This week we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.

How can companies build trust and drive growth in a region as politically and economically volatile as Latin America? In this episode, Nicolas Garcia - Vice President, Legal, Regional and Compliance Manager for LATAM and Orica - joins Michael Volkov to discuss the complexities of navigating compliance and leadership in LATAM. The conversation highlights how regional dynamics, such as the crisis in Venezuela, influence business operations and how cultural shifts are changing the role of compliance officers. Nicolas provides valuable insights on the evolving compliance landscape, emphasizing the importance of trust, leadership, and a strong compliance culture in driving business success in challenging environments.

Listen in as Nicolas and Mike discuss:

• The ongoing political and economic crisis in Venezuela has led to massive immigration into neighboring countries like Colombia, Chile, and Brazil, creating both economic challenges and opportunities in the region.
• Guyana is experiencing rapid growth due to foreign investment, particularly in the oil and gas sectors, standing in stark contrast to Venezuela’s decline.
• Nicholas emphasizes the shift from compliance officers being seen as enforcers to becoming strategic business partners. This transition helps companies not only meet regulatory requirements but also drive success.
• Establishing a trust-based relationship between compliance officers and leadership is essential. When compliance is integrated into the business strategy, it becomes a tool for enabling growth rather than a barrier.
• Trust in reporting systems is growing in Latin America, though fear of retaliation remains a concern. Anonymous reporting is on the rise, and substantiation rates are increasing as employees gain confidence in the system’s integrity.
• Ensuring that investigations follow due process is critical to maintaining credibility in compliance programs. It also helps improve trust and the success rate in legal outcomes.

Nicolas Garcia on LinkedIn

Nicolas Garcia on Email: [email protected]

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

This week, we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.

Carlos Villagrán is the Director of Compliance at CMPC, a 100-year-old Chilean-based holding company, one of the worldwide leading pulp, paper, packaging, personal care, and other forest products manufacturers. With more than 20,000 employees, CMPC has industrial operations in 9 countries (LatAm and the US) and commercial offices in the US, Europe, and China, selling and distributing its products to more than 45 countries around the world. Carlos joined CMPC to remediate and rebuild CMPC's culture and compliance program after a devastating scandal -- CMPC was prosecuted for its involvement in a decade-long conspiracy to fix prices in Peru and Chile for consumer paper products. Carlos discusses the challenges he faced in rebuilding CMPA's culture and commitment to compliance. His story is an inspiration to all legal and compliance professionals and provides important instructive lessons to corporate leaders and compliance professionals.

You'll hear Michael and Carlos discuss:

• The importance of rebuilding and rediscovering the values and purpose of CMPC after a major corporate crisis.
• The effects on market share quotas and sales prices when CMPC faced an investigation and found to be the leader of a cartel in Chile and Peru.
• How the crisis significantly impacted CMPC's reputation, leading to public protests and consumer backlash in Chile and Peru.
• CMPC’s compliance team addressed the company’s complex nature because of its diverse workforce, including data analytics experts, IT professionals, and engineers.
• How the compliance program at CMPC shifted from a traditional approach to a more cultural and system-thinking perspective, aligning with the company's values and operations.
• Success for the compliance program at CMPC is defined by the number of critical tables the team is seated on, indicating their value and integration within the business operations.

Resources

Carlos Villagran on the Web | LinkedIn

Email: [email protected] or [email protected]

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

This week we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.

Have you heard of the recent controversies around Boeing 737 MAX and its safety? Have you wondered what is being done about the concerns around it? In this episode of Corruption, Crime, and Compliance, Michael Volkov delves into the latest developments in the Boeing 737 MAX case, highlighting the recent plea agreement proposed by the Department of Justice (DOJ). The Boeing 737 MAX case took another dramatic turn. On July 24, 2024, the Department of Justice filed with the United States District Court for the Northern District of Texas a proposed plea agreement with Boeing. Under the Plea Agreement, Boeing will plead guilty to the original Information filed in 2021 with the Deferred Prosecution Agreement ("DPA"). The discussion focuses on Boeing's alleged failure to implement adequate compliance measures, leading to significant risks and violations, and the ongoing legal and ethical implications of the case. Tune in to hear a detailed analysis of the complexities and legal ramifications of Boeing’s recent plea agreement and what it means for corporate compliance and accountability.

You’ll hear him talk about:

• Certification Issues: Boeing failed to ensure its 737 MAX certifications were accurate, risking false certifications to the FAA.
• DOJ Plea Deal: Boeing agreed to plead guilty to conspiracy to defraud the U.S., facing opposition from victims' families who find the resolution insufficient. The plea agreement, which has been filed under Federal Rule Criminal Procedure 11(c)(1)(C), requires the Court to approve and accept the deal. The Court can reject the plea deal and require the parties to renegotiate the terms.
• Victims’ Rights: The proposed resolution has been controversial because of the opposition of the families of the victims, who have opposed the plea agreement and general disposition of DOJ's investigation and prior resolutions as insufficient to vindicate the public interest and their rights as victims of Boeing's malfeasance
• Compliance Failures: Boeing breached its DPA by not implementing effective compliance controls, particularly in safety and quality processes.
• Independent Monitor: Boeing will be monitored for three years and must invest $455 million in compliance and safety improvements.
• Ongoing Challenges: Boeing’s anti-fraud measures still have gaps, with broader implications for industries where safety is critical.

Resources:

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

This week we are pleased to bring you one of our most popular episodes of 2024. Please enjoy, and we will be back next week with more insights from the Corruption, Crime, and Compliance podcast.

How do you manage risk when the vulnerabilities are outside your organization aren’t in your hands? In this episode of Corruption, Crime, and Compliance, we delve into the world of third-party risk management with our guest, Natalie Druckman, from Certa. As we discuss the regulatory landscape in EMEA and the US, Natalie highlights the higher regulatory burden faced by companies in EMEA, and how Certa uses AI to streamline workflows, provide intuitive data visualization, and enhance risk forecasting capabilities. AI is the future of third-party risk management, now and in the future.

• Cybersecurity has become one of the top concerns for organizations. In 2012, Target worked with a third-party vendor and, as a result, suffered an attack that exposed their customers’ credit data. Since then, compliance departments have started working closely with IT to prevent such vulnerabilities. 
• Unlike the US, EU companies don’t benefit from gaps created between state and federal regulations. EMEA faces a mandatory and substantial regulatory burden, particularly in areas like ESG and compliance. A forced labor scandal can sink a company, so ESG’s importance is on par with cyber security.
• Global companies are increasingly recognizing the importance of addressing ESG topics alongside cybersecurity and financial risks. ESG considerations, such as diversity, modern slavery, and gender pay gaps, have significant reputational and revenue impacts.
• AI is changing the world in many ways, including compliance. Certa aims to provide a comprehensive solution for third-party risk management, compliance, and operational risks by streamlining processes and incorporating AI capabilities to enhance efficiency and effectiveness.
• Certa utilizes various AI capabilities, including design AI, which allows users to create workflows using plain language. They don’t need to know anything about tech; they can simply dictate the process, and AI generates the necessary code and infrastructure for it. This allows the company to remain flexible and able to quickly adapt to change.
• Insights AI is another capability that collects and analyzes data, making it far more accessible and efficient in managing up-to-the-minute risks and developments. This technology also uses design AI, allowing for plain language inputs to immediately create actionable, detailed reports.
• Recall AI allows companies to guarantee rapid and consistent responses from suppliers and customers by recalling past interactions to create surveys, forms, workflows, and processes. This removes the back-and-forth burden on all parties while still retaining the human touch.
• Smaller and midsize companies should prioritize their risk management processes and consider automated solutions like Certa. These companies can benefit from the efficiency and effectiveness of an automated platform, regardless of their industry or size.

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Natalie Druckman on LinkedIn

Certa

Email Natalie: [email protected]

This week, we bring you a replay of one of our most impactful podcasts from last year, featuring Alex Cotoia and Daniela Melendez. Listen in as we discuss the EU Whistleblower Directive of October 2019. We'll return next week with one of our regular updates.

Directive 2019/1937 of the European Parliament and Council dated 23 October 2019 on the “protection of persons who report breaches of Union law” (the “Directive”) is currently being implemented by EU Member States. The directive has broad applicability to organizations operating in the EU internal market and applies to both public and private sector organizations alike. Whistleblowers are guaranteed legal protection to the extent: (1) they have reasonable grounds to believe that the information reported was true at the time of the report; and (2) the whistleblower reported either internally to the organization, externally to a competent authority, or publicly. Private sector organizations with 50 or more workers are legally required to establish channels and procedures for internal reporting of EU law breaches and conduct appropriate follow-up. 

In this episode, Mike Volkov is joined by Daniela Melendez and Alex Cotoia from the Volkov Law Group, who bring their expertise to the table as they delve into the EU Directive and its implementation by several member states. Listen to this discussion to understand and navigate the complexities of the EU Whistleblowing Directive.

• The EU Whistleblower Directive shifts the burden of proof on retaliatory actions to the person taking the detrimental action, requiring them to demonstrate it was not linked to reporting concerns.
• Global companies are taking a proactive stance by increasingly focusing on robust ethics and compliance programs. This strategic move is aimed at mitigating risks and promoting positive corporate citizenship in today's economy, where adherence to legal and ethical standards is paramount.
• France signed the EU Directive into law on March 21, 2022, outlining protocols for gathering and handling whistleblower reports, including a two-month deadline for imposing disciplinary sanctions.
• Germany enacted the EU Directive on May 12, 2023, allowing anonymous reports and setting a three-month investigation deadline after receiving the report.
• Spain addressed the EU Directive on February 2023 by covering additional topics like occupational health and safety breaches. The directive established a three-month deadline for investigations and allowed anonymous reports.
• Italy transposed the EU Directive on August 4, 2022, including administrative, financial, civil, and criminal offenses not covered by the Directive, with a 30-day deadline to conduct investigations upon receipt of reports.
• Companies are advised to make resources available to conduct investigations quickly due to the short timeframes set by various countries' whistleblower protection laws.

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Alex Cotoia on LinkedIn 

Email: [email protected]

Daniela Melendez on LinkedIn

Email: [email protected]

Is your company prepared for the compliance storm ahead? With tariffs shaking global trade, aggressive sanctions enforcement, and new risks from AI, businesses must rethink their strategies. Can your compliance program keep up, or will it be left scrambling?

In this episode of Corruption, Crime, and Compliance, Michael Volkov unpacks the rapidly shifting risk landscape facing businesses today. From trade compliance and supply chain disruptions to cybersecurity and government enforcement, he highlights the top legal and compliance challenges of the year and offers practical guidance on how companies can stay ahead. While the regulatory world is in flux, one thing remains certain—organizations that fail to adapt will face significant financial, legal, and reputational consequences.

You'll hear him discuss:

• The evolving trade landscape, including tariff enforcement, import risks, and the potential economic fallout of aggressive trade policies
• Why supply chain mapping is no longer optional, with companies needing to identify vulnerabilities, alternative sourcing strategies, and compliance risks to avoid costly disruptions
• How businesses should approach the FCPA enforcement pause, what it signals about the government’s priorities, and why global companies remain committed to anti-corruption programs
• Why compliance teams must elevate import control and export control programs, particularly as the US expands restrictions on advanced computing, AI, and semiconductor exports
• How transnational criminal organizations are infiltrating legitimate supply chains for money laundering, and what companies must do to strengthen their due diligence efforts
• The importance of a strong compliance culture in a time of regulatory uncertainty—how companies can remain flexible, proactive, and aligned with their core values despite the shifting landscape

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

Are You Ready for the Next Wave of Corporate Risk? Corporate risks are shifting, and every board, C-suite, and compliance team must take a fresh look at their risk landscape. While some risks like cybersecurity, data privacy, and artificial intelligence remain high priorities, others—such as anti-corruption and antitrust enforcement—are evolving in unexpected ways. With regulatory changes and new enforcement priorities emerging, businesses must stay ahead of the curve to avoid costly missteps. In this episode of Corruption, Crime & Compliance, Michael Volkov unpacks the latest updates in FCPA enforcement, antitrust scrutiny, and trade compliance. With the DOJ shifting its focus, companies need to prepare for the new compliance reality.

You'll Hear Him Discuss:

• Why companies must reassess their risk priorities in today’s unpredictable business environment, as corporate risks continue to shift in response to new regulatory and enforcement trends.
• The impact of the FCPA enforcement pause, what it really means for global businesses, and why companies cannot afford to dismantle their anti-corruption programs despite the temporary halt in enforcement.
• How the DOJ is shifting its focus toward prosecuting criminal cartels and transnational organizations, and what that means for businesses operating in high-risk regions or industries.
• The evolving landscape of antitrust enforcement, including key takeaways from Gail Slater’s confirmation hearing and how the administration’s new approach may impact high-tech competition cases.
• How businesses should prepare for heightened tariffs, trade compliance risks, and increased customs enforcement, particularly as the U.S. targets imports from China, Southeast Asia, Mexico, and Canada.
• Why workplace immigration enforcement is becoming a bigger concern, with the government ramping up workplace raids, audits, and compliance checks for companies employing immigrant workers.
• The growing scrutiny around government grants, the potential for fraud investigations, and how businesses receiving federal funds must ensure strict compliance with evolving regulatory requirements.

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

What happens when an entire era of anti-corruption enforcement is put on pause? Is this a strategic move to bolster American businesses or a dangerous rollback of corporate accountability? In an unprecedented move, the Trump administration has hit the brakes on FCPA enforcement for at least 180 days, citing concerns over U.S. economic competitiveness and national security. In this episode of Corruption, Crime, and Compliance, Michael Volkov breaks down the implications of this game-changing executive order. The executive order claims that FCPA enforcement has been stretched beyond its original intent, harming American businesses while benefiting foreign competitors. With the Department of Justice now ordered to reassess its approach to anti-bribery enforcement, the business and legal communities are left wondering—what happens next? Will companies adjust their compliance strategies, or will global enforcement trends keep them in check?

You'll hear him discuss:

• The Trump administration’s rationale for halting FCPA enforcement and why the decision was both surprising and expected
• The executive order’s directive to the Attorney General to reassess FCPA investigations and enforcement priorities
• The shift in DOJ focus from corporate bribery cases to prosecuting cartels and transnational criminal organizations
• The potential impact on global anti-corruption efforts, as countries like the UK, France, and Brazil continue enforcing their own bribery laws
• The uncertainty surrounding DOJ’s forthcoming guidance and what companies should anticipate in the next 180 days
• The broader implications for corporate compliance programs, risk assessments, and international business strategy
• The historical context of past efforts to reform the FCPA and why similar arguments were made over a decade ago
• The potential for companies to seek remedial measures for past FCPA enforcement actions and the challenges in implementing such a policy
• How this shift in enforcement priorities may affect corporate ethics, internal investigations, and global compliance expectations

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

How do sanctioned Russian oligarchs continue to move their wealth despite international restrictions? The answer lies in real estate, shell companies, and complicit gatekeepers. In this episode of Corruption, Crime, and Compliance, Michael Volkov dives into one of the latest OFAC enforcement actions against Family International and its owner, Roman Sinyavsky, for facilitating sanctions evasion on behalf of Russian oligarchs. Through complex real estate transactions, Sinyavsky helped conceal luxury properties owned by Valeri Abramov and Viktor Perevalov, allowing them to continue generating revenue despite U.S. sanctions. This case highlights the growing risk of financial crime in the real estate sector and the increasing scrutiny on those who enable it.

You'll hear him discuss:

• The $1.07 million OFAC settlement and the criminal charges against Roman Sinyavsky for sanctions evasion and money laundering
• How sanctioned Russian oligarchs used non-sanctioned family members and shell companies to obscure their ownership of U.S. properties
• The key role of real estate professionals, lawyers, and financial advisors in facilitating these schemes and why they should have raised red flags
• The use of text messages as critical evidence proving intent and knowledge of sanctions violations
• The specific techniques used to transfer property ownership and avoid detection by authorities
• The increasing enforcement focus on commercial and residential real estate transactions as a high-risk area for financial crime
• Predictions for 2024, including tighter sanctions enforcement on Russia and Iran and what it means for businesses and compliance professionals

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

The 1990s saw the explosion of the internet, transforming the global economy and social development in ways we could have never imagined. But will AI truly have the same impact? While its potential is undeniable, the road ahead is full of risks, challenges, and ethical concerns. Will AI drive efficiency and innovation, or will it create new vulnerabilities that companies must scramble to control?

In this episode of Corruption, Crime, and Compliance, Michael Volkov dives deep into the legal, ethical, and compliance challenges surrounding AI. He explores how businesses are navigating AI adoption, the risks they face, and the safeguards they must implement to protect themselves.

You’ll hear him discuss:

• Why AI’s economic impact, while significant, may not match the transformative power of the internet
• Goldman Sachs’ prediction that AI could add $7 trillion to global GDP over the next decade
• The massive investments required to scale AI, from semiconductors and data centers to energy and infrastructure
• How generative AI is reshaping industries by creating human-like content with limitless applications
• The hidden dangers of AI, including misinformation, deepfakes, fraud, and identity theft risks
• Why businesses are cautiously adopting AI while grappling with privacy, copyright, and security concerns
• The importance of AI compliance programs to mitigate legal, ethical, and reputational risks
• Best practices for companies to ensure AI-generated content is accurate, transparent, and responsibly used

Resources

Michael Volkov on LinkedIn | X (Twitter)

The Volkov Law Group