Jun. 19, 2024

The Price Is Right? How DOJ’s New Whistleblower and NPA Policies Could Bring Unexpected Costs

The DOJ recently created significant new incentives to encourage more individuals to self-report and to help the DOJ develop more corporate cases for prosecution. The new policies, however, may bring unintended consequences that could both complicate government enforcement efforts and hamper the ability of corporate compliance programs to self-police and remediate misconduct within a company. In this article, Vinson & Elkins attorneys unpack the DOJ’s new whistleblower and non-prosecution agreement policies for self-reporting and identify areas of concern that corporate compliance officers will be forced to navigate in the evolving landscape. See “FCPA Enforcement, Changes in 2023 Foretell a Busy Year Ahead” (Jan. 17, 2024).

Answers to Top Questions About the E.U. AI Act: Practical Steps and What’s Next

The recently approved European Regulation on Artificial Intelligence, or E.U. AI Act (Act) will affect companies around the world that interact with Europeans. Imposing novel and hefty obligations, the Act has spurred unease among compliance teams, but companies are shifting to “make sense of it and make a success of it,” International Association of Privacy Professionals director of research and insights Joe Jones told the Anti-Corruption Report. This final article in a series about the landmark Act outlines initial steps and guideposts for companies as they work to satisfy its requirements. Part one delved into the law’s scope, its categorizations of providers and deployers, and provisions affecting generative AI. Part two examined how the Act treats companies’ internal AI use, risk tiers and corresponding obligations. See “Thoughts From DOJ Experts on Using Data Analytics to Strengthen Compliance Programs” (May 22, 2024).

How a New Law and Recent Settlements Paint a Tough Sanctions Enforcement Picture

Recent developments regarding sanctions enforcement by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) illustrate continued emphasis on Russia, Iran and China. President Joe Biden signed the National Security Supplemental, H.R. 815, on April 24, 2024. The law doubled to 10 years the statute of limitations for sanctions violations. In addition, it calls on the president – in or around July 2024 – to impose sanctions on entities already sanctioned by the country’s European allies. Recent months saw several settlements by OFAC over sanctions violations. See “Five Ways to Use Existing Resources to Meet Sanctions and Export Control Compliance Needs” (Apr. 10, 2024).

Insights From Albemarle and JBS Compliance Insiders About Upscaling Compliance After a Settlement

When a company settles an FCPA issue with the DOJ and SEC, one of the top priorities – both for the company and the government – is to make compliance improvements to help prevent future issues. But the remediation road can be tricky and is different for every company. The cooperation and remediation efforts that led to a three-year non-prosecution agreement  for Albemarle Corporation (Albemarle) and to completion of a three-year cooperation plea agreement for Brazilian-based J&F Investimentos S.A. (J&F) and its subsidiary JBS S.A. (collectively JBS), were the subject of two engaging fireside chats at Compliance Week’s 19th annual national conference in Washington, D.C., in April 2024. This article distills some of the insights and lessons learned from guest speakers Andrew McBride, Albemarle’s former chief risk & compliance officer, and Michael Koenig, JBS’s global chief ethics & compliance officer. For more insights from the conference, see “Embedding Compliance Across the ESG Value Chain” (May 8, 2024); and “In-House Perspectives on Compliance’s Role in Managing New and Emerging Risks” (May 22, 2024).

U.S. Trade Remedies Are Put to the Test by Forced Labor and Foreign Subsidies

In the careful dance between foreign importation and domestic manufacturing, American trade laws aim to play a beat everyone can keep up with, an especially challenging duet if the international goods are produced using forced labor or are thought to be harming competition in the U.S. In a recent discussion on trade remedy enforcement hosted by Mondaq, Matthew Nicely, a partner at Akin Gump, and Brooke Davies, a former associate with the firm who is now a legal, markets and operations officer at CarbonPool, a carbon credit insurance company, discussed the importance of managing the risks associated with anti-dumping and countervailing duties orders, as well as forced labor concerns. See “Uyghur Forced Labor Prevention Act Brings New Requirements for Supply-Chain Compliance” (Jan. 19, 2022).

Dorsey Welcomes White-Collar and Regulatory Compliance Partner in D.C.

Margot Laporte has joined Dorsey & Whitney as a partner in the firm’s government solutions and investigations group in Washington, D.C. She arrives from Miller & Chevalier. For commentary from Laporte, see “Five Takeaways From Congress’ Codification and Extension of SEC’s Disgorgement Authority” (Feb. 3, 2021).

Former U.S. Attorney Returns to Winston & Strawn As Litigation Partner

Winston & Strawn announced that Marc Krickbaum has rejoined the firm’s Chicago office as a partner in the litigation department and a member of the government investigations, enforcement & compliance practice. He most recently served as Deputy Special Counsel at the DOJ. For insights from Winston & Strawn, see “DOJ, Private Practitioners and Past Monitors Discuss Best Practices and Trends in Corporate Monitorships” (Nov. 9, 2022).