Current Developments in AI and Risk Management with Christian Focacci

Are your trade compliance programs truly airtight - or are they just good enough to get caught? In this episode, Michael breaks down why tariff and trade violations are now squarely on DOJ’s radar, and why the heat is rising fast for importers, especially those dealing with Chinese goods. With enforcement priorities shifting, companies are at increased risk of both regulatory investigations and full-blown criminal prosecutions. This episode is a wake-up call for compliance professionals and legal teams - if you think tariff enforcement is still a civil issue, think again.You’ll hear him discuss:Why Customs and Border Patrol and Homeland Security Investigations are stepping up referrals and actionsHow companies try to gain a competitive advantage by evading tariffs - and why it’s an “inevitable result” regulators are watching closelyThe most common tariff evasion schemes, including misclassification under HTS codes, transshipment, undervaluation, and false certification of originWhy importing from China under Section 301 is now considered a high-risk activityThe specific risks surrounding steel and aluminum imports under Section 232 tariffsExamples of recent DOJ cases, including plywood, flooring, and mosaic tile fraud, and what they signal for future enforcementHow AI and data analytics are being used by investigators to spot anomalies and build casesThe difference between Section 301 and 232 tariffs - and how they reflect different policy objectivesHow rising tariffs and fewer exclusions under the Trump administration are reshaping the trade compliance landscapeThe statutes DOJ is using for criminal charges, including 18 U.S.C. §§ 371, 545, and 1341ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Has the pendulum swung back on FCPA enforcement - and will companies be ready when it hits? Is the DOJ’s renewed push on FCPA enforcement a strategic shift - or just old wine in a new bottle?In this episode, Michael discusses the return of the Justice Department to the FCPA enforcement arena. In a significant development, DOJ announced the resumption of FCPA enforcement, accompanied by a new set of enforcement guidance principles. This guidance is more than policy - it’s a statement of priorities and strategy that will shape how FCPA investigations and prosecutions unfold. While the number of attorneys in DOJ’s FCPA Unit has declined, U.S. Attorneys' Offices across 94 districts now have increased authority to investigate and prosecute FCPA cases with less oversight. The result? Potentially broader, faster, and more decentralized enforcement. As always, the devil is in the details - and the June 9 DOJ FCPA Guidance Memo delivers plenty.You'll hear him discuss:DOJ’s renewed emphasis on prosecuting individuals over corporations, especially when misconduct can’t be directly linked to senior leadershipHow companies may now have stronger arguments to avoid liability if the wrongdoing is isolated to a small groupExpanded autonomy for U.S. Attorneys’ Offices and what this means for enforcement volume and consistencyThe DOJ’s prioritization of cases that directly impact U.S. national interests and corporate competitivenessIncreased scrutiny of links to cartels and transnational criminal organizations, including risks hidden in supply chains and third-party relationshipsThe push for faster, more efficient investigations to avoid the years-long white-collar case backlogGuidance on when facilitating payments, gifts, or travel fall under FCPA exceptions - and why these rarely matter in major prosecutionsWhy cooperation, early disclosure, and individual accountability may now be companies’ best bet for avoiding charges altogetherThe DOJ’s sharpened focus on national security sectors like defense, critical infrastructure, and technologyResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Is AI a magic bullet - or just another tool in the compliance toolkit?What really happens when you let algorithms near your risk decisions?In this episode of Corruption, Crime and Compliance, Christian Focacci, founder and CEO of Threat.Digital, returns for a thoughtful and highly practical conversation about the state of artificial intelligence in compliance and third-party risk management. Christian’s platform is at the forefront of using large language models and real-time data to transform how companies identify and manage risk - without losing sight of the human judgment that still needs to guide every decision. He and Michael explore what's changed in the AI landscape over the past year, what’s misunderstood about the technology, and how compliance teams can strike the right balance between innovation and accountability.You’ll hear them discuss:Why Christian believes you shouldn’t use AI unless it’s truly the right tool for the job, and how this philosophy shapes how Threat.Digital builds and deploys its systemsWhat large language models actually are, how they function under the hood, and why most people fundamentally misunderstand how they learn and process informationThe growing demand for corporate AI governance, how some risk committees are creating unnecessary delays, and why many internal processes are still focused on the wrong questionsHow Threat.Digital uses AI to reduce noise in due diligence, replacing bloated, unfiltered search results with clear, high-quality summaries supported by verifiable sourcesWhy the real power of AI isn’t about replacing humans, but about expanding what can be reviewed - moving from 10 data points to 10,000, while helping compliance professionals focus only on what mattersThe future of due diligence: chaining AI tasks to build multi-layered investigations that trace ownership, pull third-party records, and surface hidden risks in real timeHow AI is revolutionizing name screening and sanctions checks by eliminating irrelevant fuzzy matches, freeing teams from chasing meaningless alerts and allowing them to act on true risks with confidenceResourcesChristian Focacci on the Threat.Digital | LinkedIn | Email: [email protected] Volkov on LinkedIn | TwitterThe Volkov Law Group

What if your trade compliance misstep became tomorrow’s federal prosecution headline? In this episode, Michael Volkov issues a powerful warning to corporate leaders and compliance professionals: the DOJ is no longer treating trade violations as minor infractions—they're targeting them as fraud under the False Claims Act. With trade compliance now framed as a national security issue, this administration is on a mission to protect domestic industries and punish companies that cut corners. If your organization engages in international trade—especially with China—this episode is a must-listen.You’ll hear him discuss:Why corporate leaders should not confuse the pause in FCPA enforcement with a wider drop in corporate prosecutions, as the DOJ is intensifying its focus on other high-risk areas like customs and trade complianceHow the False Claims Act is being used to prosecute companies for tariff evasion, misclassification of goods, and country-of-origin fraud, creating major new exposure for import-heavy businessesThe administration’s positioning of trade compliance as a national security priority, which signals tougher penalties and more aggressive enforcement tacticsExamples of recent DOJ cases, including multimillion-dollar settlements with Barco Uniforms, International Vitamins Corporation, and Danco Laboratories, that highlight how quickly companies can become targetsThe expanding role of whistleblowers under new DOJ incentives, making it more likely that internal missteps will be reported and investigatedWhy supply chains involving China and other flagged jurisdictions are under heightened scrutiny, and how companies can prepare for increased oversightThe risks of becoming a public example of trade fraud, and the steps companies should take now to stay ahead of enforcement and protect their brand and bottom lineResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Is your company ready to bet its future on whether it can outpace a whistleblower to the DOJ’s door? In this episode, Michael Volkov takes a deep dive into the Department of Justice’s newly announced strategy to reshape corporate enforcement. With promises of greater clarity, reduced penalties, and fewer monitors, the DOJ wants companies to see voluntary disclosure as a smart and safe move - not a leap of faith. But behind the incentives lies a sharper edge: whistleblowers, shortened timelines, and a more assertive DOJ ready to move fast. Whether you’re in-house counsel, a compliance officer, or just trying to stay ahead of enforcement trends, this is a must-listen breakdown of what’s changed, why it matters, and what companies need to do now to avoid being caught off guard.You’ll hear him discuss:How companies that voluntarily disclose, cooperate, and remediate can now qualify for a declination, even with aggravating circumstancesWhy the DOJ is promising greater transparency and fairness in enforcement to reduce fear and uncertainty around self-reportingWhat changes have been made to limit when corporate monitors are imposed, and how DOJ will control their cost and scopeHow the whistleblower program has been significantly expanded to include sanctions, tariffs, trade violations, and federal program fraudWhat benefits may still be available for companies that report after DOJ has begun an investigation, including reduced fines and no monitorshipWhy DOJ is pushing prosecutors to shorten the length of corporate investigations and avoid drawn-out resolutionsWhat’s at stake if a whistleblower reports first, and how companies could lose access to key benefits by waiting too longResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

What happens when the world’s most influential anti-bribery law is abruptly paused? Is transparency merely a compliance box-tick—or the most powerful tool we have against global threats like kleptocracy, sanctions evasion, and illicit finance? In this eye-opening episode of Corruption, Crime, and Compliance, Michael Volkov is joined by two powerhouse experts in the global fight against corruption: Scott Greytak and Josh Birenbaum (*see ‘’About Guests below). Together, they break down the sweeping implications of the U.S. government’s pause on Foreign Corrupt Practices Act (FCPA)enforcement, the gutting of the Corporate Transparency Act (CTA), and what all of this means for business leaders, policymakers, and the international community.When the United States hit pause on FCPA enforcement, the global anti-corruption landscape shifted. Scott and Josh explore how companies are reacting, how allies are stepping up enforcement, and why transparency is emerging as a national security imperative. They offer a forward-looking conversation filled with insights for compliance professionals, risk officers, and anyone committed to ethical business in a volatile world.You’ll hear them discuss:Why the U.S. government's pause on FCPA enforcement shocked the global anti-corruption community—and why companies should still stay the course with compliance regardless of political signals.How the Corporate Transparency Act, once seen as the most significant U.S. anti-money laundering law in a generation, has been quietly gutted—leaving a dangerous gap in the fight against shell companies and financial crime.What it means that U.S. companies are now incentivized to form anonymously domestically to avoid ownership disclosure—inviting kleptocrats, traffickers, and foreign adversaries to hide in plain sight.Why global businesses must prepare for a sharp rise in trade compliance enforcement, as tariffs, export controls, and sanctions take center stage in economic security—and why transparency is essential to managing these risks.How foreign enforcers, especially in Europe, are beginning to step up—but why no alliance or coalition can truly fill the vacuum left by a retreating United States.What makes transparency not just a compliance tool, but a weapon against geopolitical threats—from Xinjiang’s forced labor camps to Russian shadow fleets and fentanyl trafficking.How transparency can be hardwired into foreign aid policy to protect U.S. taxpayer money, prevent narco-state development, and give American businesses a fair shot abroad.Why there’s still hope—from new bipartisan support for anti-corruption measures to the emergence of a national security lens on transparency across Congress, federal agencies, and the private sector.About GuestsScott Greytak is an anticorruption attorney and the Director of Advocacy for TI US. His work focuses on designing anticorruption laws and policies, organizing and leading ideologically inclusive coalitions, and lobbying the U.S. Congress and administration. Greytak was named a Top Lobbyist in 2021, 2023, and 2024 by the National Institute for Lobbying & Ethics. Josh Birenbaum is the deputy director of FDD’s Center on Economic and Financial Power, focusing on illicit finance risks and global corruption. Previously, Josh was the research and policy analyst at TRACE International, producing articles, book chapters, op-eds, model policies, industry reports, and speeches on sanctions, export controls, corruption, conflict minerals, money laundering, human rights, illicit finance, and other topics. ResourcesScott Greytak on LinkedIn | Email - [email protected] Birenbaum on LinkedIn | Email - [email protected] Volkov on LinkedIn | TwitterThe Volkov Law Group

What if your next import shipment becomes the centre of a federal enforcement action — not because of criminal intent, but because of a mistake? In today’s episode, Michael Volkov breaks down the expanding power and reach of U.S. Customs and Border Protection (CPB) and what it means for businesses navigating an increasingly aggressive trade enforcement landscape. With the Trump Administration’s re-defined objective of fair trade, companies across all sectors need to brace for scrutiny, adapt to evolving risks, and rethink their compliance strategies.You’ll hear him discuss:The Trump Administration’s focus on fair trade and why CPB has become a central enforcement agency under this new agendaHow CPB exercises its authority to impose regulatory penalties, seize goods, and refer serious cases for civil or criminal prosecutionThe legal standards that determine the severity of violations — fraud, gross negligence, or negligence — and how each carries different penalty thresholdsWhy the materiality of a false statement or omission is a key factor in determining whether a violation has occurredThe importance of voluntary disclosure and how it can significantly reduce potential penalties and protect company reputationThe step-by-step process of CPB administrative enforcement, including investigations, pre-penalty notices, appeals, and mitigation optionsThe expanding impact of the Enforce and Protect Act (EAPA), and how companies can be held accountable for evading anti-dumping and countervailing dutiesWhy businesses must now take a closer look at their import documentation, supply chain practices, and overall trade compliance postureResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Are you running a compliance program that’s making a real impact—or just checking the boxes? In this episode, Michael Volkov dives into LRN’s 2025 Program Effectiveness Report, an annual benchmark that separates the truly impactful compliance programs from those that are merely operational. Based on insights from 1,500 global ethics and compliance professionals, this year’s report draws a clear line between high-impact and medium-impact programs—and what it takes to bridge the gap. The conversation highlights urgent risks, cultural disconnects, and the strategic value of automation, data, and leadership alignment in shaping tomorrow’s compliance functions.You’ll hear him discuss:How high-impact programs are defined by their strategic use of automation, data analytics, and benchmarking tools to drive measurable compliance outcomesWhy third-party risk management—including due diligence and supply chain oversight—is a defining trait of the most effective programs todayThe growing trust gap between Gen Z employees and middle managers, and why this generational shift poses a cultural red flagThe continued dominance of outdated internal systems, regulatory complexity, and budget pressure as top operational challenges facing compliance leadersHow high-impact programs are integrating AI into both their codes of conduct and employee training, preparing teams for emerging tech risksWhat medium-impact programs can do to evolve: focus on training, automation, and peer collaboration to elevate impact and resilienceResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

When The United States has hit pause on Foreign Corrupt Practices Act (FCPA) enforcement—it left many asking whether Europe will now be stepping up to lead the global anti-corruption charge. In this episode of Corruption, Crime and Compliance, Michael Volkov explores how European prosecutors are responding to the enforcement gap, why multinational companies can’t afford to slow down their compliance efforts, and how both state-level and international initiatives are reshaping the future of anti-bribery law.You’ll hear him talk about:The launch of a new International Anti-Corruption Prosecutorial Task Force formed by the UK, France, and Switzerland, designed to intensify cross-border enforcement and cooperation in bribery and corruption cases.The task force’s formation as a direct response to the U.S. enforcement pause, signaling that European agencies are prepared to take a more prominent role in prosecuting international corruption, especially involving multinational corporations.California’s bold move to pursue foreign bribery under its Unfair Competition Law (UCL), reinforcing that FCPA violations remain prosecutable at the state level despite federal hesitation.A continued commitment by global companies to maintain strong compliance programs, reflecting awareness that international and local enforcement can still pose serious legal and financial risks.The unexpected dismissal of the long-running FCPA case against Cognizant executives, contrasted with the DOJ's decision to move forward with prosecutions in other high-profile cases, suggesting a selective enforcement pattern under current policy shifts.A landmark case by the UK Serious Fraud Office (SFO), charging a company with failure to prevent bribery—a first for the SFO to bring such a case before a jury, potentially setting a new standard for corporate liability in the UK.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group

Could your routine data transfers now violate federal law? The DOJ’s new Data Security Program (DSP) targets the flow of U.S. sensitive personal and government data to foreign adversaries — and the clock is ticking. In this episode of Corruption, Crime and Compliance, Michael Volkov breaks down the Justice Department’s sweeping new Data Security Program, enacted under Executive Order 14117 and finalized in January 2025.You’ll hear him discuss:The origins of the DSP, created through Executive Order 14117 under the Trump Administration, and the key national security concerns it addresses.What constitutes a “covered data transaction” and the thresholds for U.S. personal and government data that trigger compliance obligations.The list of “countries of concern” and what it means for companies doing business with entities tied to these regions.The types of U.S. data covered by the DSP, including biometric, genomic, financial, and geolocation data, and the specific quantity thresholds that trigger restrictions.Why data brokerage and bulk human genomic data transactions are prohibited outright, raising new compliance challenges for affected industries.How “restricted transactions” like cloud computing services and vendor agreements are subject to conditional exceptions under the DSP.The critical actions U.S. companies must take during the 90-day enforcement hiatus, including vendor assessments, renegotiations, and compliance system updates before the July 8th deadline.ResourcesMichael Volkov on LinkedIn | TwitterThe Volkov Law Group