New FCPA Enforcement, but the Same Training Concepts Remain.

Question: What are the best topics to discuss when training on compliance and governance as we see new enforcement actions and guidance on the FCPA?

Answer:

With the halt to the FCPA earlier this year, a lot of compliance teams reached out with questions on what compliance topics remain relevant and top-of-mind with shifting policies. 

The shift in enforcement announced by the DOJ in June and the latest declination for FCPA violations announced in August conveyed that there are tried and true compliance topics that should continue to be enforced each and every year, throughout the year. And these should always be top-of-mind. 

As we see from the declination against Liberty Mutual, and from nearly all FCPA enforcement throughout the years, third parties were involved in a bribery scheme to influence government-owned banks in India.

When the bribery was discovered, Liberty Mutual went to the DOJ to share the wrongdoing and take proactive steps to eradicate the issue.

These are two very important topics that any good compliance training program should cover: third party risk and speaking up against wrongdoing.

Third parties pose the biggest risk for organizations in that they often resort to corrupt practices in order to win business. Employees must understand the risks when working with an outside entity, and understand that this trickles all the way through an organization's supply chain. Important red flags to know and understand when working with third parties is always an evergreen training topic. 

Going hand-in-hand with that very topic is speaking up. If an employee sees wrongdoing, or even suspects it, they must be trained on who to report to with their concerns, and how to report. 

No matter the geopolitical situation, the organizational shifts, or the changes in government leadership, these two topics remain steadfast in compliance. While risks may evolve and change, these subjects have always been a part of the nature of doing business.

To ensure that your organization remains ethical and is practicing good governance, train early and often on third party risks and speaking up against unethical behavior!

Blaise Stanicic

Associate Director, Compliance Training, TRACE