The Global Business Bribery Risk Index for the Compliance Community
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New content is regularly added to the TRACE Resource Center.
Country Risk Profiles:
Germany, India, Mexico
Country Bulletins + Gifts & Hospitality Guidelines for:
Cambodia, Gabon, Greece, Honduras (NEW), Iraq, Ireland, Malaysia, Republic of the Congo, Russia, Seychelles (NEW), Spain, Taiwan.
Click here to login to the Resource Center.
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Compendium Roundup
This month, Hitachi Ltd ("Hitachi") agreed to pay $19 million to the U.S. Securities and Exchange Commission ("SEC") to resolve allegations that the Company violated the books and records and internal controls provisions of the U.S. Foreign Corrupt Practices Act ("FCPA") by making improper payments to the African National Congress ("ANC"), South Africa's ruling political party. Hitachi allegedly made over USD $10 million in payments to a company affiliated with the ANC in exchange for assistance in procuring contracts valued at approximately USD $5.6 billion.
A number of new cases were announced this month. Italian authorities are investigating Techint Group for its role in the bribery, price-fixing and kickback scheme surrounding Petrobras. The U.S. Department of Justice issued a subpoena to Cerberus Capital Management LP concerning its winning bid to purchase the entire loan portfolio of Northern Ireland's state-run National Asset Management Agency, valued at approximately USD $6.9 billion. A portion of the legal fee for the transaction allegedly was earmarked for Northern Irish politicians. Authorities with the Kenyan Ethics and Anti-Corruption Commission arrested two employees of the Chinese state-owned China Roads and Bridge Construction Corporation for allegedly bribing Kenyan highway officials to avoid charges for overloaded trucks.
Visit the TRACE Compendium to view the complete entries, along with other updates from this month.
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September 2015 Poll: What was this month's biggest storyline?
There were several big stories 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:
- Hitachi to Pay SEC $19 Million to Settle FCPA Charges - according to the SEC's press release, Hitachi, Ltd. settled with the regulator earlier this week, agreeing to pay $19 million in penalties for violating books and records and internal auditing controls provisions. Hitachi sold a stake in a subsidiary to a front company for a political party, the African National Congress (ANC), which allowed Hitachi to funnel a $5 million cut of profits from power station contracts and a $1 million "success fee" to the ANC. In exchange, Hitachi was awarded two government contracts to build power stations in South Africa. See the TRACE Compendium for the full story.
- Swiss Authorities Open Criminal Investigation of FIFA President Sepp Blatter - On September 25, 2015, Swiss authorities announced that a criminal investigation of long-reigning FIFA president Sepp Blatter is underway. Officials from the Swiss Attorney General's Office interrogated Blatter and raided his office at FIFA headquarters. The investigation is based on potential violations of Swiss criminal mismanagement and misappropriation laws, and relates to a contract for television rights and a payment to another top FIFA exec. If found guilty, Blatter could face jail time.
- DOJ Releases Yates Memo Emphasizing Focus on Individual Prosecutions -Sally Yates, the DOJ's Deputy Attorney General, released a memo on September 9, 2015 highlighting the agency's commitment to holding accountable the individuals responsible for corporate wrongdoing. The Yates Memo makes clear that in order for a company to receive any cooperation credit, and therefore potentially reduce the penalties and fines it will face, it must not withhold evidence or information regarding employees responsible for the wrongdoing.
- Volkswagen Ensnared in Emissions Scandal - earlier this month, the EPA issued a Notice of Violation of the Clean Air Act to Volkswagen, revealing that the largest auto maker in the world had been rigging its diesel vehicles to skirt emissions standards. VW now faces a myriad of law suits and criminal investigations by both U.S. and German authorities. Also under investigation is former CEO Martin Winterkorn, who resigned last week. The company is alleged to have intentionally installed software to falsify emissions tests on diesel engines from 2009 - 2015, affecting almost 7 million vehicles world-wide. In the U.S., VW has recalled 500,000 vehicles and has suspended sales.
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Featured Resource: Streamlined Due Diligence
Quickly and efficiently assess third party risk, manage due diligence reviews and track on-boarding decisions for an unlimited number of intermediaries with customizable, risk-based due diligence solutions from TRACE. TRACE Due Diligence Solutions are innovative, cost-effective and based on the highest benchmarks. Leveraging the latest software technology and a collaborative approach, TRACE delivers the highest quality due diligence while helping companies reduce their screening costs.
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In September, TRACE relaunched the blog with a renewed focus on providing business-friendly content and practical insights from TRACE, our Partner Law Firms and special guest bloggers. View posts from September below or click here to subscribe to the blog and receive weekly emails when new content is published.
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 The 2015 TRACE Commission Benchmarking Project provides 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. The below survey includes Russia, Italy, Turkey, Ukraine and Greece. Anti-trust counsel has reviewed the survey questions, and we ask that you use only co mmission rates paid in Q4 2014 or prior when answering the questions.
Please submit only one response per company by Friday, October 16th.
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Announcing the TRACE Fall Webinar Schedule:
Date: October 14, 2015
Time: 1:00 pm - 2:00 pm Eastern Time
Faculty: Elizabeth Prewitt, Partner, Hughes Hubbard & Reed LLP
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
To register for upcoming webinars, click here.
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.
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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.
Copenhagen (as part of Danish Maritime Days)
Click here to view the agenda. |
8 October
| Paris
*Registration is now at full capacity. |
16 October
| Havana
*Registration is now at full capacity. |
7-10 November
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 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 upcoming sessions.
Mexico City
Click here to view the agenda-at-a-glance.
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12 November
| Accra
*The program is currently under development. |
21 January
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Over 110 TRACE Corporate Member Company and TRACE Partner Law Firm representatives are confirmed to attend the October 13-14 GAIN conference in London. Registration is now at full capacity. For questions about the event, please write to workshop@TRACEinternational.org.
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OCTOBER
Hosted by: SCCE
4-7 October
Las Vegas, NV
*TRACE representatives will be attending this event.
Hosted by: DMD
5-9 October
Denmark
*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
*Severin Wirz, TRACE, speaking
Let's Talk About Corruption
Hosted by: AMCHAM Mexico, IMCO
12 October
Mexico City
*Martha Mallory, TRACE, speaking
Hosted by: American Conference Institute
14-15 October
Miami, FL
*A TRACE representative will be attending this event.
Hosted by:
14-15 October
Milan
*Katya Lysova, TRACE, speaking
Hosted by: Latin Lawyer
15 October
São Paulo, Brazil
Hosted by: American Conference Institute
27-28 October
Singapore
*A TRACE representative will be attending this event.
Hosted by: AMLP
28-29 October
London, United Kingdom
29 October
Houston
*TRACE representatives will be attending this event.
NOVEMBER
5-6 November
New York
11-12 November
Dubai
*Michelle Juan, TRACE, speaking
Hosted by: C5
12-13 November
Milan
Hosted by: ACI
16-19 November
Washington, DC
*TRACE representatives will be attending this event.
Hosted by: IBC Legal
16-20 November
London
*Severin Wirz, TRACE, speaking
16-20 November
Washington, DC
*A TRACE representative will be attending this event.
*Alexandra Wrage, TRACE President, speaking
18-19 November
Munich
*Anne-Marie Zell, TRACE, speaking
19-22 November
Riviera Maya, Mexico
*Martha Mallory, TRACE, speaking
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Mark Anthony D. Toldo, Business Inquirer
15 September 2015
Stephen Dockery, WSJ Risk & Compliance
Seychelles Nation
Aiswarya Lakshmi, MarineLink.com
BBC World Sevice
Tracey Lee Holmes, ABC News Radio
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International Regulatory Updates
 IrelandIn Ireland, the Regulation of Lobbying Act 2015 was signed into law on 11 March 2015 and went into effect on 1 September 2015. The Act requires those carrying on lobbying activities to register their activities on a web-based public register maintained by the Standards Commission. The Act does not aim to prevent or inhibit lobbying but aims to make the process more transparent through public disclosure of lobbying activities, including but not limited to identity of lobbyists and public officials, subject matter of the communication and the intended result. The returns are to be made each four month period, with the first return due by 21 January 2016.
 SpainIn Spain, July 2015 amendment of the Spanish Criminal Code on corporate compliance introduced criminal liability exemption for those companies which has adopted and effectively implemented an organization, management and control model suitable to prevent criminal offenses or significantly reduce the risk of criminal offenses being committed.
New Partner Firms
Partner
Pardiwalla Twomey Lablache
Suite 109, Premier Building
Albert Street
P.O. Box 343
Victoria, Mahe
Seychelles
TEL: + 248 432 10 71
FAX: + 248 432 41 00
Partner
Consortium Legal - J.R. Paz & Asociados
Primera calle No. 304
Torre Consortium
Final Este del Boulevard Morazan
Tegucigalpa
Honduras
TEL: 1 (504) 2221-1002
FAX: 1 (504) 2221-0535
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Sincerely,
151 West Street
Annapolis, Maryland 21401
410-990-0076 | 410-990-0707 (fax) www.TRACEinternational.org |
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