Corruption Crime & Compliance

Compliance professionals are learning about new technologies that are quickly evolving to aid the compliance function.  We hear regularly about the promise of artificial intelligence and block chain technology.  These new developments will have a significant impact on compliance.  But for now there are other areas where technology can help compliance programs today, including automation, data collection and analytics and monitoring capabilities. In this episode, Michael Volkov discusses the technology horizon and practical steps that can be taken today to leverage compliance program activities using technology.

Research has consistently demonstrated that an ethical corporate culture results in increased profits and sustainable growth.  Companies with a positive culture have lower rates of employee misconduct, increased employee productivity, and lower employee turnover.  All of these factors lead to higher growth rates, improved employee morale, and a reduced risk of misconduct and government investigation. This basic premise holds true: when ethical values are embedded in a company’s culture, respected in the company’s day-to-day operations and decision-making, and reflected in the trust among managers and employees, the company’s financial performance improves. While the value of a strong corporate culture is clear, a positive corporate culture does not always develop organically.  Companies have to devote attention to measure, manage, and promote an ethical culture.  Culture is a critical element of a compliance program and should be managed as such. In this episode, Michael Volkov discusses how to conduct a corporate culture assessment.    

Tom Fox is a thought leader for the ethics and compliance profession.  He is a prolific writer who has produced a steady body of work -- podcasts, books, blogs, articles -- to advance the compliance function.  He is knowledgeable, practical and insightful on how to implement and maintain an effective compliance program. Tom has just released a new and important book -- The Complete Compliance Handbook.  His latest book is the culmination of years of writing, insights and leadership. In this episode, Mike Volkov interviews Tom about his new book, his perspective on the compliance function and the insights he has gained over the years. To purchase a copy of The Complete Compliance Handbook on Amazon.com click here. To purchase an autographed copy of The Complete Compliance Handbook from the author click here.  

Special Counsel Mueller's investigation of possible connections between the Trump campaign and Russia has been dominating the country's attention.  in recent weeks, the US Attorney's separate investigation of Michael Cohen's activities has been gaining attention as well.  These two significant investigations are moving at a rapid pace with new developments each day. Michael Volkov discusses these investigations and provides his insights as a former prosecutor as to the likely course of the investigations and current topics of interest.

Two recent ethics and compliance surveys and studies provide important information on ethics and compliance program trends.  The first is LRN’s 2018 Ethics and Compliance Program Effectiveness Report.  The second is the Ethics and Compliance Initiative Global Business Ethics Survey. In this episode, Michael Volkov reviews the two surveys and studies and the implications for ethics and compliance program practitioners.  

When a company learns that the government is investigating the company's activities, a company has to move quickly to respond to the government and engage prosecutors about the investigation.  Depending on how the company learns about the government investigation, the company's strategy and immediate steps may differ. Once the company learns it is under investigation, the company has to collect information about the activity and business segment that may be under investigation.   In this episode, Michael Volkov outlines strategies for responding to government investigations.

In the early part of 2018, the Justice Department brought two significant AML criminal enforcement actions against US Bancorp and Rabobank, respectively. These two cases, coupled with the new beneficial ownership regulations effective May 11, 2018, raise significant changes in the AML compliance and enforcement landscape.  In addition, the SEC and FINRA brought an important civil AML enforcement action against Aegis Corporation and three individuals, two of whom were compliance officers at the broker-dealer.   In this episode, Michael Volkov discusses recent AML compliance trends and AML enforcement actions.  

On August 9, 2018, FBI agents executed search warrants at Michael Cohen's office, hotel, residence, safety deposit box and electronic devices.  Since then, we learned that the US Attorney's Office in New York City have an ongoing criminal investigation against Michael Cohen.  The full scope of this investigation has yet to be disclosed but it is clear that Cohen will face significant and serious charges. In this episode, Michael Volkov discusses the Cohen criminal investigation and the execution of the search warrants.      

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As part of the aggressive enforcement of white collar crime cases, federal  law enforcement officers are executing more search warrants at company offices.  Companies should plan in advance for such an event.  A company can learn valuable information about an ongoing investigation.  Just as important, company officials have to preserve and assert objections when federal agents conduct a search. In this episode, Michael Volkov outlines ten important steps companies have to take to prepare for execution of a search warrant.