MANAGING COMPLIANCE RISKS FOR INTERNATIONAL BUSINESS NETWORKS COURSE OUTLINE Week 1: Intrductin: Hallmarks f a glbally respnsible business enterprise: Emerging cnsensus: study and cmparisn f US and OECD guidelines fr internatinal business cnduct The ethics prgram: Department f Cmmerce Manual and advice frm leaders f industry Cmpliance as a lng-term business strategy Discussin: hw t frmulate a business identity predicated n values Week 2: Freign Crrupt Practices Act ( FCPA ): Part I -- Anti-bribery prvisins: Overview f glbal effrts t cmbat bribery: the FCPA, the OECD Anti-bribery Cnventin and the UK Bribery Act The FCPA anti-bribery prvisins: in-depth review f the Department f Justice ( DOJ) and Securities Exchange Cmmissin ( SEC ) Guidelines What is cvered? Wh is cvered? Extraterritrial applicatin f the FCPA: Territriality and natinality dctrines: critical evaluatin f the DOJ/SEC expansive view f jurisdictin Effect f the principles f agency and cncert f actin in extending jurisdictin Discussin: rle f anti-bribery laws in creating a level playing field in glbal cmmerce Week 3: The FCPA: Part II -- Accunting prvisins DOJ/SEC Guidelines:
2 What is cvered? Wh is cvered? Issuers bligatin t cmpel minrity-wned subsidiaries and jint venture partners t cmply with the FCPA accunting prvisins Interplay with Sarbanes Oxley ( SOX ): Enhanced accuntability f senir management Management s duty t reprt n the adequacy f accunting cntrls f subsidiaries and jint venture partners Emergence f unifrm internatinal financial reprting standards Case study: FCPA/SOX-related cmpliance issues arising ut f internatinal mergers and acquisitins Week 4: The FCPA: Part III -- Enfrcement Mitigating the risk f an enfrcement actin Hw t build an effective cmpliance prgram: review f DOJ/SEC Guidance and private sectr slutins, fcusing n the rle f senir management Other mitigating factrs: DOJ/SEC Guidance Discussin: hw the structural design f verseas peratins impacts FCPArelated cmpliance risks Csts f nn-cmpliance: DOJ/SEC guidance n civil/criminal penalties and reslutins Anatmy f a FCPA enfrcement actin frm investigatin t settlement Tp ten fines/settlements Ptential civil liability t sharehlders: Case study f Avn Incidental csts: attrneys fees, damage t reputatin and disruptin f business peratins case study f Walmart Week 5: Freign Agents Registratin Act ( FARA ) and related legislatin
3 FARA Statutry prvisins Definitin f agent : analysis f the pinin in Irish Nrthern Aid Cmmittee Exemptins: Cmmercial activity Representatin by an attrney Case study: when the lines between cmmercial activity and plitical activity becme blurred Related Statutes 18 U.S.C. 951 (bligatins f agents f freign gvernments) Lbbying Disclsure Act ( LDA ) (gverning lbbying activities n behalf f dmestic and freign interests) 18 U.S.C. 219 (US fficials: prhibitin against acting as agents f freign principals) Week 6: US Exprt Cntrls - Part One: The Exprt Administratin Act ( EAA ) Overview f the US exprt cntrl regime The EAA Statutry prvisins setting frth freign plicy and natinal security guidelines Scpe f delegatin f regulatry authrity t the executive branch: cnstitutinality, cnfrmity t internatinal law The Exprt Administratin Regulatins ( EAR ) Cmmerce Department Guidance Deemed Exprt Rule: implicatins fr research and training f freign persnnel Applicability f the vid-fr-vagueness dctrine: review f case law Week 7: US Exprt Cntrls: Part II: Enfrcement
4 Cmmerce Department Guidance: key elements f an effective exprt cmpliance prgram Fines, penalties, sanctins Arms Exprt Cntrl Act ( AECA ) and Internatinal Traffic in Arms Regulatins ( ITAR ) Treatment f cyber-technlgies: the case f clud cmputing Case study: Anatmy f an extraterritrial enfrcement actin U.S. v. Evans Case study: cnstraints n the transfer f technlgical knw-hw t freign individuals and business entities Discussin: d the benefits f having exprt cntrls justify their chilling effect n freedm f expressin? Week 8: Embarges: Part I Internatinal Emergency Ecnmic Pwers Act ( IEEPA ) Overview f the sanctins prgrams administered by the Office f Freign Assets Cntrl ( OFAC ) f the Treasury Department Cnstitutinal surces f executive pwer t impse sanctins: Dames & Mre, Amirnazmi Sanctins impsed under the IEEPA example f Iran: What is cvered? IEEPA, executive rder and OFAC regulatins Wh is cvered? Definitin f persns subject t the jurisdictin f the United States Case law and schlarly pinin n the presumptin against extraterritriality Case study: US v. Alikhani (abductin f freign businessman by custms agents fr vilating sanctins against Libya) Anatmy f a sanctins enfrcement actin Applicatin f principles f agency and cncert f actin t extend the reach f sanctins t cnduct verseas by nn-us persns Discussin: Supreme Curt s pinin in Alvarez-Machain Discussin: cmparisn f the extraterritrial applicatin f the IEEPA and the FCPA
5 Week 9: Embarges: Part II Secndary sanctins General secndary sanctins: The Iran Threat and Syria Human Rights Act f 2012( TRA ) Sectin 218: Extensin f sanctins t freign entities wned r cntrlled by a US persn Sectin 219: Issuers duty t reprt n their subsidiaries and affiliates dealings with Iran Interplay with Sarbanes Oxley ( SOX ) Case study: Practical implicatins f the TRA fr freign jint venture partners, distributrs and franchisees f US-based multinatinals and freign-based multinatinals listed n US stck exchanges Targeted secndary sanctins (banking and energy sectrs): Iran Sanctins Act f 1996 ( ISA ) Cmprehensive Iran Sanctins, Accuntability and Divestment Act f 2010 ( CISADA ) Iran Threat Reductin and Syria Human Rights Act f 2012 ( TRA ) Iran Freedm and Cunter-prliferatin Act f 2012 ( IFCA ) Discussin: Evlving legitimacy f secndary sanctins under internatinal legal principles Week 10: Embarges: Part III Exemptins, Enfrcement Exemptins: statutry and regulatry prvisins Fd Medicine Infrmatin materials Case study: Sale f genetically mdified seeds t Iran: establishing a lng-term presence in a sanctined cuntry Enfrcement: Statutry fines, penalties, sanctins Case studies f high-prfile settlements
6 Vicarius civil liability f U.S.-based businesses fr vilatins by freign subsidiaries and affiliates Case study: Managing sanctins cmpliance risks in the il and gas industry Week 11: U.S. Anti-Mney Laundering ( AML ) laws Currency and Freign Transactins Reprting Act (Bank Secrecy Act, r BSA ) f 1970, amplified by utilizatin f Suspicius Activity Reprts ( SARs ) frm 1996 n Mney Laundering Cntrl Act f 1986; 1992 Annunzi-Wylie Anti-Mney Laundering Act; Mney Laundering Suppressin Act f 1994 Title III f the Patrit Act: Internatinal Mney Laundering Abatement and Anti- Terrrist Financing Act f 2001 Week 12: Extraterritrial reach f US emplyment, antidiscriminatin, and securities laws T be cmpleted Week 13: Effective training and cmpliance prgrams General training f executives and senir management Special training f emplyees regarding FCPA, sanctins sanctins (recgnitin f sales patterns t flag suspect transactins; vetting f lcal partners) Due diligence preceding acquisitins, mergers, partnership cntracts, invlving freign cmpanies and US exprters Week 14: Effective training and cmpliance prgrams (cntinued) Training f freign subsidiaries and jint venture partners Available external tls: Transparency Internatinal annual Crruptin Perceptins Index, Bribe Payers Index, OFAC s Specially Designated Natinals ( SDN ) List Internal cmpliance; internal audits; external audits