Global

India Privacy Rules Raise Alarms

June 14, 2011

Companies that outsource data processing or other back-end operations to India should be aware of a sweeping change in the country's data privacy rules that could leave them saddled with extensive notice-and-consent burdens. "There are some provisions in this law that may make it difficult to proceed with business as usual," says Heather Egan Sussman, a partner at law firm McDermott Will & Emery. Details inside.
 

Regulators Talk Export Control

June 07, 2011

Three regulators at Compliance Week 2011 gave a wide-ranging talk on how companies can manage the complex world of export-control law. It's not easy, Justice Department lawyer Jonathan Poling admitted. "You can't ... just have 'Compliance in Canada' and 'Compliance in North America' and never have those two talking to each other," he said. More insight on compliance strategy directly from regulators inside.
 

Delays and Difficulties Mar the Path to IFRS Adoption

May 03, 2011

A series of delays on accounting convergence projects will complicate the SEC's vow to decide this year whether to adopt International Financial Reporting Standards for U.S. companies. Indications of the SEC's thinking are hard to come by, but prognosticators say adoption won't happen anytime soon—if at all. More details inside.
 

Regulators Cracking Down on Trade Sanction Violations

May 03, 2011

The Office of Foreign Assets Controls is getting aggressive in its enforcement against companies that violate economic and trade sanctions. The agency reeled in $1 billion in penalties from 2009 to 2010. Some companies run afoul of the rules by transacting with sanctioned individuals. "It's really important to know who you're selling to, and who those people are dealing with," says Erich Ferrari, founder of Ferrari Legal.
 

China Passes Anti-Bribery Law

April 12, 2011

At just two lines of text, China's new anti-bribery law is open for interpretation—but it is certain to complicate corporate anti-bribery efforts. "The government is concerned that corrupt officials are besmirching the good name of the Communist party," says Amy Sommers, national China partner for law firm Squire, Sanders & Dempsey.
 

Bribery Act Guidance Retreats, Still Fails to Deliver Clarity

April 05, 2011

The British government has finally given prosecutors the green light to start enforcing the country's tough new Bribery Act starting July 1—and also published eagerly awaited guidance suggesting that the anti-corruption law may not be enforced so toughly. One thing that is clear: Compliance departments looking for clarity are out of luck. Details inside.
 

Libyan Sanctions Give Banks Compliance Headaches

March 22, 2011

After the Obama Administration imposed economic sanctions against Libya, U.S. banks uncovered $32 billion in tainted assets belonging to Libyan officials and the Libyan government. The funds now represent a compliance headache for financial institutions with serious penalties for non-compliance including potential jail time. Details inside.
 

OECD Attacks U.K. Bribery Delay

February 06, 2011

The Organization for Economic Cooperation and Development has criticized the U.K.'s decision to delay the start date of its long-awaited anti-bribery laws, branding the move "very disappointing."
 

Regulator Warns on Risk Disclosure

February 04, 2011

A corporate reporting regulator has warned U.K.-listed companies to rethink the way they give shareholders information about their main risks and uncertainties.
 

Shelby Guilty Plea 'Ends Enron'

November 23, 2010

Yesterday, Rex Shelby, a former Enron Broadband Services executive, pleaded guilty to one count of insider trading. According to Shelby's lawyer, Ed Tomko, “[t]his ends Enron, because Rex was the very last Enron defendant standing from prosecutions that resulted from the company’s bankruptcy.”Bloomberg reports that prosecutors agreed to drop the...
 

Canada Gears Up its Anti-Corruption Enforcement

July 09, 2010

For only the second time in its history, and for the first time against an individual, Canada has prosecuted an incident of overseas bribery. Last month, the Royal Canadian Mounted Police announced the arrest of Nazir Karigar, a Canadian citizen, under the Corruption of Foreign Public Officials Act. Canada's CFPOA...
 

Rajaratnam Rolls Out His Own Defense Website

May 07, 2010

A big online welcome, please, for "The Defense of Raj Rajaratnam," the newly-unveiled website that "provides factual information regarding the defense of Mr. Raj Rajaratnam."  The home page proclaims that Rajaratnam intends to establish his innocence at trial before a jury of his fellow citizens, and it promises that the...
 

Overheard at 'The Enforcers' Photoshoot

February 10, 2010

Check out this photo of "The Enforcers" in Monday's New York Times.Robert S. Khuzami, center, with members of his team, from left, Kenneth Lench, Daniel M. Hawke, Cheryl Scarboro, Thomas A. Sporkin, Robert B. Kaplan and Lorin L. Reisner. I think it must have gone down something like this:"Alright, everyone...
 

Did Twitter Just Help Take Down DSB Bank?

October 13, 2009

Yesterday, the Dutch central bank took control of DSB Bank after a run on the institution that appears to have been fueled by "tweets" on Twitter.The FT reports that this weekend, talks to sell the privately-held bank to a consortium of the five biggest Dutch banks failed. Wouter Bos, the...
 

"Enron, the Play" to Become "Enron, the Movie"

September 25, 2009

With "Enron" (the play) supposedly bringing down the house in London, it was probably only a matter of time before Hollywood came knocking, as well. Now comes word that following a "high six-figure deal," Columbia Pictures has acquired the screen rights to "Enron" and the play will be adapted into...
 

FSA's Turner Bashes Banks, Gets Bashed Back

August 27, 2009

Say what you will about SEC Chairman Mary Schapiro but at least she is not, to date, actively bashing the firms she regulates on Wall Street as "socially useless" and agitating for a new multi-billion dollar tax on banks as a measure to curb large bonuses for banking executives.  Yet...
 

"We Can If We Think We Can?" Nope!

August 27, 2009

Martin Luther King, Nelson Mandela, Muhammad Ali, Albert Einstein, Mother Teresa, Bill Gates... sending a man to the moon, standing in front of tanks in Tienanmen Square, the miracle of creating human life, curing disease, tearing down the Berlin Wall, climbing Mount Everest...What is the next logical item in the...
 

Enron... The Play

August 10, 2009

I'm pretty much flabbergasted to learn that (a) someone saw fit to write a play about the Enron scandal, and (b) it is getting rave reviews!Via Enforcement Action's London bureau (actually, via the Twitter feed of Werner Kranenburg, of London), I learned today that "Enron" the play opened last month...
 

Livent Update: Judge Surprises With Lengthy Sentences

August 05, 2009

So much for the "conditional sentences" featuring lectures at business and theatre schools proposed by the Livent co-founders following their convictions.Today, Ontario Superior Court of Justice Mary Lou Benotto surprised many observers by handing down harsh prison sentences to the two co-founders of Livent Inc.  The judge sentenced Garth Drabinsky...
 

Sentencing of Livent Founders Will Set Key Precedent

August 04, 2009

North of the border, the Livent prosecution (aka "Canada's WorldCom) moves closer to its final phase, as Garth Drabinsky and Myron Gottlieb will be sentenced tomorrow. Last month, Crown Attorneys told the court that the Livent co-founders, convicted in late March of fraud and forgery related to the company’s accounting...
 

Deutsche Bank Spying Scandal Leads to Firings

July 21, 2009

The Deutsche Bank spying scandal continues to heat up in Germany, as the bank has now reportedly dismissed two top executives following an internal investigation.  As previously discussed here, in a development somewhat reminiscent of the Hewlett Packard spying scandal from 2006, the German press reported earlier this month that...
 

Deutsche Bank Spying Scandal Brewing

July 07, 2009

In a development reminiscent of the Hewlett Packard spying scandal from 2006, the German press is reporting that Deutsche Bank spied on certain of its board members and a "troublesome shareholder," as well. According to Spiegel Online, an investigation commissioned by Deutsche Bank that resulted in a 150-page report by...
 

Australia: ML Accused of Massive Insider Trades

May 29, 2009

Down under, Merrill Lynch and one of its subsidiaries face allegations from a Sydney businessman that they engaged in what would reportedly be "the biggest case of insider trading in [Australia's] corporate history."The allegations against Merrill Lynch by David Waterhouse relate to certain short-selling by Merrill Lynch of $55 million...
 

FSA Prepares to Bring High-Profile Case vs. Two Lawyers

May 20, 2009

The UK's newly-aggressive Financial Services Authority (FSA) is pursuing another high-profile insider trading case, as reports emerged today that a partner at the London office of Dorsey & Whitney and a former partner of McDermott Will & Emery will be charged criminally next month with insider trading.  Bloomberg reports that...
 

Euro-Shareholder Trend: Throwing Stuff at Board Members

May 13, 2009

When Flemish shareholders of Fortis revolted at a heated meeting in Ghent, Belgium last month by throwing shoes, coins and even ballot boxes at Fortis board members, I was willing to dismiss it as an isolated incident. (See the video below!)After today's developments in Dublin, Ireland, however, I think it...
 

International Insider Trading Case Map: Q1 Update

April 02, 2009

For whatever reason, the International Insider Trading Case Map that we introduced on November 26, 2008 has become wildly popular, with over 20,000 page views to date!  I am updating it quarterly now, so with Q1 in the books it is time to take a look at the latest and...
 

"Exceptional Guarantees" Against Prosecution for Bribery

March 17, 2009

A report by the Council of Europe's Group of States against Corruption (GRECO) shows that French legislation restricts prosecutors in investigating international corruption cases. The report, which the EU Observer writes was published on March 12 and approved by the French government, states that "France has severely restricted its jurisdiction...
 

Madoff Global Alliance Meeting: A Seat at the Table

February 19, 2009

Two days ago, on Tuesday, February 17, 2009, the first meeting of what is being called the "Madoff Case Global Alliance of Law Firms" took place in Madrid, Spain.  It was attended by approximately 40 lawyers from over 20 different countries, as well as at least one non-lawyer from the...
 

Canada: Hundreds of Enforcement Actions in 2008 But Just $14 Million in Sanctions

January 29, 2009

The Canadian Securities Administrators today issued its annual report on enforcement activities. The CSA announced (click here) that during calendar year 2008, CSA members commenced 215 matters against 416 individuals and companies, and concluded 123 cases involving 322 individuals and companies that resulted in monetary sanctions and orders towards costs...
 

January 28 Webcast: FCPA Enforcement — The Paradigm Shift of 2008

January 16, 2009

On January 28, 2009, KPMG Forensic is sponsoring a webcast that will shed light on the game-changing developments in 2008 in the enforcement of the Foreign Corrupt Practices Act. 2008 brought FCPA settlements of previously unthinkable amounts (including the historic Siemens settlement), but also important new trends such as: increasingly aggressive...
 

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