Compliance

Since August 13, 2019, the government has been prohibited from procuring equipment or services using “covered telecommunications equipment or services” as a substantial or essential component of any system according to the implementation of Section 889(a)(1)(A) of the National Defense Authorization Act for Fiscal Year 2019 (FY19 NDAA).

Beginning on August 13, 2020, according to the implementation of Section 889(a)(1)(B), the government is prohibited from contracting with an entity that uses any equipment or services using “covered telecommunications equipment or services” as a substantial or essential component of any system or as critical technology as part of any system. This applies regardless of whether the use of the prohibited equipment or services is in the performance of work under a government contract.Continue Reading Section 889 Prohibitions Expanded from Procurement to “Use”

The recently passed Coronavirus Aid, Relief, and Economic Security Act (CARES Act) injected previously unthinkable amounts of stimulus funds into the struggling U.S. economy. To oversee the disbursement of these funds and to curb fraud and misuse, the CARES Act created various oversight and enforcement mechanisms. Notable among these is the Special Inspector General for Pandemic Recovery (SIGPR). As we explained in a recent post, the SIGPR is conferred broad powers to audit and investigate waste, fraud and abuse involving hundreds of billions of dollars in CARES Act funds. Additional primary oversight bodies include the Congressional Oversight Commission and the Pandemic Response Accountability Committee (PRAC).

While arguably the most significant oversight leadership position, the SIGPR remains vacant; however, that may not be the case for much longer. President Trump’s pick for the SIGPR role, Brian D. Miller, has not yet been confirmed by the Senate – although Miller’s confirmation hearings were held on May 5 and his nomination was advanced to the Senate floor on May 12. The actions of similar special inspectors general offices, and in particular that established to oversee the stimulus package Congress passed after the 2008 financial crisis (the Special Investigator General for the Troubled Assets Relief Program, or SIGTARP), suggest the office of the SIGPR will be particularly aggressive in pursuing fraud and misuse related to disbursed CARES Act funds. Yet, even if the Senate confirms Miller soon, considerable time may pass before the Office of the SIGPR can bring to bear its full investigative and audit powers. After all, the Office of the SIGPR is not yet in existence and should Miller, who served as the GSA Inspector General from 2005 through 2014, be confirmed, he will need to lay the agency’s operational groundwork from scratch, including hiring a full staff of employees (Miller expects to hire 75-100 employees), securing office space, and equipping the office, etc.Continue Reading Update: Investigations Under the CARES Act Ramp Up Even as Oversight Roles Remain Vacant

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride is joined by Ed Bond, the Director of IBM’s Export Regulation Office, to discuss issues that exporters need to

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride and Lindsey Fetzer provide a brief overview of compliance considerations related to international donations and charitable contributions. Watch the

On March 27, President Trump signed into law the $2 trillion coronavirus stimulus bill, named the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  The law, the most expensive single piece of legislation ever passed, includes hundreds of billions in funds to help businesses remain afloat.  To provide oversight into how these funds are used, the CARES Act establishes a Special Inspector General for Pandemic Recovery (SIGPR), along with two other oversight bodies.

This action is not without precedent, as Congress established a similar watchdog to oversee the stimulus funds disbursed in the wake of the 2008 financial crisis, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).  SIGTARP’s broad interpretation of its mandate, as well as its aggressive pursuit of fraud involving stimulus funds, are instructive to forecasting how SIGPR will fulfill its mission and to how recipients of CARES Act funds can protect themselves.

SIGPR Duties & Powers

The CARES Act tasks the SIGPR with monitoring fraud, waste and abuse involving the $500 billion of CARES Act funds allocated to the Treasury Secretary (Economic Stabilization Fund) to support businesses, states and municipalities impacted by the COVID-19 pandemic.

The SIGPR, who will be appointed by the president and requires Senate confirmation, will be empowered to “conduct, supervise, and coordinate audits and investigations of the making, purchase, management, and sale of loans, loan guarantees, and other investments” relating to the Economic Stabilization Fund.Continue Reading The Special Inspector General for Pandemic Recovery – Crisis Funding Comes with Heightened Investigation Risk

In line with recent actions taken across the government to enhance the resilience of the nation’s cybersecurity apparatus, the Cybersecurity Infrastructure Security Agency (CISA) recently released a set of best practices for small businesses.  These Cyber Essentials, according to CISA, are intended as a starting point to nurture a “culture of security, and specific actions for leaders and their IT professionals to put that culture into actions.”

The Cyber Essentials provide guidance for both organization leaders and IT professionals across six elements:

  • Yourself
  • Your Staff
  • Your Systems
  • Your Surroundings
  • Your Data
  • Your Actions under Stress.

Continue Reading Covering the Basics: CISA Announces Cybersecurity Essentials for Small Businesses

I am excited to be presenting, along with Bass, Berry & Sims litigation attorney Lindsey Fetzer, a 90-minute CLE webinar hosted by Strafford on FCPA compliance on September 18, 2019 titled, “FCPA Compliance: Meeting FCPA Requirements and Minimizing Liability Risks.”

The webinar will examine the requirements of the FCPA and other anti-bribery laws,

Bass, Berry & Sims attorney Thad McBride was interviewed for the “Bribe, Swindle or Steal” podcast regarding the corruption, sanctions and compliance challenges associated with doing business in Russia. In case you missed it, I was recently interviewed for the “Bribe, Swindle or Steal” podcast regarding the corruption, sanctions and compliance challenges associated with doing business in Russia.

During the podcast, I discussed compliance issues related to the Specially Designated Nationals (SDNs) list and how challenging it is for companies to remain compliant with the constantly shifting regulations that the United States imposes on U.S. businesses operating in Russia.

I also warned companies considering entry into the Russian market that “just like in any place you’re doing business, but especially in Russia – you need to do a really, really careful diligence review and get as much information as you can.”Continue Reading Doing Business in Russia: Legal & Compliance Challenges

What are "secondary sanctions"? How do they enforce U.S. sanctions & embargoes against non-U.S. parties? Thad McBride explains to the Society of Corporate Compliance and Ethics. Read more.I recently discussed how the United States uses “secondary sanctions” to enforce U.S. sanctions and embargoes against non-U.S. parties. Under secondary sanctions, the U.S. government restricts U.S. companies and individuals from conducting business with non-U.S. companies and individuals because of those parties’ affiliation with a sanctioned business or person.

As I explained, “[Secondary sanctions] are an example of U.S. extraterritorial jurisdiction at its most extreme. Even if there is no U.S. actor, no goods or parts of U.S. origin, no direct connection whatsoever, the U.S. wants to nevertheless strongly discourage non-U.S. companies from doing business with [sanctioned entities] by, for example, restricting their access to the U.S. market.”Continue Reading Secondary Sanctions in Trade Compliance

December of 2018 brought many potential changes to the U.S. Small Business Administration’s (SBA) regulations that impact small businesses. First, on December 4, 2018, the SBA issued a lengthy proposed rule implementing several provisions of the National Defense Authorization Acts (NDAA) of 2016 and 2017, and the Recovery Improvements for Small Entities After Disaster Act of 2015 (RISE Act), as well as other clarifying amendments.  Then, on December 17, 2018, President Trump signed Public Law No. 115-324, the Small Business Runway Extension Act, which modifies the method for determining the size standards for small businesses.

SBA’s Proposed Rule

 The SBA’s proposed rule offers clarification on numerous topics, including but not limited to, recertification requirements, material breach of subcontracting plans for failure to comply in good faith, the inclusion of indirect costs in commercial subcontracting plans, setting aside an order under a set-aside multiple award contract (MAC), the status of independent contractors as employees in certain situations, and limitations on subcontracting compliance.  Comments on the proposed rule are due on February 4, 2019.  Some of the most significant proposed rules are summarized below.Continue Reading SBA’s Busy Year End Yields Lots of Potential Changes for Small Businesses in 2019