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New 10-Year Statute of Limitations for U.S. Sanctions Violations

On April 24, 2024, President Biden signed into law H.R. 815[1], an emergency supplemental appropriations law, that provides $95.3 billion in military aid to U.S. allies and requires the divestiture of certain social media applications. While much of the discussion surrounding the new law focuses on the emergency foreign aid funding for Ukraine, Israel, and … Continue Reading

The Price Cap on Russian Oil – Part 2: Updated OFAC Guidance

In our previous article on this topic (which you can read here), we analyzed recent enforcement activity by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) related to the maritime transport of Russian-origin crude oil and Russian-origin petroleum products above price caps agreed by the “Price Cap Coalition,” comprising Australia, Canada, … Continue Reading

Navigating AI Risks: A Guide to Enhancing Corporate Compliance Programs

In today’s rapidly evolving technological landscape, the integration of artificial intelligence (“AI”) into business operations presents unparalleled opportunities for efficiency and innovation. Alongside these advancements, however, come new challenges and risks that must be addressed to ensure regulatory compliance and ethical responsibility. Recently, the Department of Justice (“DOJ”) has underscored the importance of proactively managing … Continue Reading

Increased Corporate Transparency in the Cayman Islands

The Cayman Islands, a British overseas territory, has long been recognized as one of the world’s leading providers of institutionally focused financial services and a preferred destination for the structuring and domiciling of sophisticated and specialized financial services products, particularly investment funds.  However, for a number of reasons, the inherent risks to the Cayman Islands’ … Continue Reading

DOJ Promises Whistleblower Rewards Pilot Program and Adds AI Risk to Its Evaluation of Corporation Compliance Programs

On March 7, 2024, US Deputy Attorney General, Lisa O. Monaco announced the development of a new “DOJ-run whistleblower rewards program” during her speech at the American Bar Association’s 39th National Institute on White Collar Crime.[1]  The announcement signals “a 90-day sprint to develop and implement a pilot program, with a formal start date later this … Continue Reading

Managing and Reporting Third-Party Cybersecurity Incidents Under the New SEC Cyber Risk Regulations

The rules on reporting cybersecurity risks and incidents pose many challenges for companies. Those challenges can be even more difficult when the cybersecurity incident affects third-party systems. With no exceptions for third-party cybersecurity incidents under the new cybersecurity reporting regulations, companies should take proactive steps to assess and respond appropriately to third-party cybersecurity incidents. The … Continue Reading

Webinar: The New Foreign Extortion Prevention Act – What It Means for US Companies

Please join us on Tuesday, January 30 for a discussion about “the most consequential anti-foreign-bribery law passed in almost 50 years”: the Foreign Extortion Prevention Act (FEPA). FEPA allows the DOJ to prosecute foreign officials who demand or accept a bribe from a U.S. citizen or company. Our seasoned team of three former Department of … Continue Reading

Recent Changes to FATF’s “Grey List”; Could the UAE be Next Off the List?

Between October 25 and October 27, 2023, the Financial Action Task Force (“FATF”), an international policy-making and standard-setting body dedicated to combating money laundering and terrorist financing, held its third plenary meeting of the year (the “October Plenary”), at which it made important updates to its list of jurisdictions under increased monitoring, often externally referred … Continue Reading

FEPA: the New Tool in the DOJ’s Fight Against Corruption

On December 22, 2023, President Biden signed into law the Foreign Extortion Prevention Act (hereinafter “FEPA” or the “Act”) which was passed by the US Congress as part of the Fiscal Year 2024 National Defense Authorization Act.  The Act aligns with the current administration’s national security agenda in that it broadens the scope and reach … Continue Reading

U.S. Sanctions Review: A Recap of OFAC’s Recent Enforcement Actions (Second Half 2023)

The second half of 2023 saw eight enforcement actions from the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).  These actions reflect a range of penalties, industries, sanctions programs, conduct, and lessons learned.  Below are some highlights from OFAC’s enforcement releases and settlement agreements. Penalties OFAC imposed a total of $984,851,289.90 in penalties … Continue Reading

Noteworthy Trends in French White Collar Crime

France’s Sapin II Law was created in 2016 to address corporate corruption and implement antibribery measures. The legislation took effect in 2017, marking a significant shift in the country’s regulatory compliance landscape. The law, which tracks closely with similar laws in the US, UK, and other EU countries, requires large companies [1] to implement a … Continue Reading

Federal Courts Continue to Grapple with Causation in Anti-Kickback-Based False Claims Act Cases

Courts around the country continue to disagree on the causation standard to be applied in False Claims Act cases based on alleged Anti-Kickback Statute violations.  Two recent federal district court decisions out of the District of Massachusetts add to differing conclusions on what the causation standard should be, i.e., “but-for,” “exposure,” or some other, less … Continue Reading

Recent Discover Lawsuits Provide Compliance Lessons

In September, a class action lawsuit (Mannacio v. Discover Financial Services, et al., No. 23-cv-06788 (N.D. Ill.)) was filed against Discover Financial Services (“Discover”) alleging Discover and certain current and/or former executives violated the Securities Exchange Act of 1934. Specifically, the class action complaint alleged that the defendants made false and/or misleading statements and/or failed … Continue Reading

DOJ Extends Self-Reporting and Cooperation Incentives To M&A Transactions

Under a new safe harbor policy announced by Deputy Attorney General Lisa Monaco on October 4, 2023, an acquiring company that discloses potential wrongdoing at a company being acquired within six months of the deal closing date—and fully cooperates and fixes the underlying problems within a year of closing—can presume it will not be criminally … Continue Reading

Less than Three Months Until FinCEN’s Beneficial Ownership Reporting Rule Takes Effect: Recent Corporate Transparency Act Developments

FinCEN’s beneficial ownership reporting rule takes effect on January 1, 2024.  This rule requires certain entities to file with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to … Continue Reading

FinCEN Penalizes Puerto Rican Bank for BSA Violations in First Enforcement Action Involving the “Gap Rule”

On September 15, 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) announced a $15 million civil money penalty against a Puerto Rican International Banking Entity (“IBE”), Bancrédito International Bank and Trust Corporation (“Bancrédito” or “the Bank”).  The public consent order details the Bank’s multiple violations of the Bank Secrecy Act (“BSA”), … Continue Reading

FCA Investigates Bank Account Closures, Including for PEP Customers

Following concerns raised by the government of the United Kingdom (“UK”) about freedom of expression and the provision of banking services, the UK’s financial watch dog, the Financial Conduct Authority (“FCA”), recently commenced an investigation into bank account closures.  This action follows in the wake of recent reports of banks allegedly closing customer accounts based … Continue Reading

New UAE Rule Regarding the Mandatory Attestation of Import Invoices Could Help Combat TBML

The United Arab Emirates (“UAE”) has recently implemented a new compliance requirement related to the international importation of goods.  Specifically, pursuant to UAE Cabinet Resolution No. 38 of 2022 on the Attestation of Documents, Commercial Invoices and Certificates of Origin at the Ministry of Foreign Affairs and International Cooperation (“MoFAIC”), all imports into the UAE … Continue Reading

DOJ’s Focus on Pandemic Relief Fraud Continues

The Department of Justice made a major announcement last week that demonstrates that it is serious about finding those who defraud various COVID-19 relief programs and holding them accountable to the fullest extent of the law. Over the course of the last three months alone, working in concert with numerous law enforcement partners, including the … Continue Reading

Can a Private Person Defraud the Public of Honest Services?

Last month in Percoco v. United States (U.S. May 11, 2023), the Supreme Court reversed the petitioner’s judgment of conviction for conspiracy to commit honest-services wire fraud for allegedly accepting $70,000 from a developer in return for asking a state agency to drop its labor peace agreement requirement. Joseph Percoco had previously served as Executive … Continue Reading

Rule 10b5-1 Application and Enforcement

On March 1, 2023, the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) demonstrated continued interest in investigating insider trading by company executives who possess material non-public information when they unsealed an indictment and filed a civil complaint, respectively, in the Central District of California. Though a Rule 10b5-1 plan—an investment device … Continue Reading

Healthcare Companies and Companies Doing Business with the US Government – Supreme Court Appears Likely to Clarify False Claims Act (FCA) Knowledge Requirements

The Supreme Court recently heard oral argument in the appeal of two False Claims Act (FCA) cases from the Seventh Circuit that called into question the level of intent, or scienter, required to establish corporate liability under the FCA for “knowingly” overbilling the government for goods or services.  The Court’s eventual decision may have widespread … Continue Reading

Updates to the Department of Justice Corporate Monitorship Policy: A Potential Increase in New Monitorships

At the American Bar Association’s 38th Annual National Institute on White Collar Crime, Assistant Attorney General (“AAG”) Kenneth A. Polite, Jr. announced the Department of Justice’s (“DOJ”) Revised Memorandum on Selection of Monitors in Criminal Division Matters (the “Revised Policy”), the culmination of a two-year process to revise and update policies regarding the selection, appointment … Continue Reading

DOJ Announces New Compensation Incentives and Clawbacks Pilot Program

As we recently discussed, the Department of Justice released new guidance covering a multitude of topics, including employees’ use of personal electronic devices and third-party messaging platforms, financial compensation incentives and clawbacks.  At the American Bar Association’s 38th Annual National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco announced the launch of the … Continue Reading
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