Compliance

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

Bass, Berry & Sims attorney Thad McBride co-authored an article for Compliance & Ethics Professional magazine outlining best practices for conducting effective internal compliance investigations. Thad co-authored the article with Kate Garfinkel, Vice President and Chief Ethics & Compliance Officer at Alcoa Corporation.

As the article states, “A strong internal investigation process can make the difference between identifying and addressing a problem early on or letting it fester into an issue that becomes a legal liability and reputational crisis … Internal compliance investigations and reviews, when conducted in a confidential and professional manner, ensure that a company can adequately address compliance issues.”Continue Reading Thad McBride Co-authors Article with Alcoa VP on Best Practices for Internal Investigations

This Post at a Glance:

  • Company made false statements related to import duty charges
  • Investigation initiated by whistleblower complaint from company’s competitor
  • Trump Administration likely to impose more anti-dumping duties

On February 6, 2018, the Department of Justice (DOJ) announced that Home Furnishings Resource Group Inc. (HFRG), of Hermitage, Tennessee, agreed to a $500,000 settlement to resolve allegations that the company violated the False Claims Act (FCA). The DOJ contended that HFRG made false statements on customs declarations to avoid paying anti-dumping duties on wooden bedroom furniture that HFRG imported from China between 2009 and 2014.

Continue Reading Tennessee Company Skirts Customs Obligations, Pays $500,000 FCA Penalty

In 2016, Congress instructed the Department of Defense (DoD) to review its procurement regulations by convening a panel of procurement professionals—from both the public and private sectors. This panel became known as the Section 809 Panel (809 Panel). Congress instructed the 809 Panel to recommend amendments or repeals of defense procurement regulations. The 809 Panel’s objective was to help streamline or improve the efficiency and effectiveness of the defense acquisition process while still maintaining an advantage in defense technology. While Congress and the DoD are not required to adopt these recommendations, the report shows an attempt to define the issues in modern federal procurement and improve upon the old system.
Continue Reading Section 809 Panel Releases First Volume of Recommendations for the Overhaul of DoD’s Acquisition Process

Post at a glance:

  • FinCEN imposes $8 million penalty against California’s biggest and oldest card club
  • Club failed to implement and maintain an effective anti-money laundering (AML) program and failed to detect, deter, and report suspicious transactions
  • Enforcement action serves as valuable reminder of scope of Bank Secrecy Act (BSA)

As mentioned in our prior AML Update, the U.S. Financial Crimes Enforcement Network (FinCEN) continues to aggressively enforce anti-money laundering and other financial crimes laws.

The latest target? California’s biggest and oldest card club, Artichoke Joe’s.Continue Reading Anti-Money Laundering Update: California Card Club Clubbed by FinCEN for AML Violations

This Post at a Glance:

  • FinCEN imposes $2 million penalty against community bank
  • Bank failed to conduct appropriate due diligence related to Mexican customer
  • Small banks, other financial institutions need to recognize obligations under Bank Secrecy Act

On October 27, 2017, the U.S. Financial Crimes Enforcement Network (FinCEN) announced a $2 million fine against Lone Star National Bank, an independent community bank in Texas, for “willfully violating” anti-money laundering (AML) requirements of the Bank Secrecy Act (BSA).  FinCEN, which is part of the U.S. Treasury Department, has a primary role in safeguarding the U.S. financial system against money laundering and other illicit uses.Continue Reading Anti-Money Laundering Update: FinCEN Makes Small Texas Bank Pay Big Fine for Violating Bank Secrecy Act

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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