful anti-bribery compliance program. Best practices around ABAC audits and risk assessments continue to evolve and many companies are struggling to keep up. There are many questions a company must consider before implementing and executing an effective audit and risk assessment strategy. Please help us develop guidelines by participating in this survey which will provide exceptional insight into how organizations are approaching ABAC audits and risk assessments. 

Click here to participate.

Anti-Corruption Collective Action
Anti-Corruption Collective Action can assist companies in identifying and developing strategies against common corruption and compliance risks that they face. Despite the increasing emergence of Collective Action as a viable anti-corruption tool, it remains under utilized by many companies. In addition, Collective Action initiatives may be ongoing yet unknown to wider audiences. 

On behalf of the International Center for Collective Action, we invite you to participate in this short survey designed to identify current Collective Action initiatives and to gauge interest in the practice among the business community.


Click here to participate. 

Business Conduct: Employee Terminations
Recent FCPA cases highlight the critical importance of a company's response to the discovery of employee misconduct. The DOJ and SEC strongly encourage companies to voluntary disclose potential FCPA violations and to implement swift remedial measures, including terminating employees engaged in the misconduct. This brief survey aims to collect data on employee terminations linked to business conduct violations. 

Click here to participate. 
Articles Written by TRACE

19 November 2014, FCPA Professor
Alexandra Wrage, TRACE President
Get ready for the 10 Days of Giving!

 

It's that time of year again. The popular TRACE 10 Days of Giving celebration of the holiday season is back and better than ever! This year, the prizes and the rules will be slightly different. Respondents who participate in each day of the 10 Days will be eligible for a special bonus prize at the end of the promotion AND prizes will no longer be awarded on a first-come-first-serve basis. Responses to 10 Days of Giving offers will be accepted each day from 8:00 AM EST until 11:59 PM EST and winners will be selected randomly. We hope this new method of choosing winners will give participants in all time zones a better chance to win.


Past prizes have included passes to TRACE events (workshops and TRACE Forum), discounts on TRACE due diligence services, complimentary copies of TRACE publications including How to Pay a Bribe: Thinking Like a Criminal to Thwart Bribery Schemes (2014), free consultations with our compliance advisors and more.


This year, we have 10 days of new and exciting giveaways planned so be sure to check your email everyday starting next Monday, December 8! 

Featured Resource: TRACE Matrix
Developed in collaboration with RAND Corporation, the TRACE Matrix provides the business community with a powerful new tool for anti-bribery risk assessment. It has been designed to help companies assess the propensity for public-sector bribery and its associated business risk while providing actionable intelligence to inform a company's compliance processes.

For more information, view the press release announcement here.

Member Resource: Online Training Custom Lesson Options

TRACE's online training platform is both scalable and customizable. Easily implemented, the online training system provides a secure, interactive, multimedia web-based learning environment for all employees and third party intermediaries. TRACE Members have the capability to create up to three custom lessons for free to supplement the core online training modules. A brief, five minute overview of this customization is provided via video here

To take advantage of this functionality, please write to Emily Peake at epeake@TRACEinternational.org
TRACE Anti-Bribery Specialist Accreditation (TASA) 

Start the New Year off right by enrolling in TASA (TRACE Anti-Bribery Specialist Accreditation) before the year ends. TASA offers the most comprehensive, high-quality and easily accessible anti-bribery education on the market. Candidates have access to an extensive library of recorded webinars, as well as live webinars scheduled regularly throughout the year. Apply now to participate in live December courses.


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.
 

3 December 2014, 12:00-1:15 pm
Faculty: Thomas Firestone, Senior Counsel, Baker & McKenzie LLP
Steven F. Hill, Of Counsel, Baker & McKenzie LLP

10 December 2014, 12:00-1:15 pm
Faculty: Kimberly A. Parker, Partner, Wilmer Cutler Pickering Hale and Dorr

Upcoming live TASA accredited ACI conferences include:

December 1-2, 2014, Singapore

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

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. 

 

Sydney, January 20, 2015

Click here to view the agenda.   


Melbourne, January 22, 2015
Click here to view the agenda.      
 
To request an invitation or suggest locations for  upcoming events, please write to workshop@traceinternational.org.
Register Now: 11th Annual TRACE Forum
The 11th Annual TRACE Forum will be held March 25-26, 2015 at the St. Regis Hotel in Washington, DC

 

TRACE Corporate Members are invited to register now by writing to workshop@TRACEinternational.org

 
The Forum program is currently under development. Please visit our Member Activities page for program updates and registration details. To suggest panel topics or speakers, please write to Virna Di Palma at dipalma@TRACEinternational.org
Recent TRACE Events: New Delhi Workshop

On Wednesday, November 5,2014 in New Delhi, TRACE hosted a workshop in collaboration with the Global Compact Network India (GCNI). The event was held at the Imperial Hotel and attracted more than eighty participants, including compliance professionals, government officials and local affiliates of multinationals. TRACE thanks its partner GCNI and Mr.Pooran Pandey, Executive Director, and his team , whose local efforts made for a very engaging and informative workshop. 

 
DECEMBER

Singapore
December 3, 2014

Argentina
December 4, 2014
Hosted by: IAE
*Alexandra Wrage, TRACE President, speaking
Click here to view more information. 

Argentina
December 5, 2014
Hosted by: TRACE and AHK
*Alexandra Wrage, TRACE President, speaking
Click here to learn more. 

 

UN Global Compact 10th Principle Anniversary Event 

New York, NY

December 10, 2014

Hosted by: UN Global Compact

 

Global Anti-Corruption & Compliance in Mining: Toronto

Toronto

December 10-12, 2014

Hosted by: Mining Journal

*Alexandra Wrage, TRACE President, speaking 

 

2nd Anti Corruption Compliance Asia Pacific Summit 2014

Hong Kong

December 11-12, 2014

Hosted by: Duxes Events

*Michelle Juan, Regional Consultant, speaking

 

JANUARY

 

Third Party Risk Management in China 

Shanghai

January 27, 2015

Hosted by: American Conference Institute

 

Benchmarking Compliance Programs in China

Shanghai

January 28, 2015

Hosted by: American Conference Institute

 

FCPA Bootcamp Houston

Houston

January 27-28, 2015

Hosted by: American Conference Institute

 

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

New Partner Law Firms
Ferah & Associates Law Firm (F&A Law Firm)
19, avenue Alain Savary
1002 - Tunis
Tunisia 
TEL: +(216) 71 28 17 87 
FAX: +(216) 71 28 17 83
Yessine Ferah, Attorney at Law - Partner
yessine.ferah@fandalawfirm.com


Victoria House

Gloucester Street

Belfast BT1 4LS

Northern Ireland

TEL: +44 28 9023 0007

FAX: +44 28 9023 3464

Mr. Matthew Howse (matthew.howse@arthurcox.com) 

News & Press

2 December 2014
Jaclyn Jaeger, Compliance Week

25 November 2014
Christiane Amanpour, CNN International

21 November 2014
Sue Reisinger, Corporate Counsel

20 November 2014
Mary Welch, The Daily Report

17 November 2014
PR Newswire

13 November 2014
Eddie Morton, Phnom Penh Post

12 November 2014
The Economic Times

11 November 2014
Samuel Rubenfeld, The Wall Street Journal

12 November 2014
Sue Reisinger, Corporate Counsel

11 November 2014
Jaclyn Jaeger, Compliance Week

11 November 2014
Daniel Tencer, Huffington Post Canada

11 November 2014
PR Newswire

Sincerely,

 

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

www.traceinternational.org