Terrorism Designations of Mexican Cartels Fundamentally Enhances Risk for All Companies

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this episode of ‘All Things Investigations,’ host Tom Fox is joined by Mike DeBernardis to discuss the recent guidelines released by Deputy Attorney General Todd Blanche on the enforcement of the Foreign Corrupt Practices Act (FCPA). They dissect the new memorandum, its implications for corporate investigations, and the focus on eliminating cartels and transnational criminal organizations. The conversation also delves into topics such as competitive advantage, the role of national security in FCPA enforcement, and the strategic implications for companies. The episode concludes with insights on how companies and their legal counsel should navigate these updated guidelines and prepare for a more expedited and focused investigation process. Key highlights: Overview of New FCPA Guidelines Focus on Competitive Advantage Prosecutorial Considerations National Security and Strategic Business Prioritizing Serious Misconduct Advising Clients on FCPA Compliance Resources: Mike DeBernardis Hughes Hubbard & Reed website HHR Client Alert: DOJ Ends FCPA Enforcement Pause

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR lawyers Mike DeBernardis and Katherine Taylor about the recent speech by Matthew R. Galeotti, Head of the Criminal Division at the U.S. Department of Justice (DOJ);  his attendant Memo entitled Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime; and the updates to the Corporate Enforcement and Voluntary Self-Disclosure Policy; and finally the new Memo on Monitors and Monitorships. Key highlights: Is meaningful cooperation credit finally here? Did we move from a presumption of a declination to something stronger or at least more tangible? Is the Kenneth Polite “double secret—we know it when we see it” cooperation requirement now a thing of the past, or at least defined? Enhancements to the Whistleblower Program—Initial Thoughts. Monitors—dead and gone or something else? What, if anything, does this change about the role of corporate compliance today? Resources: Mike DeBernardis Hughes Hubbard & Reed website Katherine Taylor

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR lawyers Mike DeBernardis and Sean Reilly to discuss the new HHR Task Force. In this award-winning All Things Investigations podcast episode, host Tom Fox converses with Hughes Hubbard and Reed partners Mike De Bernardis and Sean Reilly about the firm’s strategic reorganization. Responding to the U.S. administration’s fresh focus on cartels and foreign terrorist organizations, Hughes Hubbard has built a cross-disciplinary task force. This team combines expertise from compliance, sanctions, and dispute resolution practices to address companies’ heightened risks and compliance obligations, particularly in Mexico and Latin America. The discussion also covers implications for multinational corporations, the importance of reassessing risk, how the administration’s prioritization of certain enforcement actions can influence corporate strategies, and the emerging dangers surrounding tariffs and the False Claims Act. Key highlights: Hughes Hubbard’s New Task Force Implications of Cartel Designations National Security and Voluntary Disclosure Cross-Functional Task Force Benefits Tariff Evasion and False Claims Act Resources: Mike DeBernardis Hughes Hubbard & Reed website Sean Reilly

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR partner Mike DeBernardis on the considerations of trying an FCPA case. Tom and Mike deeply dive into the complexities of preparing for and trying an FCPA case. It includes negotiating with corporate and individual clients involved in criminal cases. It is often easier to convince corporate clients to cooperate with government entities and engage in negotiation processes. Conversely, individual clients, driven by strong convictions of their innocence, can be resistant unless negotiation results in a non-prosecution decision. We highlight the challenging conversations defense counsels must have with individual clients regarding realistic outcomes, including discussing the strengths of the prosecution’s case and potential plea deals. Establishing early discussions about acceptable outcomes and strategies is vital to navigating these difficult negotiations. Key highlights: Corporate vs. Individual Clients Challenges in Defense Counsel Discussing Plea Deals Importance of Early Negotiation Resources: Mike DeBernardis Hughes Hubbard & Reed Website

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by Jeremy Paner and Diego Durán de la Vega to discuss the designation of cartels and other actors in Mexico as foreign terrorist organizations and what this means for US businesses. This episode considers the significant compliance regulation changes affecting US domestic and Mexican companies. The focal point is the recent designation of cartels and their members as Foreign Terrorist Organizations (FTO) and/or Specially Designated Global Terrorists (SDGT). Unlike in the past, where counter-narcotics sanctions had a limited impact on day-to-day business operations, these new rules introduced a different risk landscape. The spotlight is not simply on the widely-publicized foreign terrorist organizations but rather on the lesser-known yet impactful, specially designated global terrorist (SDGT) actions. These SDGT designations empower the US Treasury’s terrorist finance tracking program, effectively increasing surveillance on Mexican payments, thus posing new challenges and risks for domestic companies. Key highlights: Introduction to New Rules Impacting US Companies Impact on Domestic Mexican Companies Terrorism Designations and Their Implications Treasury’s Terrorist Finance Tracking Program Resources: Jeremy Paner Diego Durán de la Vega Hughes Hubbard & Reed website Designation of Criminal Cartels as Foreign Terrorist Organizations Increases Compliance Risks for Companies (US or Not) Operating in Mexico and Greater Latin America

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR Partner Mike DeBernardis to discuss the recent executive order by the Trump administration to pause the enforcement of the Foreign Corrupt Practices Act (FCPA) for 180 days. They take a deep dive into the potential implications for compliance programs, the continuing relevance of the FCPA, and the broader legal and business effects of this temporary halt. The conversation also explores how companies might navigate this hiatus, consider the long-term implications, and maintain robust compliance standards despite the pause in enforcement. Highlights include Mike’s insights on the intersection of compliance and business efficiency and the potential for non-US authorities to fill any enforcement void created by the U.S. Department of Justice’s pause. Key highlights: Executive Order on FCPA Enforcement Implications for FCPA Compliance SEC and Business Implications Compliance Programs and Business Practices Future of FCPA Guidance Opportunities for Compliance Officers Resources: Hughes Hubbard & Reed website

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR Partner Mike Huneke and Brent Carlson from the Berkeley Research Group. Brent Carlson and Mike Huneke review the recent DeepSeek AI announcement, which has stirred significant debate in the business and compliance sectors. Brent views this development as a “Sputnik moment” in the technology space, highlighting both the exciting potential and the profound implications for national security and corporate strategy, particularly due to the dual-use nature of AI technologies. On the other hand, Mike has expressed concern over the contentious debates surrounding export controls, emphasizing the necessity for robust compliance frameworks to mitigate liability risks and adapt to the evolving AI landscape. Together, they stress the importance of incorporating high probability standards and reliable inputs into compliance programs to effectively navigate the complex challenges of advanced AI technologies like DeepSeek, ensuring corporate citizenship and strategic advantage in this new era. Key highlights: Groundbreaking AI Progress Raises National Security Concerns AI Market Disruption by DeepSeek Technology High Probability Standard in Export Control Compliance Subjective Judgment in Compliance Risk Assessment Framework Red Flag Detection with Data Analytics Tools Resources: Hughes Hubbard & Reed website Brent Carlson on LinkedIn A Fresh Look at US Export Controls and Sanctions DeepSeek Finds US Export Controls at a New ‘Sputnik Moment’ in Bloomberg Law

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by Sean Reilly to explore the Nippon Steel/US Steel transaction. We begin with an in-depth explanation of the Committee on Foreign Investment in the United States (CFIUS) and its role in scrutinizing foreign transactions for national security risks. The conversation highlights the complex and detailed CFIUS filing process, stressing the importance of early compliance counsel involvement to avoid potential roadblocks. The discussion extensively covers the Nippon Steel and US Steel transactions, pointing out key developments and underlying political influences and analyzing how President Biden eventually barred the potential acquisition. In an addendum, the conversation also touches on recent changes under the Trump administration, emphasizing the need for companies and compliance officers to adapt dynamically amidst rapidly evolving regulations. Sean advises on practical steps for businesses considering transactions that might trigger CFIUS involvement, underscoring the importance of engaging with the committee early and thoroughly. The episode is an essential guide for corporate compliance professionals navigating the complexities of cross-border transactions and national security considerations. Key highlights: Understanding CFIUS Nippon Steel and U.S. Steel Acquisition CFIUS Concerns and Political Implications Advice for CFIUS Compliance Developments under Trump and Future Outlook Resources: Hughes Hubbard & Reed website Sean Reilly

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast All Things Investigation. In this podcast, host Tom Fox is joined Mike Huneke to explore the impact of the recent election on corporate compliance and enforcement.  Key topics include the continuity of corporate enforcement, the focus on national security in anti-corruption efforts, and the implications of U.S. policies on business operations in China. The dialogue also highlights the importance of a holistic and multidisciplinary approach to risk management and the need for corporations to proactively engage in public policy discussions. Through detailed analysis and real-world examples, Mike provides a nuanced perspective on how businesses can navigate the evolving regulatory environment. Key Highlights ·      Corporate Enforcement Trends ·      FCPA Enforcement Policies ·      China Policy and Business Implications ·      Holistic Risk Management Framework ·      Proactive Public Engagement Resources: Hughes Hubbard & Reed website  Mike Huneke

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. This week, we will feature five lawyers from HHR to introduce the firm’s always popular and annual FCPA and Anti-Bribery Alert. In part 5 of the 5-part series, host Tom Fox is joined by Sam Salyer on some key trends and highlights in enforcement and compliance from 2024. Tom and Sam explore the smaller number of corporate enforcements and the significance of four individual trials, including the notable Myrta and Aguilar cases. Sam elaborates on the DOJ’s updated Evaluation of Corporate Compliance Programs (ECCP), emphasizing the importance of emerging risks and technology. They also delve into the DOJ’s new whistleblower program, its implications for internal compliance professionals, and the potential effects of the recently signed Foreign Extortion Prevention Act. This episode is a comprehensive wrap-up for compliance officers and legal professionals aiming to stay ahead in 2024. Key highlights: Enforcement and Compliance in Brazil Enforcement in France and the Success of the Paris Olympics in Compliance ESG for US companies under the Trump Administration Resources: Hughes Hubbard & Reed website 2024 Fall FCPA and Anti-Bribery Alert Sam Salyer