Corporate compliance
Companies need to comply with a myriad of regulatory regimes: anti-corruption compliance; anti-money laundering; foreign corrupt practice act; anti-fraud; integrity compliance programs
Sanctions Against Russia: U.S. Lawyers, Accountants and Consultants
U.S. sanctions against Russia have gone beyond traditional asset freezes and financial prohibitions. Since 2022, they reach deeply into the realm of services, including accounting, legal, and management consulting. For U.S. professionals, this means that what used to be routine international work – corporate formation, strategic consulting, tax planning, or even remote advisory sessions – may now expose a firm to serious civil and criminal penalties under U.S. law. The sanctions landscape has transformed the way American professionals engage internationally. Where once cross-border consulting and accounting were routine, they now demand legal precision, due diligence, and ethical clarity. For U.S. law, accounting, and consulting firms, caution is not optional – it is the only compliance strategy that works.
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Avoiding World Bank Sanctions: A Guide for Businesses
World Bank sanctions can be a death sentence for businesses involved with the Bank or other development institutions. To protect your operations, it's crucial to take proactive steps to avoid these sanctions. This article provides a breakdown of key measures to keep your business in the clear.
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World Bank Sanctions: When INT Knocks on Your Door
Winning a World Bank contract is no small feat. You’ve navigated a challenging procurement process and committed to upholding the Bank’s stringent ethical standards to safeguard the integrity of the process to obtain and implement the project. You’ve read the latest World Bank procurement regulations for investment project financing, and particularly the World Bank Group’s Sanctions Framework. You’ve pledged to steer clear of corrupt, fraudulent, collusive, or coercive practices. But what happens when the Integrity Vice Presidency (INT) comes knocking? An investigation into your contract can be a daunting turn of events. Understanding the World Bank’s Sanctions System (WBSS) is crucial for anyone working with World Bank-funded projects. This article breaks down the essentials of the World Bank’s…
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Beneficial Ownership under the Corporate Transparency Act: Substantial Control
Unless your company is exempt, you need to file a beneficial ownership information report with FinCEN. This article explores who qualifies as a beneficial owner under the Corporate Transparency Act. According to the CTA, a beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25% of a reporting company’s ownership interests.
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Corporate Transparency Act: Every Small Business Owner Needs to Read This
The Corporate Transparency Act (CTA) went into effect on January 1, 2024. Over 30 million small businesses will be required to file beneficial ownership information with the U.S. government’s Financial Crimes Enforcement Network (FinCEN). This article highlights which companies are the reporting companies required to disclose beneficial ownership information; what information needs to be disclosed; and who qualifies as a beneficial owner. The article describes the stringent penalties that may be imposed on small business owners who fail to comply with the CTA.
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Small Businesses Required to Disclose Ownership: Corporate Transparency Act
Some owners of small businesses want to keep their ownership anonymous for various reasons. That just got a lot harder. The trend in many states is to require disclosure. Just last year, the District of Columbia joined other states in enacting legislation requiring the disclosure of beneficial ownership. Other states like Delaware have resisted the change. Now the federal government has entered the fray with the enactment of the Corporate Transparency Act (CTA). If you are a small business or if you are a small business lawyer assisting a small business, you definitely want to familiarize yourself with the CTA. Under the CTA, small business will have to submit beneficial ownership information to the Department of the Treasury’s Financial Crime Enforcement Network. The information will not be available to the general…
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DOJ Provides Guidance on Anti-Corruption Compliance Programs
The DOJ on June 1, 2020 issued a revision to its Evaluation of Corporate Compliance Programs. The new DOJ Guidance provides companies general principles and elements to consider when designing, implementing, and updating their compliance policies and procedures. The DOJ explains that the purpose of the new guidance is to assist prosecutors in making informed decisions whether and to what extent the company’s compliance program was effective at the time of the offense, and is effective at the time of a charging decision or resolution. Prosecutors can then use the guidance to determine the appropriate (1) form of any resolution or prosecution; (2) monetary penalty, if any; and (3) compliance obligations contained in any corporate criminal resolution.
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Anti-Corruption Compliance Programs
Formulating policies and procedures is a critical step in building your business. These policies and procedures may be found in an employment manual or a compliance program. Every business and especially those doing business overseas should have an anti-corruption compliance program. This article provides an overview of anti-corruption compliance programs. Anti-corruption programs are quickly becoming part of the compliance landscape for U.S. companies, regardless of size and even those who have little foreign activity.
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Business Acquisitions in US: CFIUS Reviews Expanding
If you are a foreign company and have loads of money to purchase a U.S. business, the U.S. has generally welcomed your foreign cash. But there are limits regarding the kinds of businesses foreign companies are allowed to acquire. This article provides an overview of The Committee on Foreign Investment in the United States (CFIUS) and its role in reviewing transactions in which a foreign company is buying an interest in a U.S. company. The number of transactions that have to comply with CIFIUS’s notice requirements has increased significantly in recent years and the trend is expected to continue.
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Sanctions Against Russia: Secondary Sanctions
You are a business in the United States, and you are about to do business with a Russian company. Caution! Let’s say you find out that your erstwhile business partner is on the Specially Designated Nationals List (SDN List). Or you find out that your foreign business partner is owned by an individual or company on the SDN List. You need to consult with a sanctions attorney. This article reviews some of the options you have available to you and discusses possible consequences if you are caught violating the sanctions regime.
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