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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
There has been no shortage of news this month, so it is understandable that a major presidential proposal garnered relatively little attention at the time. On March 2, the President proposed a sweeping pandemic anti-fraud initiative that is designed to give key oversight bodies additional tools to investigate and prosecute those who defraud the pandemic … Continue Reading
On Friday, March 3, 2023, the DOJ released its updated Evaluation of Corporate Compliance Programs, which included new guidance on ephemeral messaging platforms and other issues. This new guidance was released contemporaneously with Assistant Attorney General Kenneth A. Polite, Jr.’s (‘Polite”) speech at the American Bar Association’s (“ABA”) 38th Annual National Institute on White Collar … Continue Reading
On March 2, 2023, the Department of Justice announced several new initiatives that prioritize the investigation and enforcement of economic sanctions evasion, export control violations, and similar economic crimes. Deputy Attorney General Lisa Monaco announced a “surge of resources to address a troubling trend: the intersection of corporate crime and national security.” In particular, DOJ’s … Continue Reading
About this time last year, we offered some insight on Economic Espionage and Theft of Trade Secrets, which included a primer on economic espionage, case examples, and avoidance strategies. We observed that “[w]hile the Office of the Director of National Intelligence has identified China, Russia, and Iran as the three states most capable of committing … Continue Reading
The Consolidated Appropriations Act, 2023 amended the Bank Secrecy Act’s whistleblower provisions, setting a floor on the monetary award a whistleblower may receive, allowing whistleblowers to receive awards relating to successful enforcement of certain economic sanctions statutes such as the International Emergency Economic Powers Act, and establishing a fund from which to pay whistleblowers. Following … Continue Reading
On January 17, 2023, Assistant Attorney General for the Criminal Division (“AAG”) Kenneth A. Polite, Jr. announced significant revisions to the U.S. Department of Justice, Criminal Division, corporate criminal enforcement policy (“CEP”).[1] The new CEP changes offer additional incentives to companies for voluntary self-disclosures, cooperation, and remediation. The new CEP reflects an increased emphasis on … Continue Reading
This month, the 118th Congress convened in Washington, D.C., ushering in a return to divided government. Republicans now hold a narrow majority in the House of Representatives, while Democrats have retained their slim Senate majority. With few opportunities likely for bipartisan compromise, Congress is expected to engage in more frequent and more partisan congressional investigations. … Continue Reading
