Compliance Insider

Issue 11 > Compliance Alerts

Smith and Wesson settle with SEC

Smith and Wesson have paid US$2 million to the Securities and Exchange Commission (SEC) to settle an investigation into allegations of foreign bribery. The SEC alleged that the firearms manufacturer's sales staff made illegal payments or gave gifts to government officials to secure new business in Pakistan, Indonesia and other foreign countries.

Issue 11 > Compliance Alerts

Microsoft China's latest antitrust target

Microsoft is China's latest target as it continues to crackdown on antitrust practices amongst foreign companies. Officials from the State Administration for Industry and Commerce (SAIC) visited Microsoft's local offices on Monday.

Issue 11 > Compliance Alerts

Public servant accepted bribes for contracts

Two Australian public servants based in Victoria are being investigated for accepting bribes in exchange for awarding US$25 million in contracts. Barry Wells and Albert Ooi allegedly granted contracts in exchange for cash as well as giving Public Transport Contracts to companies they owned.

Issue 11 > Compliance Alerts

FA asks FIFA for Qatar report

The English Football Association have said that FIFA should publish the report on Qatar's 2022 world cup bid, although it downplayed comment on Russia's 2018 bid due to mounting political tension with Russia over Ukraine.

Issue 11 > Compliance Alerts

Indian healthcare exposed by TV

A television programme in India has prompted investigations into the healthcare system after it revealed doctors might be taking kickbacks for referring patients for medical tests. Hindi news channel New Nation TV showed laboratories offering commissions as high as 50% to doctors who referred patients to their diagnostic centres.

Issue 11 > Compliance Alerts

Wall Street systematically silences whistleblowers

Companies on Wall Street are systematically undermining the Securities and Exchange Commission (SEC) by silencing whistleblowers. As the SEC seeks to strengthen the Dodd Frank whistleblowing provisions, companies are intentionally doing the opposite.

Issue 11 > Compliance Alerts

British companies ignorant of supply chain sources

British companies have poor knowledge of their supply chains and are not set to change their ways despite previous scandals and slavery risks. The Chartered Institute of Purchasing and Supply (CIPS) conducted a survey to which almost three quarters of supply chain professionals admitted to having zero visibility of their supply chain.

Issue 11 > Compliance Alerts

Guilty pleas from executives of Seafood company

Two executives of a New York-based fish company have pleaded guilty to fraud, falsifying records and violation of the Lacey Act. The company has also pleaded guilty to the same charges.

Issue 11 > Compliance Alerts

Swiss bank probed for wooing Gadhafi

United States and United Kingdom authorities have opened a probe into a Swiss bank amid suspicions that it bribed Gadhafi's government in a variety of ways. Tradition Finance Services of Switzerland is accused of employing relatives of Gadhafi's government, paying for luxury travel expenses and funding days by the poolside and nights partying, all in an attempt to obtain business from the Libyan government.

Issue 11 > Compliance Alerts

TV anchor arrests as China's crackdown continues

A television anchor for China's state run China Central Television (CCTV) has been detained as the Government's anti-corruption campaign widens. The host of financial programmes on CCTV Rui Chenggang was arrested prosecutors on Friday evening. CCTV's vice-director for financial news Li Yong was also detained.

Issue 11 > Compliance Alerts

DNA probes German company for bribing Romanian officials

The National Anti-corruption Directorate has opened a probe against German company EADS Deutschland GmbH as large amounts of money allegedly were given as bribes in exchange for a contract worth 534 million Euros.

Issue 11 > Spotlights

Moving compliance to an international standard: The move to ISO 19600

All companies have obligations placed upon them with which they should comply. These obligations can come from a number of directions – whether imposed by governments in the locations in which they operate, regulators for their industry, or obligations that they choose to measure themselves against. When dealing with this multitude of obligations, it is very easy to get lost in the detail of the specific requirements or to shift your focus to whatever the hottest topic is with management or generally in the industry.

Issue 11 > Due Diligence Handbook

Resources required for a third party compliance programme

When The Red Flag Group is assisting companies to roll out third party compliance programmes, the firm is often asked which resources will be required to oversee and maintain those programmes. The answer to this question is quite complex and depends on the type of company and the way it is structured. It also depends on the type of due diligence each company is conducting and the volume of the installed due diligence base. There are, however, some key commonalities between all companies that build and roll out their programmes, which can provide a rough guide on the number of resources required.

Issue 11 > Compliance Alerts

Ten recent cases and developments that compliance officers should be aware of

This section analyses the latest high-profile cases and enforcement of new laws and regulations, and guides readers on the steps they should take to protect their organisations from any risks.

Issue 11 > Country Focus

Hong Kong prepares for competition

Momentum is gathering for Hong Kong’s newly-established Competition Commission with the appointments of new executive staff. One of these new staff, Senior Executive Director Rose Webb, spoke with The Red Flag Group’s senior consultant Mary Shirley about the Competition Commission’s initiatives.

Issue 10 > Compliance Alerts

EU adds names to Russian sanctions list as US senators threaten further sanctions

The European Union has imposed asset freezes and travel bans on an additional 11 individuals for participating in the pro-Russian insurgency in eastern Ukraine. This follows similar EU sanctions imposed on 61 people and two companies for participating in the armed rebellion against the Ukrainian Government or Russia’s occupation and annexation of the Crimean Peninsula.

Issue 10 > Compliance Alerts

US Navy bribery case secures another guilty plea

A retired United States navy official has pleaded guilty to conspiracy charges connected to a wider corruption investigation of a Singapore-based defence contractor. Glenn Defense Marine Asia's (GDMA) former manager of operations in Japan, Edmond Aruffo, pleaded guilty to conspiring with others in 2009 and 2010 to submit false invoices that cost the United States Navy US$20 million.

Issue 10 > Compliance Alerts

Biomet subpoenaed over South American FCPA settlement violations

The Securities and Exchange Commission issued a subpoena last week requiring orthopaedic manufacturer Biomet to produce documents relating to “certain alleged improprieties” in the company’s Brazilian and Mexican operations.

Issue 10 > Compliance Alerts

China corruption purge nets most powerful tiger to date

China’s ruling Communist Party has expelled former military leader General Xu Caihou, and accused him of handing out promotions in exchange for bribes. The Party’s Central Committee made the announcement earlier this week following a meeting of the politburo, with the case now referred to prosecutors.

Issue 10 > Compliance Alerts

Myanmar targets all forms of corruption with law amendment

Myanmar’s Pyithu Hluttaw, or House of Representatives, has amended the country’s anti-corruption legislation in an attempt to tackle the escalating problem of corruption. Sponsored by Khin Maung Shwe, the lower house Member of Parliament for Tamu constituency, the amendment saw a change in the wording from ‘bribery’ to ‘corruption’.

Issue 10 > Compliance Alerts

SFO investigation concludes with Innospec convictions

A jury in London has found two former executives of Innospec Specialty Chemicals guilty of conspiracy to corrupt for giving or agreeing to give bribes to Indonesian public officials for government contracts to supply a chemical the company produces. The convictions bring to an end a six-year investigation by the United Kingdom’s Serious Fraud Office (SFO) into the specialty chemical company formerly known as Octel Corporation and Associated Octel Company.

Issue 10 > Compliance Alerts

Israeli port probe widens

The police investigation into bribery and corruption at Ashdod Port in Israel has widened with the arrest and detention of 15 port executives, including union chairman Alon Hassan, and affiliated private companies. The arrests follow the recent questioning of former Israel Defence Forces (IDF) chief and former chairman of oil and gas company Shemen Oil & Gas Resources Gabi Ashkenazi.

Issue 10 > Compliance Alerts

Deutsche Bank investigated for hiring policy

Deutsche Bank has confirmed it is being investigated for its China-related hiring practices in documents relating to its recent US$9.19 billion rights offering. In doing so, it becomes the latest financial institution to be subject to the probe, by unnamed regulators, into whether the children of government officials were hired in return for favours.

Issue 10 > Compliance Alerts

Compliance defeating warlords in the Congo

Warlords in the Democratic Republic of Congo (DRC) have lost their grip on most of the country’s mines and lucrative conflict minerals. That was the finding of an investigation by anti-genocide campaign group the Enough Project, which concluded that compliance with a 2010 US law – brought in under the Dodd-Frank Financial Reform Act – was partly responsible.