Compliance Insider

Issue 15 > Compliance Alerts

SFO fined for data breach, shows training is important at every level

The United Kingdom Serious Fraud Office (SFO) will pay an £180,000 fine (approximately US$266,000) after an inexperienced staff member accidently sent thousands of documents of evidence in a high-profile bribery scandal to a witness. The evidence contained the personal information of 64 people. The witness informed the SFO of its mistake only to have more evidence sent to him a few months later. The Information Commissioner’s Office (ICO) has attributed the mishap to a “relatively inexperienced” temporary worker, and the SFO has said it has subsequently “substantially overhauled its procedures”.

Issue 15 > Compliance Alerts

Second CBA IT executive hands himself into police

A second Commonwealth Bank of Australia (CBA) IT executive has handed himself into the New South Wales police and has been charged for an alleged multi-million-dollar bribery scandal. The charges follow that of Keith Hunter, who allegedly accepted bribes in exchange for offering contracts to an American based company. The police thought that Hunter had worked with another conspirator to award “lucrative” contracts to an overseas technology firm without putting them out to tender

Issue 15 > Compliance Alerts

Twitch warns of data breach

Live streaming company Twitch has warned users that their privacy may have been breached, and names and email addresses may have been compromised. The company posted a blog this week announcing the potential ‘unauthorized access’, but failed to say how many accounts could have been impacted. Although the breach has not yet been confirmed, Twitch is expiring passwords. This means users will be required to change their passwords when they next try and login to their accounts, and they are also being encouraged to change information used on other accounts with similar passwords. Twitch has disconnected users’ accounts from Twitter and Youtube.

Issue 15 > Compliance Alerts

Lack of training sees Schlumberger pay US$233 million for violating sanctions

Schlumberger Oilfield Holding (SOHL) has agreed to pay approximately US$233 million as part of a guilty plea for engaging in business with Iran and Sudan. The violations are a result of a lack of training coupled with deliberate attempts to circumvent sanctions laws. SOHL has also said that it will submit to a three year period of corporate probation and will cooperate with the government. As part of the plea, SOHL’s parent company Schlumberger agreed to maintain a cessation on business with Iran or Sudan, report on its compliance with sanctions, disclose information upon request from United States authorities about its compliance with sanctions and hire an independent third party to examine the company’s internal policies.

Issue 15 > Compliance Alerts

Tinder prank exposes security lapse

A prankster exposed a lapse in security on the dating app Tinder by creating fake accounts to match with men. Instead of sending messages to women as intended, men were sending messages to fake accounts and then having their messages sent to other straight men’s accounts, so effectively they were flirting with each other while the prankster acted as a middle man. The person responsible has identified himself as a man called Patrick and cited his motivation as an attempt to highlight the unsavoury messages men send to women on Tinder.

Issue 15 > Spotlights

The ever-increasing profile of the compliance officer

A recent lawsuit in the United States finance sector has raised the prospect of individual compliance officers being held responsible for the failings of a compliance programme. Compliance Insider® considers the measures officers can take to minimise personal liability, as well as the implications for companies.

Issue 14 > Compliance Alerts

No business as usual for Nepal FA during FIFA investigation

The president of the Nepal Football Association (ANFA) has voluntarily agreed to stand down from his position for an additional 90 days while FIFA continues to investigate corruption allegations. Ganesh Thapa had already been absent from his post for 120 days as the football world governing body conducted the probe. The additional period will mean that he now misses next month’s Asian Football Confederation congress in Bahrain, during which a full-time regional replacement will be voted on and sought.

Issue 14 > Compliance Alerts

European Commission likely to file antitrust charges against Google

The European Commission (EC) is expected to imminently file formal charges against Google for antitrust violations. The news follows this week’s revelations in a leaked report from the United States Federal Trade Commission (FTC) that FTC staffers wanted to sue Google for abusing its monopoly power after the Commission’s own probe into the search engine company in 2012. They alleged that Google threatened to remove websites from its search if companies such as Amazon and Yelp refused to let it use their content. Google ultimately made some changes and the FTC voted unanimously against bringing charges.

Issue 15 > Case Study

OECD Report reveals dominant role of intermediaries

The OECD Foreign Bribery Report has found that third-party intermediaries such as agents, distributors and brokers, and even corporate vehicles such as subsidiaries, offshore tax shelters and consulting firms, are often involved in bribery. This was just one of a number of surprising results.

Issue 14 > Compliance Alerts

OECD urges Greek government to enact whistleblower law

The Organisation for Economic Co-operation and Development (OECD) has released a report urging the Greek government to do more to combat foreign bribery by Greek companies. In the report, the international economic organisation alleges that government investigations into cases of overseas corruption lack thoroughness, and that the authorities are failing to promote awareness of foreign bribery. As a remedy, it suggests the introduction of a whistleblower law in order to help uncover more corruption by Greek companies overseas.

Issue 15 > Industry Interview

Pharmas seek local Russian intelligence

The Russian pharmaceutical sector has attracted significant international investment in recent years as it becomes less reliant on foreign imports. But this has exposed international pharma companies to an array of local risks that demand enhanced due diligence on third-party manufacturers and distributors, among others.

Issue 15 > Country Focus

Caviar diplomacy symptomatic of wider Azerbaijani concerns

Azerbaijan has been talked about in investment circles as ‘the new Dubai’ because of its oil and gas riches. Yet widespread corruption, poor enforcement and a poor human-rights record is continuing to deter many foreign investors.

Issue 15 > World Watch

What continued Russian sanctions mean for compliance

Despite French President François Hollande’s January calls to scale back sanctions, and the uncertain position of Greece as a result of its recent change in government, the European Union has extended its existing sanctions measures against Russia until September this year. While sanctions remain, compliance programmes must not be static; effective sanctions compliance should be a day-to-day job that encompasses fluidity and continuous monitoring.

Issue 14 > Compliance Alerts

United States government seeks user info without a warrant

A new bill in the United States may allow the federal government to collect user information from companies such as Google and Facebook without a warrant. The Senate Intelligence Committee has approved the Cyber Information Sharing Act (CISA), which ‘encourages’ companies to share information with the federal government with minimal oversight. A draft version of the bill was passed by a vote of 14 to 1 in the closed-door hearing, with the Committee now sending the bill on for a final vote.

Issue 14 > Compliance Alerts

Algerian company C-suite investigation suggests missing tone at the top

A former chief executive officer of an Algerian state-owned oil company, together with a number of former senior company officials, has gone on trial in the North African nation for alleged corruption involving foreign suppliers. The charges against the 19 defendants include granting privileges to third parties, increasing the price of contracts with a state company, embezzlement, money laundering and corruption. The case against Sonatrach is just one of many against the state-owned company, but comes at a particularly sensitive time with the fall in oil prices and the reduction in foreign interest in Algeria’s offer to develop new fields.

Issue 14 > Compliance Alerts

New York bus tour JV settles antitrust allegations

The United States Department of Justice has announced that two bus tour companies have agreed to settle allegations that their joint venture violated antitrust laws. Two of New York’s largest bus tour companies, Coach USA and City Sights, joined together to allegedly form a monopoly and increase the price of hop-on, hop-off bus tours. The two companies have agreed to relinquish all of City Sights’s Manhattan bus stop authorisations and disgorge US$7.5 million in ill-gotten profits.

Issue 14 > Compliance Alerts

Corruption suspected in Indonesian hangar collapse

Indonesian police believe that the collapse of a hangar at Sultan Hasanuddin International Airport in Makassar, Indonesia, which killed five workers, may have been the result of corruption. South Sulawesi Police detectives said that the hangar project, which was still under construction at the time of the collapse, was not in line with the Rp 46.2 billion (US$3.5 million) state budget agreed between the contractor and the country’s Transportation Ministry.

Issue 14 > Compliance Alerts

EU Parliament pushes for Google antitrust resolution

Members of the European Parliament (MEPs) have voted in favour of bringing the European Commission’s (EC’s) four-year antitrust investigation into the search practices of Google to a conclusion. A large majority of Parliament members voted to adopt a report on EU competition policy that urges a speedy resolution to the probe, amid fears that the EC might otherwise lose credibility on digital issues. The final vote count registered 526 MEPs in favour, 108 against, while 59 abstained.