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August 2015
Compendium Roundup

In the United States, the Bank of New York Mellon Corporation ("BNY Mellon") agreed to pay $14.8 million to the U.S. Securities and Exchange Commission ("SEC") to resolve allegations that the company violated the U.S. Foreign Corrupt Practices Act ("FCPA") by providing improper internships to family members of foreign officials. BNY Mellon allegedly provided internships to the family members to retain the business of the sovereign wealth fund that employed the officials. The SEC joined German authorities in their investigation of €1 million (USD $1.1 million) in facilitation payments allegedly made by Ford Motor Co. and DB Schenker to speed passage of shipments through Russian customs in St. Petersburg. The German investigation began in 2013. NCR Corporation announced that the SEC had closed its investigation into the company and would not recommend an enforcement action against the company for possible violations of the FCPA. The investigations into NCR by the SEC and the U.S. Department of Justice ("DOJ") were focused on allegations of gifts, travel and hospitality, and other business practices, in China, Middle East and Africa. The DOJ investigation is still ongoing.
 
Indian authorities arrested the former vice president of Louis Berger International Inc. ("Louis Berger") this month, and seek an arrest warrant against James McClung, Louis Berger's former Senior Vice President for operations in India and Vietnam. Mr. McClung will be sentenced in November 2015 after pleading guilty to conspiring to violate the FCPA and violating the FCPA.
 
It was disclosed this month that Bulgarian authorities had arrested the former CEO of Centerra Gold Inc. ("Centerra"), a Canadian company, while he was on vacation. The arrest was made at the request of Kyrgyzstan. Kyrgyz authorities allege that a deal between Centerra and Kyrgyzstan for Centerra to operate a gold mine in that country was structured to provide bribes and improper payments to former Kyrgyz President Akayev.
 
Visit the TRACE Compendium to view the complete entries, along with other updates from this month. 
August 2015 Poll: What was this month's biggest storyline?
 

There were many new developments this month in the world of anti-bribery compliance.  Read the summaries below and then vote for which one you think is most deserving of the top spot: 

 

1. Bank of New York Mellon to Pay SEC $14.8 Million to Settle Bribery Charges - the banking and financial services company entered into a settlement agreement with the SEC this month, agreeing to pay $14.8 million in penalties and fines for alleged violations of the Foreign Corrupt Practices Act (FCPA).  The allegations stemmed from BNY Mellon's provision of internships to family members of foreign government officials connected to a Middle Eastern sovereign wealth fund.  Read the full story on the TRACE Compendium.

 

2. New U.K. Law will Require Private Companies to Disclose Ownership - although it received Royal Assent in March 2015, several provisions of the U.K.'s Small Business, Enterprise and Employment Act 2015 (SBEE) are not yet in force.  Recently it was confirmed that the provision requiring companies "to keep a register of people who have significant control over the company" will come into force in January 2016.  The new law will require an increased level of transparency surrounding ownership of privately-held companies.  Under the law, companies must provide their registers to the Companies House starting in April 2016, and this information will then be made available in a searchable public registry.  

 

3. Former SAP Executive Pleads Guilty to Bribery of Panamanian Officials - a former SAP executive, Vicente Garcia, pled guilty to DOJ charges of conspiracy to violate the FCPA on August 12, 2015.  The charges stemmed from Garcia's involvement in a scheme to bribe government officials in Panama from 2009 to 2013 in exchange for government technology contracts.  Sentencing is slated to take place in December 2015.  Garcia also agreed to pay over $90,000 to settle a parallel SEC action for violations of anti-bribery and internal controls provisions.  Read the full story on the TRACE Compendium.

 

4. Donald Trump Calls the FCPA a "Horrible Law" - last month it was reported that in 2012 - prior to his presidential campaign - Donald Trump characterized the FCPA as a "horrible law" and said it should be changed.  Trump criticized the law as putting American companies at a disadvantage.  However, many FCPA experts agree that a change in administration will have little effect on enforcement.

 

5. DOJ Hires a New Compliance Counsel - at the end of last month, the DOJ revealed that it is hiring for the newly created position of Compliance Counsel.  The Compliance Counsel will help the DOJ evaluate companies' compliance programs and when to move forward with a prosecution of FCPA violations.  If the DOJ does choose to go forward with a prosecution, the Compliance Counsel's evaluation will also come into play when the DOJ assesses a company's remediation efforts.  The DOJ has already selected an individual, and this person is currently being vetted for the position. 

 
Vote now on the TRACE Blog.

Featured Resource: Member-Level Access 

TRACE Corporate Members have exclusive access to the TRACE Intermediary Directory, a publicly searchable database of vetted and trained small and medium-sized enterprises (SMEs) for hire. 

In addition to the basic search and sort features of the Intermediary Directory (Company Name and TRACEcertification ID), members may search by Industry, Type of Service, Country Where Located and Countries Served. Members may also request an intermediary's complete due diligence report and/or send messages directly from the Directory. 

To request a complimentary member-level account on the TRACE Third Party Management System (TPMS), please write to TPMS@TRACEinternational.org.
Iran Working Group: Webinar Announcement

Date: 1 October 2015
Time: 11:00 am - 12:00 pm EST

There has been great interest in the business implications of Iran rejoining the global economy and, in particular, the compliance challenges for investors in this newly emerging market. In response, TRACE has assembled a working group that will convene quarterly to discuss market developments, opportunities and compliance challenges. This first working group webinar, which is open to all TRACE Members and TASA Candidates, will provide an overview of the issues, such as the scope of the remaining sanctions, the extent of due diligence required in business dealings, and consequences for non-compliance. 
The webinar will be moderated by TRACE President Alexandra Wrage and conducted by Amanda DeBusk, the chair of Hughes Hubbard's International Trade Department. Participants will be invited to ask questions and join the discussion via an open online chat.
To register for this webinar, click here
Publications

10 August 2015
Ethical Boardroom Magazine, Alexandra Wrage

The Compliance and Ethics Blog, Alexandra Wrage

Forbes, Alexandra Wrage
TASA/Member Webinars

TASA: TRACE Anti-Bribery Specialist Accreditation® webinars are available to TRACE members at no additional charge.
Register for a live webinar or view any recorded webinar in the TRACE Resource CenterFor more information, contact info@theTASA.org

 
Announcing the TRACE Fall Webinar Schedule: 

The Politics of Sanctions: Russia
Date: September 29, 2015
Time: 1:00 pm - 2:00 pm Eastern Time
Faculty:  Thomas Firestone, Partner, Baker & McKenzie LLP
Kerry B. Contini, Associate, Baker & McKenzie LLP
David Chmiel, Managing Director, Global Torchlight

Date: October 14, 2015
Time: 1:00 pm - 2:00 pm Eastern Time
Faculty: Elizabeth Prewitt, Partner, Hughes Hubbard & Reed LLP

Anti-Bribery Challenges for the Financial Services Industry: Risk Areas and Compliance Best Practices*
Date: October 28, 2015
Time: 1:00 pm - 2:00 pm Eastern Time
Faculty: Lewis D. Zirogiannis, Managing Director, CCO & Supervisory Affairs, GE Energy Financial Services
*Course description under development. 

To register for upcoming webinars, click here

Recently Recorded Webinars:
  • Anti-Bribery Compliance Challenges in the Middle East 
  • Offsets, Charitable Donations, and Other Foreign Government Requests: What Are the Risks? 
  • Conducting an Effective Anti-Bribery Risk Assessment
Interested in taking the TASA accreditation exam? Enroll in TASA today and become TASA accredited by the end of 2015. To inquire about discounts and credits, write to info@thetasa.org.
 

These invitation-only, advanced sessions provide senior-level compliance professionals with the opportunity to share best practices and discuss emerging trends. Fall 2015 roundtable locations are listed below. To request an invitation, please write to workshop@TRACEinternational.org. Space is limited and is first come, first served. 

London (as part of London Int'l Shipping Week)
Click here to view the agenda.
8 September
Copenhagen (as part of Danish Maritime Days)
Click here to view the agenda. 
8 October
Paris
Click here to view the agenda. 
16 October
Havana 
*Registration is now at full capacity. 
7-10 November

 

TRACE workshops provide practical, in-depth anti-bribery training for your global employees and intermediaries. These events feature TRACE representatives, compliance and business executives and TRACE Partner Firms. Register today for our fall 2015 locations. 
Manila
Click here to view the agenda.
9 September
Mexico City
Click here to view the agenda-at-a-glance. 
 12 November

The complete agenda for this exclusive event is now available. Speakers include former DOJ and SEC prosecutors, TRACE Partner Law Firms, and senior compliance executives from Schneider-Electric, Standard Chartered Bank, Holcim Group Services, Mubadala, Avon Cosmetics, HSBC Holdings and many other TRACE Member Companies. Register now for this highly anticipated event. 

London
Venue: Mandarin Oriental, Hyde Park
View the agenda
 
13-14 October

SEPTEMBER 
Hosted by: IACC Council and Transparency International
2-4 September
Hosted by: Pan African Lawyers Union
22-24 September
Abuja, Nigeria
*A TRACE Representative will be attending this event.

2nd Annual Forum on Anti-Corruption: Spain Edition
Hosted by: C5
29-30 September
Madrid, Spain
Hosted by: American Conference Institute
29-30 September
San Francisco, CA
Hosted by: Momentum Events 
29-30 September
Houston, TX
*Katya Lysova, Associate, Member Services and Advocacy, speaking
 
Hosted by: CBI
29-30 September
Miami, FL
*Martha Mallory, Latin American Regional Manager, speaking

 
OCTOBER
Hosted by: SCCE
4-7 October
Las Vegas, NV
*A TRACE representative will be attending this event. 

Hosted by: Health Network Communication
7-8 October 
London, United Kingdom
*A TRACE representative will be attending this event. 

Hosted by: Mining Journal
8 October
Toronto, Canada

Hosted by: American Conference Institute 
14-15 October
Miami, FL

Hosted by: Latin Lawyer
15 October
São Paulo, Brazil

Hosted by: American Conference Institute 
27-28 October 
Singapore

Hosted by: AMLP
28-29 October
London, United Kingdom
 
For a complete list of upcoming events, visit the Upcoming Events Calendar on our website.

Sincerely,

 

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410-990-0076 | 410-990-0707 (fax) 

 

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