Foreign Corrupt Practices Act & Anti-Corruption

SFO fines FH Bertling Ltd over $1 million for bribery scheme

On June 3, the UK Serious Fraud Office (SFO) announced that it had fined FH Bertling Ltd £850,000 (approximately $1.08 million) for bribes paid to secure contracts in Angola. The SFO started investigating FH Bertling in September 2014 and announced in July 2016 that it had charged the company and...

UK Serious Fraud Office, Anti-Corruption, Bribery

Executive pleads guilty in PDVSA bribery case

On May 29, the DOJ announced that Jose Manuel Gonzalez Testino, a dual U.S.-Venezuelan citizen, pleaded guilty for his role in a bribery scheme involving Petróleos de Venezuela, S.A. (PDVSA) officials. Gonzalez pleaded guilty in the Southern District of Texas to conspiracy to violate the FCPA,...

DOJ, FCPA, Bribery, Petroleos de Venezuela

Hawaii man sentenced to 30 months for bribery conspiracy

On May 13, a Hawaiian businessman was sentenced to 30 months imprisonment to be followed by three years of supervised release after pleading guilty in January to a charge of conspiracy to bribe a Micronesian official in violation of the FCPA. The DOJ alleged that the businessman’s consulting...

FCPA, Bribery

Brazilian telecom settles World Cup ticket bribery charges for $4.125 million

On May 9, Telefônica Brazil S.A. settled SEC charges that it spent $621,756 on 2014 World Cup tickets and hospitality for Brazilian and foreign government officials. The company will pay $4.125 to settle SEC claims that it violated internal accounting controls and recordkeeping requirements...

SEC

OFAC imposes additional oil sector sanctions connected to Venezuela’s defense and intelligence sector

On May 10, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against two companies for their alleged involvement in the transportation of oil from Venezuela to Cuba, which provides support to former President Maduro’s defense and intelligence sector. In...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons, Venezuela

FinCEN issues new guidance on virtual currency regulatory framework

On May 9, the Financial Crimes Enforcement Network (FinCEN) issued new guidance designed to consolidate and clarify current FinCEN regulations, guidance, and administrative rulings related to money transmissions involving virtual currency. FinCEN noted that the guidance, “ Application of FinCEN’s...

Financial Crimes, FinCEN, Anti-Money Laundering, Department of Treasury, Virtual Currency, Of Interest to Non-US Persons, Bank Secrecy Act, Money Service / Money Transmitters

President Trump issues new Iran Executive Order targeting metal sectors; OFAC publishes related FAQs

On May 8, President Trump issued Executive Order 13871 (E.O. 13871) authorizing the imposition of sanctions on persons who operate in Iran’s iron, steel, aluminum, and copper sectors in order to provide “funding and support for the proliferation of weapons of mass destruction, terrorist groups and...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons, Iran, Executive Order, Trump

OFAC lifts sanctions on former high-ranking Venezuelan official

On May 7, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced it removed sanctions imposed on a former high-ranking Venezuelan official in the Maduro regime after he broke ties with the regime. As previously covered by InfoBytes , the sanctions were imposed in February...

Financial Crimes, Department of Treasury, Of Interest to Non-US Persons, OFAC, Executive Order, Sanctions, Venezuela

Malaysian national extradited to the United States on embezzlement and FCPA charges in 1MDB Fund scheme

On May 6, the DOJ announced that a Malaysian national was extradited to the United States from Malaysia on charges of conspiracy to embezzle and to violate the FCPA’s bribery and accounting provisions in connection with a scheme relating to the 1Malaysia Development Berhad (1MDB) Fund. Ng Chong Hwa...

DOJ

Updated FinCEN advisory warns of continued Venezuelan money laundering attempts

On May 3, the Financial Crimes Enforcement Network (FinCEN) issued an updated advisory to warn financial institutions of continued public corruption and attempted money laundering related to Venezuelan government agencies and political figures. The advisory updates a September 2017 advisory (...

Financial Crimes, FinCEN, Bank Secrecy Act, Anti-Money Laundering, Venezuela, Of Interest to Non-US Persons, Combating the Financing of Terrorism

OFAC, shipping company resolve blocked vessel EFT processing charges

On May 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $871,837 settlement with a New York global shipping and logistics company, as well as its subsidiaries and affiliates, for five alleged violations of the Weapons of Mass Destruction Proliferators Sanctions...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons

OFAC publishes A Framework for OFAC Compliance Commitments

On May 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the publication of A Framework for OFAC Compliance Commitments to provide guidance on the essential components of a risk-based sanctions compliance program (SCP) for organizations subject to U.S. jurisdiction...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons

OFAC regulations address foreign interference in U.S. elections

On April 26, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced regulations effective April 29 implementing Executive Order (E.O.) 13848. As previously covered by InfoBytes , E.O. 13848 was issued last September to authorize sanctions against foreign persons found to...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons

OFAC sanctions Venezuelan officials connected to Maduro regime

On April 26, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against the two individuals identified as current or former officials of the Government of Venezuela for providing support to former President Maduro’s regime. Financial Crimes Enforcement...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons, Venezuela

OFAC sanctions Hizballah financier conduits

On April 24, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against two individuals and three entities “acting as conduits for sanctions evasion schemes" for Hizballah finances. The designated entities and individuals are also subject to secondary...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons

OFAC reaches settlement with New Jersey corporation for alleged Ukrainian sanctions violations

On April 25, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $75,375 settlement with a New Jersey corporation for two alleged violations of the Ukraine Related Sanctions Regulations. The settlement resolves potential civil liability for the company’s alleged...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Of Interest to Non-US Persons, Settlement, Ukraine

Treasury sanctions Venezuela’s central bank and official connected to Maduro regime; sanctions Nicaraguan bank and official

On April 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against Venezuela’s central bank, along with an individual determined to be a current or former official of the Government of Venezuela, for providing support to former President Maduro’s regime...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Venezuela, Nicaragua, Sanctions

FATF releases permanent mandate to combat money laundering and other proliferation financing

On April 12, the U.S. Department of the Treasury announced that the Financial Action Task Force (FATF) agreed to a permanent mandate for the FATF to continue its work against combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. FATF...

Financial Crimes, Of Interest to Non-US Persons, FATF, Anti-Money Laundering, Combating the Financing of Terrorism

German-headquartered financial institution to pay $1.3 billion for Iran sanctions violations

On April 15, U.S. regulators announced settlements totaling $1.3 billion with several banking units of a German-headquartered financial institution to resolve allegations by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the DOJ, the Federal Reserve Board, the New York...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Settlement, Iran, Sanctions, DOJ, Federal Reserve, NYDFS

Treasury sanctions key persons in ISIS’ financial network

On April 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against seven individuals and one entity for allegedly providing financial support to the Islamic State of Iraq and Syria (ISIS) operating in Europe, Africa, and the Middle East. According to...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Iraq, Sanctions

OFAC imposes additional oil sector sanctions against companies connected to Maduro regime

On April 12, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against four companies for their alleged involvement in the transportation of oil from Venezuela to Cuba. According to OFAC, the companies’ actions offer support to former President Maduro’s...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Settlement, Cuba, Venezuela, Sanctions

U.K. subsea services company and subsidiaries to pay $440,000 for Cuban and Iranian sanctions violations

On April 11, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced two settlements totaling more than $440,000 with a U.K. subsea services company and certain subsidiaries that operate in the oil and gas industry. The first settlement, for $227,500, resolves potential...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Settlement, Cuba, Iran, Sanctions

OFAC sanctions companies for transporting Venezuelan oil to Cuba

On April 5, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against two non-U.S. companies for their alleged involvement in the transportation of oil from Venezuela to Cuba. According to OFAC, the companies have engaged in a “barter system,” in which...

Financial Crimes, Of Interest to Non-US Persons, Venezuela, Sanctions, OFAC, Department of Treasury

London-based financial institution to pay $1.1 billion for U.S. sanctions violations

On April 9, U.S. and U.K regulators announced that a London-based global financial institution would pay $1.1 billion to settle allegations by the DOJ, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the Federal Reserve Board, the New York Department of Financial Services (...

Financial Crimes, OFAC, Department of Treasury, Sanctions, DOJ, Federal Reserve, NYDFS, UK FCA, Settlement, Of Interest to Non-US Persons

Ninth Circuit denies rehearing in Bio-Rad FCPA whistleblower retaliation case

On April 8, the Ninth Circuit denied a petition to rehear its February order affirming most of the jury’s award – $8 million of the original $11 million – in a landmark FCPA whistleblower-retaliation case, Wadler v. Bio-Rad Laboratories, Inc. The court denied Bio-Rad’s petition without explanation...

FCPA, Whistleblower

Micronesian official pleads guilty to FCPA money laundering conspiracy

On April 3, the DOJ announced that a Micronesian government official, Master Halbert, pleaded guilty in the District of Hawaii to a money laundering conspiracy “involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of...

DOJ, Anti-Money Laundering, FCPA

German medical equipment provider settles FCPA claims for $230 million

On March 29, DOJ publicly released a non-prosecution agreement it had entered into in late February with a Germany-based provider of medical equipment and services in which the company agreed to pay over $230 million to settle claims that it violated the anti-bribery, books and records, and...

Financial Crimes, Of Interest to Non-US Persons, FCPA, DOJ

German medical equipment provider settles FCPA claims for $230 million

On March 29, DOJ publicly released a non-prosecution agreement it had entered into in late February with Fresenius Medical Care AG & Co. KGaA (“FMC”), a Germany-based provider of medical equipment and services, in which FMC agreed to pay over $230 million to settle claims that it violated the...

FCPA, DOJ

OFAC reaches settlement with tool company for alleged Iranian sanctions violations

On March 27, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $1,869,144 settlement with a U.S. tool manufacturer and its China-based subsidiary for 23 alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The settlement resolves...

Financial Crimes, Of Interest to Non-US Persons, Iran, Sanctions, OFAC, Department of Treasury, Settlement

SEC announces $37 million whistleblower award, third-largest in program history

The SEC announced this week that it had awarded a whistleblower $37 million for providing “smoking gun” evidence that led to a successful enforcement action; the substance of the underlying case was not described. This was the third largest whistleblower award given since the SEC’s first award in...

SEC, Whistleblower

Hong Kong energy executive sentenced to three years in prison for Chad and Uganda bribes

According to the DOJ, on March 25 a Hong Kong executive, Chi Ping Patrick Ho, was sentenced in the SDNY to a 36-month prison sentence. Ho headed up CEFC China Energy Company Limited and was sentenced “for his role in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda...

DOJ, Financial Crimes, Anti-Money Laundering, FCPA, Bribery

OFAC sanctions individuals and entities for transferring over a billion dollars and euros to IRGC

On March 26, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against “25 individuals and entities, including a network of Iran, UAE, and Turkey-based front companies,” for allegedly transferring “over a billion dollars and euros” in funds to the Islamic...

Financial Crimes, Iran, Sanctions, OFAC, Department of Treasury

OFAC sanctions Venezuela’s national development bank and subsidiaries connected to Maduro regime

On March 22, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against Venezuela’s state-owned national development bank and four subsidiaries located in Venezuela, Uruguay, and Bolivia for allegedly providing financial support to former President Maduro...

Financial Crimes, Of Interest to Non-US Persons, Venezuela, Sanctions, OFAC, Department of Treasury

OFAC sanctions persons connected to an Iran defense entity

On March 22, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13382 against 14 individuals and 17 entities allegedly connected to Iran's Organization of Defense Innovation and Research (SPND), including “three key SPND front and...

Financial Crimes, Iran, Sanctions, OFAC

OFAC sanctions Venezuela’s state gold mining company and its president for assisting Maduro regime

On March 19, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against Venezuela’s state-owned metals mining company and the company’s president. According to OFAC, the designations target the “illicit gold operations that have continued to prop up the...

Financial Crimes, Of Interest to Non-US Persons, Venezuela, Sanctions, OFAC, Department of Treasury

DOJ amends its FCPA Corporate Enforcement Policy, softens disappearing messaging ban

In March 2019, the DOJ amended its FCPA Corporate Enforcement Policy, including to clarify the agency’s position on the use of ephemeral messaging apps by companies seeking full cooperation credit under the policy. Ephemeral messaging apps such as Signal, WhatsApp, and Telegram, now common in many...

DOJ, FCPA

Ninth Circuit issues opinion in Wadler v. Bio-Rad Laboratories, Inc., remands for possible new trial

On February 26, 2019, the Ninth Circuit issued a long-awaited opinion in Sanford Wadler v. Bio-Rad Laboratories, Inc., et al. The 23-page opinion , slated for publication, takes a mixed view of the trial outcome, vacating in part, affirming in part, and remanding for the district court to determine...

FCPA, Ninth Circuit, SEC

White House releases 2020 budget proposal; key areas include appropriations and efforts to combat terrorist financing

On March 11, the White House released its fiscal 2020 budget request, A Budget for a Better America . The budget was accompanied by texts entitled Major Savings and Reforms (MSR), which “contains detailed information on major savings and reform proposals”; Analytical Perspectives , which “contains...

Federal Issues, Trump, Budget, CFPB, FSOC, Flood Insurance, National Flood Insurance Program, GSE, HUD, SEC, Student Lending, Department of Treasury, Bank Secrecy Act, FinCEN

OFAC sanctions Russians for aggression against Ukraine

On March 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced its decision to sanction six Russian individuals and eight entities, pursuant to Executive Order 13661 , for “playing a role in Russia’s unjustified attacks on Ukrainian naval vessels in the Kerch Strait,...

Financial Crimes, Ukraine, Sanctions, Russia, OFAC, Department of Treasury

OFAC identifies non-U.S. financial institutions on new list of banks facing correspondent account sanctions

On March 14, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the introduction of the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA list). The CAPTA list will identify foreign financial...

Financial Crimes, Of Interest to Non-US Persons, OFAC, Department of Treasury, Sanctions

OFAC issues continued extension of Venezuela-related General Licenses

On March 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) amended two General Licenses (GL) to extend the expiration date of previous Venezuela-based GLs to May 10 for certain provisions related to sanctions issued against Venezuela’s state-owned oil company pursuant to...

Financial Crimes, Venezuela, Sanctions

FinCEN updates list of FATF-identified jurisdictions with AML/CFT deficiencies

On March 8, the Financial Crimes Enforcement Network (FinCEN) issued an advisory reminding financial institutions that on February 22, the Financial Action Task Force (FATF) updated two documents that list jurisdictions identified as having “strategic deficiencies” in their anti-money laundering...

Financial Crimes, FinCEN, FATF, Anti-Money Laundering, Combating the Financing of Terrorism, Of Interest to Non-US Persons

OFAC sanctions Russian bank for providing assistance to Venezuelan oil company

On March 11, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against a Moscow-based bank for materially assisting Venezuela’s state-owned oil company, which was sanctioned earlier this year by OFAC pursuant to Executive Order 13850 . (See previous...

Financial Crimes, Venezuela, Sanctions, OFAC, Department of Treasury

Danish company pays approximately $33 million to resolve bribery allegations

Hempel, a Danish company that makes protective coatings used in maritime environments, announced on March 4 that it had settled bribery allegations with the Danish State Prosecutor for Serious and International Crime by paying a $33 million fine. The company self-reported what it called “illegal...

International, Bribery

CFTC adds self-reporting of foreign corrupt practices by non-registrants to cooperation program

On March 6, the CFTC issued an enforcement advisory announcing that it would add violations of the Commodity Exchange Act involving foreign corrupt practices to its cooperation and self-reporting program. The CFTC will recommend no civil monetary penalty where companies and individuals which are...

CFTC, Commodity Exchange Act, White Collar

Foreign financial institutions warned: Will face sanctions for Maduro regime transactions

On March 6, National Security Advisor Ambassador John Bolton issued a statement warning foreign financial institutions that they will face sanctions if it is determined they have been involved in facilitating illegitimate transactions benefiting former President Maduro’s regime. See here for...

Financial Crimes, Of Interest to Non-US Persons, Venezuela, Sanctions

OFAC issues continued extension of Ukraine-related General Licenses

On March 6, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the issuance of Ukraine-related General Licenses (GL) 13K and 15E, which extend the expiration date of previous Ukraine-based GLs to July 6, 2019 for wind-down transactions for certain companies that...

Financial Crimes, Department of Treasury, OFAC, Ukraine, Sanctions

OFAC sanctions Venezuelan security officials connected to Maduro regime

On March 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against six Venezuelan security officials connected to former President Maduro’s “illegitimate regime.” According to OFAC, the sanctions, taken pursuant to Executive Order 13692 , designate the...

Financial Crimes, OFAC, Department of Treasury, Venezuela, Sanctions

CFPB studies elder financial abuse reported in SARs

On February 27, the CFPB’s Office of Financial Protection for Older Americans released Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends , which discusses key facts and trends revealed after the Bureau analyzed 180,000 elder exploitation Suspicious Activity Reports (...

Federal Issues, CFPB, Elder Financial Exploitation, SARs, FinCEN, Financial Crimes

DOJ charges two more businessmen with bribery in connection with Venezuelan bribery scheme

In an indictment unsealed on February 26, the DOJ charged a former sales representative and the president of a U.S.-based company with conspiracy to commit bribery, wire fraud, and money laundering, and substantive wire fraud, for their alleged roles in “a scheme to corruptly secure business...

DOJ, Anti-Money Laundering, Bribery

Technip sets aside $280 million for bribery settlements with multiple countries

On February 20, TechnipFMC, a London-based oil and gas services company, reported in a filing with the SEC that it has set aside $280 million as an estimate for the settlement of investigations by U.S., Brazilian, and French law enforcement authorities regarding potential violations of...

SEC, DOJ, UK

OFAC sanctions Venezuelan governors aligned with Maduro regime

On February 25, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against four Venezuelan governors connected to former President Maduro’s “illegitimate regime.” According to OFAC, the sanctions, taken pursuant to Executive Order 13692 , designate the...

Financial Crimes, Department of Treasury, OFAC, Venezuela, Sanctions, FinCEN

OFAC reaches settlement with U.S. company resolving Iranian sanctions violations

On February 21, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $506,250 settlement with a Connecticut-based company for five alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The settlement resolves potential civil liability for the...

Financial Crimes, OFAC, Department of Treasury, Iran, Sanctions, Of Interest to Non-US Persons

OCC issues cease and desist order against Japanese bank for BSA/AML issues

On February 22, the OCC announced a cease and desist order against three U.S. branches of a Japanese bank for allegedly violating the Bank Secrecy Act (BSA). According to the order, after an examination of the branches’ BSA/Anti-Money Laundering and OFAC compliance programs, the OCC identified...

Federal Issues, OCC, Cease and Desist, Bank Secrecy Act, Anti-Money Laundering, Financial Crimes, Of Interest to Non-US Persons, Compliance

SFO declines to prosecute individuals in Rolls-Royce and GSK corruption investigations

The U.K.’s Serious Fraud Office (SFO) announced on February 22 that it was ending two long-running corruption-related investigations – one of aviation company Rolls-Royce and the other of pharmaceutical giant GlaxoSmithKline – without bringing charges against any individuals. In 2017, Rolls-Royce...

UK Serious Fraud Office, Anti-Corruption, DOJ, Bribery

Cognizant resolves FCPA investigations

On February 15, Cognizant Technology Solutions Corporation, an information technology and business process outsourcing company, paid $25 million to settle SEC civil charges that it violated the FCPA. The SEC alleged that Cognizant paid $3.6 million in bribes through its construction contractor to...

FCPA, DOJ, SEC, Bribery

OFAC reaches settlement with non-U.S. chemical manufacturer resolving Cuban sanctions violations

On February 14, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $5.5 million settlement with a German chemical manufacturer for 304 alleged violations of the Cuban Assets Control Regulations (CACR). According to OFAC, the settlement resolves the manufacturer’s...

Financial Crimes, OFAC, Department of Treasury, Cuba, Sanctions, Of Interest to Non-US Persons, Settlement

OFAC sanctions officials aligned with Maduro regime

On February 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced additions to the Specially Designated Nationals List pursuant to Executive Order 13692 . OFAC’s additions to the list include five current or former officials connected to former President Maduro,...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Venezuela

OFAC sanctions Iranian entities and individuals supporting intelligence gathering and cyber targeting of U.S. persons

On February 13, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against an Iran-based entity and four affiliated Iranian individuals for their alleged roles in providing support for the Islamic Revolutionary Guard Corps-Qods Force’s (IRGC-QF) efforts to...

Financial Crimes, OFAC, Department of Treasury, Iran, Sanctions

U.S. Treasury concerned with European Commission's identification of AML/CFT-deficient U.S. territories

On February 13, the U.S. Treasury Department issued a statement responding to a list of jurisdictions published by the European Commission as having strategic deficiencies related to anti-money laundering and countering the financing of terrorism (AML/CFT). The list—which includes certain...

Financial Crimes, Department of Treasury, European Union, Of Interest to Non-US Persons, Anti-Money Laundering, Combating the Financing of Terrorism, FATF

Micronesian official charged with money laundering conspiracy after guilty plea to bribery by Hawaiian executive

On February 11, the Department of Justice (DOJ) unsealed conspiracy to commit money laundering charges against a Micronesian government official alleged to have taken bribes to secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM). The...

DOJ, Anti-Money Laundering, Bribery

OFAC amends Venezuela-related General Licenses and FAQs on sanctioned oil company

On February 11, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) amended two General Licenses (GL) and issued three revised FAQs regarding sanctions against Venezuela’s state-owned oil company pursuant to Executive Order 13850. GL 3C , which supersedes GL 3B, authorizes...

Financial Crimes, OFAC, Department of Treasury, Venezuela, Sanctions

OFAC designates Turkish individual as “Foreign Sanctions Evader” in relation to settlement resolving alleged Iranian sanctions violations

On February 7, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $13,381 settlement with a Virginia-based corporation on behalf of its Turkish affiliate for six alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The settlement resolves...

Financial Crimes, OFAC, Department of Treasury, Settlement, Iran, Sanctions, Of Interest to Non-US Persons

Former Petrofac oil-services sales executive pleads guilty in U.K. to bribery charges

On February 6, the U.K. SFO announced that a former sales executive, David Lufkin, of an oil-services company, Petrofac PLC, had pleaded guilty in the U.K. to 11 counts of bribery regarding payments made in exchange for winning oil-services contracts in Iraq and Saudi Arabia. Lufkin – a British...

UK, SFO, Bribery, Anti-Money Laundering

OFAC revises Venezuela-related General Licenses on sanctioned oil company, issues new FAQs

On February 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) amended two General Licenses (GL) and issued two new FAQs regarding sanctions against Venezuela’s state-owned oil company pursuant to Executive Order 13850. OFAC amended GL 3B to authorize transactions related to...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Venezuela

OFAC reaches settlement with U.S. cosmetics company for alleged North Korean sanctions violations

On January 31, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $996,080 settlement with a California-based cosmetics company for 156 alleged violations of the North Korean Sanctions Regulations. According to OFAC, the settlement resolves potential civil liability...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Settlement, North Korea, Of Interest to Non-US Persons

Former insurance executives charged with laundering bribes to Barbados Minister of Industry

On January 28, DOJ announced charges against the former chief executive and a former senior vice president of a Barbados-based insurance company, Insurance Corporation of Barbados Limited (ICBL). The indictment alleges that the ICBL executives, Ingrid Innes and Alex Tasker, participated in a scheme...

DOJ, Financial Crimes, Anti-Money Laundering, Bribery, FCPA, Corporate Enforcement Policy

OFAC announces sanctions against Venezuela’s state-owned oil company

On January 28, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against Venezuela’s state-owned oil company, PDVSA. As a result, all assets belonging to the company subject to U.S. jurisdiction are blocked, and U.S. persons generally are prohibited from...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Venezuela, Trump, Executive Order, Of Interest to Non-US Persons

OFAC lifts sanctions on designated companies linked to Russian oligarch

On January 27, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) lifted sanctions on three companies identified last April in connection with sanctions imposed against a Russian oligarch. (See previous InfoBytes coverage here on the full list of sanctioned Russian oligarchs and...

Financial Crimes, OFAC, Department of Treasury, Sanctions, Russia

OFAC issues temporary extension of Ukraine-related General Licenses

On January 16, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the issuance of Ukraine-related General Licenses (GL) 13J, 14E, and 16E, which modify the expiration dates of previous Ukraine-based general licenses for wind-down transactions for certain companies that...

Financial Crimes, Sanctions, OFAC, Department of Treasury, Ukraine, International

Treasury Department sanctions Venezuelan TV mogul over Venezuelan bribery scheme

On January 8, the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Venezuelan individuals and companies, including billionaire news network Globovision owner Raul Gorrin Belisario and former Venezuelan National Treasurer Claudia Patricia Diaz Guillen, for their participation...

FCPA Enforcement Action, OFAC, Anti-Money Laundering, Bribery

OFAC adds illicit foreign exchange operation participants to Specially Designated Nationals List; issues Venezuela-related General License and new FAQ

On January 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced additions to the Specially Designated Nationals List pursuant to Executive Order 13850 . OFAC’s additions to the list include seven individuals—including former Venezuelan government officials—and 23...

Financial Crimes, Sanctions, OFAC, Department of Treasury, Venezuela, International, Of Interest to Non-US Persons

Eletrobras reaches settlement of FCPA violations in Brazil

On December 26, Brazil’s Centrais Elétricas Brasileiras S.A. – Eletrobras (Eletrobras or the company) entered into an administrative order to settle the SEC’s claims that Eletrobras violated the books and records and internal accounting controls provisions of the FCPA and agreed to pay a civil...

SEC, FCPA, Bribery

Polycom reaches settlement of FCPA violations in China

On December 26, Polycom, Inc. (Polycom or the company), a wholly-owned subsidiary of Plantronics, Inc., entered into an administrative order to settle claims by the SEC that Polycom violated the books and records and internal accounting controls provisions of the FCPA. The alleged conduct involved...

DOJ, FCPA, SEC

UK court convicts former Alstom executive

On December 19, a UK Court found former Alstom Power Ltd. Global Sales Director Nicholas Reynolds guilty of conspiracy to corrupt in connection with his role in bribing Lithuanian officials to win lucrative power station contracts for the French power and transportation company. Mr. Reynolds will...

FCPA, Bribery, Anti-Corruption

NY-based financial institution and various individuals charged in Malaysia

On December 17 and 19, press reports indicate Malaysian prosecutors filed criminal charges against a New York-based financial institution and numerous individuals, including former executives of the financial institution, in connection with their alleged roles in a multi-billion bribery and money...

FCPA Enforcement Action, FCPA, DOJ, Anti-Money Laundering

SEC charges former senior executives of Panasonic Avionics

On December 18, the former CEO and CFO of U.S.-based Panasonic Avionics Corporation (PAC) settled SEC charges that they knowingly violated books and records and internal accounting controls provisions of the federal securities laws and caused similar violations by PAC’s parent company, Osaka, Japan...

SEC, DPA

OECD study finds that government officials punished in only one-fifth of bribery cases

On December 11, the Organization for Economic Cooperation and Development (OECD) published a study examining the consequences faced by public officials who allegedly accepted bribes. The study analyzed 55 foreign-bribery cases concluded between 2008 and 2013 in which companies based in OECD...

International, Bribery

Former officer of Venezuela oil company pleads guilty to obstruction

On December 10, a former procurement officer of Petroleos de Venezuela S.A. (PDVSA), Venezuela’s state-owned and state-controlled energy company, pleaded guilty to one count of obstructing an investigation into bribes paid by the owner of U.S.-based companies to Venezuelan government officials in...

Bribery, Anti-Money Laundering

Lauren R. Randell quoted in Business Insurance article, “DOJ policy shift could trigger increased demand for D&O cover”

Lauren R. Randell was quoted on December 11, 2018 in a Business Insurance article, “DOJ policy shift could trigger increased demand for D&O cover,” which discussed Deputy U.S. Attorney General Rod Rosenstein’s announcement of modifications to the “Yates memo” — the 2016 Memorandum on Individual...

U.S.-based agriculture company discloses investigation

On November 30, a U.S.-based agriculture company, CHS Inc., disclosed in an SEC filing that it is cooperating with an investigation being conducted by the SEC and DOJ involving payments made to Mexican customs officials. The payments were made in connection with grain shipments crossing the U.S.-...

DOJ, SEC

UK Serious Fraud Office ends first deferred prosecution agreement with Standard Bank

On November 30, the United Kingdom’s Serious Fraud Office (SFO) announced the successful conclusion of the deferred prosecution agreement entered into in 2015 with Standard Bank PLC, which had followed allegations that payments were made by two former employees to bribe members of the Tanzanian...

UK Serious Fraud Office, DPA

Buckley Sandler Special Alert: DOJ announces new policy on pursuing individuals in corporate resolutions

U.S. Deputy Attorney General Rod Rosenstein said at a conference this morning that the U.S. Department of Justice has revised its guidelines relating to corporate resolutions with the DOJ, particularly as those guidelines relate to charging culpable individuals. The revised guidelines modify the...

DOJ, FCPA

SEC settles with Texas offshore drilling company for violations of FCPA internal controls provision

On November 19, the SEC announced a settlement with Vantage Drilling International (“Vantage”) based on the improper activities of Vantage’s predecessor, Vantage Drilling Company, in connection with the Petrobras bribery scheme. The Administrative Order found that Vantage Drilling Company had “...

DOJ, Bribery, SEC

Co-conspirators sentenced in Venezuelan bribery scheme involving Venezuelan TV mogul

Two co-conspirators of billionaire news network Globovision owner Raul Gorrin Belisario were sentenced this week as part of the DOJ’s recently unsealed prosecution of a bribery scheme involving over $1 billion paid in bribes to members of the Venezuelan government. According to the DOJ , Gorrin was...

DOJ, Anti-Money Laundering, Bribery

SEC releases 2018 report on whistleblower program

On November 15, the SEC released its 2018 Annual Report to Congress on its Whistleblower Program , as required under § 924(d) of the Dodd-Frank Act and § 21(F)(g)(5) of the Securities Exchange Act of 1934. The Report, which covers October 1, 2017 through September 30, 2018, indicates that the SEC...

SEC, FCPA, Whistleblower

9th Circuit hears oral arguments on overturning FCPA whistleblower retaliation award

On November 14, 2018, a three judge panel for the United States Court of Appeals for the Ninth Circuit heard oral arguments in Sanford Wadler v. Bio-Rad Laboratories, Inc., et al . Bio-Rad, a life science research and diagnostics company, is hoping to overturn a February 2017 jury verdict ordering...

DOJ, SEC, FCPA, Whistleblower

U.S. financial institution acknowledges investigations related to Malaysian development fund scheme

On November 2, a New York-based financial institution disclosed in its Form 10-Q filing that it had received subpoenas and requests for documents and information from multiple government agencies as part of investigations relating to matters involving 1Malaysia Development Berhad (1MDB). The filing...

DOJ

Oil company executives found guilty in U.K. of money laundering

According to the U.K Serious Fraud Office (SFO), the former CEO and CFO of Afren, Plc., an oil and gas exploration and production company, were sentenced in the UK on October 29 for their parts in a kickback scheme in Nigeria. The former CEO was sentenced to up to six years in prison, and the CFO...

UK Serious Fraud Office, Anti-Money Laundering

U.S. announces charges and guilty plea stemming from Malaysian development fund scheme

The DOJ unsealed two indictments and a guilty plea related to the sprawling 1Malaysia Development Berhad (1MDB) fraud on November 1 in the Eastern District of New York. Malaysian financier Low Taek Jho (also known as Jho Low) and former banker Ng Chong Hwa (also known as Roger Ng) were charged with...

DOJ, Anti-Money Laundering, Bribery, FCPA

Former PDVSA procurement officer pleads guilty

On October 30, 2018, a Texas businessman, Ivan Alexis Guedez, who was a former procurement officer for PDVSA, pleaded guilty to conspiracy to launder the bribe payments he and his co-conspirators at PDVSA received for directing PDVSA business to a Miami-based supplier. The scheme involved false...

International, Anti-Money Laundering

Swiss banker sentenced to 10 years related to PDVSA embezzlement and bribery scheme, and PDVSA official pleads guilty in same scheme

On October 29, Matthias Krull, a former banker at Julius Baer, was sentenced to serve 10 years in prison for his role in a scheme to launder funds embezzled from Petróleos de Venezuela, S.A. (PDVSA), the Venezuelan state-owned oil company. Krull had pleaded guilty to one count of conspiracy to...

International, Bribery, Anti-Money Laundering

CEO of Haitian development & reconstruction company charged in bribery scheme

On October 30, the DOJ charged Roger Richard Bouncy, a dual U.S.-Haitian citizen, with conspiracy to violate the FCPA, commit money laundering, and violate the Travel Act, as well as substantive Travel Act violations. Bouncy is a licensed attorney and the CEO of Haiti Invest, LLC, a Haitian...

DOJ, Bribery, FCPA, Anti-Money Laundering, Travel Act

DOJ issues new guidance regarding corporate monitors

On October 11, Assistant Attorney General Brian A. Benczkowski issued a memorandum to the DOJ’s Criminal Division that revises the framework for assessing when DOJ will require a corporate monitor as part of a resolution. Under the revised framework, Criminal Division attorneys must now consider...

DOJ, Financial Crimes

Interpol chief detained in China on bribery allegations

In late September, Meng Hongwei, the Chief of Interpol at the time and a former Vice Minister of China’s national police, reportedly went missing during a trip home to China. According to his wife, Meng’s last known communication was a text message to her containing a knife emoji and an instruction...

International, Bribery, China

SEC enforcement director gives remarks on FCPA compliance

On October 3, 2018, Steven Peiken, Co-Director of the SEC’s Division of Enforcement, offered remarks at a white collar crime conference in New York City, discussing a range of issues related to FCPA compliance and enforcement. For example, likely responding to increasing criticism about the...

SEC, FCPA

DOJ provides further guidance on FCPA Corporate Enforcement Policy in speech

On September 27, Deputy Assistant Attorney General Matthew Miner gave a speech that provided clarification of DOJ enforcement policies, continuing to emphasize voluntary disclosure and underscoring the notion that companies should view DOJ “as partners, not adversaries.” In his speech, Miner...

DOJ, FCPA, Corporate Enforcement Policy

DOJ reportedly investigating Major League Baseball for potential FCPA violations

Based on media reports, DOJ’s Fraud Section is reportedly investigating some part of Major League Baseball (MLB) for possible FCPA violations related to recruitment of international players, particularly related to immigration issues for players from Latin America. Reports indicate that the...

DOJ, FCPA, Whistleblower

SBM CEO and executive sentenced to prison for conspiracy to bribe foreign officials

On September 28, the DOJ announced that a former CEO and a former executive of oil services company SBM Offshore, N.V. (SBM) had been sentenced to prison and fined for their roles in a scheme to bribe foreign government officials in Brazil (at Petrobras), Angola (Sonangol), and Equatorial Guinea (...

DOJ, Bribery, FCPA, SBM Offshore N.V.

SEC settles FCPA accounting violations with Stryker

On September 28, the SEC announced a settlement with a Michigan-based medical device company, Stryker Corp., to resolve the SEC’s charges of books and records and internal controls violations. According to the order , the company agreed to pay a $7.8 million penalty and accepted the imposition of...

SEC